HR for small businesses in Utah: what to build, and when
When you start a company, HR is a few forms and a payroll account. Then you hire your tenth person, then your twentieth, and the questions get harder. What do we need in writing? Which rules apply to us now? Who handles it when a manager and an employee clash?
This guide walks through what HR looks like for a small business in Utah at each stage of growth. It's a practical guide, not legal advice. Rules change and depend on your situation, so check specifics with an employment attorney or the relevant agency.
We're DMD Fractional. Fractional HR and recruiting for growing companies.
Why headcount matters
Many federal employment laws apply once you reach a certain number of employees. That means your HR needs change as you grow, and things that were optional at 10 people can become required at 15, 20 or 50. State and local rules can add their own thresholds. Confirm the current Utah rules for your business before you rely on any number.
1 to 14 employees: get the basics right
At this stage, focus on the foundation:
- Payroll and classification. Pay people correctly and on time, and be sure each person is correctly classified as an employee or contractor, and as exempt or non-exempt.
- New hire paperwork. Complete the I-9 for every hire and keep your required records organized.
- Offer letters. Put the job, pay, start date and at-will status in writing.
- A simple handbook. Even a short one sets expectations on time off, conduct and how to raise a concern.
15 to 49 employees: structure starts to matter
At 15 employees, several major federal anti-discrimination laws, including Title VII and the ADA, generally apply. At 20, the federal age discrimination law and federal COBRA generally apply. This is also when informal HR starts to crack.
- A real handbook. Clear policies on anti-harassment, leave, accommodation requests and complaints.
- Manager training. Your managers are now the front line of your HR risk.
- Consistent hiring. Structured interviews and scorecards so decisions are fair and defensible.
- Documentation. Write down performance issues, warnings and decisions as they happen.
- Pay structure. Simple job levels and pay ranges before pay questions become complaints.
50 to 150 employees: build for scale
At 50 employees, the federal FMLA generally applies, and so do the ACA employer requirements. Your HR needs now include:
- Leave management that follows the rules and is applied the same way for everyone.
- Benefits strategy that fits your budget and helps you hire.
- Performance and growth plans so good people see a path and stay.
- HR metrics like turnover and time to hire, reviewed on a regular basis.
- A plan for your first full-time HR hire, and what they should walk into. Our First HR Hire Checklist can help.
Your options for small business HR
Small businesses usually choose from a few paths:
- Do it yourself. Works early on, but it pulls the owner or office manager away from their real job.
- Hire a full-time HR person. A good move at the right size, but a big fixed cost before you're ready.
- Fractional HR. An experienced HR leader for a set number of hours a week. You get senior judgment without a full-time salary.
We offer fractional HR and flat-fee recruiting for Utah companies of 15 to 150 people. Our Flat-fee Search is $5,000 to $12,000 per role, with no percentage of salary. See recruiting for details.
How to start
- Take the free Utah HR Risk Check. About five minutes, and you'll see where your gaps are.
- Get a People Audit. Our $2,500 fixed-price review of your hiring, handbook, pay, onboarding, records and manager practices, with a ranked list of what to fix first.
- Fix the top three. Most companies get the biggest gains from a handful of changes.
Who we are
Our team has built HR from zero several times. Our team has worked at Tesla, Vivint, Openly, DISH and Young Living. Results from our team's past work include $1.5M saved in agency fees across 100+ in-house hires, and turnover cut from 40% to 10% in a 500-employee high-attrition org.
We also work with accountants, benefits brokers and attorneys who serve small businesses. See our partners page.