We all probably know a lot about HR management and the value of good team in a startup. To further help on the same issue we surveyed some startup employees and have compiled a list of most popular and significant mistakes committed by some well known Indian startups and their founders. For privacy issues we have not used any names.
1. Forgetting to appreciate: You have read enough about employee motivation but you must learn to appreciate daily procedural work as well. Things that look trivial actually make a lot of difference to your company in the long run. Like a good resume found by your HR department on Naukri or forwarded by your current employee. Appreciate that, even if it was their daily work. This requires consistency and may not be easy but certainly keeps the employee excited all the time. – HR executive, BPO
2. Not defining tasks: Learn to define the task in one simple line, being very specific about what is to be delivered. Most of the time a task is undone not because the employee is not making enough efforts but because employer never knew what exactly he wanted to be done. -Graphic designer, Ecommerce
An acclaimed Indian creative director puts it this way – “If i don’t get an idea after reading the brief for the 3rd time then probably the brief is all bull shit and I will deliver bull shit.”
3. Not encouraging to ask questions: Remember, if he is interested in asking questions he will also do the job well. If he leaves with a question in his mind, he will come back to you without the work. Give me some time to clear my doubts before you say “I want it by EoD”. – Programmer, IT services
4. Forcing decisions in cases when you are not an expert: Say if it is about deciding the color of your website. Both you and your emlpoyee are not an expert, then you should let the employee decide. It won’t make any difference to the product but would encourage him and not make you a Hari Sadu. – Programmer, Ecommerce
5. Not crediting salary on time: In a startup there are chances that you are already underpaying him so even a single day delay matters. The paychecks should be handed out before the month ends. You are not giving him advance for the remaining number of days but it is he who worked for you without pay for these many days. Do you take up a project without advance payment? – Network Manager, Hosting Services
Their might be a risk of high churning rate at month end but that is again for the X type of employees, that too the low skilled workers.
6. Restricting certain websites: You might have done this for productivity issues but you do not realize that it makes the employee believe that you do not trust him. By doing so you have proven that he is not motivated enough. He is not a kid who has to be forced to study (work). If he does not want to do it, he will not deliver his best. This might increase procedural efficiency but not effectiveness of your team. – UI Designer, Web Marketing.
Platforms like Youtube etc. host a lot of informative videos as well. Also, if a quick game of 5 mins can refresh his mind, he would be more productive for the next 55 mins.
7. No or Limited free coffee – Programmer, Classifieds (and about 8 others)
Founders, try and conduct a regular session with your team where they can speak their heart out. If you already conduct such sessions do share your experience.
Also, i believe the last one should be made a punishable offense by the startup ecosystem. 
(Disclaimer: Nescafe did not pay me for this.)
Having a dull Monday? Let it out here. Will make you feel better.
[Naman is a startup enthusiast and has worked with couple of Indian startups as Product Manager. He writes at The Inspire Blog]
Another one is promising ESOP and not giving them.
Is this coming out of a painful experience?
I guess it is….
I think startups in India need to share more esop or equity as long as self interest is not affected. the owners tend to compare the situation with America and end up losing everything… crash boom bang.
These are the general issues that startups face these days. Most of the startups perish due to these issues. If your foundation is weak, you won’t able to scale up the business and build another Infosys out of it. I would say founders should practice what they preach to others. No founder can expect everyone else to be perfect, except him. Otherwise it’s more of “Babu” culture which still exists even in large Indian corporate. Don’t lure people to join start ups by making fake promises. Passionate individuals join startups on compromised salary as they foresee larger returns in the long run. Deliver what you promise !
Most of the startups have insufficient funds.So talking about salary in advance does not make great sense.Employees are always stake holders of the company.
In a startup, an employee is accountable to himself or herself. Nobody can define or draw a work map for them.Thats where innovations happen when mind takes off free to strive.
Not advance salary but just before the month ends.
Also, i believe innovation happen when you let the employee decide ‘how it is to be done’ and not ‘what is to be done’.
Nice post. This might be not in line with the discussion but as a suggestion, given the engagement in this discussion by the readers, I feel PI should start thinking about having a section for Start-Up Jobs. I feel the need for such a facility is only going to increase and though there are a few players already.
I am the HR of a start up company.We share a very informal culture where the founder comes to office in half-trousers! We have assigned specific roles and responsibilities to the members of our teams (not employees). 90% of our team members are post grads (MBAs and MCAs) who have passion for their work and dont care whether the salary is drawn on 5th or 15th or 25th of the month. We also provide a cash amount if its urgently required, the only thing that one needs to do is drop a mail to the HR. We really enjoy this work culture and it does wonders for our company!
Hi,
I stumbled upon this article today and though it was written a few months back, I still felt like leaving a comment here. The article is an eye-opener for startup owners and reiterates some very basic things which need to be done right to retain your employees. I had written on a similar topic recently on my company blog. You might find it worth your while to read it at http://jobsinajiffy.wordpress.com/2010/09/01/how-your-startup-can-attract-the-best-talent/