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How to Know When to Hire an HR Person

The majority of businesses don’t start out with much in the way of support staff, including human resources. Instead, the core team handles hiring, payroll, benefits, and other related tasks. In many cases, the person in charge of finance does double duty, taking on HR related tasks as well. This is often because of the tight correlation between finance and payroll.

By Linda GrandesPublished 5 years ago 4 min read

Eventually, that changes. When a business grows, it’s inevitable that HR duties expand beyond what someone can handle in addition to their primary role. Hiring becomes more complex. Employees need training and feedback on their performance. There may even be issues that require in-depth knowledge of employment law. There's also the fact that the financial person will at some point become busy enough with their own duties that they are no longer able to dedicate time to HR functions as well.

HR plays a key role in an organization’s growth strategy.

A company’s growth isn’t just dependent on its ability to make and sell products. It also depends on their ability to attract talent, hire, train, and retain that talent. This includes providing an attractive work environment and protecting the company financially from any sort of employment-related liability. Of course, the ability to provide a competitive benefit package is also mandatory. Any company that wants to grow will need to consider what is human resources requirements will be in the future.

When HR is simply an afterthought or a side job, growth can be halted. This is the point at which it may be time to hire an HR expert. As expected, the actual process of hiring somebody to take over HR duties can be a bit complicated.

The time to bring on an HR staffer may be earlier than you realize.

Unfortunately, the conversation about bringing on an HR person often starts too late. This should happen as part of all strategy and growth planning. Otherwise, it tends to happen when a crisis has emerged. The process can be intimidating, but fortunately there are some options take the sting out of investing in HR staff.

Even if a startup doesn’t see the need for an HR staff member for quite a long while, it can be a good idea to bring in a consultant to provide necessary advice from the beginning. It may be worth the investment to begin thinking about hiring strategy, compensation issues, and other factors at the beginning.

An HR consultant can be a viable option to a staff member.

Of course, in many cases, it isn’t awareness that stops emerging startups from bringing on an HR staff. It’s simply finances. This is another reason to consider a consultant. They can come aboard on an "as needed" basis until there is funding and need for a permanent staff member. In many instances, they can provide advice on employment law, benefits, recruiting etc. that core staff members can then act upon.

Things to Consider when Hiring an HR Expert

The decision to hire an HR consultant shouldn’t be entered into lightly. It's important to get the most out of your investment. Here are a few things to look for before making a final decision.

  • Do they have experience in the startup’s niche?
  • Will they fit into the organization?
  • Is it clear they understand and support the overall mission?
  • Are they willing to grow into their role as the organization grows over time?
  • Do they have acceptable references?
  • Are they able to take on many HR tasks? Most startups won’t be able to hire HR specialists as consultants or employees.

Preparing to Bring on a Full-Time Human Resources Staff Member

As you might expect, an HR consultant is an affordable option, until their services are required at a full or near full-time basis. Then, it may be time to hire someone permanently. Still, that’s not something to be taken lightly. The average salary of an HR generalist is about 56K. Of course, the cost of benefits must be considered on top of that. Obviously, hiring a very experienced HR person, or somebody with human resource management experience also drives the price up.

Next startups must consider the amount of work that they'll have for a new human resources staff member. Will there actually be 40 hours or more worth of work to do for that person at the beginning? What other duties will they be assigned to fill in any gaps?

Because staffing is often one of the driving factors behind the need to hire HR staff, one of the first hires is often a recruiter. Because this person plays such an integral role in the growth and development of the company they must really be an excellent fit. They must understand the company's goals and be someone who is capable of representing the company over the phone, through emails, and at hiring events.

Final Thoughts

The task of managing your human resources is something that many startups underestimate. An HR person is responsible for recruiting and hiring the right people, onboarding them effectively, designing compensation packages that are competitive, ensuring that everybody has the right training, creating a healthy and productive work environment, managing payroll and workman's comp, and acting as a benefits administrator. At some point, it is inevitable that small businesses outgrow their ability to treat human resources related tasks is ancillary to a good job of the CFO or other staff members. The best time to think about hiring an HR person is during business planning. That ensures that the choice to bring on an HR consultant or staff member is not predicated by a crisis.

Author’s Bio:

Linda Grandes is a full-time blogger at Studyton.com and a true expert in writing. She is interested in a variety of topics starting from education and ending at modern art. That's why the idea of her blog cannot be narrowed to one topic as well. Linda also has vast experience in editing texts and knows all the angles of academic and professional writing thanks to her productive cooperation with WoWGrade.com. Linda is a passionate traveler and she is eager to learn new things and meet new people from all walks of life.

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    Linda GrandesWritten by Linda Grandes

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