Our Guest Blogger today is Dana Douglas, who is the director of HR Solutions for vcfo. She has some great HR advice for those of you in a high tech startup situation. She can be reached at ddouglas@vcfo.com.

Technological and financial ambiguities present in high-tech start-ups, combined with the relational stresses involved in fast-growing businesses, highlight the need for involving HR early in your new company.

Key areas where HR provides key contributions for success:

Define the Culture – HR plays a key role in interpreting the corporate vision and defining the culture and philosophy that will facilitate scaleable growth. Many entrepreneurs will spend countless hours investigating and defining the company’s IT network and phone systems without giving much if any thought to their people systems. Any plan for launching a new enterprise should include a road map for evolving the organizational structure and HR systems to support the enterprise. When employees are shown a clear and succinct vision and can identify how their contributions contribute to success, the organization profits.

Design the Right Compensation & Benefits Structures – The amount of money companies spend on compensation and benefits represents a significant portion of the overall operating expenses. In early-stage companies, where cash is king, comp and benefits planning is undoubtedly one of the most critical elements of success. Comp and benefits must not only be competitive in your industry space but must be scaleable over the long-term. Involving an HR professional who can design the right compensation and benefits structure to attract, retain and reward your employees now, and in the future, is crucial to the success of your business.

Establish the Right Policies & Processes (at the right time) – Counter to some entrepreneurial opinions, policy and process is not the enemy of an early-stage venture. Obviously, adopting overly bureaucratic policies and processes which are not tied to the overall vision of the company is a recipe for disaster. However, company leaders should work with HR to ensure that appropriate, sustainable and scaleable policies and procedures are in place for their organization. This protects the company from significant legal risks and exposures and enhances productivity. When employees and managers are educated on the fundamental operational inter-workings of the organization everyone wins.