Strategy

When and How to Build an HR Function for a Scaling Company

When and How to Build an HR Function for a Scaling Company
ADMIN03 Sep 2026Strategy

Every founder reaches the point where the informal HR that worked at ten people starts breaking at sixty. The question is not whether to build an HR function — it is what to build first.

Answer these before you start

  • What is actually breaking today — compliance, hiring, performance or retention?
  • Which risks are urgent (a notice, a due-diligence process) versus important-but-not-yet?
  • Do you need systems, people, or both — and in what order?

In most growing companies the right first move is an HR Audit: a clear map of what you have, what is missing, what is at risk and what to fix first. You stop guessing, and you build in the right order instead of the loudest one.

Build the backbone, then the rest

Compliance and a basic policy foundation come first — they carry the most risk. Performance systems and culture work follow. Built in the right sequence, each piece reinforces the next.

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