Running a small business is a thrilling ride—you're building something from the ground up, managing teams, and making key decisions every day. But as your business grows, so does your to-do list.
At some point, you’ll start asking: “Do I need to hire an HR person?”
It’s a great question—and an important one. In this guide, we’ll walk you through when and why to hire your first HR professional, the signs it's time, the benefits, and what options you have. Whether you're a five-person team or on your way to 50, this is your go-to resource.
What Does an HR Professional Actually Do?
Before diving into when to hire one, let’s break down what an HR professional really does. Many small business owners assume HR is just about hiring and firing—but that’s just a sliver of the pie.
Key responsibilities of an HR professional include:
- Recruitment & onboarding: Finding talent, handling interviews, and helping new hires settle in smoothly.
- Payroll & benefits management: Ensuring everyone’s paid accurately and managing health insurance, retirement plans, and other benefits.
- Compliance & labor laws: Making sure your business follows federal, state, and local employment laws.
- Employee relations: Handling disputes, concerns, and feedback professionally.
- Training & development: Supporting career growth through coaching, workshops, and learning opportunities.
- Company culture: Keeping your workplace positive, inclusive, and aligned with your values.
Even in a small team, these tasks can pile up quickly—especially if you’re wearing multiple hats as the business owner.
So, When Should You Hire Your First HR Professional?
There’s no magic number, but there are several telltale signs that your business needs HR help. If any of these sound familiar, it might be time.
1. You’re Spending Too Much Time on HR Tasks
If you’re spending hours each week figuring out payroll, writing job descriptions, handling employee questions, or googling labor laws—you’re in HR mode, not business growth mode.
Ask yourself:
- Are you losing time that could be spent on strategy or sales?
- Do you feel unsure or overwhelmed when dealing with employee-related issues?
When HR starts taking up more than 20% of your time, that’s a big red flag.
2. Your Team is Growing (Typically Around 10–15 Employees)
You may not need a full-time HR person at 3 employees. But once you hit 10 to 15 team members, the complexity of managing people increases:
- You’ll likely need more structured policies.
- Questions about time off, benefits, and performance will pop up more often.
- New hires will expect a smooth, professional onboarding experience.
At this stage, hiring an HR generalist—or at least outsourcing HR support—can be a game-changer.
3. You’re Facing Compliance or Legal Risks
One of the biggest roles HR plays is keeping your business compliant with labor laws. These rules vary by state and change often. Violating them can cost you serious money and reputation.
Red flags include:
- You’re not sure if your contractors should be classified as employees.
- You’re unsure about family leave policies or overtime rules.
- You’ve had a close call or an actual complaint from an employee.
Even innocent mistakes—like not displaying required labor law posters—can trigger fines or lawsuits.
4. Morale or Turnover is Becoming a Problem
As your team grows, so does the need for structure, feedback, and a positive workplace culture.
If you’re seeing warning signs like:
- High turnover
- Employee conflicts
- Low morale or disengagement
- Lack of clarity around roles or expectations
It’s time to bring in someone who knows how to build culture, coach leaders, and retain top talent.
5. You’re Hiring Frequently
If you’re in growth mode and hiring every month or quarter, HR support is essential.
A dedicated HR person can:
- Create job postings that attract top candidates
- Streamline interviews and background checks
- Make onboarding smooth and efficient
- Build your employer brand
Remember: A poor hiring process not only scares away good talent—it reflects poorly on your company.
6. You’re Launching Benefits or Want to Stay Competitive
Offering benefits like health insurance, 401(k), or wellness programs? Great! But managing those is no small task.
HR professionals can:
- Help you choose the right providers
- Ensure benefits are legally compliant
- Educate employees on their options
- Handle open enrollment and claims
Without HR, this often falls on the business owner—or worse, gets overlooked entirely.
The Benefits of Having an HR Pro on Your Team
Hiring an HR person isn’t just about reducing workload. It’s about setting your business up for long-term success.
Here’s how the right HR support can make a difference:
1. Boosted Productivity
With clear job roles, efficient hiring, and solid onboarding, your team can do their best work faster.
2. Happier Employees
Good HR = better communication, development opportunities, and fair treatment—all of which lead to happier, more loyal employees.
3. Reduced Legal Risk
Employment laws are complex. HR helps you avoid costly fines, lawsuits, or damage to your reputation.
4. Stronger Company Culture
Whether it’s setting values, organizing team events, or improving feedback loops, HR helps build a place people love to work.
Full-Time HR vs. Outsourced HR: What’s Right for You?
You don’t always need to hire a full-time HR manager right away.
Let’s look at your options.
Option 1: Hire a Full-Time HR Professional
This is ideal if:
- You have 30+ employees
- You’re in a highly regulated industry
- You’re hiring rapidly
- You want a dedicated in-house expert
Pros:
- Onsite and available daily
- Deep understanding of your business
- Builds long-term strategy
Cons:
- Higher cost (salary + benefits)
- Takes time to find the right hire
Option 2: Outsource to an HR Service or Consultant
This works well if:
- You have under 30 employees
- You need HR support but can’t justify a full-time hire
- You want flexibility and expertise
Pros:
- Lower cost
- Access to experienced professionals
- Scalable as you grow
Cons:
- May lack the same day-to-day presence
- Some services are less personalized
How to Prepare Before Hiring HR Help?
Before you bring in your first HR pro (in-house or outsourced), get your house in order:
✅ Review your current policies and documentation:
Are your employee handbooks, contracts, and offer letters up to date?
✅ Clarify your goals:
Do you need help with hiring, compliance, culture—or all of the above?
✅ Set a budget:
HR help is an investment. Know what you’re willing to spend and what ROI you expect.
✅ Ask for referrals or research providers:
Whether hiring or outsourcing, look for HR support with small business experience.
What Happens After You Bring on HR Help?
Expect things to get clearer, smoother, and a whole lot easier.
Some early wins may include:
- A clean and updated employee handbook
- Consistent hiring and onboarding processes
- A compliant, efficient payroll system
- Clear guidelines on time off, performance reviews, and communication
- A stronger team culture and improved employee satisfaction
It’s not just about having help—it’s about building a better business.
Final Thoughts: HR is an Investment in Your People
People are the heart of your business. When you invest in HR, you’re investing in your team, your growth, and your peace of mind. It may feel like a big step, but if you’re noticing the signs, chances are—you’re already overdue.
Don’t wait until you’re overwhelmed, dealing with a legal issue, or losing good people. The right HR support can transform how your business runs.
Need HR Help But Not Ready for a Full-Time Hire?
Enter Bambee—your small business’s secret weapon.
Bambee offers affordable, expert HR support tailored specifically for small businesses.
With Bambee, you get:
- A dedicated HR manager at a fraction of the cost of a full-time employee
- Help with compliance, employee relations, and policy development
- Support in hiring, onboarding, and building company culture
- Tools and guidance to stay ahead of legal issues
Whether you’ve got 2 employees or 50, Bambee scales with you, making it easier to stay compliant, confident, and focused on growth.
👉 Check out Bambee and see how stress-free HR can really be.
TL;DR: Quick Recap
✅ Hire your first HR pro when:
- You’re losing too much time on HR tasks
- You’re scaling past 10-15 employees
- Compliance or morale issues arise
- You’re hiring or offering benefits frequently
✅ You can:
- Hire in-house
- Outsource to a provider like Bambee
✅ The result:
- Happier employees
- Lower legal risk
- Smoother operations
- More time to focus on your business
Disclosure: This blog post contains affiliate links, which means we may earn a small commission if you choose to purchase through them—at no extra cost to you. We only recommend products and services we trust and believe will add value to your business.