REVEALED: The number of employees a firm needs before HR is necessary

REVEALED: The number of employees a firm needs before HR is necessary

HR is crucial for firms as soon as they hit 150 people, according to Silicon Valley investor Marc Andreessen.

Andreessen, who is the co-author of one of the first web browsers and a top investor in Twitter, Facebook and Pintrest, was speaking to entrepreneur and investor Elad Gil for his new book, High Growth Handbook. Business Insider reports that he stressed the importance of a strong HR team for upcoming firms.

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Comments (1)

  • Iain Smith, Diaz Res
    Iain Smith, Diaz Res
    Thu, 2 Aug 2018 10:55am BST
    Very glad to read this piece, addressing as it does a big issue for many start-ups. One of the issues I have seen in the tech sector is that start-ups tend to hire, as their first HR manager, recruiters. That can make sense from the point of view of the workload that they face at the time: "HR" mostly means hiring, early on. Problem: recruiters may know little about ongoing HR management, they may struggle when internal pay relativities are becoming more important than alignment with an ill-defined and changing market, they may focus less on long-term goals, etc.. When hiring a first HR manager, companies need to "hire ahead", i.e. not just get a solid HR professional but one with experience of supporting more than the 100 or so people the company has at present. This means having a credible business plan and a decent package.
    People management problems at big tech companies can often be traced back to the failure, early on, to appreciate the great value brought by a truly professional and confident top team HR head.

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