Why this question shows up later than it should
Many founders delay HR support because:
- early growth relied on trust and informality
- issues were handled case by case
- legal problems felt distant
- HR felt like overhead, not leverage
That approach works until it does not.
As headcount grows, informal decision-making starts to crack. What once felt flexible begins to feel risky.
The real trigger is not headcount
There is no magic number where HR suddenly becomes necessary.
The real triggers are behavioural:
- managers handling people issues differently
- inconsistent performance management
- hesitation around termination decisions
- increased Fair Work anxiety
- reliance on templates and gut feel
If people decisions are slowing the business down, HR is already overdue.
Why HR feels different at 20 to 80 employees
At this stage:
- founders are no longer in every conversation
- managers are leading for the first time
- decisions set precedent quickly
- errors multiply across teams
What used to be fixed with a chat now requires structure.
This is the point where HR shifts from optional to operational.
The most common mistake businesses make
The biggest mistake is treating HR as:
- paperwork
- policies
- something you buy once
HR is not a document set.
It is decision support.
Businesses that only engage HR when something goes wrong often discover they needed it months earlier.
What kind of HR support actually helps at this stage
Not all HR support is the same.
Growing businesses usually need:
- help navigating performance issues
- guidance on termination risk
- clarity on Fair Work obligations
- support for managers having hard conversations
- alignment between contracts, policies and reality
They do not usually need:
- complex frameworks
- corporate reporting layers
- full internal HR teams
Practical advice beats theoretical process.
Ad hoc HR support versus ongoing retainers
This is where many businesses get stuck.
Ad hoc HR support works when:
- issues are occasional
- decisions are contained
- managers are confident
Ongoing HR support becomes valuable when:
- similar issues repeat
- managers need guidance regularly
- consistency matters
- risk is cumulative
Retainers are not about volume.
They are about access and continuity.
Why waiting increases cost and risk
Delaying HR support often leads to:
- rushed decisions
- reactive advice
- inconsistent documentation
- higher settlement pressure
Most Fair Work claims are not caused by bad intent. They are caused by delay, confusion and mixed messaging.
Early support preserves options.
The cultural impact most founders miss
HR decisions shape culture whether you plan them or not.
Inconsistent handling of issues:
- lowers trust
- creates resentment
- discourages high performers
- increases manager anxiety
Good HR support creates:
- clarity
- fairness
- confidence
- momentum
That cultural stability matters as much as legal protection.
When internal HR is not the right answer yet
Hiring internal HR too early can create problems.
Internal HR can struggle when:
- authority is unclear
- founders still make final calls
- managers bypass process
- expectations are misaligned
Outsourced HR often works better during growth because it:
- supports leaders without hierarchy issues
- provides consistency across managers
- focuses on outcomes rather than internal politics
Internal HR usually makes sense later, not first.
Signs you should act now
You likely need HR support if:
- termination decisions feel paralysing
- managers avoid performance conversations
- Fair Work is mentioned more often
- documentation feels reactive
- founders are pulled back into people issues
These are not failures.
They are growth signals.
What good HR support feels like
Good HR support:
- makes decisions easier
- reduces hesitation
- simplifies language
- removes drama
- protects momentum
It should not slow the business down.
It should help it move faster with less risk.
FAQs
Before people issues stall growth
If people decisions feel heavier than they should, HR support is no longer optional.
The right support does not add layers. It removes friction.
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