Startup HR Checklist: What You Need at Each Stage
Startups don’t need an HR department. They need a few things done right at the right time: payroll and contracts from the first hire, a handful of policies by ten people, and real processes by fifty. This checklist shows what to do when.
What HR does a startup need?
At the first hire: a payroll account, a written employment agreement with IP assignment and confidentiality, and a way to track vacation and time off. By ten people: a simple handbook, a hiring process, salary bands and a stock option plan. By 25 to 50 people: performance reviews, more formal policies, benefits and a person who owns HR.
What must be done before the first hire?
Register a CRA payroll account, set up payroll software, and use a written agreement that covers pay, duties, probation, termination, confidentiality and IP. Decide whether the person is an employee or a contractor using the CRA’s tests; the details are in hiring in Canada. Contract terms are covered in job offers and employment contracts.
What changes at around ten people?
- A repeatable hiring process, so every candidate gets a fair, comparable interview. See the hiring process for startups.
- Salary bands and an option pool, so offers are consistent. See compensation and benefits.
- A short handbook: time off, expenses, remote work, equipment and conduct.
- Onboarding so new hires are productive in weeks, not months.
When do legal rules change with size?
Several rules apply by headcount. In Ontario, employers with 25 or more employees must follow job-posting rules that took effect on January 1, 2026, including pay ranges and disclosure of AI used in screening (Ontario’s job posting requirements), and must have written policies on disconnecting from work and electronic monitoring. B.C. requires pay ranges in all public job postings regardless of size. Other provinces have their own thresholds; check the employment standards where each employee works (Ontario’s ESA guide).
Fix the basics before the culture deck.
Contracts, payroll and IP assignment protect the company. Values and perks matter, but they don’t fix a missing agreement.
What should you do this month?
- Check every employee and contractor has a signed agreement with IP assignment.
- Confirm payroll remittances are current.
- Write down salary bands for your open roles.
- Draft a one-page time off and remote work policy.
- Note the headcount thresholds that apply in your provinces.
When the list gets long, read HR tools and your first HR hire.
Frequently asked questions
What HR does a startup need?
Payroll, written contracts and IP assignment from the first hire; a hiring process, salary bands, options and a handbook by about ten people; reviews and an HR owner by 25 to 50.
When should a startup hire an HR person?
Often around 30 to 50 employees, or earlier if hiring fast or across several countries.
Do startups need an employee handbook?
A short one by about ten people, covering time off, expenses, remote work and conduct.
What changes for Ontario employers at 25 employees?
Job-posting rules such as pay ranges and AI disclosure, and written policies on disconnecting from work and electronic monitoring.
Do I need a written contract for every employee?
Yes. It protects IP, sets termination terms and avoids disputes later.
Is this legal advice?
No. It is general information. Confirm with an employment lawyer in each province or country where you employ people.
Sources & further reading
Employment and tax rules change. These government sources let you check the current requirements directly.