As your startup grows beyond the founding team, HR quickly becomes more than Slack messages and spreadsheets. But if you're a founder or the first HR hire, you likely don’t have time—or budget—for complex systems, heavy processes, or corporate-style strategies.

What you need to know is simple: when to invest in HR, what’s essential, and how to build a lean HR function that scales.

This guide breaks down exactly what “just enough HR” looks like for companies with under 50 employees, and where to focus first.

When Should a Startup Start Building HR?

Start laying HR foundations at 15–25 employees

Around this size, things like onboarding, payroll, and basic policies begin to break without structure. You’ll also hit regulatory requirements, especially in the Nordics, where employment law is strict and kicks in early.

🇸🇪 Sweden

You must maintain written employment contracts from day one. Benefits like paid parental leave, union engagement, and local labor obligations (e.g., LAS) require clear processes as the team grows.

🇳🇴 Norway

You must comply with Arbeidsmiljøloven, which requires defined employment terms, a safe workplace, documented working hours, and proper employee records.

These things feel manageable at 5–10 employees. But past that, they become time-consuming and risky to ignore.

If your team is hybrid or distributed, even a lightweight HR setup reduces friction, protects your company, and improves retention.

Where to Begin: HR Priorities for Small Organizations

Below is a lean, founder-friendly HR roadmap designed for startups between 10–50 employees.

High Priority (Your First 60 Days)

1. Recruiting Process

2. Onboarding Checklist

3. Payroll, Contracts & Benefits

4. Lightweight Employee Handbook

5. Legal Compliance

Medium Priority (60–120 Days)

1. Performance Conversations

2. Manager Support

3. Culture and Values

Low Priority (Do Later)

1. Career Paths and Compensation Bands

2. L&D Programs

3. Complex HR Integrations

4. Full Engagement Surveys

HR vs. Talent Acquisition: What’s the Difference?

In early-stage startups, one person often covers both HR and TA, but they handle very different responsibilities.

When hiring ramps up, recruiting takes priority. When hiring slows, shift focus to people processes. Expecting one person to do both flawlessly (and fast) is unrealistic, set realistic expectations.

Common Mistakes to Avoid When Setting Up HR

1. Too much tech too soon

2. Overbuilding policies

3. Rigid performance systems

4. Perks over fundamentals

A Simple 0–1 HR Setup Checklist

High Priority

• Contract templates (localized for Sweden/Norway)

• Payroll + pension + tax registration

• Hiring process & interview templates

• Onboarding checklist

• 5–10 page handbook

• GDPR + legal compliance

Medium Priority

• Quarterly check-in system

• Manager support guides

• Values documentation

• Offboarding process

Low Priority

• Leveling framework

• Full HRIS

• Engagement surveys

• L&D programs

As startups grow past the early chaos of founding teams, one truth becomes clear: you need structure.

A lean, scalable HR setup helps you hire consistently, onboard smoothly, stay compliant, and build a company people actually want to work for—without wasting time or money.