How do you think HR processes change when a company goes from start-up to scale-up?
In a startup, HR is often just a side business of the founders, who deal with it along with marketing or business. As the company grows, new employees increase and with them new challenges and expectations. It's not enough just to recruit the right people — you need to create an environment where they want to stay for the long term. The biggest change comes in the culture of the company. In a small team, people know each other personally and information spreads naturally. As soon as a company exceeds 80 people, it is no longer possible to rely only on personal ties and the need for clearly defined processes begins to appear. This can be a big challenge if you're trying to keep the original start-up vibe at the same time.
Why do start-up employees leave when it starts to grow?
Not everyone is comfortable with this clearly structured environment -- some will accept it, others will leave. People may mind the increase in processes and the loss of personal approach. Others, on the other hand, find that their way of working, which was sufficient in the start-up phase, is no longer sufficient in scale-up. Both the company and its needs are evolving and not everyone wants or can adapt at the same pace. When these expectations begin to diverge, there comes a period of frustration that is not easy to manage.
“Of course, it's a lot about the way in which the need for change is communicated, thus preventing people's frustration to a great extent. “
In addition, the company must begin to address the budget, which also entails certain procedural changes in the HR area — from remuneration to training.
How is the remuneration system set up in a start-up and why does it have to change in the scale-up?
As the company grows, so do employee expectations in terms of remuneration and benefits. Both must be not only attractive, but also sustainable in the long term. Moreover, the situation is often influenced by legislative changes that can significantly modify the benefits — as was the case last year, in 2024. In startups, remuneration is often guided by the principle of “who says what.” Then it may happen that the team leader has a lower salary than the members of his team because they were recruited at a different stage of the company's growth. To avoid such inequalities, it is crucial to establish a fair remuneration system that reflects the realities of the labor market and the internal structure of the company.
Why is education and performance evaluation key in scale-up?
The growth of the company brings new challenges for employees as well. It is not enough just to recruit them — you need to give them the opportunity to develop. Therefore, there is a need to create a scale-up education system that motivates people, moves them in their careers and helps the company retain talent. It is also key performance evaluation. Our system at FAVI is set up to be transparent and fair. We support continuous feedback not only from top to bottom, but also the other way around. It is important to define how to transmit it, how often and with what purpose, so that it is really beneficial and does not slip to formalities.
How to manage onboarding, adaptation and recruitment in a fast-growing company?
In a growing company it is key to incorporate new people into the team as soon as possible and make sure they feel part of the team. HR specialists need to adjust onboarding process in collaboration with managers so that newcomers have clear expectations from the beginning and the space to tell what will help them adapt. Recruitment must adapt to the pace of growth, but at the same time ensure the right “fit” - not only in terms of skills, but also in personality. This fit will then ensure that there is good diversity in the team that corresponds to a certain stage of the growth of the company. That is why we have a multi-step recruitment process in FAVI, which starts with a short call with HR to verify motivation and experience, continues with a personal meeting with the task and, in case of confusion, we offer a paid half day for the exam. This system helps us pick people who really fit into the team. With the growth of the company, the requirements for specialization also change - while at the beginning you are looking for universal players, later you need experts in specific areas. HR needs to respond quickly to these changes and set up processes to help the company scale.
What changes in HR processes are necessary when moving from startup to scale-up?
While in startup HR processes often work ad-hoc and without much automation, in scale-up it is necessary to structure and digitize these processes. This includes, for example, the introduction of modern tools for talent management, recruitment (ATS) and administrative tasks. As a company grows, it is crucial that HR processes are scalable and able to respond quickly to changes. Automating routine activities and leveraging HR systems are essential for a business to focus on growth — not paperwork.
How does a company know it's time for a radical change?
An important signal is employee satisfaction. If it drops rapidly over the course of six months, this is a warning sign. This can be reflected in an increase in turnover, a decrease in motivation, or perhaps frustration that employees do not feel the point of their work. If people in the company express dissatisfaction with the salary, it is important to carry out a benchmark and compare their wages to those in the market. You may find that dissatisfaction is justified. Another key indicator is recruitment. If you fail to recruit the right people, it is necessary to find out where the problem is — is it finances, benefits, bad reputation or too long and complicated selection process? Or just not clear on which candidate you are looking for?
