Running a growing business is exciting, but it also comes with people challenges that can’t be solved by gut instinct alone. Many small and medium-sized businesses delay bringing in HR until a crisis hits. By then, the cost （both financial and cultural) can be significant.
So, when is the right time to bring in HR? And what if you don’t need, or can’t afford a full-time HR manager yet?
Here are some common triggers that tell you it’s time to bring HR expertise into the fold:
You’re Hiring Your First Employees
Contracts, awards, policies, and onboarding, getting these wrong at the start creates long-term headaches.
You’ve Grown Beyond 10–15 People
At this size, informal chats stop being enough. You need structure around expectations, performance, and culture.
You’re Unsure About Compliance
The Fair Work Act, awards, and regular legislation updates are complex. Non-compliance risks fines, claims, and reputational damage.
You’re Dealing With People Issues
Underperformance, conflict, or high turnover are red flags that ad-hoc fixes won’t cut it.
You Want to Build Culture and Retain Talent
It’s not all about compliance. To compete for talent, you need to articulate your Employee Value Proposition (EVP) and invest in engagement.
For many SMEs, hiring a full-time HR manager is overkill. You don’t need someone five days a week, but you do need senior-level HR expertise that’s there when you need it.
That’s where fractional HR comes in. Think of it like having a part-time CFO, but for your people.
Cost-Effective: Access senior HR guidance without the full-time salary.
Scalable: Get support that flexes with your business growth — from ad hoc advice to ongoing strategic projects.
Preventative, Not Reactive: Spot risks early and put the right foundations in place before problems become costly.
Objective Partner: An external expert can see blind spots that internal leaders might miss.
That way, you can stop firefighting and start building a compliant, engaged, and resilient team that supports your growth.