1 in 3 Tech Startups Still Operate Without HR—and Why That’s Risky

May 12

🚨 Startups Without HR Are More Common Than You Think

When you're launching or scaling a startup, HR can feel like something to “figure out later.” But later comes fast—and without structure, it gets messy.

A BambooHR study found that 35% of small businesses and startups operate without dedicated HR support. And in tech, where teams grow fast and compliance gets complex, that gap is risky.

📉 Why Tech Startups Skip HR—and What It Costs

Many founders hold off on HR because:

They're focused on product, funding, and speed
They assume HR = “corporate” overhead
They think it can wait until they’re bigger

But skipping HR can lead to:

Bad hiring decisions → turnover and culture issues
Compliance gaps → fines and legal exposure
Burnout and confusion → managers left unsupported

✅ The Smart Fix: Fractional HR for Startups

Fractional HR gives your team strategic, high-impact support without a full-time hire. You get expert guidance in:

Recruiting and onboarding
Team structure and feedback systems
Employee relations and coaching
HR policies, compliance, and handbooks

All customized to your stage of growth.

💡 It's flexible. Cost-efficient. Scalable. And it works.

💼 Why NewEra HR Works for Startups

At NewEra HR, we work with founders, early teams, and lean People Ops functions to build smart, scalable systems—without the bloat.

If you’re hiring, hitting culture friction, or just tired of being the default HR person, we’re here to help.

📩 Contact us about our fractional HR services for startups .

📈 Final Word: HR Is Not Just for “Later”

Delaying HR doesn’t save you time—it costs it. And in tech, where speed matters, the last thing you want is internal chaos slowing you down.

1 in 3 startups still operates without HR. But your startup doesn’t have to.

Andrew Zuckerman