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When Should You Make Your First HR Hire?

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Wearing too many hats? HR might be one you’re ready to pass on.

If you’re leading a growing team, chances are you’ve done it all: from building strategy to writing job posts, onboarding new hires, and yes, even dealing with surprise policy questions before your first coffee.

At some point, the people stuff starts taking over. 

That’s usually your cue: it might be time to bring in real HR support.  


Why HR Matters... Even Before You Think You “Need” It

Spoiler: HR isn’t just for big businesses. Any company with people – and plans to grow – needs a solid HR foundation.

HR keeps your people aligned, engaged, and supported — making the rest of your business easier to manage. When your HR function is intentional and strategic, everything else runs smoother. We’re talking:

  • Compliant policies (so you’re not Googling “stat holiday rules in my province” at midnight).
  • Clear, consistent hiring and onboarding. Winging it can only get you so far.
  • A go-to for team support and tough conversations. Unfortunately, not every issue can be resolved via Slack message.
  • Tools and training to help your people grow and thrive (without adding another thing to your plate).
  • The culture glue that keeps your team aligned and moving in the same direction, even when things get busy.

    Without it? Things get messy – fast. Founders and managers get stuck in the weeds, people start feeling unsupported, and risks (legal, financial, human) start creeping in.

How Do You Know If You’re Ready for a Dedicated HR Function?

There’s no one-size-fits-all answer, but if these sound familiar, it might be time:

  • You’ve grown to 15-50+ employees
  • Your managers are drowning in admin work
  • Hiring is inconsistent, and retention’s shaky
  • You’ve had a compliance close call (or a near-miss)
  • Culture is something you care about, but no one owns it

    If people-related challenges are starting to slow your growth, it’s worth bringing in someone who lives and breathes this stuff.

So… What Kind of HR Support Do You Actually Need?

The good news: You don’t need a full-time HR hire to start building a strong foundation.

Here are some options to consider:

  1. In-House Hire: You might be ready to bring on an HR Generalist, someone who can wear all the hats (for now) and grow alongside your team. 
  2. Fractional or Outsourced HR: Not quite ready to hire in-house? That’s where strategic partners like us come in. Fractional HR gives you access to real people experts who work closely with your team, understand your culture, and bring fresh perspective. From one-off projects to ongoing support, it’s flexible, strategic, and scalable – without the overhead of a full-time hire.

Other key considerations:

  • Retained vs. On-Demand:
    • Fractional HR (Retained): This is like having a full-time HR partner without adding a permanent headcount. We embed ourselves into your team, get to know your people, and act as your dedicated HR resource. Ideal for growing businesses that need consistent support, strategic guidance, and someone who’s a quick phone call away.
    • Fractional HR (On-Demand): Need help with a specific project, challenge, or compliance need? On-demand support gives you access to HR expertise when and how you need it. Perfect for things like building policies, navigating tricky team dynamics, or handling one-time audits and investigations.
  • Industry nuances (e.g., trades, logistics, hybrid teams). Your industry brings its own unique challenges. When hiring your first in-house HR role or bringing in fractional support, it’s critical to choose someone who gets your world.
  • Do you need general support or deep expertise in something like inclusive hiring, pay transparency, DEI, or compliance? When making your first HR hire or engaging fractional support, clarity here matters. A generalist can handle a wide range of tasks and help you build foundational systems. A specialist brings targeted knowledge to tackle complex or high-risk areas with confidence. Understanding the scope of your needs upfront will help you choose the right kind of HR support.

The takeaway? Start with your pain points. The rest will follow.

How To Set Your HR Hire Up for Success

Whether you opt for in-house or outsourced support, don’t just hand it off and hope for the best.

  • Clarify priorities. What’s urgent vs. what’s important? Align on focus areas from the start.
  • Bring them into the room. HR needs a seat at the table to understand your business, your people, and your goals.
  • Equip them to move fast. Give them the tools, tech, and context they need to solve problems and drive impact.

Don’t Leave Your People to Chance!

The reality? People challenges don’t go away. They just get more complicated as you grow.

Your first HR hire can be a game changer, not just for keeping things organized, but for creating the kind of workplace people genuinely want to be part of.

Your people are your greatest investment. Let’s treat them that way.

Need support figuring out what the right move is for your business? We’re here to help.