In the early days, everything runs on goodwill. The team is small, everyone knows everyone, and the founder does the hiring, the firing and the handbook, usually all on the same afternoon.
Then you hit twenty-five people, a few managers who weren’t there at the start, and a culture that was never written down. Things that used to work quietly stop working.
What changes as you grow
At around ten people, informality starts to cost you. Contracts, pay decisions and expectations need to be consistent, because people compare.
At around twenty-five, you have managers, and managers need training, not just titles. This is also where the first serious people issue tends to arrive, and where “we’ll sort it out” stops being a plan.
At around fifty, you need structure: clear roles, career paths, proper performance conversations, and a view of the risks you’re carrying. Hiring becomes a function, not a favour.
None of these thresholds is exact, but the pattern is reliable. What worked for the last stage is exactly what holds you back at the next.
What startups and scaleups usually need
Solid foundations, which means contracts, policies and pay structures that scale, not templates that get patched.
A hiring process that doesn’t depend on the founder’s gut. Clear job definitions, consistent interviews and decent onboarding.
Manager capability. Most people-related damage in growing businesses comes from well-meaning managers who’ve never been shown how.
A way of handling problems. Someone who can advise on a disciplinary, a grievance or a performance issue without it becoming a crisis.
A people plan that matches the business plan. Where are you hiring, what does it cost, what culture are you building, and what could go wrong?
Why a full-time hire is often the wrong first step
A full-time HR hire is a significant commitment, and for a business of thirty people it may not be the right shape of support. A junior generalist can run administration but rarely has the experience to steer the difficult calls. A senior head of people is valuable but often too expensive to justify early.
That’s where a fractional or retained model fits. You get senior judgement for the part of the week you need it, scaling up as the business does, and you avoid paying for capacity you can’t yet use.
The risks nobody mentions at the pitch
Fast growth hides people risk. Contracts that don’t match reality, equity or bonus promises that were verbal, inconsistent pay, flexible arrangements granted case by case. All of it is fine until someone leaves badly, or an investor does due diligence.
From January 2027, employees will be protected against unfair dismissal after six months, not two years. For a business hiring quickly, that makes probation and performance management a priority now.
Where we come in
King HR Advisory works with founders and leadership teams across Sheffield and South Yorkshire who want senior people leadership without the full-time hire. That can be a fractional head of people, a retained advisory arrangement, or a focused project such as foundations, manager capability or a people plan. Start with our People Risk Scorecard, or book a discovery call and we’ll talk about where you are and what’s coming next.