How Do I Staff My Startup?

What's the best way for a startup to approach staffing when there is no human resources department? These types of outsourcing services can offer a cost-effective solution.

One good way is to use outside vendors, and use them wisely. As a startup, you probably can't afford to pay large executive-recruiting fees - nor would you want to, since executive recruiters do not guarantee that they will fill the position.

So which types of services should you use? Develop relationships with a handful of contingency-staffing firms to cover your various department needs. A word about contingency firms: they typically shop their candidates around to as many firms as possible. However, if you endeavor to get to know your account representative and take an interest in working with that person, you may get first cut at great candidates and you won't have to sift through huge pools of resumes.

You should also plan to work with several contingency firms. Most contingency firms are very good at filling certain types of positions but don't cover all types of jobs. For example, it's common for certain firms to be strong in technology or Web development but unable to fill positions in business development. Therefore, you need to identify a handful of top contingency-recruiting firms that cover the functional areas you need to staff.

Finally, you may wish to hire one or more contract recruiters. Contract recruiters handle recruiting, coordinate high-priority searches and coach line managers on how to "close" candidates. Contract recruiters are generally independent consultants with years of staffing experience who have decided to go out on their own. The best way to find these people is through networks such as Guru.com or eWork. These online services match project staff (mostly independent contractors) with client projects.

Additional HR functions are more and more frequently being offloaded by small companies. A professional employer organization, or PEO, can help you with hiring and also manage your employee paperwork, payroll, and other processes. Our Buyer's Guide to Outsourcing HR Using a PEO explains more about the options in this field.

Get more information on recruiting and hiring talented employees at AllBusiness.com.

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