Written by Christine Walters
It depends. Recent reports range from 1.4 to 1.7 HR FTEs for every 100 employees. So, a smaller employer approaching the 60 or 70 employee mark might start feeling the need to hire a dedicated HR professional.
What factors impact this need? Industry is one. Businesses that operate in a highly regulated industry may feel the need for HR guidance sooner due to legislative and regulatory compliance demands. Covered government contractors have a variety of executive orders to follow. Multi-state employers must navigate federal, state, and local laws and rules that often conflict.
Another consideration is what tasks you will assign your HR professional. Traditional core competencies relate to talent acquisition (recruiting), benefits administration, compensation, employee and labor relations, and talent management (training and development).
In recent years, these have grown and now include up to 12 competencies, including strategic skills such as data analytics, AI literacy, and more. Some companies put other functions under HR’s hat such as security, safety, and finance. The more functions you assign to your HR role, the more HR staff you may need.
What about outsourcing HR? Rather than bring in an HR staff, a professional employer organization (PEO) may provide the HR support you need. Most PEO’s offer services such as benefits, leave, and payroll administration; day-to-day HR consulting for you and your employees; training; talent acquisition; and more.
Like everything, there are pros and cons to outsourcing your HR function to a PEO. It may save you time and money. It may also limit your ability to tailor and customize services for your employees. Before you shop, you might draft a list of the functions you want to outsource. Use that to choose a vendor that can offer what you want and need.
What about small business needs? Finally, you may have HR-related issues that arise well before you reach the 60 or 70 employee threshold. Small businesses are still covered under most of the same employment laws as larger employers.
There are plenty of HR consultants, employment attorneys, and some who are both who can address your needs and support you in the interim.
How do you find one? Great resources might include your state and local chambers of commerce, local chapters of the Society for Human Resource Management (SHRM), industry and professional associations.
