Some thoughts around the tools you might need to start with.
One thing that founders and early teams often get challenged by is the people side. When you’re a super small team there’s generally not a lot of need for process because you’re all either on Notion & Slack or yapping across the desks.
But as the need to hire more people arrives, the need to find the right tools to manage the hiring and general people side of things comes with it. Finding the right tool for the right job without much forethought or insight can be costly. Both financially and emotionally.
Mistakes here aren’t just irritating, they’re expensive, and when you’re managing your burn closely every dollar counts.
The things you probably need to start with are some tools that minimise your risk and automate as much of your hiring process as possible.
Posting job openings, managing applications, and moving candidates through a simple hiring process are probably all you need at first.
However, as you grow, you’ll need to get better at securely storing all your employee data. If your payroll is outsourced, your provider might handle this. But if you’re managing payroll yourself, you’ll need to think about data security and storage. I’m an Ops person, so I always think about managing and protecting worst-case scenarios. (If you’re an Entrepreneur or Big Picture thinker, you probably laugh in the face of risk like a pirate. Fine, wtvr.)
As your team expands further, logistics can start draining your time. Consider something like a device management platform where company laptops can be shipped directly to new hires, letting them select peripherals easily through an automated system. This means personalisation for your team, with less work for you.
Finally, offering employee wellbeing solutions could be a thoughtful touch that delivers significant value to your team with minimal input from you. It’s all personal preference though, of course.
The smart move is to find tools that deliver exactly what your team needs without breaking the bank or locking you into long-term contracts you might regret. There are so many tools to choose from that it can be mind-boggling, but being clear on what you actually need from a tool is the best place to start.
Don’t get sold on shiny features you don’t need yet. Below, I’ve broken down key categories of people-focused tools, tailored specifically for early-stage startups, focusing on practicality, ease of implementation, and cost management.
Suggested HR Tools by Category
Category, Tools, Cost (AUD), Ideal Stage, Notes
Talent Attraction
- SEEK, My Startup Gig, LinkedIn, Jora
- Free – variable
- All stages
- Essential to publicise openings effectively
Applicant Tracking
- Teamtailor, Ashby, Breezy HR, Dover.
- Free plans up to ~ $100/month. You don’t need to pay too much more
- Pre-seed to Series A
- Automates and organises hiring efficiently
HRIS (with built-in ATS)
- HiBob, Rippling
- From $12–40 per user/month
- Seed to Series B
- Manages employee lifecycle and compliance
EAP (Mental Health)
- Sonder, Uprise, Assure Programs
- Anywhere from $20per user/month
- Seed to Series B and beyond
- Critical for wellbeing and retention
Equipment Management
- HOFY, Firstbase, Workwize
- Expect to pay ~$25 per user/month for platform access. Also expect some additional costs for shipping, etc
- Seed to Series B and beyond
- Simplifies remote onboarding and management
Payroll
- Payroller, ELMO, QuickBooks
- Expect to pay anywhere from $90/month
- Pre-seed to Series A – beyond this it’s an internal function.
- Essential for managing compensation smoothly
Selecting Your Startup’s HR Tools: Principles, Checklist, and Key Questions
Guiding Principles:
- Choose tools suitable for your current stage and the risk you carry.
- Aim for simplicity and ease of use—if your team won’t quickly adopt it, don’t buy it.
- Prioritise data security and compliance—protecting employee and applicant data is non-negotiable.
- Avoid long-term contracts until your revenue and product-market fit become stable.
Quick Verification Checklist:
- ✅ Ease of Use: Does it feel intuitive to you? Do you genuinely believe your team could pick it up quickly? Remember, every additional tool increases cognitive load.
- ✅ Built-in Compliance: Does it explicitly handle data protection and privacy requirements?
- ✅ Transparent Pricing: Are costs clearly laid out? If there’s a minimum spend or lock-in period, ensure it’s something you’re comfortable committing to—or go month-to-month if needed.
- ✅ Easy Integrations: Does it fit effortlessly into your current setup (Slack, email, calendars)?
- ✅ Scalability: Can it flexibly grow with you, without significant cost spikes?
Essential Questions Before Buying:
- “Does this solve a real, immediate problem or just feel like something we ‘should’ have?”
- “If things go sideways, can we easily exit without penalties or complications?”
- “Is there a simpler, cheaper way to achieve the same outcome?”
Choosing wisely now helps you avoid costly mistakes later, preserving runway and enabling you to stay focused on finding product-market fit.
Good luck!
