So you’re a small new tech operation with handful of employees. At what point do you need to start thinking about hiring an HR Manager?
The answer isn’t exactly straightforward, as there is no special number that says when it’s time. However, there are some key moments to considered during your company’s expansion.
Laws that govern growing companies
As your company grows, it will automatically become liable under certain laws. The company needs to know of these laws that kick in and the responsibilities that go with them. For example, at a mere 15 employees, the company is covered by Title VII of the Civil Rights Act, the Americans with Disabilities Act (ADA) and the Genetic Information Nondiscrimination Act (GINA).
At 20 employees the Age Discrimination in Employment Act (ADEA) and COBRA protections are activated.
There are many laws that fall into place as a company becomes larger, and you can check them all out here.
If someone on your team is skilled in handling these laws, that's great. But it's likely that you'll need to hire a specific HR person to deal with the ins and outs of these laws.
Pressure points that signify it's time to bring in HR
Beyond laws, there are several “pressure points” that may come up which would require the full time attention of an HR manager.
One sign it may be time to hire a full time HR person (or team) is if you’re having a hard time hiring people fast enough, integrating people fast enough and focusing on inclusion and diversity.
Another clue would be if you’re beginning to encounter legal risks. These could be related to things such as wrongful-termination lawsuits, pay, harassment/bullying claims or lack of policies. When these things start to arise, it may be a good time to hire a professional.
Any or all of these things could hit your company at any given point. It may happen later than sooner or vice versa, so it’s important to be in tune with your company and make smart decisions when it comes to how these things are getting handled.