Human Resources is critical to an organization, especially one that plans to grow and scale. The challenging part is that it’s not as popular with startups because of the desire to divide responsibility and cut cash spend.
HR has become a catchall for all the functional but non-flashy parts of an organization: hiring, payroll, health insurance, and all other administrative things. It’s also in place to help build and grow a company culture, prevent harassment within the workplace, and act as a safeguard between disgruntled employees and management. All of which are VERY important tasks. There are several software packages that can help startups through the early stages of development, but they can’t do everything.
In the article The Future of HR and Why Startups Shouldn’t Reject It explains the important of Human Resources and that while “old tactics” may seem outdated, the system isn’t broken.