When to hire an HR person?

Small to mid-sized businesses should ideally hire an HR firm before they open for business for several key reasons. But, it's never too late to perform an HR audit and clean up your HR practices to reduce your legal risk.

1. Regulatory Compliance: Ensuring compliance with local, state, and federal employment laws from the start is crucial. An HR professional can help set up compliant policies and procedures, reducing the risk of legal issues and penalties.

2. Efficient Hiring Process: Establishing an effective recruitment and onboarding process is essential for attracting and retaining top talent. An HR person can develop job descriptions, create interview processes, and ensure a smooth onboarding experience for new hires.

3. Employee Handbook and Policies: An HR professional can create an employee handbook outlining company policies, procedures, and expectations. This provides clarity for employees and helps maintain consistency in how policies are applied.

4. Payroll and Benefits Administration: Setting up payroll and benefits correctly from the beginning ensures that employees are paid accurately and on time, and that they receive the benefits they are entitled to. This fosters trust and satisfaction among employees.

5. Company Culture and Values: An HR person can help define and promote the company’s culture and values, creating a positive work environment that aligns with the business’s mission and goals.

6. Performance Management: Establishing a performance management system early on allows for setting clear expectations, providing regular feedback, and supporting employee development. This leads to higher productivity and employee engagement.

7. Risk Management: Identifying and mitigating potential HR risks before they become issues can save the business time, money, and reputation. An HR professional can implement safety protocols, conduct risk assessments, and develop contingency plans.

8. Strategic Planning: HR can contribute to strategic planning by aligning HR practices with business objectives, ensuring that the workforce is prepared to meet the company’s goals and challenges.

9. Conflict Resolution: An HR person can establish procedures for handling employee conflicts and grievances, promoting a harmonious work environment and preventing issues from escalating.

10. Training and Development: Implementing training programs from the start ensures that employees have the necessary skills and knowledge to perform their roles effectively, contributing to the overall success of the business.

By hiring an HR person or firm before opening, small businesses can set a strong foundation for growth and success. Proper HR practices help create a compliant, efficient, and positive work environment, ultimately leading to better employee satisfaction and business performance.