When to Hire Your First HR Head in a Growing Business

Why most founders get this decision wrong

Most founders delay hiring a proper HR head with the logic: “I’ll hire HR after we reach ₹50 Cr.” In reality, by the time you hit that scale, you are already firefighting — messy salaries, unclear roles, compliance gaps, and rising attrition.

The right time to hire your first HR head is when people complexity starts blocking growth, not when you think you can afford one.

The real triggers – not just revenue

Instead of asking “Can we afford an HR head?”, ask “What is people chaos costing us?”

1. Team size and hiring volume

• You are at 40–70 employees and growing.
• You consistently have 5–10 open roles.
• Hiring is handled by founders, managers, or a junior coordinator.

2. Founder or CXO time drain

• 20–30% of leadership time goes into HR issues.
• You get pulled into conflicts, salaries, exits, and policies.

3. Visible cracks in people systems

• Inconsistent salaries and promotions.
• High performers leaving due to lack of clarity.
• No KRAs, KPIs, or structured reviews.

What your first HR head should actually do

Build a hiring and onboarding engine

Standardise roles, interviews, assessments, and onboarding so new hires become productive faster.

Design performance and accountability

Introduce KRAs and KPIs, set review rhythms, and help managers give clear feedback.

Bring structure to compensation and policies

Create salary bands, promotion logic, and clear policies that reduce confusion and disputes.

Build culture and engagement intentionally

Use feedback loops, clear values, and focused engagement to support performance, not distractions.

When not to hire a full-time HR head

If you are under 25–30 employees, hiring is sporadic, and needs are mostly operational, an external HR consultant plus a junior HR resource is often enough.