Not sure whether you need to hire an HR Manager, seek the services of a consultant or implement software to help you with your people power? You may have been able to cope before – but your business is growing, and surely your time is better spent on things other than HR admin.
If you’re drowning in paperwork, or you’re not convinced you’re covering all your HR bases – this toolkit is for you!
This HR Capability Toolkit contains:
- A helpful calculator that uncovers just how much time your admin is taking you (imagine all that business you could be winning!)
- A decision tree that will help you determine how you should resource HR, based on your specific business needs.
Get the low-down on how you should be resourcing your HR function and keep up that growth momentum!
When to hire your first HR person
Picture this. You’re growing at a rate you could have never imagined a year ago.
There are so many things to do and you’re finding your team working long hours just to keep up with the workload.
You constantly find yourself wishing you had more time, and as a result, you’ve created a toxic culture of overworking without adequate reward and recognition.
If this scenario sounds all too real, maybe it’s time for time to bring an HR person on board.
Why do you need an HR professional?
No business owner ever starts a business with the intention of spending most of their time tied up in the administrative tasks that come with operating one.
But the truth is, the more successful your business becomes, the more people you hire, and the more staffing demands and HR responsibilities multiply. That’s why you need an HR professional ASAP!
The list of HR tasks is endless – managing holiday requests, finding someone to cover parental leave, managing overtime, staying on top of employment law changes, and keeping your policies up-to-date.
These tasks can feel like your full-time job, particularly when you don’t have an HR specialist.
Of course, along with the day-to-day HR tasks, there are also a number of strategic HR functions to get your head around if you want your business to thrive.
And this is really difficult without a dedicated HR person or consultant to call on. For instance,
- Are you doing enough to develop your company culture and create an employer brand that will help you attract and retain top talent?
- Have you set and aligned your employees’ performance goals with your strategic business goals?
- What about your benefits package? Along with an attractive salary, offering attractive perks, career development opportunities, and flexibility are so important if you’re going to attract and retain great people.
If you’re spending more of your time on managing your workforce, rather than strategically growing your business, then it’s time to get some help.
5 Tell-Tale Signs You Need An HR Manager Right Now
Identifying the need for an additional resource who will sit in their own ‘department’ is difficult. There are so many things to consider, so it’s important you do your due diligence and set out your requirements from the get-go.
Will the Human Resources Manager be a full-time role? A part-time role? Should you outsource it? Can software help you manage your responsibilities?
It’s questions like these that can leave you feeling overwhelmed and consequently put it on the back burner.
And we all know that if you leave it unresolved, you’ll be even more overwhelmed and might even see your employees head to your competitors.
So how do you know when the time is right? We’ve rounded up some tell-tale signs it’s time to hire your first HR manager.
1. You’re growing at a fast rate and showing no signs of slowing down
Some might argue that this is one of the greatest problems to have in business. But we get it – it’s stressful.
Especially if you’re not sure which areas of the business need the most support or the areas that should get priority when it comes to headcount.
If you’re looking to increase headcount in the next quarter, this is a good sign that it’s time to bring on an HR Manager.
So, what’s the next step? This is where you need to sit down with your CFO or Finance Director and chat through some projections and seek HR headcount approval.
They can help you analyse if bringing on a dedicated HR professional is a financially viable option, and if so, the capacity they’ll be required in; part-time, full-time, contract, external recruiter, etc.
They can also set a budget that can help guide the seniority level of your HR professional you have approval for.
2. You’re spending way too much time on HR admin
Over HR admin? Yep, so are we. It’s time-consuming, repetitive, and mundane. But it’s just one of those things that need to be done – and done properly.
When you employ people, there’s a stack of HR tasks that go with them. And HR issues have a habit of being very time-consuming.
If you’re still kicking it old school and relying on piles of paper and filing cabinets to keep track of your HR admin, it’s time to get digital and invest in HR software.
Investing in HR software can help you automate all of those boring, repetitive tasks that you find yourself dreading every single time.
The best part about taking your HR digital is that you can free up valuable time, allowing you to work on growth strategies and other business priorities.
3. You’re constantly worrying about HR issues within your business
Businesses of all sizes experience HR issues. Whether it’s relating to conflicts in the workplace or something more serious like workplace misconduct, these things can come up regularly.
However, if you find yourself constantly worrying about the HR issues in your business and they’re keeping you up at night – it might be time to bring someone on board.
Not only will it free up your valuable time, but will also take significant stress and worry off your plate.
It’s a win-win situation, especially as your new HR manager will identify any issues relating to culture and step in to make changes to prevent common events from occurring over and over again.
4. Payroll is becoming a nightmare
Payroll processing is time-consuming. You need to keep track of new hires or terminations, penalty rates for overtime or weekend work, annual leave entitlements, benefit deductions, and so on, not to mention the record-keeping demands that keep you compliant.
All this can be a massive time drain when you’re not a payroll professional. The more time you spend on this task, the more time you’re not spending on generating sales, prospecting new opportunities, and delighting customers.
5. You want to create and maintain a company culture like no other
Creating a strong company culture takes work. Contrary to people’s beliefs, creating a standout workplace culture isn’t one of those things that naturally develop over time.
And more often than not, if the workplace culture isn’t considered, it can turn toxic – and fast.
If you want to take your company culture to the next level, you need to invest time, energy, and money into getting it right.
Whether it’s implementing policies, initiatives, social events, or reward and recognition programs – there are so many things you can do when it comes to creating a great culture.
This all sounds good on paper, but we know that you and your team are time-poor. This could be a strong indicator that it’s time to bring on your first HR Manager.
But my budget is limited
If you believe an HR Manager can help take your business to the next level but are worried about budget – you’re not alone. This is where it’s important to get a clear headcount budget from your finance team.
From here, you can determine the seniority level of your ideal hire and if they’ll be required in a full-time or part-time capacity.
Alternatively, you could look to outsource your HR function or opt for a contract role if you plan on hiring between certain periods of time.
Ready to hire your first HR Manager?
Knowing when to hire your first HR manager is no easy feat. There are lots of things to consider, but if you find yourself spending countless hours on HR admin, worrying over HR issues, looking to improve your workplace culture or having ambitious growth plans for the future, it could be time.
From here, you should chat to your CFO to determine the type of role required and get budget approvals. And when your new HR Manager has started and hit the ground running, you’ll have wished you did it sooner!
Want data-driven calculations for your decision? Download our HR Capability Toolkit now.