David von Rosen wrote an article for Fast Company, warning start-up founders against outsourcing their HR.
In the article, David referenced his own experience bootstrapping startups and explained that there are no shortcuts to scaling a business. He argued that founders should expect to spend at least 40% of their time on hiring, HR tasks, and payroll, even though these don’t directly generate income. This is because outsourcing HR leads to an impersonal, off-hand approach that will turn off employees. He explained that employees respond better when they are dealt with directly by the founder or, failing that, in-house HR.
"HR involves more than just recruitment, admin, and training. It’s the glue that holds a business together."
Dr. David von Rosen
He concluded that doing HR yourself as a founder leads to reaching profitability sooner, having a tighter grip on company culture, and improving staff retention. Therefore, it is worth investing in, and not taking shortcuts with.
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