How to Hire Your First HR Employee
You started off handling HR yourself because it made sense. Payroll was manageable. Hiring was infrequent. Benefits fit on a single spreadsheet.
But then your company grew.
Now, you’re fielding questions about PTO policies between sales calls. Compliance requirements you’ve never heard of are showing up in your inbox. Three people quit last quarter and you’re not entirely sure why. You’re spending 20 hours a week on employee issues when you should be running the business.
If it makes you feel better, I’ve been there. Literally. A few weeks after hiring 4 Corner’s first employee, I was asked about our vacation policy. My first thought (and response) was: it looks like we need a vacation policy!
Joking aside, this is a moment most business owners face: the realization that HR has become too important and too complex to handle on the side. The question isn’t whether you need HR help. The question is what kind of HR professional you need and how to find the right person.
Consider this your guide to cover everything involved in making your first HR hire, from recognizing the signs that it’s time, to building a hiring process that attracts qualified candidates.
Signs Your Company Needs Its First HR Hire
There’s no magic employee count that triggers the need for dedicated HR. Research shows companies typically make their first HR hire somewhere between 40 and 50 employees, but the signals often appear much earlier.
Here are the indicators that matter more than headcount:
You’re spending too much time on HR tasks
Once HR responsibilities begin to consume more than 15 hours per week, you’ve passed the threshold where handling it yourself makes financial sense. That time has real value. Calculate what you’d accomplish if you redirected those hours toward revenue-generating activities.
Compliance is getting complicated
Employment law thresholds kick in at specific employee counts. At 15 employees, you’re subject to Title VII and ADA requirements. At 20, ADEA applies. At 50, FMLA and ACA provisions take effect. Each threshold adds complexity that requires expertise to navigate.
Hiring has become a regular activity
If you’re adding three or more employees per quarter, recruitment alone justifies dedicated support. Posting jobs, screening candidates, coordinating interviews, and onboarding new hires takes significant time, and doing it poorly is expensive.
Related: How to Elevate Your Employer Branding to Attract Top Talent
Employee issues are falling through the cracks
Maybe onboarding has become a rushed formality. Performance reviews haven’t happened in over a year. Someone asked about the company’s parental leave policy and you realized there isn’t one. These gaps create risk and hurt retention.
Staffing your team doesn’t have to be hard.
Reach out and see how we can help.
You’re operating in multiple states or locations
Each state has its own employment laws, tax requirements, and compliance obligations. Multi-state operations increase HR complexity significantly.
Managers need support they’re not getting
Your supervisors are handling people issues without training or guidance. That’s a recipe for inconsistency, legal exposure, and employee frustration.
If you recognize three or more of these signals, you’re ready for your first HR hire.
What Type of HR Professional Should You Hire First?
For most growing companies, the answer is an HR generalist.
HR generalists handle multiple functions across the HR spectrum: recruiting, onboarding, employee relations, benefits administration, compliance, and policy development. They’re versatile problem-solvers who can address whatever HR challenge walks through the door.
This breadth matters when you’re building HR infrastructure from scratch. You don’t need a compensation specialist or a dedicated recruiter yet. You need someone who can establish foundational systems, create consistent processes, and handle the full range of HR responsibilities your company faces.
The alternative is an HR manager, which makes sense if you need someone who can operate more strategically from day one. HR managers typically have more experience, command higher salaries, and are better positioned to build and eventually lead an HR team.
Here’s a rough guideline:
- Under 50 employees: HR generalist or HR coordinator
- 50 to 100 employees: HR generalist or HR manager
- 100+ employees: HR manager or HR director
For detailed job descriptions and responsibilities, see our guides for HR Generalist, HR Manager, and HR Coordinator positions.
The Current Market for HR Talent
Before you start recruiting, understand what you’re walking into.
According to the Bureau of Labor Statistics, employment of HR specialists is projected to grow 6% from 2024 to 2034, with approximately 81,800 openings annually. Demand consistently outpaces supply, which means competition for qualified candidates is real.
