Help! I Need More HR

June 6, 2010

by Iona Harding



businessman lost in field using a mapI am often contacted by CEOs of small or mid-sized businesses with a plea that sounds something like this: “Help, I need more HR.” In every case, they had two things in common, regardless of their industry. First, their company had hit an inflection point. These are points where people problems arise as a natural by-product of company growth and development, resulting in loss of engagement, turnover, frustration, employee relations issues (usually because of poor supervision), pay and benefits costs and complexity. Second, they had NO HR professional on staff or, had an administrator with the title HR Manager, who basically processed paperwork.

In all my years as an HR executive and consultant, I have rarely seen a start-up “start” with an HR strategy or an HR professional on the founding team. I’m not suggesting that they always should. However, I am suggesting that they can anticipate and think strategically about a people and talent strategy and bring on HR expertise earlier rather than later. Companies that do this will have a true strategic advantage in the marketplace.

The table below outlines some inflection points for small businesses and a few of the HR opportunities and challenges that business leaders can anticipate and plan for.



Inflection Point
Number of
Employees



Some HR Management
Opportunities and Challenges


Conception to Inception

  • Hiring beyond founders
  • Launch, market and
    sell product or service
    to initial customers
10 – 12

  • Hire or “rent” critical talent?
  • Pay – individualized /market
    based / at risk / equity?
  • Values – which ones
    are critical to your success?
Inception to Initial Growth

  • Continue to market,
    sell and service
    existing customers;
    grow customer base;
    build volume
  • Grow revenue,
    keep costs low
12 - 20













  • Develop workforce plan
    for next 1 -2 years
  • What talent do you
    need for the long-term
    vs. short-term? What skills?
    How do you find them?
  • Pay – begin to rationalize
    & standardize.
  • Supervision – create
    some structure.
  • Culture – what type of culture
    do you want to create?
Early Growth

  • Continue to serve
    existing customers;
    add new customers;
    maybe expand
    offerings; juggle many
    concurrent projects
  • Grow revenue
  • Manage cost/expense
    issues – balance
    with growth
20 - 30














  • Develop and
    implement talent and
    performance
    management strategy.
  • Rationalize pay,
    bonus structure.
  • Introduce some benefits.
  • Supervision—select & develop
    the RIGHT people.
  • Behaviors – what does
    it look like to live the
    culture, values and
    achieve results here?
  • Handle employee
    relations, retention issues.
Ongoing Growth

  • More work with
    repeat customers;
    more new customers;
    more products
    and/or services;
    more customer
    problems;
    more competition
  • Cost/expense
    issues arising
30 - 50

  • Measure effectiveness
    of existing programs &
    processes, identify
    opportunities, and adjust.
  • Align talent & performance
    management processes,
    pay, benefits, engagement
    programs—everything!
  • Develop policies and
    more formal processes.
  • Implement more formal
    communication processes –
    for everything, not just HR stuff.
  • Communicate, communicate,
    communicate!

So, HOW is this done and WHO does it?

  1. Incorporate HR as a key facet of your regular strategic and operational planning process. Manage “human” capital the same way you manage tangible capital. Plan to maximize utilization of human capital with a projected target ROI.
  2. In the early stages, use an experienced senior consultant to help develop the people strategy and plan. This can be reviewed and revised as your business grows. The consultant can also coach and mentor your HR manager – so you don’t “outgrow” this individual.
  3. Over hire an HR manager when you hit a size of 20 to 30 employees - someone who has the desire and potential to function as a REAL strategic HR business partner. Not someone who will just fill out forms, process paperwork and follow orders. You need someone who can grow with your business as well as anticipate and help manage people challenges as they get more complex.
  4. YOU own this – you the CEO, the COO, the CFO, the managing partner, the manager, the HR professional. You own this responsibility together.

Posted by admin | Filed Under Lessons Learned 

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