Small Business Cents

Mike Moore offers his “2 cents” on the challenges facing small businesses today.

In my 40 plus years in the staffing industry, I have seen many small business owners struggle with knowing when it is the right time to hire their first full-time Human Resources Professional.

Most small businesses have their accounting manager or office manager take charge of human resources related duties including payroll, benefits, recruiting, onboarding, terminations, employee relations, leadership development, workers comp and unemployment claims, etc. Often times, business owners take on many of these important responsibilities.  Eventually businesses on a solid growth path will reach a level where there is a need to add a first full-time human resources professional.  So, when is the time to make that hire?

Several key factors play into this decision.

  • Is the company skipping steps relative to proper employment practices and law and putting the company at risk?
  • Is everyone in the company “doing their own thing” as to how they manage their people and human resources related processes?
  • Does the company have low morale and/or high turnover because employment issues are being pushed aside and not being dealt with?
  • Is operations leadership spending more time dealing with human resources process and issues and less time on developing new business and solving operational service and product delivery challenges?

Of course, the number of employees is a major factor that dictates when it is time to bring on an HR pro.  Twenty or thirty years ago the general rule of thumb for when to hire an HR professional was when a company approached 75-100 employees.  That number has dropped significantly in recent years with the increase in employment laws and regulations, the shortage of qualified candidates and the realization that organizations need smart human resources guidance in order to be successful.

It is never too early for small firm to establish a relationship with a human resources consultant so that the foundation of a future best practice human resources can be built.  It will help reduce the pains of growth and lead to healthier growth of the organization.

Just as water finds its own level, the time to hire a human resources professional will become evident as an organization is feeling the pains of growth and sees the need to address issues related to building a successful business.

Here are some great online resources that offer some great advice for a growing business on when and how to hire their first human resources professional:

https://www.business.com/articles/hire-first-hr-person/

https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/startinganhrdepartment.aspx

Moore Staffing Human Resources is a firm dedicated to helping businesses successfully hire the experienced talent they need to support a growing workforce. Offering Temporary, Contract-to-Hire, Direct Hire and Interim Management & Project Consulting staffing solutions along with our Best of Staffing® Client and Talent award-winning service, Moore Staffing is the partner of choice for all of your hiring needs.