When you have a great idea for a product or service, you might want to build up your company’s workforce gradually. Of course, you don’t want to increase your head count before it is financially feasible to do so.
At a certain point, you might need to hire a Human Resources (HR) Director. When do you know that it is the right time to hire an HR Director?
Human Resources by Industry
Are there any industries that should add an HR Director sooner? The service industries – contractors, landscaping and beauty – might be able to handle more workers without adding someone to oversee a department. Many of these jobs are on-site, so there is less time spent in any formal office environment.
When your business has a large building, warehouse or campus, you are more likely to need a Human Resources Director to oversee your human capital. If you have rooms for frequent training, then an HR Administrator might be necessary.
Firm Size & Compliance
The primary reason to hire an HR Director is based on the number of employees you might have. In fact, the government will require you to be in compliance with certain laws based on the number of employees you have. The size limit will vary, but if you are close to 100 employees or so, it might be time to hire an HR Director.
Goal Accomplishment
As your company grows, you will naturally face new challenges and want to accomplish new goals. Perhaps, you have a new special project and realize that your previous hiring methods are not suitable. You might be spending too much money on outsourced workers: temps, consultants, attorneys and IT.
A full-time HR Manager can help you find the right talent. They can contact employee agencies, visit job fairs, interview graduating college students and market your job in the right places. With superior talent, you can help your company increase sales.
Extensive Database
If you have an extensive computer file on all of your employees, then it might be time to get someone to keep track of these records. Your employee database can be used to identify when people started work, their wages and accrued benefits. An HR Director can look up this information and provide real-time answers.
This is a new stage of maturity of your firm. Your most experienced employees will appreciate the professionalism of receiving immediate answers.
Improve Communication
Are employee issues taking up more of your time? Would you like to concentrate on marketing, instead of answering questions about how long it will be before your workers qualify for certain benefits? Get the help you need with a full-time HR Director.
Another key function of human resources is to enable real-time communication with all parties of your organization. You might be great at engineering, but you might not be a “People” person. Hire someone who can handle your workers, managers and vendors.
Some employees might have questions about their pay check, benefits or health care coverage. A full-time HR Administrator can answer these in real-time. You can ensure that your business is running more smoothly and efficiently.
The best talent will appreciate when you have an HR Director. They won’t need to bother you or your secretary for answers. You look more professional.
Photo: John Benson / CC 2.0