When You Need an HR Person: Scaling Your Business and Managing Employee Growth

Scaling a business can be exciting, but it also brings with it a host of challenges, particularly in managing employee growth and the associated administrative tasks. There is no set number of employees beyond which you must hire an HR person. However, when you reach around 15-20 employees, the complexity of managing payroll, benefits, and employee issues can become overwhelming for a single person. This article explores the signs that indicate the need for an HR professional and the benefits they can bring to a growing organization.

Understanding the Need for an HR Person

While every organization, regardless of size, involves some form of human resources management, the specific responsibilities typically increase as the number of employees grows. As your team expands, so do the administrative tasks associated with employment, such as payroll, benefits management, and handling employee issues. These tasks can quickly become unmanageable for a single individual, leading to potential errors and a breakdown in operational efficiency.

The transition to hiring an HR person often occurs as the business scales. If you are scaling quickly, bringing in an HR person early on, equipped with tools like UKG or Connecteam, can help ensure that all tasks are handled smoothly and that your business remains compliant with all relevant laws and regulations. This proactive approach can prevent many of the common headaches that come with rapid growth.

The Role of HR in Your Business

When you have more than one person in your organization, someone is already handling HR tasks. These tasks include recruiting, interviewing, settling pay, benefits sign-ups, record keeping, and payroll arrangements, as well as compliancy with all the tax laws. Many of these tasks can be outsourced to HR consulting organizations or payroll companies, but ultimately, someone within the organization must coordinate these services and resolve any issues that arise.

Another alternative is to hire a contract company to supply their staff to do the work. In this case, the HR professional will handle all such administrative tasks, and the business simply finds people arriving at their worksite prepared to do the jobs they are listed for. This approach can be more suitable for organizations that prefer to keep their internal staff focused on core business activities.

The Decision to Hire an HR Person

The key question becomes: will you, as the owner, president, or CEO, take on these responsibilities, or will you hire a contract company, a vice president, or a dedicated HR person? The decision often hinges on whether the owner is willing to handle the paperwork and emotional aspects of employee management, which can be overwhelming.

Typically, a business owner hires a few people and designates one of them to handle more HR-related tasks. However, challenges often arise that neither the employer nor the designated HR representative anticipated. This is frequently the point at which the senior administrative assistant steps in. As the number of employees grows, the workload and complexity increase, and the senior admin assistant may need additional support. This transition often occurs around the 30-80 staff mark.

In summary, the need for an HR person is driven by the complexity and volume of administrative tasks that come with employee growth. While there is no specific number, hiring an HR person can provide structure, compliance, and support as your business scales. Whether an HR person is full-time or part-time, their role is crucial in ensuring that all aspects of employee management run smoothly.