Challenges faced by start-ups in workforce management

Abstract

Start-ups are the new normal in India, with a large part of the new generation workforce being interested to join these firms due to ownership and better work. These firms are growing rapidly in number and by revenue. However, how they manage their human capital is still not very clear. Hence, this paper studies the people practices at start-ups through interactions with start-up founders and human resource heads, covering areas like talent management, recruitment, compensation aiming to analyse how they are different from those at large organisations. Further, it studies the challenges faced by these firms and provides recommendations for the improvement of human capital practices.