As businesses grow, many find themselves at a crossroads – when and how should HR support be introduced?
Getting this right can make a significant difference in ensuring your team is happy, engaged, and compliant with regulations.
Here, we explore the options available to businesses stepping into the world of HR for the first time, weighing their pros and cons to help you make the best choice for your organisation.
1. Hiring a Permanent, Full-Time HR Leader
A dedicated HR professional can align HR strategies with your company’s culture and long-term goals, providing comprehensive expertise across all HR functions. This option ensures consistency and trust-building within your team.
Pros:
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Strategic alignment with business goals
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Comprehensive expertise across HR functions
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Builds trust and stability
Cons:
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High cost in salary and overheads
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Potential underutilisation in early stages
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Difficult to scale back during downturns
2. Engaging a Junior HR Assistant or Coordinator
For businesses with simpler HR needs, a junior-level hire can handle day-to-day tasks like payroll, recruitment coordination, and compliance basics.
Pros:
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More cost-effective than a senior hire
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Frees up leadership from administrative tasks
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Role can scale with business growth
Cons:
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Limited experience in strategic HR issues
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Dependency on leadership for high-level decisions
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May struggle to establish robust long-term HR strategies
3. Hiring a Part-Time or Fractional HR Director
A fractional HR Director offers senior-level expertise without the full-time commitment. This can be a flexible and cost-efficient way to bring strategic HR insights to your business.
Pros:
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Senior guidance at a lower cost
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Flexible, scalable support
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Focus on high-priority HR needs
Cons:
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Higher day rate compared to full-time staff
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May not fully integrate with company culture
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Limited availability for urgent issues
4. Outsourcing to an HR Consultancy
Outsourced HR consultancies provide access to a wide range of HR expertise on a pay-as-you-go or subscription basis.
Pros:
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Affordable for small businesses
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Broad expertise across HR functions
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Scalable support as business needs change
Cons:
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Reactive rather than proactive solutions
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Harder for employees to build trust with external consultants
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Generic advice may not align with your unique culture
5. Using a Third-Party HR Solution (e.g. your bank)
Bundled HR services from banks or other third-party providers offer a simple, cost-effective way to meet basic HR and compliance needs.
Pros:
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Convenient, bundled services
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Affordable for small businesses
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Covers essential compliance requirements
Cons:
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Lack of dedicated HR support
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Limited flexibility for unique business needs
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Basic scope, with little focus on strategic HR
6. Leaning on Informal Advice Through Peer Networks
Many small businesses turn to peers or professional networks for HR guidance, especially in the early stages.
Pros:
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Free or low-cost advice
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Quick, practical solutions from trusted sources
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Relatability and shared experiences
Cons:
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Risk of non-compliance or liability
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Inconsistent and unstructured advice
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Limited depth in handling complex HR issues
Which Option is Right for Your Business?
The best approach depends on your business size, stage, and goals. Early-stage companies may benefit from scalable options like fractional HR support or outsourced consultancies, while those with complex needs may require a permanent HR leader.
At Peeq, we specialise in helping businesses navigate these decisions, ensuring they find the right HR solution for their unique journey.
Ready to bring HR into your organisation? Let’s talk. Contact us today to explore how we can help.
