4 Signs It’s Time to Hire an HR Manager

In most small businesses, a modest team of dedicated owners and employees often wear multiple hats when it comes to running the day-to-day activities. From receptionist to bookkeeper to office manager, there are a wide variety of roles that must be performed to ensure success, and when resources are limited, it falls on the entire team to ensure nothing falls through the cracks.

As a business grows, however, the need to hire skilled, task-specific professionals to perform and take ownership of those vital roles becomes a top priority. One key role that becomes more important as a business grows and evolves is a dedicated HR manager.

Here are four signs that your small business may be ready to hire an HR manager.

You’re growing
This one is probably the most obvious, but as businesses grow, their leadership needs often evolve. According to an article on Forbes.com, “50% of small-business owners feel optimistic about the national economy, up from 29% in 2017, which explains why more of them are seeking growth capital and larger amounts at that.” The transition from small business to big business is an exciting time for a company. All your hard work has paid off and you’re being rewarded with growth and success. However, with that growth comes a greater need for structure as you scale your workforce to meet the growing business’ needs. A dedicated HR manager—and eventually team—can help ensure a smoother transition.

You’re not in compliance with employment laws
According to the Hiscox Employee Lawsuit Handbook, “24% of employment charges resulted in defense and settlement costs averaging a total of $160,000.” Not staying up to date on the latest news and developments in labor and employment legislation can be costly. Hiring an HR manager can help ensure the company always stays in compliance with the latest changes in laws and regulations that affect your business or industry.

You aren’t attracting the right type of talent
There’s a lot more to hiring than placing a help wanted ad. Reviewing resumes, interviewing, verifying education or certifications, background checks, reference calls, testing, training, and much more are all part of a well-defined hiring and recruiting program. And, it’s a full-time job that requires a lot of time and attention that can be most effectively managed by a skilled HR professional. According to Glassdoor.com, “organizations that invest in a strong candidate experience improve their quality of hires by 70%.” Additionally, a study by SilkRoad found that “53% of HR professionals say employee engagement increases when onboarding is improved.” In a busy and growing workplace, your ability to attract, hire, and retain the most qualified workers is imperative to maintaining a productive, innovative, and successful business.

You have an undefined company culture
In a job seekers’ market, businesses must pull out all the stops to position their companies as the best place to work in order to attract top talent. HR professionals are experts in organizational development and will be able to help develop a positive, unique workplace culture that showcases your company’s values and personality to job candidates. According to a study by CultureIQ, “73% of employers believe a great corporate culture gives their organizations a competitive edge.” From how people are greeted at the front desk to prioritizing employee growth and development, a well-defined company culture is a strategic priority an HR manager will be able to lead the charge for your business.

Do you have a dedicated HR manager in your business? How do they impact hiring? Do they play a key role in defining or maintaining your company culture? Let us know in the comments section below.


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