Published: June 2025
As an Australian business owner, you’ve likely managed employee-related tasks yourself in the early stages—hiring, onboarding, and resolving workplace issues. However, as your business grows, human resources (HR) demands can become overwhelming, diverting your focus from core operations. Deciding when to hire your first HR professional is a pivotal moment that can enhance employee engagement, ensure compliance, and drive organisational success. This article post explores the key indicators that signal it’s time to hire an HR person, what their role entails, and provides real-world examples, backed by data and insights.
HR professionals are crucial for managing people-related processes, from recruitment to performance management and compliance with Australian employment laws like the Fair Work Act 2009. According to a 2024 report by the Australian HR Institute (AHRI), 72% of small businesses with dedicated HR support reported higher employee retention rates compared to those without. Moreover, businesses with HR professionals are better equipped to navigate complex issues like workplace disputes or regulatory changes, such as the 2023 updates to fixed-term contract laws.
Here are the primary signs your business needs an HR hire, with detailed explanations and examples:
Research from zelt.app (2023) indicates that businesses with 20-50 employees typically need dedicated HR support, with an average HR-to-employee ratio of 2.3. At this size, managing payroll, leave, and employee relations becomes complex, and owners risk burnout or errors.
Example: Jake runs a Melbourne-based digital marketing agency with 25 employees. He spends 15 hours a week handling payroll, resolving conflicts, and drafting contracts. A part-time HR coordinator could take over these tasks, ensuring compliance with Fair Work regulations and improving employee satisfaction through structured onboarding.
Actionable Tip: If you have 20+ employees or are planning to hire 5+ staff within six months, consider a part-time HR coordinator (15-20 hours/week).
Low morale, high turnover, or frequent complaints signal the need for professional HR intervention. The AHRI’s 2024 Workforce Report found that 65% of Australian small businesses with turnover above $1 million faced retention challenges due to inadequate HR processes.
Example: Emma owns a Brisbane café chain with 30 staff. She notices increased absenteeism and two key employees resign due to unclear career paths. An HR officer could implement engagement strategies, such as regular feedback sessions and professional development plans, reducing turnover by 20% (a common outcome based on AHRI data).
Actionable Tip: If turnover exceeds 15% annually or you receive frequent employee complaints, hire an HR professional to develop retention strategies.
Navigating Australia’s employment laws, including superannuation, leave entitlements, and workplace health and safety (WHS), is complex. The Fair Work Ombudsman reported 12,000 compliance actions in 2023, with small businesses accounting for 60% of underpayment cases. An HR professional ensures adherence to these regulations.
Example: Raj, who runs a Sydney-based construction firm with 15 employees, struggles to track award rates and overtime pay, leading to a $10,000 fine from the Fair Work Ombudsman. An HR officer could implement compliant payroll systems and train managers on award obligations, preventing future penalties.
Actionable Tip: If you’re unsure about Fair Work compliance or have received employee complaints about pay, hire an HR professional to audit your processes.
As hiring needs grow, managing recruitment and onboarding manually becomes inefficient. A 2024 Randstad Australia report noted that businesses spend an average of 40 hours per hire without dedicated HR support.
Example: Sophie’s Adelaide-based tech startup needs to hire 10 developers in six months. She spends 50 hours posting job ads, screening resumes, and onboarding, delaying product development. An HR recruiter could streamline the process, reducing hiring time by 50% and ensuring cultural fit.
Actionable Tip: If you’re hiring more than 5 employees annually or spending over 20 hours per hire, an HR professional can optimise recruitment.
Your first HR hire’s role depends on your business needs but typically includes:
Example Role: A part-time HR coordinator for a 25-employee retail business might spend 10 hours/week on recruitment (job ads, interviews), 5 hours on compliance (award checks, policy updates), and 5 hours on employee engagement (surveys, team-building).
Scale Suite can also assist your business here.
Your first HR hire is a strategic investment to manage growth, boost engagement, and ensure compliance. Monitor your employee count, turnover rates, compliance challenges, and recruitment needs to determine the right time. By hiring proactively, you’ll build a stronger, more sustainable business.
Assess your employee headcount and HR tasks. If you have 20+ staff or spend over 15 hours weekly on HR, contact an HR consultancy or recruiter to explore hiring options.
Scale Suite delivers seamless, scalable finance, human resource, and technology solutions designed for growing Australian businesses. Whether you need a custom package or pay-as-you-go support, we provide expert services that save you time, reduce costs, and enhance efficiency. With focus on speed, flexibility, and smart technology, we help businesses like yours operate smoothly and scale with confidence.
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