“How important is the role of HR in a growing company?” Last Friday, I conducted our Hiring Talent workshop, which generated a number of thoughtful questions.

How big is your company’s payroll? In dollars? That’s how important HR is. The HR person is in charge of your company’s acquisition, training, development and human productivity. HR’s budget isn’t your training budget, or the salaries of your HR personnel. HR’s budget is your entire payroll cost.

So, if you have a company of 80 employees and an annual payroll of $2M, then HR’s budget is $2M. I look to your HR person to actively be involved with your managers, constantly asking how this person or that person is performing. This is what I want to hear from your HR person.

Does this person need training? Is that person ready for a new assignment, more responsibility? Does this person need to be replaced? Because I have two candidates in the wings you should take a look at.

That’s how important HR is in a growing company. -TF