What are the motivational HR practices that are most effective in ensuring the survival of startup
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Effective Motivational HR Practices for Startup Survival
Introduction to Motivational HR Practices in Startups
Startups face unique challenges in retaining and motivating employees due to their dynamic and often uncertain environments. Effective motivational human resource (HR) practices are crucial for ensuring the survival and growth of these nascent firms. This article synthesizes research findings on the most effective motivational HR practices that contribute to the survival of startups.
Importance of Motivation-Enhancing HR Practices
Motivation-enhancing HR (MHR) practices play a pivotal role in mediating the effects of initial human and financial resources on a startup's decision to remain operational. Research indicates that these practices not only help in the early stages but their positive effects on firm survival become stronger over time1 2. This highlights the importance of implementing robust MHR practices from the outset and continuously adapting them as the firm grows.
Key Motivational HR Practices
Skill Enhancement and Empowerment
A meta-analysis of HR practices in small and medium-sized enterprises (SMEs) underscores the importance of HR practices that focus on enhancing skills, motivation, and empowerment. These practices are particularly relevant for young firms and those operating in high-tech industries or in environments with rigid labor regulations3. By investing in skill development and empowering employees, startups can improve performance and increase their chances of survival.
Addressing Employee Retention Challenges
Startups often struggle with high employee turnover due to the demanding and fast-paced nature of their work environments. Effective motivational strategies are essential to retain qualified employees. Research suggests that startups need to adopt strategies that address the multifaceted roles and responsibilities employees juggle, which are often a result of high attrition rates4. By focusing on retention through motivational strategies, startups can stabilize their workforce and enhance overall performance.
Multi-Actor HR Implementation
The effectiveness of HR practices is significantly influenced by the interactions between HR managers, line managers (LMs), and employees. Using the ability-motivation-opportunity (AMO) framework, it has been found that HR motivation-enhancing initiatives increase LMs' motivation, while HR opportunity-enhancing initiatives improve their perceived ability, motivation, and opportunity to perform in HR management5. This multi-actor approach ensures that HR practices are effectively implemented, leading to higher employee satisfaction and better firm performance.
Conclusion
In conclusion, motivational HR practices are critical for the survival and success of startups. By focusing on skill enhancement, empowerment, and effective retention strategies, and by ensuring a collaborative implementation of HR practices, startups can create a motivated and stable workforce. These practices not only help in navigating the initial challenges but also contribute to long-term sustainability and growth.
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Most relevant research papers on this topic
The Benefits of Benefits: A Dynamic Approach to HR and New Venture Survival
Motivation-enhancing human resource practices partially mediate the effects of initial resources and human capital on new venture survival, with their positive effects becoming stronger over time.
RETRACTED: The Benefits of Benefits: A Dynamic Approach to Motivation-Enhancing Human Resource Practices and Entrepreneurial Survival
Motivation-enhancing human resource practices partially mediate the effects of initial resources and human capital on firm survival, with their positive effects on survival becoming stronger over time.
A meta-analysis of different HR-enhancing practices and performance of small and medium sized firms
HR-enhancing practices, focusing on skills, motivation, and empowerment, positively correlate with firm performance in small and medium sized enterprises.
Meta-Analysis
Highly CitedA multi-actor perspective on the effectiveness of human resource management implementation: an empirical analysis based on the ability-motivation-opportunity framework
HR department initiatives improve line managers' perceived ability, motivation, and opportunity, leading to more effective implementation of HR practices and employee satisfaction.
A Neglected Factor Explaining Family Business Success: Human Resource Practices
Effective use of HRM practices positively correlates with family business success and survival, while succession planning is not.
Highly CitedFinders, keepers? Attracting, motivating and retaining knowledge workers
Effective HR strategies in knowledge-intensive firms in Singapore vary by ownership type, with some strategies being more effective than others.
Highly CitedExploring the future of startup leadership development
Startups will increasingly engage in leadership development over the next decade, with experiential learning methods and self-managed learning playing a greater role than formal training.
High Performance Work Systems: A Necessity for Startups
High performance work systems, consisting of human resource practices, can significantly enhance the likelihood of meeting goals, enhancing capabilities, and ensuring long-term survival for startups.
Human Resource Management (HRM) Practices
Long Hope Communication Co., Ltd.'s human resource management practices are effective in maintaining employee productivity, but could be improved by addressing employee interest, management support, and involvement in decision-making.
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