How long can a CEO manage HR responsibilities alone – before it starts costing too much?
Many growing companies operate for a long time with the CEO handling HR matters alongside everything else. In the early stages, this makes perfect sense – with fewer than ten employees, salaries are manageable, contract templates have been Googled once, and even the tax office has been consulted about benefits and stock options.
But as the headcount grows, things change. Ten becomes fifteen, and soon the team exceeds twenty. HR is no longer just admin – it requires time, planning, insight and expertise. And that expertise may not be readily available in-house. Still, in many scale-ups, HR is managed “on the side”. There’s no time to onboard anyone new, and it’s unclear when the right moment to hire an HR professional might be. So the default becomes: “Let’s just handle it ourselves.”
When HR obligations catch you off guard
Suddenly, there’s a pile of missing documents, risk assessments and policies – things the CEO didn’t even know existed.
At that point, it’s no longer a question of whether HR expertise is needed – but how fast it can be brought in.
When I was brought in to support the People function at a growing business, my first task was to conduct an HR audit. The result? A long list of neglected items: working time tracking, equality and non-discrimination plans, training programmes, occupational safety measures… and much more.
It quickly became clear that the list itself wasn’t the only issue. The company lacked a basic understanding of what these obligations actually meant. It wasn’t until I broke down the requirements and processes for the leadership team that things started to click. Many legal requirements kick in at specific growth stages – and they can’t be ignored. But without the insight of a trained HR professional, it’s easy to miss what’s beneath the surface. That’s why the HR function exists – to help companies identify and meet these obligations in time.
Why HR often meets resistance – and why it’s still essential
Many CEOs later admit they should’ve brought in HR support much earlier.
But let’s be honest: it’s not easy to step into a company as the new HR Manager when your first task is to implement time tracking or revise practices that employees see as “earned benefits”. You’ll hear things like: “Everything was fine until HR came in and ruined it.”
When HR expertise finally enters the picture, the beginning isn’t always smooth. Often, the first job is to untangle knots – the ones formed over years of well-intentioned but improvised decisions. For example, introducing time tracking can feel like a loss of trust: “We’ve always trusted our people,” “This feels like corporate micromanagement.”
And when the People team starts fixing structures – reviewing benefits, updating outdated practices or implementing legally required tools – resistance is common. Not because employees oppose improvement, but because no one ever explained that things should be done differently.
HR becomes the guide for change – not because it wants to change things, but because growth demands it. Often, the law does too. When HR steps in, it brings requirements for time tracking, equality planning, safety development and many other areas that previously sat on no one’s desk – at least not consciously.
Why CEOs hold on to HR – and why it’s hard to let go
Many CEOs – and in some cases CFOs who’ve inherited the responsibility – feel that HR is part of their role. There are many reasons for this. Sometimes it’s uncertainty about whether they’re “doing enough” if HR is delegated. Other times, it’s a lack of understanding about what an HR professional actually brings to the table – and hiring may be postponed for budgetary reasons. HR is then seen as a cost, not a value driver.
The role of the HR function goes far beyond operational tasks like payroll, benefits administration or choosing lunch providers – it’s about leading and supporting people and structures in a holistic way.
It’s worth remembering that the leadership’s core responsibility is to ensure growth and build a sustainable company culture. The HR function doesn’t take away that role – it enables it.
When is the right time to bring HR in?
The first reaction is often: “Now’s not the right time.” And that’s true – growth brings urgency, and daily operations take priority. That’s precisely why it’s smart to bring in HR expertise before challenges escalate.
HR doesn’t need to be full-time from day one. Interim HR support can step in once a week, a few days a month, or simply as needed – helping identify what must be done now, what can be built later, and what can’t be left undone.
From a professional perspective, it’s crucial to pause and reflect once the team reaches around 15 people. What happens when the next growth spurt hits? What functions need to be in place to ensure growth is sustainable and manageable? This applies not only to HR – but also to finance, leadership and operations. But HR is often central, because growth means people – and people need onboarding, support and structure. Someone has to take care of all that.
Sustainable growth needs a solid foundation
Every founder and CEO benefits from a strong foundation. Few of us start companies out of passion for collective agreements, equality plans or holiday legislation. That’s why it’s wise to ask for help.
If this sounds familiar, now is a good time to pause. Interim HR might be just the support you need to build a strategically sound base for growth.
Get in touch – let’s talk about how I can help!