ASK GERBER: DO I NEED TO HIRE HR?
SEPTEMBER 21, 2018
At what point in the growth of your small business should you invest in Human Resources (HR)? The answer is twofold. While you need to invest in HR functions immediately, hiring for the HR role is farther down the food chain.
First, let’s define what we mean by “role” versus “function(s).” There’s a distinct difference between employing an HR professional and having an employee responsible for day to day HR functions simply because the former is a much greater financial investment than the latter. It’s difficult, especially for small businesses, to justify adding a full time HR professional to your payroll. For the interim consider delegating the essential HR functions to a capable team member. – Hint: They are commonly found in the finance department!
Your CFO (or seasoned employee who has a knack for attention to detail) may be a great fit to take on HR functions. However keep in mind this person should also possess great communication skills, embody your core values, and understand your organization’s culture. It is important to identify a team player who has the capacity and desire to take on these added responsibilities.
Some of the functional HR responsibilities are as follows:
o Payroll & Benefits
o Hiring, Firing & Training
o Employment Law Compliance
o Compensation & Payroll
o Record Keeping
o Employee Relations
It can be tricky rolling this function up in to the CFO seat, mainly because the personalities of the two roles are traditionally so different. Team members need to feel comfortable approaching the individual responsible for HR functions to discuss sensitive matters. And as the business owner, you need to trust this individual to ensure your company is up to date with employment laws, managing payroll, and keeping pristine records.
Since there is no clear, immediate path to return on investment for hiring an HR professional, when the time comes, focus on the investment in nurturing your culture and creating a more efficient, compliant and safer work environment.
“Ignorance is bliss” is the case for so many small companies, not knowing you have a problem until you have one. So while it is important and necessary to delegate the HR functions, you do not have to make the hurdle to hiring an HR professional until later down the road.
