For years, business owners have relied on a simple benchmark when thinking about HR staffing: one HR professional for every 100 employees. While that HR-to-employee ratio may be useful as a broad industry average, it doesn’t reflect the realities of running a modern business.
In practice, the right amount of HR support depends on your company’s size, structure, and growth trajectory. A 25-person roofing firm with seasonal hiring challenges has different needs than a 60-person pest control company managing multi-state compliance.
That’s why questions like “How many employees before an HR department makes sense?” or “Do I need a full-time HR person?” don’t have one right answer. The better question is: What kind of HR support does my business need right now?
Getting this right can mean the difference between a team that’s engaged, compliant, and growing or one bogged down by turnover, missed deadlines, and constant HR fires.
In this article, we’ll break down how to evaluate your HR needs by stage of growth, explore the best timing for hiring or outsourcing HR, and share alternatives to hiring a full-time HR manager that give you the expertise you need without the overhead.
How Many Employees Before You Need HR Support
There’s no magic number that tells you exactly when to hire HR, but there are clear turning points most businesses experience as they grow.
Under 25 Employees
At this stage, owners and office managers are often juggling HR along with everything else—hiring, onboarding, and fielding employee questions between client calls. It works for a while, but it comes at a cost: lost time, inconsistent policies, and the constant stress of wondering whether you’re staying compliant.
This is where fractional or outsourced HR can make a measurable difference, giving you expert guidance without a full-time salary.
25–50 Employees
This is when many businesses start asking, “Do we need a full-time HR person?” The answer depends on how complex your operations have become.
If you’re hiring regularly, managing benefits, or dealing with multiple locations or states, dedicated HR support is essential. A part-time HR manager or outsourced partner can cover most of what you need while you plan for future growth.
50–100 Employees
Once you pass the 50-employee mark, HR becomes a function you can’t afford to treat as an afterthought. Employment laws and reporting kick in, and small business HR requirements become more demanding.
Many companies at this size bring in their first HR manager, but even then, having a seasoned fractional partner ensures that strategic issues like culture, compliance, and retention don’t get lost in day-to-day tasks.
The key is to build HR capacity ahead of the pain. Waiting until problems arise—high turnover, compliance gaps, or burnout—usually costs far more than proactive support.
When to Hire Your First HR Manager (and When You Don’t Need One Yet)
Many business owners reach a point where HR starts taking up more time than they ever intended. Recruiting, paperwork, employee questions, and policy issues begin to compete with the work that actually drives revenue. That’s when the question usually comes up: “When should we hire an HR manager?”
The answer depends on three key factors: growth, complexity, and risk.
1. Growth Rate
If your company is growing quickly, you’ll feel HR strain long before the headcount suggests you “should.” A business that doubles in size within a year needs HR systems, not just paperwork—consistent onboarding, clear job descriptions, and defined compensation structures.
A full-time HR manager or fractional HR partner can keep your people operations running smoothly as you scale.
2. Operational Complexity
Companies with employees in multiple states, multiple shifts, or high-turnover roles often need more HR oversight than a simple ratio would suggest. That’s where Seay HR’s experience with industries like pest control, roofing, and service-based businesses becomes especially valuable. We help you build compliance and consistency across every location and position.
3. Risk Exposure
If you’ve had employee relations issues, compliance questions, or audit concerns, you already know how costly HR missteps can be. The cost of hiring an HR manager—or partnering with a seasoned fractional HR consultant—is small compared to the cost of a single legal claim or preventable turnover problem.
For many small and midsized businesses, the right move isn’t hiring immediately—it’s adding expert HR support through an outsourced or fractional model. This provides the same strategic guidance as an in-house HR professional but at a fraction of the cost and commitment.
Outsource HR vs. Hire In-House: What’s Right for You?
As your business grows, the decision isn’t just whether to invest in HR—it’s how.
Some companies choose to hire a full-time HR manager, while others find that outsourcing gives them greater flexibility, expertise, and value. The right choice depends on your size, structure, and long-term goals.
Hiring In-House
A full-time HR manager can be a great fit when your organization has reached the point where employee relations, recruiting, and compliance require daily hands-on oversight. You’ll have someone available for every question and meeting but you’ll also take on a full-time salary, benefits, and ongoing training costs.
For most small and midsized employers, this is one of the higher fixed expenses on the books.
Outsourcing HR
Outsourced HR provides access to a full team of experts for a fraction of that cost. You get strategic support when you need it most, from compliance and policy development to coaching managers through employee issues.
This approach allows your business to scale HR services up or down as your needs change, without the burden of another full-time hire.
Blended Approach
For companies that already have one HR professional, outsourced support can act as a safety net and sounding board.
Seay HR often partners with in-house HR staff to offer senior-level guidance, manage complex situations, or take on specialized projects such as compensation analysis or training. This partnership model strengthens your HR foundation without overextending your internal resources.
In the end, it’s not about choosing between “in-house” or “outsourced.” It’s about finding a model that gives your company reliable HR expertise, predictable costs, and the peace of mind that comes from knowing you’re covered.
The Right HR Fit for Your Business
The number of employees you have matters, but it’s not the whole story. What really determines your HR needs is how quickly you’re growing, how complex your operations have become, and how much time you’re losing trying to manage it all yourself.
If your business has reached the point where HR responsibilities are taking over your day—or you’re not sure what you might be missing—it’s time to take a closer look at your options.
Fractional HR support from Seay HR gives you the expertise of a seasoned HR team without the full-time cost. Whether you’re managing HR on your own or already have an HR professional who could use extra backup, our consultants provide practical, compliant, and people-centered solutions that scale with your business.
We’ve been helping Florida employers build strong, compliant teams for nearly six decades. Let us help you find the right balance between structure and flexibility so you can focus on running—and growing—your business with confidence.
Contact Seay HR today to schedule an HR needs assessment and explore the right level of support for your company.
Please note: This article is for informational purposes only and does not constitute legal or professional advice. Seay HR makes no representations or warranties, express or implied, regarding the accuracy, completeness, or applicability of the information contained herein.
Seay HR disclaims all liability for any actions taken or not taken based on the information in this article. Readers are solely responsible for their own interpretation and use of this information.
