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5 Signs It’s Time to Hire HR for your Small Business

Jan 16, 2018

As a small business owner, chances are you’re overseeing most aspects of the operation including the onboarding process, benefits, training and all employee relations. But what about when your business grows just enough to make managing these aspects more complicated and time-consuming? How do you know when it’s time to consider a human resources advisor? We’ve laid out five signs its time to hand it over to a professional:

1. You have 50 or more employees.

As your workforce grows, human resource professionals are necessary for a business to make sure they are complying with state and federal laws. Many compliance areas change when you hit the magic 50 employee number (ex: FMLA)

2. You don’t have enough time to run the “people” side of things.

If you no longer can manage schedules, paperwork, payroll, terminations and other administrative tasks for your current employee size, it’s likely the right time to hire HR to handle employee management and take it off the plate of the owner.  A businesses’ competitive advantage suffers if employee needs and unanswered human resources concerns go unattended.

3. Business strategy – are you growing or expanding?

If you’re looking to grow exponentially, it’s a good idea to hire an HR professional to help not only manage the overall hiring strategy, but make sure state and federal laws are being followed to mitigate any risk to the business. The HR person would also be responsible for placing job ads, interviewing, and hiring, essentially feeing up that time up for the business owners and/or decision makers to focus on the business.

4. You see a lot of “HR” issues categorized as truly HR related.

Often business owners are great at being entrepreneurs and running an organization, but not so great HR concepts: the management of employees, performance evaluation, identifying and developing talent, strategic hiring goals, counseling sessions, preventing wrongful termination cases to name a few. You may think the management of every aspect of your business just comes with the territory. By recognizing the need to hire the right HR person to manage all of that will protect the company and streamline processes. It removes the burden from you, the business owner – be proactive versus behind the eight ball so to speak.

5. You need to create/add/expand benefits.

As soon as your company gets big enough to require group benefits policies and retirement packages, it’s better to hire a dedicated professional. You want someone who truly understands benefit and wellness packages, specifically for small businesses to ensure you are providing compliant benefits set by federal and state law. With a professional on your team, it enables you to make smart financial decisions based on what’s available to you and costs associated with it. Lastly, providing a competitive benefits package will inevitably be attractive to current and future employees.

Now that you have a few indicators that its time to hire HR for your small business, you may be interested in some advice about hiring skilled workers.


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