Does Your Startup Need An HR Department?

hr consulting hr strategy small business hr Apr 20, 2022
Do You Need HR?

Many of the most common questions HR consultants get have to do with when to hire an HR advisor. Do you need to have a certain number of employees before starting an HR department? Do small businesses need HR at all?

To tackle this last question, let's look at some of the pitfalls small organizations can face from not having an HR department in place.

Statistics show that a significant part of why new companies fail has much to do with poor HR management and a lack of strategic leadership.

For example, the inability to control expenses might have to do with hiring the right talent in a timely manner and holding them to appropriate levels of accountability.

Not having an effective HR strategy can also make building an engaging workplace culture more challenging.

We often think that success in business is about having the right product, sales, or pricing. While these aspects are crucial, your ability to attract, hire, retain, and grow the workforce is equally important. Because ultimately, products don't power businesses; people power businesses. 

Businesses that grow and are successful for the long term have an effective people strategy, which most times comes from establishing an HR department.

If you're a small business owner thinking right now, 'Wait, but I already play many roles within my company. Why can't HR be one of them too?'

Hiring an HR consultant can be expensive for a small organization, so saving some money and simply managing HR matters yourself does sound tempting.

However, HR management also has much to do with compliance, which can be complicated and risky to deal with. 

There are several federal and sometimes local rules that businesses need to follow to operate their business. The expenses from failing an HR audit could put a company out of business before they've even had a chance to get started.

In short, the answer is 'yes.' Hiring an HR consultant is a wise investment for a small company, and the benefits definitely outweigh the expense.

That being said, when it's the best time for small businesses and startups to hire an HR consultant?

Tune in to this week's episode of 'While We Were Working' to find out!

 Joey and Sommer also discuss The Great Resignation. The economic impact of this trend is undoubtedly significant, but it might also be an opportunity for small businesses.

Let's dive in!


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Hosts: Joey Price and Sommer Ketron

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