.jpeg)
As a founder navigating the early stages of building a startup, it’s tempting to solve every operational challenge by hiring specialists. Human Resources (HR) is often one of the first functions considered for a full-time hire.
However, evidence and expert advice suggest that founders should resist bringing on a full-time HR professional until after raising a Series A round. Instead, founders should focus on building foundational HR processes themselves, leveraging consultants, and prioritizing hires that directly drive growth.
Why Early-Stage Startups Don’t Need Full-Time HR
In the pre-seed and seed stages, startups are typically composed of small, agile teams of generalists. At this point, the company’s primary focus is on achieving product-market fit, building a core team, and demonstrating traction.
The founder’s direct involvement in hiring and people management is not only feasible but also critical for establishing company culture and values.
Outsourcing essential HR tasks—such as payroll, benefits administration, and compliance—can be more cost-effective and flexible than hiring a full-time HR professional. Many founders successfully use consultants or part-time experts to set up basic HR policies, handle payroll, and advise on best practices. This allows the core team to remain lean and focused on growth.
Building the HR Foundation Without a Full-Time Hire
Founders should take ownership of HR fundamentals in the early days. This includes defining the company’s cultural code and core values, establishing basic hiring and onboarding processes, and setting up payroll and benefits administration (often outsourced).
Documenting policies and procedures in a simple, accessible format is also essential. Inviting experienced HR consultants on a project or advisory basis can help founders avoid common pitfalls and ensure compliance without the overhead of a full-time hire.
This approach allows founders to learn the essentials of people management, which is invaluable as the company grows.
When to Start Thinking About Full-Time HR
The transition to Series A is a pivotal moment for most startups.
Investors look for evidence that the startup has the infrastructure to support growth, including robust HR practices.
After raising Series A, the hiring roadmap shifts from generalists to specialists. This is when it becomes appropriate to consider full-time HR leadership, such as a Head of People or VP of HR.
These leaders can build scalable talent acquisition strategies, implement structured performance management systems, develop competitive compensation and benefits packages, and foster a high-performance, cohesive culture as the team grows.
Prior to this, founders should prioritize hires that directly impact revenue and product development, such as sales leaders, engineers, and product managers. HR leadership becomes a priority only when the complexity and scale of the organization demand it.
Alternatives to Full-Time HR Before Series A
Instead of hiring a full-time HR professional, early-stage startups can use HR consultants or part-time professionals for specific projects, such as setting up payroll or drafting policies.
They can also leverage embedded recruiters or agencies for burst hiring needs, especially after funding rounds. Another option is to assign HR responsibilities to a Chief of Staff or operations generalist, who can handle a broad range of tasks including HR, finance, and internal communications.
These approaches provide flexibility, cost savings, and access to expertise without the commitment of a full-time hire.
The Founder’s Role in Shaping Early-Stage Culture
Founders play a crucial role in shaping the company’s culture and hiring philosophy. Early hires set the tone for the organization’s values, work ethic, and diversity.
By remaining hands-on in recruitment and people management, founders ensure that each new team member aligns with the startup’s mission and vision.
As the company approaches Series A, founders should focus on codifying these cultural elements and preparing to hand off HR responsibilities to a dedicated leader who can scale the function effectively.
Scaling HR After Series A: What Changes
Once Series A funding is secured, the startup enters a phase of rapid growth and increased complexity. This is the right time to bring in experienced HR leadership to professionalize and scale recruitment processes.
They can develop structured onboarding and training programs, implement formal performance management and feedback systems, build a competitive and equitable compensation structure, and ensure compliance with employment laws and regulations as the team expands.
These changes are essential for sustaining growth, retaining top talent, and meeting investor expectations.
Key Takeaways for Founders
Delay hiring a full-time HR professional until after Series A. Focus on building foundational HR processes yourself or with consultants.
Prioritize hires that directly drive growth—such as sales, engineering, and product—before investing in full-time HR. Use consultants, part-time experts, or a Chief of Staff to handle HR needs in the early stages.
As you approach Series A, prepare to scale HR by codifying culture, formalizing processes, and planning for a senior HR hire post-funding.
By following this approach, founders can maintain agility, control costs, and build a strong foundation for sustainable growth. When the time comes to hire a full-time HR leader, the company will be truly ready to scale.
