When to Hire an HR Manager – Witnessing your startup or small business grow is a priceless feeling indeed. But for continuous growth, you need to ensure that the employees are engaged, the workplace is productive, and the organization’s operations run smoothly.
This responsibility might be something that the top management, i.e., the founders, the executives, the office managers, and or the HR generalists, can share at the initial stage of a company’s life. But soon, it becomes evident that the company needs a dedicated professional, someone more suited to put the right people in the right place and help the company maintain its momentum. In short, you need a Human Resource Manager.
An HR manager is an integral part of any organized business. As one of the people responsible for hunting, bringing in, and retaining the most significant business asset—the talent—an HR manager must understand the organization’s culture, should have a knack for finding top performers, and have business acumen.
A good HR manager is strategic, an outstanding communicator, a consummate problem-solver, an expert in the firm’s industry, and an effective leader. With a list of qualities like that, finding a qualified candidate is a daunting task in itself.
Importance of Human Resource Manager:
A human resources specialist’s typical task includes managing the recruitment and hiring activities, training professionals, staying up to date with the labor laws, and ensuring that the workplace is running efficiently. When Hiring an HR Manager, Human Resource specialists also generally deal with employee remuneration and benefits packages, as well as working conditions. Finally, of course, they deal with employee complaints or grievance redressal.
The lynchpin that connects each of these tasks is that the HR professional is essentially a bridge between the top and the lower management and a mediator who prevents or resolves workplace issues.
The Big Question: When do I need an HR manager?
When to Hire an HR Manager
It’s clear what benefits a Human Resource Manager offers a small firm, but at what point in a business’s life cycle is it prudent to bring in an HR manager?
Well, the answer is not as easy as one might think. There’s no clear-cut demarcation as to when a business should hire an HR manager. It is highly subjective and can shift depending on a business’s industry, growth rate, strategic planning, the organization’s country, and workload. However, a few indicators can help the top management decide when the time might be suitable for bringing a dedicated HR personnel on board.
The short answer is – The sooner, the better.
However, the following points may be taken as a guiding tool to identify whether you need an HR professional or not.
When the business starts to become organized:
When to Hire an HR Manager
In the early stages of a company, say 10-15 employees, most have no defined role. People in such a setting do whatever they think they are good at, keeping deadlines in mind along with whatever the organization expects them to do.
However, as the business grows, its staff shifts from general employees focused on necessary tasks into more specialized roles and, ultimately, narrowly focused departments. At this point, it makes sense to set up a Human Resource department as well.
When the business employs a certain number of people:
When to Hire an HR Manager
Business owners could also gauge their need for a Human Resource Manager by the number of employees, whether 50 full-time workers or 100. However, according to some HR experts, specialization remains the real differentiator.
Having an HR manager probably becomes a necessity when the business approaches 100+ employees, but the final indicator is when the company starts to specialize in domains like IT, marketing and sales, and operations.
We are no alien to the good old opportunity cost principle. Even though many people might not be familiar with the term, the concept is fairly widespread. It is the loss of the benefit that could have been enjoyed if the best alternative choice was chosen instead. For example, if a business owner were to invest their time brainstorming ideas regarding how to grow instead of marking the attendance, calculating the salary, and all other staff-related activities. The revenue would shoot up.
Therefore, to judge whether your company needs an HR manager, you should do a cost-benefit analysis to see if it would be a prudent idea to bear the added expense. For example, suppose the salary of the HR manager is Rs. 70,000, and you think that you can earn more than that by dedicating your time to the business. Then, the opportunity cost principle gives you the green light.
However, calculating the benefit, in this case, is a tedious job in itself. Moreover, since there are so many intangible benefits of free time, it becomes pretty difficult to quantify them. For, e.g., one can not put a price on having 20 minutes to oneself after a meal just to sit quietly, listen to some songs, and relax.
There seems to be a growing trend of augmenting or replacing HR management needs with the help of employee management software in small to mid-size organizations. These AI-enabled tools come in handy for simple and repetitive tasks such as Attendance management, Salary management, tracking the field staff, express communication, etc. Therefore a small to mid-size organization can look up this software to streamline their day-to-day HR activities without actually hiring one.
This article has tried to give you a metric to gauge whether or not your business requires an HR manager. However, this remains an open set, and one should look at various subjective issues related to their domain before deciding.