Looking for Unicorns? Here’s What Makes a Great Startup CHRO

We live in the age of the startup. Their disruptive style has become a model for leadership, vision, and ambition. But it takes more than a good product and strong leadership to make them work. High-growth startups also need people to make them work. Great teams function better when they’re supported by great human resource functions. While traditional companies have long benefited from HR leadership, hiring a CHRO for a startup can be a game-changer.

We’re not just talking about someone who handles payroll and compliance. A CHRO should be the strategic partner who ensures that the right talent is in place at the right time. Get this right, and you can scale the company, build culture, and sustain growth.

But finding the right one for your startup can be like looking for mythical creatures – without the right guidance!

It’s a valid question: do startups really need a Chief Human Resources Officer at an early stage?

When you’re just starting out, the focus is often on developing a product and securing funding. Building a customer base is also a priority. Prioritizing HR at this stage might seem like jumping the gun. However, research shows that companies who invest in HR leadership early on are more likely to scale effectively and sustainably. According to a study by McKinsey, organizations with high-performing talent management systems are 4.2 times more likely to exceed their financial goals.

That’s because startups, in particular, face unique HR challenges as they scale. They need to:

While it may seem tempting to put HR on the back burner, waiting until the company hits a certain size or stage to hire a CHRO can backfire. The earlier you hire a strategic HR leader, the more prepared your company will be to navigate these challenges.

Knowing when it’s time to hire a CHRO can be tricky, but there are certain indicators that signal it’s time to bring in HR leadership.

In my experience supporting customers as they scale their businesses, there are three key signs:

While it may seem tempting to put HR on the back burner, waiting until the company hits a certain size or stage to hire a CHRO can backfire. The earlier you hire a strategic HR leader, the more prepared your company will be to navigate these challenges.

When hiring a CHRO for a startup, you need someone who can wear many hats. This role will define your culture, give you the ability to hire great people, progress your company, and support long-term growth. Here’s what to look for when hiring your ideal CHRO:

When hiring a CHRO for a startup, you should look for someone who can not only execute the traditional HR functions, but also become an integral part of the leadership team.

Look for candidates who:

When hiring a CHRO for a startup, consider the qualities I’ve outlined here, and don’t rush the process. Think about what would work best for your organization, and adjust to suit it. With the right CHRO in place, you’re essentially ensuring your long-term success with someone guiding your talent attraction and retention strategies, managing your growth, and building up your company culture.

Finding that perfect leader can be challenging, but Pierpoint International’s Executive Search services connect startups with HR leaders who drive success.

Book a call today to speak to an expert in your industry.