On May 17th, I presented at the Society for Design Administration Symposium in Williamsburg, Virginia. The topic was on HR Assessments and Audits. One of the questions posed by an attendee was “when do we need an HR Director for our organization?” It was a great question and the answer really is, “it depends.” As firms grow, they face the decision of what and how much HR they need internally. So, is your firm ready for an HR Director? Here are some guidelines to help you make that decision and a checklist of qualities you should consider.
How many employees do you have? According to the Society for Human Resources Management (SHRM), the average number of employee ratio per HR professional is approximately 75-100 employees. So if you find your staff is growing and reaching this limit, it might be time to consider an HR Director, but it’s not a hard number. I know organizations (both private and non-profit) that have an HR Director for under that number.
What type of culture are you trying to build? If you are trying to create an open-door policy and encourage communication throughout the organization, sometimes the HR Director can serve as a key partner to ensure that communications are flowing within the organization. The HR Director can act as a steward of your organization’s mission, core values and vision by ensuring the appropriate leadership is in place and taking the correct steps to encourage and motivate staff.
Are you a federal contractor with over 50 employees and a contract size of $50,000 or more? As a federal contractor, when you have over 50 employees with a contract of $50,000 or more, compliance becomes a huge factor in how you do business with the government. Having an HR Director in place that knows all the ins and outs of conducting business with the federal government and ensures that the organization is in compliance is invaluable.
Are your employees based in one location or are they dispersed in several locations? Sometimes, this can be a large factor in determining whether you need in-house expertise. Just managing staff in one location can be challenging, but multiple locations can add whole new layers of complexity. If you are an organization where you have 20 employees in one location and an additional 30 employees are in five different locations, it might be necessary to have an HR Director on-board. There may be multiple employment laws you have to comply with in several states, and having someone on board who has experience in employment law can save you time and energy. In addition, having someone ensuring that all the right policies, procedures and practices are in place throughout the organization in the different locations will help senior management with their day-to-day responsibilities.
What do we look for in an HR Director? There are many qualities and skill sets in HR professionals. Finding someone with the HR expertise is imperative, but you also need to ensure he/she has the qualities that are important to your organization. Someone can have the right credentials on paper and be successful in one organization, but may fail in other organizations because of the corporate culture. Leadership skills, hands-on, strong interpersonal and relationship building skills are just a few traits that are critical. It’s important to find the right formula for your organization. Some organizations may need the “HR Police Officer,” where other firms believe it is important to have the “HR Coach” in place.
So, again as I previously stated, the answer to the question is, “it depends.” I have always conveyed to our clients that each organization and culture is different. What works for your organization may not work for other organizations. Ensuring the right talent and leadership is in place is imperative. That’s the start of a successful organization. Partnering with an HR expert in your organization can be invaluable. Of course, many may think I’m biased as I’ve been an HR professional for 25+ years. But, a CEO I worked for many years ago stated that having different disciplines at the table creates a synergy that you don’t otherwise have if we are all the same! Find your fit that works for you.