SHRM’s 2025 Talent Trends report found that 69% of organizations still experience difficulty filling positions, and HR roles are no exception. Skilled HR professionals, particularly those with experience building HR functions at growing companies, receive multiple offers.
What does this mean for you?
First, expect to pay market rates. The median salary for HR specialists was $72,910 in May 2024, according to BLS data. HR generalists with three to seven years of experience typically earn between $65,000 and $85,000 depending on location. Trying to underpay for this role will leave you with underqualified candidates or quick turnover.
Second, move quickly when you find the right person. Extended interview processes and slow decision-making will cost you good candidates.
Third, sell the opportunity. The best HR professionals want to build something. They’re attracted to companies where they can create systems, influence culture, and grow with the organization. Make sure your job posting and interview process communicate that potential.
For current salary benchmarks by location and experience level, use our HR salary data.
Skills to Look for in Your First HR Hire
Your first HR employee needs a specific skill set that balances breadth with practical capability.
Core competencies
Employment law knowledge. They should understand federal employment regulations and the specific laws in your state(s). This includes wage and hour rules, anti-discrimination requirements, leave policies, and workplace safety standards.
Recruiting and hiring. From writing job descriptions to conducting interviews to extending offers, they need to manage the full hiring lifecycle effectively.
Employee relations. Handling workplace conflicts, conducting investigations when necessary, managing performance issues, and maintaining employee trust all require strong interpersonal skills and sound judgment.
Benefits administration. They should be comfortable managing health insurance enrollment, retirement plans, and other benefits programs, or at least coordinating with outside administrators.
HRIS proficiency. Modern HR runs on technology. Your hire should be comfortable with human resources information systems like Workday, BambooHR, ADP, or similar platforms.
Emerging requirements
The HR function is transforming rapidly. SHRM’s 2025 data shows AI adoption in HR jumped from 26% to 43% in just one year. When evaluating candidates, look for:
Technology adaptability. The specific tools matter less than the ability to learn new systems quickly and leverage technology to improve efficiency.
Data literacy. HR increasingly involves analytics: tracking turnover, measuring engagement, calculating cost-per-hire, and using data to inform decisions. Your hire doesn’t need to be a data scientist, but they should be comfortable working with metrics.
AI awareness. Candidates should understand how AI tools are changing recruiting, onboarding, and HR administration. They don’t need to be experts, but resistance to technology is a red flag.
Credentials
Look for a bachelor’s degree in human resources, business, or a related field. Certifications like SHRM-CP, SHRM-SCP, PHR, or SPHR demonstrate professional commitment and verified knowledge, but don’t eliminate otherwise strong candidates who lack them.
Experience building HR processes at a growing company is often more valuable than years spent in a large, established HR department. Someone who has created an employee handbook, implemented an HRIS, or developed a performance review system from scratch understands the work you need done.
How to Hire Your First HR Employee
Step 1: Define the Role Clearly
Before posting the job, document exactly what you need this person to accomplish.
Start with the problems you’re trying to solve. What HR tasks are consuming your time? What gaps are creating risk or frustration? What capabilities do you need in year one versus year two?
Prioritize ruthlessly. Your first HR hire cannot do everything. Identify the three to five most critical functions and make those the focus of the role.
Determine reporting structure. Will this person report to you directly, to a COO, or to another executive? Be clear about decision-making authority and who they’ll collaborate with most closely.
Step 2: Set Compensation
Research market rates for your location, company size, and required experience level. Use our HR Generalist salary data and HR Manager salary data as starting points.
Beyond base salary, consider the full compensation package. Competitive health insurance, retirement contributions, professional development budget, and flexible work arrangements can differentiate your offer. HR candidates understand total compensation value better than most.
Include a salary range in your job posting. Transparency attracts candidates and filters out those with misaligned expectations.
