Forget classic HR – handpicked joiners crucial to startup success

A traditional view of human resources in a start-up company is outdated. Instead, a broader and more dynamic view of human resources is required for success.

From an HR perspective, the classic view of human resources has often been limited to founders and formal employees. But a new research study highlights the importance of including so-called ‘joiners‘. These are people who, despite not being founders, contribute significant work to startups – as employees, consultants, interns or volunteers.

Two groups of joiners

The study shows that these joiners are often crucial to the success of start-ups, especially in the uncertain and rapidly changing early stages. Joiners can be divided into two groups: primary joiners, who work closely with the founders and shape their own roles in a dynamic work environment. And secondary joiners, who join later and are often more formally employed. This flexibility and evolving role is markedly different from the fixed, role-based structure that characterizes HR in established companies.

Recruitment and job assignments in entrepreneurial contexts are characterized by informal processes and adaptations, where social networks and personal relationships often outweigh formal interviews and employment contracts. Compensation is often based on innovative solutions such as future ownership shares rather than high salaries. And joiners are motivated by commitment and a sense of purpose rather than financial security.

A flexible approach to people management is needed

The study also shows that a traditional view of HR, based on clear roles and hierarchical relationships, does not meet the challenges of entrepreneurial environments. Here, working relationships are characterized by uncertainty, resource scarcity and changing responsibilities – requiring a more flexible approach to people management.

In practical terms, this means that start-ups should embrace a broader and more dynamic view of their workforce. Identifying and supporting the primary joiners who are at the heart of the company’s early development is crucial. In addition, HR strategies are needed that are tailored to the unique circumstances of new, fast-growing companies – where informal collaboration, experimentation with job roles and tailored incentive schemes are key.

The conclusion is that researchers and practitioners need to embrace this new approach to people management to better understand and support the complex and socially constructed processes that shape entrepreneurial organizations. With the right focus on joiners and their dynamic roles, more startups can succeed.

More about the article and the authors
The article Seeing human resources of entrepreneurial firms in new ways is published in the scientific journal Journal of Business Venturing.

The authors are Melissa S. Cardon at the University of Tennessee, USA, and the University of Queensland, Australia, Mirjam Knockaert at Ghent University, Netherlands, and the Technical University of Munich, Germany, Frederik Anseel at the University of New South Wales, Australia, and M. Diane Burton at Cornell University, USA.