Signals to help you decide, and four alternatives depending on your company's stage
Your company needs an HR department when people issues take more of the manager's time than they can give or when mistakes start costing money. Before that point, there are lighter options.
We have already discussed the idea of being a company without an HR department. Here we get practical: how to know the moment has come and what to do depending on the size of your company.
It is worth deciding well. According to Gallup's State of the Global Workplace 2024, as reported by Portafolio, only 21% of workers in Colombia feel engaged with their work, compared with 32% in Latin America and the Caribbean. Managing people with intention is a competitive advantage.
What signals show that you already need one?
If you recognize three or more of these signals, it is time to act:
- The manager spends hours every week on people issues. Contracts, leave requests, conflicts and payroll take time away from selling and leading.
- You hire out of urgency. You fill positions fast rather than by profile, and every new hire is a gamble.
- Turnover catches you by surprise. Valuable people leave and nobody knows why.
- Labor obligations have no owner. Affiliations, social security, occupational health and safety or personnel files depend on someone's memory.
- Conflicts pile up. Managers do not know how to handle them, and they reach the general manager too late.
- Nobody measures anything. You do not know what turnover costs or how the work climate is doing.
- The company grows and the processes don't. What worked with a small team breaks when the team grows.
A useful way to count them: each signal has a hidden cost. The manager's time not spent on customers, the vacancy that takes one more month to fill or the valuable person who leaves without anyone seeing it coming. Put a number on two or three of them and the decision gets easier.
What options do I have depending on my company's stage?
It is not an all-or-nothing decision. There are four paths, and you can move from one to another as you grow.
- The manager does it, with support. Works for very small teams. Define basic rules, use templates and get legal advice as needed. The risk is that the manager's time runs out and what matters gets neglected.
- Strategic HR by the hour. An external consultant designs the essentials, such as hiring, onboarding and evaluation processes and policies, and supports the manager every month. It works for companies that do not yet justify a full-time position and want solid foundations.
- A part-time professional. One person inside the company a few days a week. It provides continuity and knowledge of the culture. It makes sense once there is a volume of operational processes.
- Your own department. One person or a full-time team, with a leader who has a seat at the decision-making table. It makes sense when complexity, turnover and growth demand daily attention.
How do I choose among them?
Ask yourself four questions. How many people do we have, and how many do we plan to add this year? What is the problem that hurts most: hiring, retention, conflicts or compliance? How much of the manager's time does it consume today? What budget can we commit on a sustained basis?
If the pain is about foundations and order, hourly support is usually enough. If it is about volume and continuity, consider a part-time profile. If growth is fast and culture is part of your value proposition, your own department starts to become an investment.
Some additional questions that help: what would happen if the person who handles these issues today were out sick for a month? What people decisions are we making without data? What problem keeps recurring and nobody has solved?
What cannot be left without an owner, whichever option you choose?
Whatever the size of your company, someone must be accountable for four things: hiring and personnel documents, compliance with labor and social security obligations, occupational health and safety, and the confidential handling of personal data.
For legal aspects, consult a labor lawyer. Every company has different conditions and this guide does not replace that advice.
What should you do first when you bring in your first support?
Whether it is an hourly consultancy, a part-time person or a new position, the order of the first priorities is usually the same:
- Get the basics in order. Personnel documents, contracts and social security obligations up to date.
- Define how you hire and welcome people. A clear hiring process and an onboarding that does not depend on anyone's memory.
- Agree on how people are evaluated and receive feedback. Goals by role and regular conversations.
- Measure the essentials. Turnover, absenteeism and time to fill vacancies, with a fixed formula.
- Listen to the team. A short survey or one-on-one conversations to understand the work climate.
When should I move to the next level?
Review every six months with data: turnover, time to fill vacancies, the manager's hours on people issues and conflict cases. If the indicators get worse or the manager is drowning again, move up a step.
What matters is that someone is in charge of thinking about people with a business perspective, regardless of the title of their position.
Write down how many hours the manager spent on people issues this week and how many of those issues were urgent because of missing processes. That number tells you whether it is time to ask for help. Huvantia supports companies at every stage, from the first structure to a dedicated department.
Sources
- Portafolio, América Latina y el Caribe, la región con menos empleados enfadados con su jefe (June 13, 2024), with data from Gallup, State of the Global Workplace 2024. Data: 21% of workers in Colombia engaged; 32% in Latin America and the Caribbean. https://www.portafolio.co/economia/empleo/america-latina-y-el-caribe-la-region-con-menos-empleados-enfadados-con-su-jefe-606633
Frequently asked questions
At what size does it make sense to have an HR department?
There is no single number. It depends on complexity, turnover and growth. Many companies need structured support long before they have a large team.
What does an hourly HR consultant do?
They design hiring, onboarding and evaluation processes and policies, guide the manager and review indicators every month. They do not replace a dedicated department, but they bring order with a smaller investment.
Can an SME manage its people with technology alone?
Technology helps organize processes and data, but it does not replace judgment or conversations. It works best as a support for a responsible person.
Is it mandatory to have an HR department in Colombia?
There is no general obligation to have a department with that name. There are labor obligations that someone must fulfill. Confirm them with a labor lawyer based on your company's size and sector.