Step 3: Write a Compelling Job Description
Your job description is your first impression. Make it count.
Lead with what makes the role compelling: the opportunity to build HR infrastructure, direct access to leadership, room to grow as the company scales. The best candidates want to create something, not maintain someone else’s systems.
Be specific about responsibilities. Generic language like “handle HR duties” tells candidates nothing. Instead, describe actual work: “Implement our first HRIS system,” “Create standardized onboarding for new hires,” “Develop performance review process.”
Be honest about challenges. If you’re starting from scratch with no existing processes, say so. The right candidate will see that as an opportunity.
Related: How to Write a Job Description to Attract Top Candidates
Step 4: Source Candidates Strategically
General job boards will generate applications, but targeted outreach finds better candidates.
LinkedIn allows you to filter by HR experience, certifications, and company size. Search for candidates who’ve worked at companies slightly larger than yours; they’ve likely seen the growth stage you’re entering.
SHRM chapters and local HR associations connect you with engaged professionals who invest in their careers.
Employee referrals often produce strong candidates. If you have managers or employees with HR contacts, ask for recommendations.
HR staffing specialists have established networks and can identify candidates who aren’t actively job searching. This matters in a tight labor market.
Related: How to Partner with a Staffing Agency
Step 5: Screen for Fit and Capability
Review resumes for relevant experience at companies similar to yours in size or growth stage. Look for achievements, not just responsibilities. “Reduced time-to-hire by 30%” tells you more than “managed recruiting.”
Conduct phone screens to verify qualifications, discuss salary expectations, and assess communication skills. HR professionals spend much of their time communicating; how they handle a phone conversation matters.
Consider a practical assessment. Ask candidates to review a sample employee handbook section and identify improvements, or present a scenario involving a workplace conflict and discuss their approach.
Step 6: Interview Thoroughly
Structure your interviews around four areas:
HR knowledge. Can they navigate employment law? Do they understand compliance requirements for a company your size?
Problem-solving ability. How do they approach complex employee situations? What’s their process for handling issues they haven’t encountered before?
Interpersonal skills. HR requires trust from both leadership and employees. Do they communicate clearly? Can they handle difficult conversations with professionalism and empathy?
Cultural alignment. Do their values match yours? Can they represent your company authentically to current and future employees?
Involve multiple stakeholders. Your first HR hire will work across the organization, so include perspectives from different departments.
Related: Interview Formats to Use When Hiring
Step 7: Check References Carefully
Never skip professional reference checks for your first HR hire. This person will handle sensitive employee information, influence hiring decisions across the company, and represent your organization to candidates. Verify their track record.
Ask references about specific responsibilities, how they handled difficult situations, their approach to confidentiality, and their working relationships with both leadership and employees.
Related: Reference Check Questions to Ask
Step 8: Make a Competitive Offer
When you’ve identified your top candidate, move quickly. Prepare a comprehensive offer letter that includes compensation, benefits, start date, and any contingencies.
Be prepared to negotiate. Experienced HR professionals know their market value and will counter if your initial offer falls short. Have flexibility built into your budget.
Related: How to Write an Employee Offer Letter
Interview Questions for Your First HR Hire
Use these questions to evaluate candidates across key competencies:
HR knowledge and experience
- Walk me through how you’d approach building an employee handbook from scratch. What sections would you prioritize?
- What employment law changes have you had to respond to in the past two years? How did you implement necessary updates?
- Describe the HRIS platforms you’ve worked with. What made some more effective than others?
- How do you stay current with HR regulations and best practices?
Problem-solving and judgment
- Tell me about a time you had to handle a complaint about a manager. What was your process?
- Describe a situation where you disagreed with leadership on an HR decision. How did you handle it?
- How would you approach investigating a harassment complaint at a company with no established investigation procedures?
- What would you do in your first 90 days to understand our company’s HR needs?
