Which HR policies you actually need, and in what order
Not the forty-policy handbook. The eight that resolve most real disputes, what each must answer, and how to stop them going stale.
Read the articleGanesh HS ·
A founder of a fifty-five-person business hired an HR executive. She was capable, organised, and within three months was running onboarding paperwork, maintaining the attendance sheet and coordinating interviews. A year later the founder was still approving every leave exception, still deciding every salary personally, and still the only person who knew why two people in similar roles were paid differently.
The hire had not failed. She had done exactly the job that was described. The problem was that the job described was administrative, and the thing that was actually hurting was that nobody had built a system for any of it.
Headcount thresholds are the usual rule of thumb and they are a poor guide, because businesses differ enormously in how much people-work they generate. A fifteen-person business with three shifts and high turnover needs HR capability earlier than an eighty-person professional firm with stable, senior staff.
The reliable signals are behavioural rather than numerical.
Any two of these together means the capability is already needed. Waiting for the fourth means the first year of the hire is spent on remediation rather than on building.
This is the decision that determines whether the hire works, and it is usually made implicitly by whoever writes the job description.
OPERATOR (HR executive / coordinator)
Runs what exists. Onboarding paperwork, records,
scheduling, leave administration, coordination.
Needs: reliability, organisation, follow-through.
Right hire WHEN THE SYSTEM ALREADY EXISTS.
BUILDER (HR manager / HRBP)
Decides what should exist and builds it. Policies,
pay structure, hiring process, manager capability.
Needs: judgement, ability to say no to a founder,
experience of having done it before.
Right hire WHEN THERE IS NOTHING TO OPERATE.
MOST FIRST HIRES SHOULD BE BUILDERS.
MOST FIRST HIRES ARE OPERATORS, BECAUSE THE PAIN
IS ADMINISTRATIVE AND THE BUDGET IS TIGHTER.The mismatch is understandable. Administrative pain is what the founder feels daily, so the request is for help with it. But an operator hired into an environment with no defined processes will invent them ad hoc while under pressure, and the business ends up with a system that nobody designed and that is hard to change later.
A builder costs more and is harder to find at this level, particularly someone willing to work without a team. The compensating factor is that the administrative load can often be absorbed by a part-time person or a system, whereas judgement cannot. Where neither option is affordable outright, the split is worth considering explicitly rather than defaulting to the cheaper hire — bringing in HR management consulting to design the system once, then hiring an operator to run it, costs less in total than hiring a builder and frequently less than hiring an operator and living with what they improvise.
The most common failure after a good hire is an unclear first quarter. A capable person arrives, finds twelve things wrong, and starts all of them.
Not what is supposed to happen. Sit with payroll at month-end, watch an onboarding, talk to six managers. The gap between the described process and the real one is the map.
Visibly, and finish them. Usually leave and attendance, because they touch everyone and generate the most queries. Two finished processes buy the credibility for everything after.
Unglamorous and blocking. Accurate records, reporting lines confirmed by each manager, one source of truth. Every later project depends on it and it never gets easier to do.
A short written plan with two priorities, not twelve. This is also where the builder-versus-operator question gets settled in practice, whatever the job title said.
What should not appear in the first ninety days is a strategy document, a competency framework, or an engagement survey. All three are reasonable later and all three, done first, produce a well-regarded new joiner with nothing working.
The hire only works if some decisions actually move, and this is where it most often quietly fails. A founder who hires an HR manager and continues to approve every exception has bought a coordinator at a manager's salary.
The useful conversation before the hire is specific: which decisions will this person make without me. Leave exceptions, probation confirmations, offers within an agreed band, disciplinary process up to a defined point. Written down, as a list, before they start.
Founders find this harder than expected, because people decisions feel personal in a way that operational ones do not, and because the founder has historically been the fairness mechanism. Naming a small set to begin with and extending it is more realistic than attempting a clean handover. Where the difficulty is really that no decision rights are defined anywhere in the business, this is a symptom rather than the problem, and organisation design work addresses it more directly.
A permanent hire is not the only route and is not always the right first one.
A fractional or part-time senior HR person gives a business access to judgement it cannot yet justify full-time, which is frequently the better fit at forty to eighty people — the need is for decisions and design rather than for daily throughput. That is the case for fractional HR management at this stage, and the common pattern is a senior person two days a month building the system alongside a junior person operating it.
A consulting engagement to build the foundations, followed by an operator to run them, also works and is sometimes cheaper. It suits businesses that need a defined body of work done once — policies, pay structure, hiring process — rather than continuing capability, and it is the shape most first HR management consulting engagements take.
What rarely works is asking the office manager or a finance person to add HR to their role. It is not a capacity question; it is that the judgement calls in HR are specific and the consequences of getting them wrong are not obvious until later.
The distinguishing question is whether they have built rather than administered. Ask for a specific instance: a process they designed from nothing, what the first version got wrong, and what they changed. Someone who has only operated inherited systems will describe how things worked rather than how they were decided, and the difference is audible within two minutes.
Ask also how they have disagreed with a founder or managing director. A first HR hire who cannot say no to the person who hired them will ratify existing practice rather than improve it, which is the most expensive way to fill the role — and it is worth testing directly, because almost everyone claims the capability in the abstract. What you want is an account of a specific occasion, including how it was received.
Less about headcount than about whether people decisions are queuing behind one person and whether anyone can answer a policy question consistently. Businesses with shifts, high turnover or multiple sites need it considerably earlier than the usual rules of thumb suggest.
For the first year, usually yes. The role requires access and authority it will not have reporting into finance or operations, and the decisions it needs to move are mostly the founder's to release.
For a while, though recruitment tends to consume everything when hiring is active, and the building work stops. If hiring volume is high, separate them earlier than feels affordable.
It depends on whether you are buying judgement or throughput, which is the builder-operator question. Budgeting for an operator and hoping to get a builder is the most common way this hire disappoints.
Often the better one between roughly forty and eighty people, where the need is for design and decisions rather than daily administration. It also lets a business test what it actually needs before committing to a permanent structure.
Longer how-to writing that cuts across process, people and software.
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