Human resource (HR) compliance is an area many startups seem to talk about but very few seem to do well—or at all. Unfortunately, HR isn't as easily simplified or automated as other parts of your back-office stack, like payroll or accounting.
When to build HR
The way you think about process, work structure, and organizational culture from day one will set the foundation for HR at your company. Ideally, HR will be a manifestation of aspirations from your founding team.
In other words, proactivity is better than reactivity as far as HR is concerned. You don't want to start a people team because it's suggested, legal reasons, or because culture is in disarray.
What is HR compliance
HR oversees every aspect of employment. You'll need to comply with labor laws and employment standards, administer employee benefits, and organize employee files. HR also handles onboarding—offer letters, employee information for payroll, I-9 employment verification, equity paperwork, and any employment agreements like non compete, intellectual property, etc—and offboarding.
We recommend subscribing to an HR compliance tool to help you make sure you are following all of the right laws, trainings, postings, notices, regulations, etc.