Every legally established company must comply with the regulations and laws set by the government, and this also applies to startups that are just starting out. This includes regulations on recruitment, employee rights and obligations, termination of employment, and other matters governed by the Ministry of Manpower under the Job Creation Law (UU Cipta Kerja).

On the other hand, startups often face limitations in human resources and finances that are difficult to avoid. Making quick decisions, managing multiple functions within the company, and navigating the ups and downs of building a startup are all part of the journey. However, how can these challenges be addressed to ensure that all employees can contribute their best to the developing startup? Read on for tips from Ika Listyanti, HR Mentor in Residence at New Energy Nexus Indonesia.

“Essentially, I believe that all startup founders want to begin their businesses with an ideal team, where specific roles and functions are defined to help build the business. However, some obstacles during these early stages are often unavoidable,” she said.

There are several actions that startup founders and C-level executives should take to maintain work dynamics when facing resource limitations:

1. Transparent Communication: Communicate the company’s condition, goals, and plans openly and transparently with the team. A culturally aligned team that shares the same vision and mission will be motivated to support company policies, especially when they understand the reasons behind certain actions.
2. Set Priorities: With a team that has layered functions, it’s essential to establish priorities. Determine the percentage of time to be allocated to different functions, eliminating tasks that are high in intensity but have little impact on the business. Focus on work that significantly contributes to achieving the company’s vision.
3. Manage Expectations: Understand the roles and capacities of the team, and discuss expectations from both the company’s and the team’s perspectives regarding their responsibilities.
4. Listen Actively and Accommodate Team Needs: Founders and C-level executives should listen actively to the team, especially when members express obstacles they encounter or raise concerns that require collaborative solutions.
5. Limit Non-Ideal Conditions and Create an Exit Strategy: Founders and C-level executives must proactively address situations where team members have multiple roles. As the company grows or revenue increases, they should develop an exit strategy to mitigate these conditions and map out the company’s future needs.

As startup founders and decision-makers within the company, it is essential to continuously equip themselves with knowledge about trends in the HR landscape. Engaging in discussions among founders, learning through Massive Open Online Courses (MOOCs), and participating in capacity-building programs can enhance their understanding, enabling them to apply HR functions and manage people more effectively.

Ika has been a Human Resource (HR) practitioner for approximately 10 years. She began her career as a recruiter in an IT company and has advanced through various HR functions, including talent management, learning and development, and knowledge management. In the past year, Ika has taken on the role of Human Capital Business Partner, performing end-to-end HR functions. Additionally, for the last two years, Ika has served as an HR Mentor in Residence, guiding five clean energy startups supported by New Energy Nexus Indonesia in understanding people management as they develop their businesses.

Mentor in Residence program is one of the capacity-building methods for startup founders and C-level executives participating in the Smart Energy Program by New Energy Nexus Indonesia. In this program, startups receive capacity development from professionals in their respective fields to foster growth. Currently, New Energy Nexus Indonesia is launching Cohort 4, the final batch of this year for its incubation and acceleration program. This is a great opportunity to enhance your startup team’s capabilities in areas such as HR, Marketing, or Legal, tailored to your startup’s needs, with the support of a Mentor in Residence.