When do I need formal Human Resources Management policies?

We hear this question all the time!  The fact is that as soon as you hire your first employee you have legal obligations and without formal HR you are vulnerable to any accusations of wrongdoing.  As a best practice, we suggest that before you hire your first employee you have the minimal HR structure in place:  recruitment package (including Employment Application, Interview Guide, Offer of Employment), personnel policy manual, job descriptions.  We would also suggest that employers also minimally invest in:  performance management tools (both new hire appraisals and annual), new hire orientation programs, and compensation plans.