Most startups need professional HR support between 10 and 15 employees. The 15-employee threshold triggers Title VII, ADA, and ADEA compliance requirements. Before that point, at minimum you need signed offer letters, a basic handbook, and correct worker classification.
Fractional HR is senior HR leadership on a part-time retainer. It is the right choice for companies with 10 to 75 employees that need strategic HR expertise but cannot justify the overhead of a full-time HR Director.
A full-time HR Director requires a significant salary commitment plus benefits, payroll taxes, and overhead — all before any recruiting or HRIS costs. For most companies under 75 employees, fractional HR delivers the same strategic expertise at a fraction of that investment.
At 1 to 10 employees, HR is typically founder-led: the CEO handles hiring directly, uses a payroll provider like Gusto or ADP, and maintains basic documentation. This works until compliance complexity or hiring volume exceeds the founder's capacity.