HR scaling for Founders...Welcome to the Startup Journey

So, you've got a groundbreaking idea and a passionate team. Welcome to the exciting, unpredictable world of early-stage startups!

While your focus is on developing your product or service, one crucial element often gets overlooked: HR. Even if your “HR department” is just a shared Google Drive folder, laying the groundwork for strong people practices is vital to your success.

The Seed Stage Struggle: Hiring Beyond Your Inner Circle

At first, hiring can feel like assembling a group of friends who share your passion and vision. But as your startup grows, this informal approach can cause serious challenges, red flags to look out for:

🚨 The Generalist Dilemma – Early hires wear many hats, but as your company scales, you’ll need specialists with focused expertise.

🚨 The Culture Fit Trap – Hiring only like-minded individuals can stifle innovation and limit diverse perspectives.

🚨 The Compliance Oversight – Neglecting UK employment laws can lead to costly legal issues and operational risks.

Essential Steps for Startups

To avoid these pitfalls, here’s a simple HR roadmap to set your startup up for success:

1️⃣ Define Your Core Values

Identify the beliefs that will shape your company culture. Document them, communicate them clearly, and use them as a guide for hiring and decision-making.

2️⃣ Structure Your Hiring Process

Even a basic recruitment process can make a huge difference. Implement:

• Clear job descriptions

• A standardised interview framework

• Reference checks

3️⃣ Stay Legally Compliant

Work with an HR expert or legal professional to navigate UK employment laws, covering:

• Contracts

• Payroll

• Leave policies

Online HR platforms can also help streamline compliance and reduce admin headaches.

4️⃣ Build a Strong Company Culture

Culture isn’t just about free coffee and social events. Foster an inclusive and collaborative environment by establishing clear communication, shared traditions, and a strong sense of purpose.

🚀 Pro Tip: Hire a Fractional HR Expert

If hiring a full-time HR professional isn’t an option, consider a fractional HR consultant Like myself—an experienced HR expert who works with your startup on a part-time or project basis. This is a cost-effective way to gain strategic HR support without the commitment of a full-time hire.

Case review: One man and dog...

Let’s look at a real-life example that many startup founders will relate to (details anonymised for privacy).

Meet James

James, a driven founder, launched his tech startup from a shared workspace in Manchester. Initially, HR was informal—hiring via LinkedIn messages, team meetings over coffee, and policies scattered across emails.

But as the company grew, this casual approach started to unravel. Instead of focusing on scaling his business, James found himself:

• Navigating complex UK employment laws late at night

• Handling team conflicts without clear processes

• Struggling to retain top talent

When a key team member left unexpectedly, James realised he had no structured offboarding process, causing disruption and a dip in morale.

The Turning Point

James sought help from me fractional HR expert, who helped him: 

✅ Establish essential HR policies 

✅ Create an employee handbook 

✅ Implement a structured hiring framework

With these systems in place, James was able to focus on growth while ensuring his team felt supported and engaged.

Lessons...

Don’t let HR be an afterthought. Investing in people practices early—even with just part-time support—can save time, reduce risks, and position your startup for long-term success.

💬 Your Turn: What’s your biggest HR challenge as an early-stage startup in the UK? Share your thoughts in the comments—I’d love to hear from you!