HR Foundations Every Startup Needs Before 25 People
You can ignore formal HR until ~25 people. Past that, things you didn't write down become the things you get sued over.
#operations
The non-negotiables
- Offer letters with comp, equity, role, and at-will status in writing.
- Employee handbook covering harassment, anti-discrimination, leave, and reporting paths.
- Documented performance review cycle (even if lightweight).
- Payroll provider running properly , never manual after employee #5.
- An anonymous channel for harassment and concerns (Vanta / People Ops tooling, or external HR).
Common founder mistakes
- Misclassifying employees as contractors to save money , this almost always backfires.
- Verbal promises about title, equity, or promotion.
- No documented warnings before firing , turns a clean exit into a lawsuit.
- Tolerating one star performer's bad behavior because they're 'critical.'
Process feels like overhead at 10 people and salvation at 50. Build the bare minimum before you need it.