1.4 in 100. Is that your magic number?

WHEN DO YOU NEED TO HIRE A FULL-TIME HR PERSON AT YOUR ORGANIZATION?

This is a question I'm asked often. And like all my favorite business answers, there's data behind it. There should be 1.4 HR staff for every 100 employees. Many companies have too many people in their HR department, as the average HR-to-staff ratio is 2.57. The average ratio goes up to 3.4 for small organizations, then down to 1.22 and 1.03 for medium and large organizations, respectively. [I found this data on Indeed.]

 I see some organizations with wildly bloated HR teams and other companies that have someone's spouse who is acting as Office Manager and also does some HR ‘stuff’ when needed. What do I recommend? Don't hire until you need to. If you hire prematurely, you'll put more pressure on the person and their performance (when you are likely underpaying the role anyway) and it will flop. You'll also need a clear job description so you can set performance expectations and the person knows what success looks like in the role.

 Consider a dual role (Office Manager or Billing Manager plus HR duties) until you are ready. Does the person need HR experience when you are hiring? I mean, we all have to start somewhere. If they don't have experience, you may want to consider a paid mentor to get them to the skill level they need to properly (and HR-legally) do the job. 

How can you know when's the right time? Just ask us. Fill out the contact form on our website.