When should a deep-tech start-up hire a Head of People? Insights from our deep-tech recruiters

In today’s article we will discuss the topic of the ideal time to hire a Head of People vs using external staffing and HR providers and consultants.

It’s a common question between Series A and B, and the question is more complex than just a matter of headcount expansion. At this stage, you have to determine whether it is worth in investment especially dependant on the size of your funding and runway.

Head of People at a deep-tech start-up

When should you hire a Head of People as a Deep-Tech Start-up?

Each case is different and your specific case may vary, but here are some indicators that you should consider investing in hiring a full-time Head of People.

• You have a headcount plan of at least 20 net new hires in the next 6–12 months.

  
  

•  You are competing for top-tier talent and are starting to feel the impact.

• There is increasing complexity in your operations, for example you now have start-up employees in several countries with different employment laws, regulations and work practices.

• The employee concerns are your company are becoming increasingly complex, and your external HR consultant is unable to answer all the questions in a timely fashion

  
  

•  The hiring quality and interview times are taking up significant time from the founding team.

  
  

•  You have yet to build structure around recruiting, employee engagement, onboarding or employer brand.

  
  

•  You have reached “critical mass” where there are enough employees that have added complexity – in other words, if you have 10 people it is probably too early to hire a Head of People, usually if you have around 30–50 people you can start thinking about hiring a Head of People, prior to that some of the operational HR tasks can be handled by the founders, Chief of Staff or COO.

  
  

•  You have enough funding and runway – to ensure that you are in growth mode.

  
  

•  You have thought about employer brand and culture – but do not have the capabilities to build this yourself as you are focusing on growth and other business matters as a deep-tech founder.

  
  

•  You are currently unable to deal with employee related matters as a deeptech Founder any longer – these matters are taking you aware from other key business goals such as revenue, customer engagement etc.

A great Head of People should have some of the following skills to bring value to your deep-tech start-up

• Strong experience in compensation structures – building them

• Creating professional and career development frameworks and paths 

• Ability to create positive and consistent employee experiences across departments and teams 

• Programmatic experience such as employee onboarding, off-boarding, recognition and day to day support 

• Strong operations experience: compliance, employee relations and people operations Compliance and legal experience: employment and labor laws 

• Experience building scalable hiring systems and processes 

• Experience in diversity & inclusion topics

If you decide to hire a Head of People, into your deep-tech start-up, you're not just adding headcount—you’re enhancing your ability to scale, attract talent and have robust people operational systems that help your deep-tech start-up grow and succeed.

What about just using an HR consultant?

Calling an external HR Consultant for advice

How do you determine if you should hire an HR consultant instead of a Head of People for your deep-tech start-up?

Here are the scenarios where it would make more sense to engage an HR consultant or external deep-tech recruiter instead of making a full-time HR hire.

• You have short-term, specialized needs or projects— for example creating an employee handbook, implementing compliance processes, conducting an audit, or handling a tricky HR/legal matter. 

• You’re early-stage (often less than 30 employees) and don’t need full-time HR leadership yet, as those responsibilities are being handle by the COO or Chief of Staff.

• Your current leadership can manage day-to-day people ops but needs expert guidance for specific projects such as employee relations, labor laws, onboarding principles or leadership principles 

• Your budget is limited and you can’t yet justify a full-time senior HR hire, and need a few specific projects or tasks completed, and a monthly cost of the salary plus benefits would be too high.

• You want a neutral, external perspective for sensitive matters like restructuring, investigations, or compensation benchmarking. 

• You have a confidential search that requires discretion or have a few specialised open roles, which would be better suited to be filled by a staffing company /

• You are expanding into a new market and have limited access to the talent pool

Optimyze1 helps with your urgent hiring needs whilst you focus on what you do best: taking care of business. We have the insight and access to thought leaders who are always able to support businesses like yours on your expansion journey. Need help hiring talent for your start-up? Connect with us here.