If you’ve been missing out on vacations, forgetting birthdays, and using almost every minute of your time to run your business, you may be wondering if it's time to hire a full-time HR officer and delegate some responsibilities.
As your business grows and your number of employees increases, regulations and the complexity of your business procedures also change. You now have more people on your payroll than you can handle single-handedly. [quotesright]There comes a time in every small business owner's life when they realize that they can't handle everything alone: They need help. [/quotesright]
Do you think it's time to appoint a dedicated HR officer for your business? Below are four instances when it would be best to hire an in-house HR professional.
1. You Need to Dedicate Your Time to Another Task
You probably have too many responsibilities resting on your shoulders. Many small business owners sacrifice their own time to avoid unnecessary costs. For this reason, you may be the one handling all HR responsibilities for your company.
Handling your HR tasks will save you money in your business’s early stages, especially if there are not enough responsibilities to be handled by a full-time professional. [quotesright]However, if you're spending too much time handling HR matters, your business has probably expanded, and it may be time to re-evaluate this decision. [/quotesright]
Below are important questions to ask yourself when considering delegating HR responsibilities:
- Is handling HR issues myself beneficial to the company?
- Should I instead be handling other higher-value aspects of the business?
- How much is my time worth now?
- Am I overwhelmed with everything on my to-do list?
Understanding how to utilize your time is the first step to running a successful business. If you feel too overwhelmed, it could cause a ripple effect that will be reflected in every aspect of your business and personal life. Try to understand what makes you tired and if it would be beneficial to your bottom line if you delegated that task.
After reflection and deliberation, if you conclude that the cost of hiring an HR officer is less than the benefits of dedicating your time elsewhere, it's time to start looking for someone to take over HR responsibilities.
2. You're Unsure About Compliance
Federal and state regulations govern certain HR practices. If you're unsure about compliance, it may be time to bring in an informed person to take over. [quotesright]Most small business owners think they're fully compliant with regulations, but they're not. [/quotesright]
Tasks such as updating employee handbooks, proper categorization of contractors and employees, and maintaining employee records need to be compliant with state and federal laws. With everything falling on your shoulders, uncertainty may set in. This can make you second guess yourself and spend more time trying to understand the laws.
An in-house HR officer will ensure everything is handled correctly. They will also save you the time and the hassle of going through pages and pages of websites trying to understand how certain things are done. Having an in-house HR officer will also protect you from being fined for non-compliance by the IRS.
3. Your Business Keeps Expanding
Watching your business grow is an exciting milestone. You now have more employees, more sales and increased profits. However, it also comes with a new set of difficulties.
Business growth can sometimes complicate certain aspects of running a company. You may face communication breakdown issues, especially if you have several office branches. You may also not have enough time to evaluate employee performance or train new recruits.
[quotes]If you notice that things are becoming more complicated, it may be time to consider hiring an in-house HR officer.[/quotes] The HR officer will take on responsibilities such as conflict resolution, training new employees, and enforcing company policies.
Most small business owners tend to delegate some HR responsibilities to a non-dedicated employee who probably has too much on their hands already. As the number of employees grows towards 50, ensure you hire someone to handle the HR responsibilities.
You should also consider aspects like the cost of hiring the HR officer. Is it feasible to hire someone considering where your business is on the growth map? The most important thing is to do what is right for your business.
4. Company Culture Is Essential to You
Every business owner wishes to create a company culture that promotes personal and professional growth. As a small business owner, you want your employees to feel like part of the process. Company culture is instrumental in attracting and retaining top talent in the market.
[quotes]Experts have stated that company culture has a significant effect on your company's bottom line.[/quotes] A productive employee is the best tool for increasing your profits. A healthy working environment, a clear reward and feedback system, proper communication, and improvement opportunities are all aspects of good company culture.
If you would like to create and retain a productive company culture, you may need to hire an HR officer. You should do this, especially if you don't have the capacity or time to do it yourself. An HR officer will be responsible for preserving your company culture and ensuring growth.
What Size Company Needs an HR Department?
Human resources duties often fall under the DIY umbrella for most small business owners. However, the more employees you have, the more responsibilities you'll take on. This may lead to other duties on your DIY umbrella suffering.
Hiring an HR officer is not just about overwhelming responsibilities; it's also about the number of employees. As your business grows, so does the need for an HR department to handle all the duties. Below is an outline of different business stages depending on the number of employees.
[quotes]This is the stage where you're probably hiring people who are hardworking and passionate about your company.[/quotes] If you're looking to develop a company culture, outsourcing at this stage might not be the best option for you. However, you still have HR responsibilities that go beyond hiring new employees.
You may require a partner to assist with business procedures and necessary policies and ensure equal treatment of your employees. Outsourcing HR services from an HR firm could be the best option based on your percentage ROI. The HR firm could help with legal-related HR responsibilities, customizing processes and procedures for the employees, and time-off request management.
You can also hire a payroll service provider to help with filing taxes, processing the payroll, and ensuring compliance. An excellent and reputable outsourcing firm should offer you a customizable package based on your needs.
[quotes]When you get to 50-plus employees, federal and state regulations kick in.[/quotes] You should stop trying to DIY HR processes and get a professional to do it for you.
This is not the time to put the responsibilities on a non-dedicated administrative employee or your accountant. The complexity level of the HR processes at this stage may put your company at risk of fines for non-compliance.
The best option is to outsource and get the consultancy firm to train one of your employees to take over some HR responsibilities. This will foster loyalty and save you the time to interview, hire, and train a new HR manager on company procedures and day-to-day activities.
If you choose to hire an HR manager or a consulting firm, they should take over most responsibilities. If you have the means, it's advisable to have an in-house HR officer. This is because they will add a personal touch to the services they offer your company.
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If you have a company and you're looking to optimize your employees' effectiveness and profitability, and increase productivity to enhance growth, let's set up a time to talk. Brian Tracy USA: 877.433.6225 Email Me. Our team will assist with leadership development, sales training, and improving your business strategy.
Over 100 Employees
[quotes]An organization with over 100 employees is considered a fully-grown business. The law mandates you to hire an HR officer with over seven years of experience.[/quotes] Each employee should now be focused on their specific duties to ensure the growth of the company.
If you hire an internal HR officer, they will take over these responsibilities:
- Keeping the business compliant,
- Hiring and training new employees,
- Consulting with attorneys about the ever-changing federal and state regulations,
- Resolving any internal employee issues,
- Managing employee harassment issues,
- Updating company procedures and policies,
- Protecting your business from liability, and
- Assisting workers with benefits.
At this level, your in-house HR manager will take over all HR responsibilities. However, they may still outsource or consult on services such as payroll preparation. This will allow your business to succeed as more talented employees will look to you for employment opportunities.
Do You Think You're Ready to Hire a Full-Time HR Officer?
Do you think your company is at the stage where hiring a full-time HR officer is both cost-effective and necessary for your bottom line? If you think that this is the best decision for your business, take your time and recruit the best HR manager depending on your needs. Choose someone as passionate as you are who will help you work toward the original vision for your business.