Two founders argue that HR departments are unnecessary obstacles. They say companies run better when functional heads hire their own teams, legal counsel handles compliance, and there's no internal policing slowing decisions or undermining merit.
There is no company where I have majority control, where I have an HR department. You should go to a very respected lawyer at a third party firm, someone very visible so that you have an escape valve if there are any kind of serious issues that need to be escalated. The team should build their own benefits package that they want. Then when it comes to hiring the person for whom that person will end up working for, it's the head of engineering, it's the head of sales. Those are the people that should be running the hiring processes. When you strip all of these jobs away, HR doesn't have a role. And what is left over is the very dark part of HR in most organizations which is the police person. What does Sachs called the commissar. That is why everybody hates hr. They are this conflict creating entity inside of an organization that slows organizations down.
It's not required. And I think people are realizing like why would you create this large bureaucracy in the company that undercuts the meritocracy, that adds a lot of costs and that slows you down. None of those things will help your company.
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