Machine Learning

UI UX Design

Web App Development

Mobile App Development

Product Development

Offshore Partnering

The Important HR Policies For A Startup Company – On A Wider Note




April 8, 2020

Last updated: September 26, 2023

A close look into HR policies

The Important HR Policies For A Startup Company – A Closer Look

The HR department today has come a long way from operating in closed conferences to holding a remarkable place at the leadership table. It has also undergone dynamic shifts in its roles, functions, and in its overall impact in shaping organizations. Right from a start-up to a multi-million dollar enterprise, the need for a Human Resource (HR) department is very essential and undeniable.

As, it is the one that deliberates the code of conduct, procedures, and defines the work culture. Establishing the HR department at the early aids your company to be organized and stable throughout the progress and growth. It also helps to tackle the internal issues that are bound to crop up when you least expect them.

The important HR policies for a startup company or be any company create a sense of answerability and accountability while addressing the key issues. So, in this article let’s get into a detailed study on the important HR policies for a startup company and the essential needs to have an HR department.

The Real Need For The HR  Policies

Before getting started with the hr policies checklist, let’s see why the HR department and the policies are very essential for a concern. A startup on establishing an hr department gets to create clear and effective policies, analyze and plan the short-term needs and lighten the long-term risks. Solid HR policies deliver better employee experience and narrow down the company’s liability.

In many successful startups, the HR policies set out clear ground rules for employees and protect the rights of employers. Typically the last thing that comes to mind for an organization is the standard policies and procedures that are coined for different purposes. 

The important HR policies for a startup company basically ensure the businesses to be well equipped in order to handle any sort of workplace issues. Saying so, the HR policies and compliance don’t get limited just with the federal laws and with the external funding, rather it delivers a great experience advancing the ROI including employee productivity, company profit, employee experience, a great workplace to and drawing amazing talent to their ranks.

Startup To Kickstart Their HR Department

Well, to start an HR department the first thing that arises for most is the count of professionals required to make up the team. At the initial stage, it can be given a simple start with one HR professional, and later it can be expanded according to the demand and need.  For a better find, make sure they fall in place with respect to the following three aspects,

1. Should possess decent accounting knowledge in order to handle the payroll and other accounting stuff with ease

2. Should be able to gain trust and correlate with individuals of all the departments 

3. Should be able to understand the company goals so as to create the hr plans that exactly align with the company goals.

important hr policies

The Important HR Policies For A Startup Company

Organization Objective Plan:

It is not necessary that you should have a very detailed plan for the company even before you start but a basic plan will do its best at the initial stage. Later, it can be expanded and be made to act as a guideline in the later progressive stages of the organization.

Working Hours:

One of the most important hr policies for a startup company is to structurize and state the working days and timing policy for the company. The working hour policy of a company must be drafted in a way it governs the overtime, additional hours, work deadlines and it should be made in accordance with the working hours prescribed in the labor laws of India.  

Code of Conduct:

This code of conduct policy should state the behavior, that the employees should abide by and the business environment that has to be maintained at the workplace. This policy must also specify the method to report a violation of this code of conduct.

Leave Policy:

The leave policy of a company should include the terms regarding the number of leaves allowed annually along with the provisions that can be provided for maternity leave. It should also state the overall national holidays, sick leaves, and paid leaves granted to the employees. Additionally, the condition related to non-paid leaves taken by employees and the percentage of salary that will be deducted for such leaves must also be stated. 

Interpersonal Relationships:

It is very much needed for the HR department to state the company’s regulations with respect to interpersonal relationships and business interactions between employers and employees. The policy must define the role and responsibility of employees in higher designations, and their ability to inspire and control other employees.

Performance Management & Appraisal:

This policy should clearly state the methods to improve an employee’s performance with specific training, counseling, verbal and written practicing, etc. This performance improvement and appraisal policy of the company stands as one of the important hr policies for a startup company.

Probation Period:

This policy must state the probation time period and probation assessment procedure after which an employee may be hired as a permanent employee of the company. This policy is to increase credibility in the hiring procedure.

Intellectual Property:

This policy should hold the non-disclosure terms of a company’s confidential information and on the properties on which the employees get access to. This has to be mentioned in the contract of the employee and can get its employees signed the Non-Disclosure Agreement with all their willingness.

The HR Policies & Procedures – Benefits

– The important HR policies for a startup company or big are meant to avoid the conflicts that may arise between the employees and the management.

– These policies also act for the benefits of the employees by allowing them to take legal action against the employer who violates their own policies.  

– The important HR policies for a startup company ensures that all employees abide by the rules and also assures if the management consistently implements them. Thereby this eliminates the chances of discriminatory treatment within the workplace.

– It is also better to draft the HR policies of companies under the guidance of experienced employees and labor lawyers whom you can easily find in your network.


Hence, the HR department and the policies lay down an efficient strategy for developing, communicating, and executing a set of practices that reflect the company’s standards of satisfactory behavior. They put forth their workforce in a way that an employer and employee(s) together can achieve the company’s goals. So, the important HR policies for a startup company that is drafted in accordance with the company’s objectives along with the assistance of an employment and labor lawyer give the company a successful start in a long run.

Related Articles

field image

To run a  business successfully one needs to concentrate on their best, renting employees or outsourcing a separate team for the rest important factors has been a trend. Opting a separate team to bring revenue, new customers or for developing their product has eased the work of an entrepreneur.




18 Oct 2021

field image

Let’s consider the average salary of those employees is $47,000 and the cost of employee disengagement costs you around $ 3,164,040.




22 Jan 2021

field image

Technology never graphs down its need and demand for all business functions. Moreover, as learning from the year gone the new technology adoption challenges are to be dealt with more knowledge and awareness than ever before.




18 Jan 2021

field image

Despite all hardships, being grateful is what’s really difficult. Let’s choose to take the fond memories, the self-discoveries, heartfelt struggles that made us stronger, braver with us.




30 Dec 2020

field image

What a year it has been! On one hand, challenging and exhausting yet also refreshing and rewarding and a lot more. This article is all about sharing the memories made and experiences drawn out for a lifetime. There is no denying the fact that 2020 thought it’s way outside the box, and gave us all a memorable year […]


Lepanto Fernando L

22 Dec 2020

field image

The voice tech has come a long way from having to pronounce every single syllable to understand even the humming sound of us. In any consumer-facing technology, there always prevails a gap between the vision of the makers and the perception of the market, in that way the voice assistant technology makes a significant bridging.




05 Nov 2020

Let's Start A Conversation

Table of Contents