‘Always-on’ startup culture puts special demands on HR leaders
The unique challenge of managing HR in startups has never been more apparent than in the current business environment, where employee well-being ranks high on just about every employer’s stated list of priorities.
That said, some 4 in 10 startup owners in the U.K. consider it necessary or acceptable for employees to work beyond their contracted hours, with the figure rising to 45% among those businesses that are less than a year old, according to a survey of more than 500 entrepreneurs by Startups.co.uk.
The U.K. stands apart here, lagging behind a number of European countries, including France, Italy and Portugal, that have taken steps to keep workers from being contacted when off the clock, the survey notes. By contrast, Brits have no legal right to unplug outside standard working hours. Nor do Americans, though California last year became the first state to push for a so-called “right to disconnect” law.
The survey highlights a delicate tension in startup culture that HR leaders must navigate. “Startups thrive on chaos and creativity, but without HR guiding the ship, that energy can quickly turn into burnout,” said Kraig Kleeman, founder and CEO of staffing and recruiting firm The New Workforce. “Balancing hustle with humanity is the real secret to success.”
The role of HR in startups differs fundamentally from that of established companies, according to workplace experts. In startups, the role is typically more hands-on, focused on hiring and growth, notes Maria-Teresa Daher-Cusack, an organizational psychologist with the employee assistance program Health Assured.
“They want to build a strong company culture and manage employee development, making sure everyone is performing at their best,” she said. That contrasts with HR in businesses that have been around longer, where the focus lies more in maintaining consistency with processes and policies.
The startup environment demands a more adaptive, multifaceted HR approach, as Chris Coussons, founder of digital marketing firm Visionary, sees it. “You’re not just managing benefits and payroll; you’re wearing about 10 hats at once,” he said. “HR in a startup isn’t just about processes; it’s about building the foundation for a workplace where people actually want to stick around.”
The “always-on” culture so common in startups presents a quandary for people managers. The Startups survey found that just 1 in 10 business leaders considers overtime unfair and harmful to employee well-being — putting a spotlight on differing perspectives of startup leaders and employees.
Barbara Palmer, owner of Broad Perspective Consulting and a veteran of four startups, points out that the concept of overtime does not often figure into the startup mindset. “The expectation going in is that employees work hard, fast and without many of the traditional boundaries,” she said. She suggests that HR managers lay out clear expectations during the hiring process and implement “development sprints” that allow for “slower restorative periods.”
Experts point to several strategies for meeting the unique HR demands of startups:
Establish clear boundaries. Daher-Cusack advises setting firm guidelines around working hours and ensuring employees can disconnect outside those hours. That is particularly crucial as remote and hybrid work arrangements blur traditional work-life lines.
Lead by example. “If leaders are firing off emails at 11 p.m., it sets the tone that’s expected, whether they realize it or not,” Coussons said, adding that HR management should work with company leaders to model healthy work practices.
Focus on transparency. Regular check-ins about both performance and well-being serve to maintain employee engagement while preventing burnout. Daher-Cusack advises regular one-on-ones with employees with the aim of updating them on their performance and that of the company, and of setting goals.
Adapt hiring practices. Palmer advises recruiting individuals who have prior experience with startups. “Key to hiring well and retention is being honest with expectations, pace, timelines and culture,” she said. “Those who have thrived in a similar environment will know what they are getting into.”