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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  • YOU'RE STRUGGLING WITH LEGAL COMPLIANCE - Your employee handbook is outdated, and you're not sure you are maintaining employee records correctly.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!


INDEX
  • WHEN SHOULD I HIRE A CHIEF MARKETING OFFICER?
  • WHEN SHOULD I HIRE A COO?
  • HOW TO EXIT YOUR BUSINESS WHEN YOU DON'T HAVE A BUYER
  • WHEN SHOULD I HIRE A CHIEF FINANCIAL OFFICER?
  • IT'S NOT THE GREAT RESIGNATION; IT'S THE GREAT REALIGNMENT
  • WHEN SHOULD I HIRE AN HR MANAGER?
  • WHY YOUR BUSINESS NEEDS A PRICING STRATEGY
  • THE 4 Cs OF EVERY SUCCESSFUL BUSINESS
  • WHAT IS A CEPA ADVISOR AND HOW CAN ONE BENEFIT YOUR BUSINESS?
  • THE FALLOUT ON CULTURE WHEN YOU DON'T HIRE A PLAYERS
  • THE ROLES OF SALES IN YOUR SMALL BUSINESS
  • FINDING THE PERFECT GIFT FOR THE ENTREPRENEUR IN YOUR LIFE
  • THE BENEFITS OF OWNING A SMALL BUSINESS
  • WORKFORCE IN MOTION
  • GOAL SETTING FOR 2022: WHAT TO DO NOW TO BE SUCCESSFUL NEXT YEAR
  • LESSONS LEARNED AFTER PUBLISHING MY FIRST BOOK
  • WHY YOUR BUSINESS NEEDS INNOVATION
  • THE COVID-INSPIRED SPIKE IN ENTREPRENEURIALISM
  • 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?
  • Ask Gerber: How Can I Recognize Permanent Failure as an Entrepreneur?
  • 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?
  • ASK GERBER: HOW CAN I ENGAGE WITH MY CLIENTS/PROSPECTS WITHOUT BREAKING THE BANK?
  • 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?
  • ASK GERBER: WHAT'S YOUR STANCE ON REMOTE ACCESS FOR EMPLOYEES?
  • ASK GERBER: WHEN DO I NEED TO HIRE AN ADMINISTRATIVE ASSISTANT?
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