Up to about 10 people
The owner handles HR, and that’s usually fine if the basics are in place. Every employee needs written particulars of employment, and you need to be registered for UIF and COIDA. Get a sound contract, a leave policy and a disciplinary code in place now; fixing them later is harder.
10 to 25 people
This is where DIY HR starts to strain. You now have managers who aren’t the owner, roles that overlap, and performance issues that need a process. Job descriptions, probation reviews and a simple performance framework start paying for themselves. A few hours a week of experienced HR support is often enough.
25 to 50 people
Structure becomes the issue: who reports to whom, how pay decisions are made, and how you keep the culture as you hire. Employee relations matters take more time. Most businesses at this size benefit from a regular HR day or two each week.
50 to 100 people
Employment equity obligations apply to employers with 50 or more employees, including an employment equity plan and annual reports. HR becomes a standing function rather than an occasional task: policies, compliance reporting, organisational design and steady recruitment. Many businesses at this size choose outsourced HR around three days a week, backed by specialists for labour law and IR, rather than building a department.
100 to 250 people
At this size HR needs a dedicated lead: someone on site most days who runs performance, employee relations and training, and reports to management every month. You can hire that person and build a team around them, or outsource the whole function: a dedicated HR lead four to five days a week, with labour law, IR and recruitment specialists behind them, without the cost of a full department.
250 people and more
Most businesses this size have an in-house HR team. The gaps tend to be project work and specialist depth: restructuring, union negotiations, executive search, or cover during a vacancy. That’s where outside HR support adds the most.
The cost comparison
A full-time HR manager typically costs R25,000 to R45,000 or more a month in salary alone. A fractional HR executive gives you senior experience for the days you actually need, on a fixed monthly fee, and scales up or down as you grow.