Back to FAVI: how specifically did you tailor the company's HR processes to grow?
We are currently finalizing a system of competency models that will help us redefine the process of remuneration, training and employee development, including recruitment and talent management. The main objective is to ensure that remuneration is not chaotic and according to the principle “who shouts more, gets more”. HR system allows us to have everything in 1 place It doesn't just serve us for employee records and approval of attendance, but we also have all the documents in it, which in addition we automatically generate, thanks to pre-created templates with tokens. Documentaries too We sign electronically, of course, in cases where this is legally possible, thanks to the integration of HRIS and DigiSign. The Pinya HR system also makes it easy for us to create reports and maintaining an up-to-date orgchart.
Now let's take a closer look at the digitization of the HR agenda that you introduced last year. What did she bring you?
Previously, we had a lot of spreadsheets and documents stored in different places. People were registered in files on Drive, in the HR system for attendance, and even physically in a paper folder. Securing signatures for employees outside Prague was lengthy and depended on the mail and responsible attitude of people, who also had to pay for sending documents back. Today we have everything in one place thanks to the Pinya HR system.
Has digitalization helped you adapt your employees?
Oh, definitely. Pinya HR system facilitates all surveys and feedback collection for example, when evaluating adaptation and probationary periods — both from the perspective of employees and their managers We also automate pre-onboarding processes and onboarding, thanks to which the newcomers and their teams have everything under control from day one.
What areas of the HR agenda did you digitize first and why?
We focused on recruiting, electronic signing, clear records and automatic generation of documents. They are routine tasks that take a lot of time, even if it does not seem like it at first glance. An important step was also the creation of an internal wiki where each department stores manuals, guidelines and other key information. This not only helps new employees with orientation, but also ensures effective knowledge sharing across the company.
Which technologies and tools have worked best for you in digitizing your HR agenda?
We use the modern HRIS Pinya HR and we plan to further expand it with, for example, checklists and educationthat will intermingle with the internal wiki. We also work with ATS system, Notion and artificial intelligence. With her help, we often brainstorm when we don't know how to grasp a project. We also create data dashboards with HR metrics and strive to ensure that not only management, but also other employees can access them in the future.
Digitalization of HR processes has brought a big change for the entire company. Where do you see the greatest benefits?
The biggest advantage is in saving time. HRIS Pinya HR automatically generates documents, so instead of manually transcribing the data, you just need to enter everything once and create a complete package of starting materials in a few clicks, which we then sign electronically. In one of my previous jobs, I kept the orgchart sideways in Canva or Excel or PowerPoint, and in a company of 700 people it was a nightmare. Now it updates automatically. Electronic registration and attendance approval also make our work easier. In FAVI we do not deal with pricks, we focus on results, but legal records are required. Thanks to digitization, I don't have to run around with papers, collect signatures and archive stacks of documents. The ATS also saved a lot of time. We have all applicants and recruitment data in one place, linked via webhook to both the advertising portals and our careers pages. This allows us to communicate more effectively with candidates, give feedback quickly and schedule appointments seamlessly — online and offline.
Has the digitization of HR processes affected the efficiency and productivity of the team?
We now have more time to devote to people — and that's what's most important in our business:). Automation of routine and administrative tasks allows us to improve not only the level of communication when recruiting, but also the entire recruitment process. Thanks to this, we can focus on innovation and building relationships and trust with the people who want it in the company.
What would you advise other HR managers in scale-ups that digitalization is yet to come?
I would tell them not to be afraid of change and go for it as soon as possible. Digitalisation is a game changer that will simplify their lives, make their work more efficient and free up their hands for more important things like working with people and innovation. It's a good idea to start with what burns them the most and what takes up the most time. If the HR team handles a large number of open positions and resumes, ATS is an obvious choice. If recruitment is under control but hampered by the need for administration and paperwork, then it makes sense to invest in HRIS to automate routine tasks. Each HR department has different priorities, so finding a solution that meets its specific needs is key.
