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, typically $1,199-$4,999 per month. It is the right choice for companies with 10 to 75 employees that need strategic HR expertise but cannot justify a full-time HR Director at $120,000+ per year.
A full-time HR Director costs $120,000 to $180,000 per year in salary plus $30,000-$50,000 in benefits, payroll taxes, and overhead. That is $150,000-$230,000 annually before any recruiting or HRIS costs.
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.