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ASK GERBER: DO I NEED TO HIRE HR?

SEPTEMBER 21, 2018

At what point in the growth of your small business should you invest in Human Resources (HR)? The answer is twofold. While you need to invest in HR functions immediately, hiring for the HR role is farther down the food chain.
 
First, let’s define what we mean by “role” versus “function(s).” There’s a distinct difference between employing an HR professional and having an employee responsible for day to day HR functions simply because the former is a much greater financial investment than the latter. It’s difficult, especially for small businesses, to justify adding a full time HR professional to your payroll. For the interim consider delegating the essential HR functions to a capable team member. – Hint: They are commonly found in the finance department!
 
Your CFO (or seasoned employee who has a knack for attention to detail) may be a great fit to take on HR functions. However keep in mind this person should also possess great communication skills, embody your core values, and understand your organization’s culture. It is important to identify a team player who has the capacity and desire to take on these added responsibilities.

Some of the functional HR responsibilities are as follows:
o Payroll & Benefits
o Hiring, Firing & Training
o Employment Law Compliance
o Compensation & Payroll
o Record Keeping
o Employee Relations
 
It can be tricky rolling this function up in to the CFO seat, mainly because the personalities of the two roles are traditionally so different. Team members need to feel comfortable approaching the individual responsible for HR functions to discuss sensitive matters. And as the business owner, you need to trust this individual to ensure your company is up to date with employment laws, managing payroll, and keeping pristine records.
 
Since there is no clear, immediate path to return on investment for hiring an HR professional, when the time comes, focus on the investment in nurturing your culture and creating a more efficient, compliant and safer work environment.
 
“Ignorance is bliss” is the case for so many small companies, not knowing you have a problem until you have one. So while it is important and necessary to delegate the HR functions, you do not have to make the hurdle to hiring an HR professional until later down the road.
 
Want to learn more about CFO functions? ASK GERBER : DO I NEED A CFO?
 


INDEX
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  • THE PROS AND CONS OF OUTSOURCING YOUR FINANCE AND ACCOUNTING SERVICE
  • HOW TO SET GOALS IN 2021
  • THE LEADERSHIP EVOLUTION OF YOUR BUSINESS
  • HOW TO GET THE MOST OUT OF YOUR ADVISORY BOARD
  • THE PANDEMIC-INDUCED INNOVATION OF MEETINGS
  • HOW TO USE THE 8 P'S OF MARKETING TO GROW YOUR BUSINESS
  • BEST PRACTICES FOR COLLEGE FINANCING
  • SCALING A BUSINESS - ARE YOU READY?
  • THE HALFWAY POINT: IT'S TIME TO REVISIT THOSE BUSINESS GOALS
  • GROWTH WITH PURPOSE: SUCCESSION PLANNING
  • GROWTH WITH PURPOSE: EVOLUTION OF FAMILY LIFE
  • GROWTH WITH PURPOSE: FINANCIAL RISK
  • GROWTH WITH PURPOSE: INTEGRATION
  • GROWTH WITH PURPOSE: WHY ARE YOU GROWING YOUR COMPANY?
  • GOAL SETTING 2020: HOW TO KEEP YOUR GOALS FRONT AND CENTER ALL YEAR LONG
  • ASK GERBER: HOW TO STAY LASER FOCUSED DURING THE HOLIDAYS
  • Ask Gerber: How to Identify Your Business's Culture When You Don't Think You Have One
  • Ask Gerber: When Should I Hire a Professional Manager?
  • Ask Gerber: Should You Mix Business with Friendship?
  • ASK GERBER: HOW DO I ESCAPE THE ENTREPRENEURIAL SLUMP OF FEELING TRAPPED IN MY BUSINESS?
  • ASK GERBER: HOW CAN ENTREPRENEURS CREATE SHARED EXPERIENCES WITH THEIR CHILDREN?
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  • Ask Gerber: How Can I Recognize and Overcome Temporary Failures?
  • ASK GERBER: HOW DO I HELP EASE EMPLOYEE STRESS DURING BUSY SEASON?
  • ASK GERBER: DO I NEED TO HIRE HR?
  • ASK GERBER : DO I NEED A CEO?
  • ASK GERBER: DO I NEED TO HIRE A COO?
  • ASK GERBER: DO I NEED TO HIRE A CMO?
  • ASK GERBER: DO I NEED TO HIRE A CFO?
  • ASK GERBER: HOW DO I KEEP PASSION AND PROFITS TOP OF MIND IN MY BUSINESS?
  • ASK GERBER: WHY DO I NEED TO INVEST IN HOSTING AN ANNUAL RETREAT FOR MY TEAM?
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  • ASK GERBER: WHAT IS A CLIENT SERVICE MATRIX? PART DEUX
  • ASK GERBER: WHAT IS A CLIENT SERVICE MATRIX? PART ONE
  • ASK GERBER: THE HIRING PROCESS. WHY IS IT SO DAMN HARD?
  • ASK GERBER: WHY IT'S IMPORTANT TO KNOW AND GROW YOUR COMPANY CULTURE
  • ASK GERBER: HOW DO I ACHIEVE THE WORK/LIFE BALANCE AS A BUSY ENTREPRENEUR?
  • ASK GERBER: HOW DO I PREPARE MY FRIENDS FOR LIFE AS AN ENTREPRENEUR?
  • ASK GERBER: FIRST GENERATION ENTREPRENEURS AND BUSINESS EXECUTIVES, HOW ARE THEY DIFFERENT?
  • ASK GERBER: I PUT SO MUCH OF MYSELF INTO MY BUSINESS THAT I WORRY I AM FALLING SHORT AS A SPOUSE AND PARENT. WHAT CAN I DO?
  • ASK GERBER: ARE CHILDREN OF FIRST-GENERATION ENTREPRENEURS MORE LIKELY TO BE SPOILED?
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  • ASK GERBER: WHEN DO I NEED TO HIRE AN ADMINISTRATIVE ASSISTANT?
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