Human Resource Management in Early-Stage Startups: A Qualitative Multiple-Case Study

Early-stage startups face unique challenges in Human Capital (HC) management, as traditional Human Resource Management (HRM) practices, designed for established firms, overlooking the unique organizational dynamics of nascent ventures. This exploratory qualitative case study examines HRM practices in early-stage startups through a cross-case analysis of eight cases: two each from France, Italy, and the United Kingdom, complemented by one case each from Switzerland and Tunisia. We conducted semi-structured interviews with eight startup founders and three early-hire employees, enabling comprehensive perspective triangulation through multiple stakeholder viewpoints within each case organization. Through the theoretical lenses of Resource-Based View (RBV) and contingency theory, this study examines how startups orchestrate their HR resources and adapt their management systems. The findings demonstrate the imperative for adaptive HRM strategies in early-stage startups’ dynamic environments during critical phases of hiring, onboarding, and retention. The study's primary contribution is extending the startup HRM literature by introducing a flexible management of a fractional HR management model, which provides startups with a cost-effective, expertise-driven solution for managing essential HR functions, including talent acquisition, onboarding, development, and retention. The research advances both theoretical understanding of HRM in nascent ventures and provides actionable insights for startup founders in optimizing their HC management strategies within resource constraints, particularly during their founding years.