When Should You Hire a Head of People?
At the early stages of a startup, every hire feels monumental because it is. A single bad hire can derail your culture while the right one can accelerate growth. But when should you hire a Head of People to navigate these pivotal decisions? Let’s break it down.
A Head of People Does Not Mean a Recruiter
Think of a Recruiter as the engine for talent acquisition: efficient and focused on filling roles. A Head of People, on the other hand, builds the entire vehicle: crafting systems for growth, ensuring compliance, and cultivating company culture. Recruiters are really good at what they do, but they often don’t have the training and understanding of how to drive performance and stay compliant in various states. As this article continues, note that we’re talking about when to hire a Head of People, not when to hire a recruiter.
Conventional wisdom says you need a People Leader at 50 employees. But in reality, the right time depends on your company’s unique growth trajectory. Here’s a breakdown by size and stage:
1-10 people: Definitely not Ready
Typically, the first 10 hires of a startup are the doers & builders with a strategic founder at the front. These are your software engineers if you’re in tech, your operators and customer support in CPG, etc. The issues you’re having at this stage are minimal and any compliance issues can usually be solved via a PEO. Plus, performance management is unlikely to be an issue because folks who join at this stage are usually extremely bought in to the mission / goals of the company and don’t need extrinsic motivators to get the job done.
10-20 people: Prime Time for Fractional
Things start to pick up here, especially as it relates to recruiting. Building foundational hiring and onboarding processes can set you apart at this stage; however, there often isn’t enough work to justify a full-time hire, especially at the $175K range. This is the ideal time to hire a fractional Head of People. A fractional Head of People provides the strategic foundation you need without the overhead of a full-time hire, setting you up for sustainable growth. Many companies make the mistake of hiring an Office Manager/EA/Head of People. Please don’t make this mistake. While these folks are amazing and wear a lot of hats, much like a recruiter, they also don’t have the background needed to build sustainable systems and your first Head of People hire will end up unwinding a lot of the things they put in place.
20-40 people: It Depends
At this stage, whether you need a Head of People depends on your growth trajectory. If you’re planning to double your team within the next year, it’s time to hire. If growth is slower, continue leveraging fractional support to build foundational systems until the timing is right. It's a cop out answer, I know. But truly at this stage of a company it’s not a simple yes or no answer for whether or not you need a Head of People. Set up a free consultation with Bloom Bridge and we’ll help you make this decision!
Of course, all of this needs to be supported by capital - whether that’s through funding or revenue. All hiring should be done with financial consideration, especially now that we’re out of the ZIRP era.
40-60 people: Time to Shine!
At 40-60 employees, you’ve reached a tipping point. Employees are seeking clear career development pathways, and managers require support and guidance. A Head of People can help unlock these opportunities while shaping the culture and systems needed for the next stage of growth. If you didn’t make this hire in the 20-40 employee range, now is the time to act. This stage often aligns with Series A or B funding, and long-tenured employees are likely asking about their growth trajectories within the company. As management layers start to form, regardless of whether your managers are experienced or new, they will need coaching and support to succeed.
60+ people: Time to Course Correct
If you haven’t hired a Head of People yet, it’s not too late to make a difference. A skilled Head of People can tackle existing challenges and set your company up for long-term success. But, I’m going to tell you straight. If you haven’t hired a Head of People at this time, you’ve probably got some culture issues. Culture isn’t owned by HR, but they monitor it closely and play a key role in cultivating it. Your Head of People will come in with a backlog of things to work on - Handbooks, onboarding, leveling, internal communication issues, etc. No worries - hire a Head of People who has been at several startups and within three months they will turn the ship around and in the right direction.
How can Bloom Bridge Help?
At Bloom Bridge Advisors, we don’t just bridge the gap, we build the systems, culture, and momentum for your next growth stage. Whether you need fractional support, a strategic partner, or help hiring your first Head of People, we’re here to scale your people operations. Contact us today, and let’s take your company to the next level.
