HR Insights for Startup Founders
A BLOG BY JESSICA DONAHUE, PHR
Startup Compensation Philosophy: What It Is, What It Includes, and Why Timing Matters
Most founders don't think about compensation philosophy until they're already in trouble — when a new hire requires a salary higher than everyone else in the role and nobody knows what to do about it. Here's how to get ahead of it.
PEO vs. Fractional HR: What's the Difference and Does Your Startup Need Both?
Most founders assume a PEO covers HR. It covers the administrative layer—payroll, benefits, compliance paperwork. Here's what it doesn't cover, and why that gap gets expensive fast.
The Startup Founder's HR Guide: What to Build, When, and In What Order
Most founder HR guides give you a checklist. This one gives you a sequence—and more importantly, the philosophy decisions you need to make before any of the tactical work actually holds up. I've built people functions from scratch with dozens of startups. Here's the order I'd do it in, and what breaks quietly when you skip steps.
The Difference Between Fractional HR vs. Hiring an HR Manager
Most founders making their first HR hire focus on the wrong question. They compare costs and make a decision from there. Before you do that, there's a more important question to answer—and I'm in a rare position to help you think through it. I've spent 10 years as a full-time HR leader and six as a fractional one. Here's what I know about the differences.
Fractional HR Cost: Pricing, Ranges, and What Actually Drives the Difference
If you've searched this question and gotten a range so wide it was useless, you're not imagining things. Fractional HR costs anywhere from $1,500 to $16,000 a month—and that range is so wide because "fractional HR" isn't just one thing.
A Step-by-Step Guide to Conducting Workplace Investigations
Employee allegations of misconduct are inevitable — but most of us don't conduct investigations often enough to feel confident in the process. Here's a complete step-by-step guide.
Fractional CHRO Explained — By Someone Who Actually Does The Work
Most founders who ask about a fractional CHRO are actually picturing something else entirely—someone to handle the HR paperwork, run recruiting, maybe deal with a difficult employee situation. That's not a CHRO. Here's what the role actually involves, and how to know whether it's what your startup needs right now.
Do Startups Need HR? When to Get It, What Kind, and Why Timing Matters
Most founders frame this question around headcount. At what number of employees does HR become necessary? Here's the problem with that framing: it misses the point entirely. The question isn't how many people do I have—it's what's actually happening with my people right now, and who is handling it?
HR Compliance Basics for Early-Stage Tech Startups
Employment law doesn't care that you're a startup. It doesn't care that you're moving fast or that HR feels like a problem for future you. Here's the advice I'd give you over coffee as an HR practitioner.
HR Policies Every Startup Needs on Day One (And What Can Wait)
Most founders ask this question wrong. They go looking for a policy list—something they can check off and feel like they've handled the HR thing. Here's what you actually need on day one, from someone who has built people functions from scratch with dozens of startups.
The Most Common HR Mistakes Startup Founders Make (And How to Avoid Them)
After nearly six years working exclusively with startups, I've seen the same HR mistakes made over and over again by smart, capable founders who simply didn't know what they didn't know. By the time you realize you needed it, you're usually already managing the consequences. Here's what I see most often—and what to do instead.
Fractional HR: Is It Right for Your Company? Here's How to Tell
Fractional HR isn't right for every company. Some need it badly and don't know it yet—and others think they need it when what they actually need is something different entirely.
After 15 years as a fractional HR practitioner working exclusively with startups and small businesses, I've had a lot of first conversations with founders who are trying to figure out exactly that. Here's the honest version of how I think about it.
10 Things to Consider Before Hiring a Fractional HR Executive (From a Real Practitioner)
Hiring a fractional HR executive isn't like hiring any other fractional leader. Here's what to consider before you bring one on—from a practitioner who has been doing this work for nearly six years.
Fractional HR Meaning: What It Is, How It Works, and Who It's For
The most common definition of fractional HR gets it wrong. Search the term and you'll find article after article calling it "part-time HR support." That's not wrong, exactly — but it flattens something that's a lot more nuanced, and it leaves out the details that matter most when you're deciding whether this model is right for your company. Here's the version from someone who's actually been doing it for six years.
How to Vet a Fractional Executive Before You Hire: 10 Questions to Ask
Most companies hire fractional executives the wrong way. Here are the 10 questions you should actually be asking before you bring a fractional exec on board.
Benefits of Hiring a Fractional Executive (And Why Founders Wait Too Long)
The fractional executive model exists because founders finally started asking an obvious question: why do I need someone 40 hours a week when I really need 10 hours of the right thinking, from someone who's already solved this problem hundreds of times?
Here are the benefits of hiring a fractional executive for your startup:
When Should a Founder Hire Fractional HR? Earlier Than You Think
What HR actually is at the early stage: the architecture of how your company operates as a human system. Who you hire, how you onboard them, what behaviors you reward, how you handle the first hard conversation, what happens when your third employee underperforms. These decisions don't wait until you have a hundred people. They happen on day fifteen.
And when there's no framework for them, founders make them reactively—case by case, often inconsistently, sometimes in ways that create legal exposure or cultural debt that compounds over time.
How Fractional HR Helps Tech Startups Scale
A company triples its headcount in 18 months, raises a Series B, and suddenly the culture that made people want to work there is gone. Managers who were great individual contributors are drowning. Compliance gaps have been quietly compounding for two years. The founder is still making every people decision because there's no infrastructure to catch any of it.
That's not a hiring problem. That's a People operations problem.
Here's what a fractional HR leader actually does to help you scale:
How to Hire a Fractional HR Consultant: What to Actually Look For
If you're a 25-person Series A company, you don't need someone who's an expert at managing HR bureaucracy at scale. You need someone who knows what it looks like to build from scratch—who's written a first employee handbook, set up a first performance review cycle, and navigated a first difficult termination at a company without an established HR infrastructure.
What a Fractional HR Leader Actually Does Inside a Startup
Rather than hiring full-time executives, companies are increasingly turning to fractional HR leaders. A fractional HR leader is someone a company engages in a part-time, interim capacity and for a “fraction” of what it would cost to hire a full-time executive. Fractional leaders are experts in their fields and typically have led their respective functions in past positions.

