HR and Finance Solutions for Start-ups Challenges
As if starting a business is not complicated enough, many challenges come your way when you build a start-up.
Luckily for SMEs, salary consultants offer expertise and services to help startups sort things out. This way, you can overcome your biggest HR challenges and focus more on revenue growth without needing to staff your HR departments.
Ranging from hiring and finances to compensation strategy and implementation, startups often get into trouble with any of these HR and finance traps. Here are some of the most common challenges start-ups face during their early stages.
Poor Tax Compliance
The moment your business starts, whether you're a small business owner, partnership, or corporation, you're liable to the IRS when it comes to paying your taxes.
As a start-up, you are required to pay taxes on all your earnings, your employees, as well as your share in Medicare and Social Security.
Though keeping tabs on all your transactions is the most basic way of staying on top of your taxes, you should also be mindful when you make tax payments, as any overdue payments can result in penalties.
Additionally, taxation is a form of art in itself. When you accurately track all your transactions, you may find that some of your expenses can qualify as tax deductions, helping you keep some of your tax money.
HR consultants are experts who know what and how to track to stay on top of your tax compliance. Rather than doing things yourself and ending up with costly mistakes, hiring HR consultants can save you from the expensive risks involved with taxation.
Inconsistent Cash Flow
Another burden most startups face is inconsistent cash flow. Many start-ups are bootstrapped even after several rounds of funding.
Such a concern means that the company has limited resources when hiring employees. Therefore, they can't offer competitive salaries to their potential employees.
In these cases, it is beneficial for the company's finances to utilize conservative compensation strategies, such as paying lower than market-priced salaries and offering non-monetary compensation.
Salary consultants who are familiar with compensation strategies can help you assess your company goals and help you manage your finances by recommending compensation plans that would suit your situation best.
Additionally, they can help you with training your employees and maintaining employee morale, which is key to improving employee performance despite lower than market price salaries.
Access to Funding
Though inconsistent funding is a huge concern, access to funding is even more so. There's a period in the lifespan of startups when they are still not profiting or have recently only started earning back their capital.
During these early stages, and even later, a startup should find ways to minimize its expenses to focus on financial growth.
Similar to before, hiring compensation consultants who can assess your business goals and help you conserve money through strategic compensation without sacrificing employee development and satisfaction is an excellent way to prevent further funding concerns down the line.
Lacking a Compensation Package
Many startups conduct business without having sufficient compensation packages for their employees. This can make the company seem unprofessional and reflect a poor company culture. Not to mention, it reflects poorly on its employees as well and can lead to poor hiring decisions and low employee retention.
Salary consultants who know how to design compensation packages can help a startup design compensation packages that attract the right people, motivate its employees, reward employees' performance, and encourage key company values.
How a Salary Consultant Can Help Startups Grow
A lot of the pitfalls of start-ups have to do with a lack of HR expertise and an HR department. Though being a new start-up may mean you don't have clearly established HR practices, continuously foregoing compensation packages and strategies is a poor way of managing one's business and will negatively impact the employees and the start-up.
Compensation is a key business tool that directly impacts a start-up's financial health. Depending on the goals of the business, compensation and other HR policies can be used to achieve them.
Salary consultants, with their years of experience, can help a start-up assess its situation and suggest a compensation strategy. They can also help design and implement compensation plans to help ensure your start-up is legally compliant and able to improve its finances by focusing more on revenue growth.
FutureSense: Offering Salary Consulting Services
These challenges can altogether be avoided by focusing on human resources management. Do not fall for the common HR challenges of start-up companies. Set up your company policies by working with HR professionals.
FutureSense offers salary consulting services from industry leaders who are respected for their knowledge and are willing to share with companies like yours. Through our guide, build, and approach, our salary consultants will help your start-up solve its financial concerns and improve company culture through effective compensation strategy, design, and implementation.
Reach out to FutureSense today and learn more about how our passion, approach, and expertise can help you increase your revenue and overcome financial challenges!
About FutureSense
FutureSense is a management consulting firm that provides integrated solutions to build and sustain human capital capacity. The firm can work with you by offering support and guidance to manage your workforce. To learn more about FutureSense, please visit FutureSense.com.