As a small business grows, the need for human resources (HR) support becomes increasingly essential. The decision to bring on HR support depends on several factors, including the number of employees, the complexity of HR tasks, and the business’s growth trajectory. Here are some key considerations and indicators that a small growing business might need HR support:
Key Indicators for Needing HR Support
- Number of Employees
10 Employees: Most experts recommend that small businesses consider engaging HR support when they reach around 10 employees. At this point, the complexity of managing HR tasks such as compliance, payroll, and employee relations typically increases beyond what an owner can handle alone.
20 Employees: For businesses with around 20 employees, it might still be feasible to handle HR tasks without a full-time HR professional, but the need for dedicated HR support becomes more pressing.
- Compliance and Legal Requirements. As businesses grow, they must comply with various federal, state, and local labor laws. An HR professional can help ensure that the company adheres to these regulations, reducing the risk of costly fines and legal issues.
- Time Management. Business owners often find that HR tasks consume a significant amount of their time, detracting from their ability to focus on core business activities. If HR responsibilities are taking up too much of the owner’s time, it may be time to delegate these tasks to a dedicated HR professional.
- Employee Relations and Company Culture. HR professionals play a crucial role in fostering a positive company culture, handling employee grievances, and ensuring open communication within the organization. If maintaining a cohesive and motivated team becomes challenging, HR support can be invaluable.
- Recruitment and Retention. Effective recruitment and retention strategies are essential for growth. An HR professional can streamline the hiring process, improve onboarding, and implement retention strategies that help keep valuable employees engaged and satisfied.
Options for HR Support
- In-House HR Professional. Hiring an in-house HR professional or team can provide direct oversight and control over HR functions. This option is ideal for businesses with the budget and need for continuous HR support.
- Expert Fractional HR. For businesses that do not need full-time HR support, outsourcing HR functions to Fractional HR support or HR consultant can be a cost-effective solution. This allows businesses to access HR expertise without the overhead of a full-time employee.
- HR Software and Tools. Implementing HR software can automate many HR tasks such as payroll, time tracking, performance reviews, and employee records management. This can be a practical solution for small businesses looking to streamline HR processes without hiring additional staff.
What next?
Determining when to bring on HR support is a critical decision for startups and high-growth businesses. Key indicators such as the number of employees, compliance needs, time management challenges, and the importance of maintaining a positive company culture can guide this decision. Whether hiring an in-house HR professional, outsourcing, or utilizing HR software, ensuring that HR functions are effectively managed is essential for the sustainable growth of the business. Jennifer Robertson, partner and startups lead at 2GO Advisory, can help you address HR needs proactively so that your business can create a supportive and compliant work environment that fosters employee satisfaction and drives business success.
For your HR Talent needs in direct hire, full-time or part-time contract staffing, contact Executive Recruiter, Leesa Meintzer at leesa@2gorecruiting.com.
Jennifer Robertson, MA and CHROs2Go Partner helps organizations navigate change successfully by aligning their HR strategy with business goals. With nearly 25 years of experience leading change initiatives and advanced degrees in organizational leadership and change management, Jennifer is uniquely positioned to upgrade your people operations and take your business to the next level. Whether you’re restructuring, scaling up, or implementing new initiatives, she can provide the strategic HR guidance and hands-on support to ensure your people are ready for change and driving business success.
You can contact Jennifer Robertson at jrobertson@chros2go.com.
Leesa Meintzer is an executive recruiter with more than 20 years of experience in talent acquisition. She excels in partnering across various business functions and brings a comprehensive perspective to talent acquisition. She works with Engineering, Healthcare, Product, Finance, Accounting, Business Operations, Sales, Legal, Human Resources, Learning & Development, and Talent Acquisition for corporate and high-growth start-ups.