Why small startups need an external HR service

Why small startups need an external HR service

It’s tough for the CEO of a small startup to start (up) thinking about HR and recruitment. Forgive the pun in parentheses. Between building a better product, earning the interest of investors and marketing a new brand, recruitment can easily fall through the cracks. But it shouldn’t. Recruiting the right people is essential to getting your product right and setting yourself up for future success, especially at this stage of your development. An external HR service can help you get better results and give you the magic ability to spend your time on other things.

Don't just hire your friends, get the most out of every open position

As CEO of a small startup, you probably find it tempting to rely on talking with friends who have the skills you need and reach out to other contacts in the industry for recommendations and going from there. Don’t get us wrong, this is a quick and effective method, but one that’s severely limited. Essentially, you’re only using one tool in an entire garage of tool boxes. A wrench can be very versatile, but it can’t fix everything. If you rely on friends and recommendations, you’ll quickly find yourself in need of more candidates, and an external recruiter can help. They know how to utilize every tool in the shed that can help meet your needs. The result is, well… a much better result. You may know someone capable of filling a position, but is that person really the best person for the job? And external HR services don’t only function as full-blown, full-time pedal-to-the-metal HR and recruitment departments. As a small startup, your initial needs are going to be focused on quality rather than quantity, onboarding the best talent possible in key positions. Using external HR services means you’re swimming in a wider pool of talent to choose from and effectively reaching candidates that fit your precise needs, wherever they may be found. This diversity means better candidates and better employees.

Employer branding

But external HR services aren’t just for putting a butt in the seat in the corner office. At least some of them also spend time focused on boosting your employer branding. And why is this important for a small startup? Employer branding helps you attract better talent and take it away from your competitors. You want to reach a point when people actively seeking you out to see if your company has any job openings and employer branding is the way to get there. By making an effort with employer branding, you improve your chances of finding great talent for the positions you currently have open, but you’re also building a foundation for the future. Every round of recruitment you go through should yield a longer list of candidates excited at the prospect of working for you. And employer branding feeds into your other branding and marketing efforts, giving you a positively-perceived persona and making your little startup highly competitive and attractive to job seekers, potential clients, and consumers alike.

Quote: You can get the best results from the get-go, when it's most crucial to fill open positions with the best talent in the market
Take the task off your plate

Perhaps the greatest concern for a startup CEO is time. You probably don’t feel like you have enough of it. No worries! Focus on investors, sales and all that other important stuff (don’t forget to have fun sometimes too!). An external HR service can take recruitment off your plate entirely, asking only for your overall guidance, approval and time to interview candidates. The value you can get from an external HR and recruitment service goes well beyond onboarding an individual or two. You save time and money while getting better results than you would on your own and laying the foundation for future success. Why limit yourself? With external services, you get the benefit of experience with a flexible, easy and professional solution from the get-go, when it’s most crucial to fill open positions with the best talent in the market. Then, when you’re ready to grow, these external experts will always be happy to help you take the next step.


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