Over the years, I’ve come to realize that HR is a bit of a black box for founders—many simply don’t know where to start. Similarly, junior HR professionals often seek guidance from more experienced mentors who can help them navigate the ever-changing startup HR landscape.
While I can’t cover everything in one post, here are my top 10 startup HR tips to help founders get started. If any of these resonate with you, we’d be happy to chat!
- Define Your Company & Don’t Compromise on Fit
Defining your company culture and values is crucial, but embracing and enforcing them as you build your team is even more important. While it might sound overly corporate, your culture impacts business decisions, hiring, and overall performance. Hiring someone who doesn’t align with your values can lead to performance issues, eventual turnover, and unnecessary disruption. - Get a Basic Company Playbook (Handbook)
Handbooks often get put on the back burner, but they provide immense value by helping employees understand how your company operates. A good handbook defines your company values, outlines key policies, answers common questions, and serves as a resource for both new and long-term team members. It doesn’t have to be complex—but having one can save you time as you scale. - Org Design Matters
Think about your organizational structure both in the short and long term. When you’re a five-person team, this might feel excessive, but envisioning future growth will help determine key hires and structure. A great exercise is what I call “the box exercise”—a valuable tool at any stage, particularly during growth, restructuring, or personnel challenges. - Get Compensation Right
It’s easy to focus on hiring the right people while neglecting budget and pay equity (spoiler: this will haunt you later). Adjusting salaries down the road is legally challenging, and pay cuts almost always lead to attrition. Addressing pay gaps later can also be costly, as raising multiple salaries for equity may not be financially feasible. Looking ahead to 2026, Ontario will mandate pay transparency joining other provinces with similar laws. Companies that aren’t prepared could face hiring challenges, retention issues, and even legal repercussions. Now is the time to get compensation right (and yes, that’s something we can help with!). - Don’t Give Away Big Titles
One surefire way to create compensation headaches is by handing out inflated titles too early. VP and C-level titles are often given as bargaining chips to attract candidates who may not yet have the experience to match. The problem? When it’s time to hire a truly senior executive, you’ll have to strip away the title. From the employee’s perspective, a high-ranking title often leads to demands for higher pay, better benefits, and more favorable contract terms. This misalignment with market expectations rarely ends well. - Invest Early in Employment Agreement Templates
This one’s simple: work with an employment lawyer to create three essential contract templates—one for full-time employees, one for fixed-term employees, and one for contractors. The cost is minimal, but the time and legal headaches you’ll avoid down the road are significant. Use them, sign them, and store them securely. - Build Your Recruitment Funnel
Many startups struggle with hiring simply because no one knows about them. Building a hiring funnel starts with brand awareness—updating your website, running marketing campaigns, posting on social media, and encouraging employees to spread the word. One often-overlooked method? Hiring students. Co-op programs are a cost-effective way to bring in fresh talent, and some of the most successful startups I’ve worked with (like Miovision and TextNow) built strong full-time hiring pipelines by consistently bringing in co-op students. - Have a Strong Finance Partner
A dedicated finance partner isn’t just about compliance—they’re a key strategic ally. In HR, finance collaboration ensures that hiring is properly forecasted and that staff-related expenses align with business goals. Accurate planning can prevent financial strain as you grow. - Managers Should Manage
Once a startup reaches around 10–15 employees, founders typically start hiring managers. But for this investment to be worthwhile, managers need to actually manage. Make sure they’re trained and understand what’s expected of them, so founders don’t have to step in constantly. - Prioritize Compliance
Startups may not be top targets for regulatory authorities like the Ministry of Labour, but that doesn’t mean you can ignore compliance. Fines can be costly, and compliance work orders can eat up valuable time. Plus, as you grow, new legal requirements—like policies, training, and filings—kick in. Staying ahead of compliance obligations will save you major headaches down the line.
Final Thought
The biggest takeaway? Understand the gaps you need to fill now, and what can wait. At BrightIron, we’ve helped startups scale successfully with proven frameworks, templates, and resources for every one of the above areas (and more!). Our scalable HR model ensures that companies are properly equipped for their current stage of growth. If you’d like to see where you stand, reach out—we’d love to chat!