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HR Process - PEO360

When Should you Hire a Head of People?

March 21, 2023

A small business or startup should consider hiring a Head of People when they begin to experience growth and expansion that requires a more structured and strategic approach to managing their employees.

Here are some signs that a small business may be ready to hire a Head of People:

  • Growing headcount: As a startup expands and hires more employees, it can become more challenging to manage human resources needs. A Head of People can help streamline processes and ensure compliance with labor laws and regulations.


  • Increased complexity: As a business grows, so do the complexities of managing people. A Head of People can help navigate issues like performance management, employee engagement, and employee relations.


  • High turnover: If a small business is experiencing high turnover rates, it may be a sign that there are issues with employee retention and engagement. A Head of People can help identify the root causes of turnover and develop strategies to improve retention.


  • Limited HR expertise: Small business owners and managers may not have the expertise or bandwidth to effectively manage human resources. A Head of People can provide the necessary expertise and support to help the business manage their people effectively.


  • Strategic priorities: As a business grows, it may become more important to develop a strategic approach to managing people. A Head of People can help align HR strategies with business goals and objectives.


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