When does a 50-person company need an HR manager?

In most growing companies, HR starts as a side job: the CEO hires, an office manager handles contracts, and the accountant runs payroll. That works – until it doesn’t. Somewhere between 30 and 60 employees, the side job becomes a bottleneck.

This article helps you recognise that moment and choose the right model for your company.

Signs that HR has outgrown the side job

  • The CEO still interviews every candidate and spends several days a month on hiring.
  • Good people leave, and nobody knows exactly why. There are no exit interviews and no turnover data.
  • Managers were promoted for being good specialists and have never been trained to lead a team.
  • Pay is decided case by case. Two people in similar roles earn very different salaries, and nobody can explain why. From January 2027, employees in Lithuania can formally ask.
  • Documents are behind. A number of policies are required to be in place since hiring the first employee. Some of them are not only for compliance – they might be important elements to understanding who does what and valuable instructions on how we work together.
  • Conflicts reach the owner’s desk because there is no one else to handle or prevent them.
  • And most importantly – business is lagging behind, because we just can’t find and retain the people we need.

If three or more of these sound familiar, HR needs an owner.

Three models

Model In-house HR manager External (fractional) HR manager Mixed model
What it is A full-time HR employee An experienced HR manager working for you part-time, e.g. 1–2 days a week A junior HR or office coordinator in-house, supported by an external senior HR expert
Best for 80+ employees, or constant hiring 20–80 employees, or a new team in Lithuania 40–120 employees with growing admin load
Strengths Always available, knows the culture Senior expertise from day one; flexible; no recruitment risk Daily support plus senior expertise
Watch out for A generalist hire may lack strategic experience; a senior hire is expensive, hard to attract Needs clear commitment and a regular rhythm Roles must be clearly split

What the first six months of HR should deliver

Whichever model you choose, a company of around 50 people should expect:

  • An HR audit – documents, processes and pay in one picture. See our HR audit checklist.
  • Compliance fixed – contracts, work rules, remuneration system, equal opportunities policy.
  • A hiring process that managers can run without the CEO.
  • Employee onboarding/offboarding processes defined and implemented.
  • Organizational design support – who does what.
  • Pay structure and job groups – ready for the pay transparency rules from January 2027.
  • Basic people data – headcount, turnover, absence, time to hire.
  • Manager support – feedback, performance conversations, difficult situations.
  • Partnership with CEO – helping to shape and implement own people philosophy.

How Amber Axis can help

Our HR as a service gives you an experienced HR manager for the time you actually need – from a one-off audit to ongoing part-time HR leadership. Contact us to discuss what fits your company.

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