Startups are a progressive form of business that face some specific challenges in terms of its Human Resource. To understand the various HR challenges faced by Startups and understanding the solution-based approach to resolve them is necessary. Here, we have identified some of the key challenges faced by startups. Lack of interest by management to invest time and money into HR policies and compliance Absence of well-documented HR policies and compliance system to tackle personnel problems A proper system for continuous performance feedback for employees and employee feedback for better management Lack of conscious efforts to build an organizational culture that aligns with the promoters’ view of the organization that they want to build Unwillingness to identify employees’ training needs that align with the required skill set Modern Performance Management systems typically provide features that can help startups to manage these challenges.