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Timing it Right—When Should You Set Up Your HR Department?

Timing it Right—When Should You Set Up Your HR Department?

There’s no denying the importance of an HR department and the role it plays in the growth of a company. Startups often struggling for funds in their initial years and scrambling through the hustle to get their priorities right, creating an HR department may not always be on the top of their to-do list. That’s very understandable…and rational actually. The question, however, is how long can they afford to delay the inevitable? Having an HR department is a necessity and no business can survive without it. And while entrepreneurs can juggle with HR responsibilities as a makeshift solution in the short term, relying on this approach beyond a certain point can prove to be detrimental for their business operations. It’s, therefore, vital for startup owners to have an understanding of acknowledging the right timing for their company to have its own HR department.

HR Management – How They Do at the Startups

To learn to identify when to make the call, it’s important to first understand how startups do HR management. HR activities among startups are shared. Although convenient, this makes for a reactive model. Being reactive with HR operations gives way to holes in the system and that’s when entrepreneurs need to take the due initiative.

Business leaders should always keep their finger on the pulse and continuously assess recent, policy changes, transitions or HR incidents. If any measure shows stopping rather than being developed around normal business progressions, it’s a sign that the company needs a functional HR department. Setting up an HR department isn’t difficult and only requires awareness of current business trends. The instinct to “save” money and try to handle everything on your own. Why save at the cost of hurting your business?

Contact HR Business Partners a Minneapolis, MN-based HR Consulting firm today to discuss your individual HR needs, or take a look at our short explainer video