WHEN SHOULD I HIRE AN HR MANAGER?
When a new business launches, the owner, by default, assumes the responsibility of the Human Resources (HR) manager. It's not what you usually want to do, but that's what ends up happening.
NEW HR CHALLENGES
HR has always been a big job, and to add insult to injury, it just becomes more complicated post-COVID because employees' needs are so different.
The last few years have been anything but stable. While COVID was the catalyst to the Great Resignation, the reality is that the root issues behind those resignations have been festering long before COVID. Employees were just more willing to accept those issues as part of the job because that's what they always did, and that's what their parents did. You can offer the best working environments in the world, but if people aren't willing to work, companies can't service their customers. This poses a big challenge for HR managers.
THE REALITY
So you, the owner, wear the HR hat. Instead of working on the business, you're working in it, alongside 41% of other business owners who haven't yet shed the HR responsibility, and spend an average 18 hours a month on HR-related tasks, and almost 40 hours a month if they're doing payroll.
When is too much too much?
SIGNS IT'S TIME TO HIRE AN HR MANAGER
Here are some triggers that signal it might be time to hire some help:
- YOU'RE NEEDED IN OTHER PARTS OF THE BUSINESS - Big picture decisions and issues are prioritizing your time. You need to be involved in these projects, so you are, but the HR functions are falling by the wayside
- YOU'RE STRUGGLING WITH LEGAL COMPLIANCE - Your employee handbook is outdated, and you're not sure you are maintaining employee records correctly. Many labor and employment laws, state, federal, and local laws, and protocols keep your employees safe and your business out of legal trouble. The details are slipping through your fingers
- YOU'RE GROWING FAST - You're making more sales, generating more revenue, and need to hire more people. If capacity is restricted by your ability to hire team members and keep them happy and productive, you might need to hire an HR manager
- YOUR CULTURE IS IN CRISIS - The employees you have an overworked, feel underappreciated, and no longer believe in or think you're living up to your core values. If your culture is in crisis, an expert in organizational development could help
CONSULT YOUR METRICS
If you don't have metrics in place, that's one of the first investments you should make in your business. Companies that don't have metrics - or don't have robust, accurate systems of measure - grease the squeaky wheel and are reactive rather than proactive.
Established businesses who have key performance indicators in place, have a better understanding of their capacity and visibility into their pipeline and revenue. They can look at the numbers and evaluate when an HR manager is needed. Usually, when you get north of 10 employees, you need a designated HR professional to help.
FULL-TIME, PART-TIME, OR CONTRACT?
Whether to hire an in-house HR manager or outsource the function depends on a multitude of variables. The size of your company, the type of business you have, the people, and the economics all come into play.
But, the sooner you can bring a dedicated in-house HR professional into your business, the better. An internal HR manager is concerned with the people component of your business and not just the process. They can build relationships and trust with your team by conducting regular check-ins to make sure things are running smoothly, and issues get resolved timely.
The challenge with hiring for the HR function, at any point and any size is it's 100% overheard, and you have to hire the right cultural fit. It's a hard hire but a necessary one because that overhead will eventually make your business more efficient overall.
HIRE THE RIGHT EXPERIENCE
If you decide to hire an in-house HR manager, hire someone with experience working HR in a bigger business than yours. Compliance rules change the more employees you have, so it helps to have someone in place that understand the legal ramifications of growing to 25 employees, from 20-50, about 50, etc.
Have you hired an HR Manager for your business? How did you know the time was right? Share with us on Facebook, Twitter, and LinkedIn!
