When Do You Actually Need HR?

If you run a small business, you’ve probably had at least one moment where you thought:
"We’re not big enough to need HR… right?"

The truth is, you don’t need an HR department.
But you do need good people practices, and probably someone to call for advice. The earlier you get the basics in place, the fewer headaches (and heartaches) you’ll deal with later.

So… when do you need HR?

Here are some common signs it’s time to bring in HR support (even part-time or outsourced):

• You’re hiring your 4th or 5th team member and wondering how to keep culture and expectations clear

• You’re hearing whispers of conflict or disengagement but no one’s saying anything directly

• You’ve lost a great employee and want to know why (and how to stop it happening again)

• You’re Googling “how to performance manage someone” at 11pm

• You’re growing quickly and feel like policies, processes, or culture are being built on the fly
  
  

What HR actually does for small businesses

Forget the clichés about HR being all red tape and risk management. In a small business, good HR is about:

• Helping you hire legally and well (and avoid expensive mis-hires)

• Setting clear expectations so everyone knows what success looks like

• Building trust through feedback, clarity, and consistency

• Creating systems that support your team and your growth

• Handling the hard stuff (performance issues, conflict, exits) with fairness and care
  
  

DIY vs. getting help

Do-it-yourself works… until it doesn’t.
It’s perfectly fine to handle the basics yourself when the team is small, especially if you’ve got good instincts and a people-first mindset.

But when:

• You’re spending more time managing people issues than leading the business

• You’re unsure what’s legally required vs. just “nice to have”

• You want to grow without burning people out

…it’s time to call in help.

That doesn’t have to mean a full-time HR hire. It might be a retainer-based consultant, a few key templates and systems, or a sounding board when the stakes are high.

Bottom line:
HR isn’t about adding bureaucracy.
It’s about protecting your team, your culture, and your time - so your business can grow on solid ground.