Building and creating
- What HR processes or systems have you built from the ground up? What was your approach?
- If you were starting our HR function tomorrow, what would you tackle first and why?
- How do you balance the need for standardized processes with flexibility for a growing company?
Technology and future-readiness
- How are you using technology to improve HR efficiency?
- What’s your perspective on AI tools in HR? Where do you see them adding value and where do you have concerns?
- How do you approach learning new HR systems or tools?
Common Mistakes When Hiring Your First HR Employee
Hiring too junior to save money. An inexperienced HR coordinator cannot build the systems and processes a growing company needs. You’ll either end up doing the work yourself anyway or create problems that require expensive fixes later.
Hiring too senior for the actual work. Conversely, an HR director accustomed to managing a team and working strategically may not be willing or able to handle the hands-on administrative work that dominates early-stage HR.
Rushing the hire. The urgency is real, but a bad HR hire creates more problems than it solves. Take time to find someone with the right experience and temperament.
Failing to define success. Without clear priorities and expectations, your new HR hire will struggle to focus, and you’ll struggle to evaluate their performance.
Not providing adequate support. Your first HR person still needs resources: budget for an HRIS, access to legal counsel for complex questions, authority to implement necessary changes.
Alternatives to a Full-Time HR Hire
If you’re not quite ready for a full-time HR employee, consider intermediate options:
Fractional HR provides experienced HR professionals on a part-time or project basis. You get senior expertise without full-time cost. This works well for companies with 20 to 50 employees who need strategic guidance and periodic support.
HR outsourcing through a Professional Employer Organization (PEO) handles payroll, benefits administration, and compliance. You give up some control but gain access to better benefits plans and reduced administrative burden.
HR consulting provides expertise for specific projects: creating an employee handbook, conducting a compliance audit, designing a compensation structure. This supplements internal capability without adding headcount.
These solutions can bridge the gap until a full-time hire makes sense, or they can work alongside your first HR employee to provide specialized expertise.
Ready to Make Your First HR Hire?
Finding the right person to build your human resources function is one of the most consequential hiring decisions you’ll make. The wrong hire creates headaches. But the right hire can transform how you attract, develop, and retain talent.
Our team includes recruiters who have held HR positions themselves. We understand what you need because we’ve been in those roles. We can help you define requirements, source qualified candidates, and identify professionals who will thrive in a growing company environment.
Ready to discuss your HR hiring needs? Contact us any time to start the conversation.
Frequently Asked Questions
When should a company hire its first HR person?
Most companies make their first dedicated HR hire between 40 and 50 employees, though the signals often appear earlier. Key indicators include spending more than 15 to 20 hours weekly on HR tasks, reaching compliance thresholds (15, 20, or 50 employees), hiring three or more people per quarter, or expanding into multiple states.
What is the best first HR hire for a small company?
For most growing companies, an HR generalist is the ideal first hire. Generalists handle multiple HR functions including recruiting, onboarding, employee relations, benefits, and compliance. This versatility matters when you’re building HR infrastructure from scratch rather than maintaining established systems.
How much should I pay my first HR employee?
Compensation varies significantly by location, experience level, and whether you’re hiring a generalist or manager. Use our HR Generalist salary data and HR Manager salary data to benchmark rates for your market. Underpaying for this role will limit your candidate pool and likely result in quick turnover.
Can I outsource HR instead of hiring?
Yes. Professional Employer Organizations (PEOs) handle payroll, benefits, and compliance. Fractional HR provides part-time access to experienced professionals. HR consultants help with specific projects. These options can bridge the gap until a full-time hire makes sense or supplement your internal HR capability.
What should my first HR hire focus on?
Priorities vary by company, but common first-year focus areas include implementing an HRIS, creating or updating the employee handbook, establishing compliant hiring processes, developing onboarding procedures, and ensuring compliance with employment laws. Work with your new hire to identify the three to five most critical priorities based on your specific situation.
