HR Expectations in a 50 Person Technology Company: Navigating Roles and Responsibilities

Many believe that a 50-person tech company does not need a Human Resources (HR) department. This sentiment is understandable given that smaller teams may still operate efficiently without formal HR processes. However, as a technology company grows beyond a certain point, the need for HR becomes more apparent. In our experience, maintaining a full-time HR professional once you cross the 20-employee threshold can significantly enhance your organizational structure and manage expectations effectively.

The Need for an HR Person in a 50 Person Tech Company

The role of an HR person in a 50-person tech company involves much more than just maintaining employment records. Here are the key expectations an HR person should fulfill:

Establishing Policies and Procedures

When your company first starts, the culture and norms are often informal, and you may not have established policies. However, as the team grows to around 10 employees, you will quickly recognize the need for structured rules and guidelines. An HR person will ensure that these policies are in place and communicated clearly to all employees. This includes employee onboarding, offboarding, and general workplace conduct policies.

Serving as a Point of Contact and Sounding Board

One of the primary roles of HR is to be a sounding board for employees and managers. An HR person can help address minor issues or problems, such as training programs, employee designations, and conflicts. They act as a buffer between employees and senior leadership, ensuring that communication is smooth and issues are resolved more effectively.

Hiring and Recruitment

If your company plans to hire regularly, the cost of an HR person is well recovered over time. For smaller companies that do not hire frequently, outsourcing this function to a recruitment agency can be a more cost-effective solution. It is crucial to outsource payroll and wage compliance to a financial expert like a Chartered Accountant (CPA) or a similar professional, as this ensures legal compliance and peace of mind.

HR Functions and Responsibilities

With a 50-person tech company, an HR person will be responsible for a wide range of tasks:

Dealing with onboarding and offboarding processes, including compliance with employment laws and rules. Raising any legal liabilities for hiring and firing decisions. Handling payroll, expense records, and compliance issues. Collaborating with the recruitment company but not being in charge of recruitment.

While these tasks may not seem overwhelming for a small team, it is still important to consider the potential challenges and invest in the right resources, such as in-house legal or accounting professionals, to handle these responsibilities more effectively.

Employee Engagement and Grievance Handling

Improving employee engagement and addressing grievances are critical components of an HR person's role. Employee engagement involves creating a positive work environment and promoting a healthy and productive workforce. On the other hand, handling employee grievances ensures that issues are addressed in a timely and fair manner, fostering a positive workplace culture.

Conclusion

In summary, while it is possible to manage without an HR person in a smaller tech company, the expectations and responsibilities become more complex as the team grows. An HR person should be equipped to handle a range of tasks, from policy creation and legal compliance to employee engagement and grievance handling. By investing in the right HR professional, you can ensure that your 50-person tech company operates smoothly and effectively, supporting your growth and success.

Essentially, an HR person in a technology company of this size should have multifaceted skills, including operations and management, to make the work environment better and more organized.