As an employment lawyer, I spend much of my time communicating with excellent human resources professionals. HR compliance is an underappreciated function in many organizations, though not necessarily by choice. Here are some general observations on how companies can struggle with their human resources practices and when hiring a dedicated HR professional for your growing small business may be a good idea.

Limitations on Good HR Compliance

Human resources compliance refers to the process of ensuring that a company adheres to all relevant laws, regulations, and standards when it comes to managing its employees. Some of the key factors that can impair HR compliance within a company include:

1. Lack of awareness or understanding of the relevant laws and regulations: Companies may not be aware of all the laws and regulations that apply to their HR practices or may not understand how to comply with these requirements.
2. Limited resources: Companies may not have the resources or staff required to fully implement HR compliance programs, including the development and implementation of policies and procedures, training and education, and ongoing monitoring and reporting.
3. Inadequate systems and processes: Companies may not have well-developed systems and processes in place to support HR compliance, including procedures for tracking and reporting incidents, responding to complaints, and conducting investigations.
4. Resistance to change: Companies may resist change, especially if they have been operating in a particular way for a long time. This resistance may create delays in adopting new HR compliance practices or changing established processes.

How Can You Improve Your HR Compliance?

To overcome these challenges, companies can take several steps to improve their HR compliance, including:

1. Conducting a comprehensive review of their HR practices and policies to identify potential risks or areas for improvement.
2. Establishing clear policies and procedures to ensure that all HR practices comply with the relevant laws and regulations.
3. Providing training and education to employees on the relevant laws and regulations and the company’s policies and procedures.
4. Implementing systems and processes to track and report incidents and respond to complaints and investigations.
5. Involving employees in improving HR compliance by seeking their feedback and suggestions and involving them, as appropriate, in the development and implementation of new policies and procedures.

Hiring Your First HR Professional

As your company grows, you must ensure that you have the right resources and support to manage your workforce effectively. One of the critical decisions you’ll need to make as you grow is when and how to hire your first HR professional.

How Many Employees?

There’s no one-size-fits-all answer to when it’s time to hire your first HR professional, as it will depend on the size and needs of your company. There is no specific number of employees a company must have before hiring a dedicated HR staff member. However, as a company grows and the number of employees increases, the need for HR support also increases, because HR plays a critical role in managing and supporting a company’s most valuable asset, its people.

For smaller companies with fewer than 50 employees, it may be reasonable to assign HR responsibilities to a manager or administrative staff member with other duties. However, as the company grows and the number of employees increases, the need for specialized HR support also increases, and it may be more cost-effective to hire a dedicated HR professional.

Ultimately, the decision to hire an HR professional should be based on the company’s specific needs and resources, as well as its plans for future growth.

Additional Factors

Here are a few key indicators that it may be time to bring in an HR professional:

1. Your company is growing rapidly: As your company grows, so does the complexity of managing your workforce. You may struggle to keep up with increasing HR-related tasks and responsibilities.
2. You’re spending too much time on HR tasks: If you’re spending an increasing amount of time on HR-related tasks, such as recruiting and onboarding new employees, it may be time to bring in an HR professional to help lighten the load.
3. Your company is facing HR challenges: If your company is facing personnel difficulties, such as high turnover, disputes with employees, or legal compliance issues, you may need to bring in an HR professional who can help you resolve these challenges and prevent them from recurring in the future.

How to Hire Your First HR Professional

Once you’ve decided that it’s time to hire your first HR professional, consider taking the following steps to ensure that you find the right candidate:

1. Define the role: Clearly define the role and responsibilities of the HR professional you’re looking to hire. This step will help you ensure that you understand clearly what you need from the person you bring on board and then attract suitable candidates for that position.
2. Create a job description: Write a comprehensive job description that includes the key responsibilities, qualifications, and experience that you’re looking for in a candidate. This will help you attract the right candidates and enable them to understand what the position demands.
3. Utilize your network: Leverage your professional network to find potential candidates. Ask for referrals from colleagues, business partners, and friends, and consider reaching out to HR professionals with whom you’ve worked in the past.
4. Offer competitive compensation: Be sure to offer a competitive compensation package that includes a salary, benefits, and any other perks that are important to you and candidates at the level you’re seeking.

Don’t Stop Improving

Whether you’ve hired the first or tenth member of your human resources department, there’s always room to improve your company’s HR compliance. You can review and repeat many of the steps above to continue to make strides in this area. Of course, the applicable laws and regulations of the workplace will also continue to develop. So make sure your human resources team subscribes to our newsletter to receive important updates in this area.