For growing businesses, the phrase “employee experience” often gets reduced to surface-level perks, but true employee experience goes much deeper. It encompasses every interaction an employee has with your organization, from their first interview to their last day. And the quality of that experience often comes down to how well your HR function is structured, supported, and aligned with business goals. 

Defining the Employee Experience 

“Employee experience” is the sum of all these touchpoints: onboarding, development, performance management, benefits, communication, and offboarding. A well-designed experience doesn’t just make people feel valued; it drives measurable results. Engagement, retention, productivity: these all hinge on the journey. 

When your HR systems are intentional and proactive, employees know what to expect, feel seen and supported, and trust leadership. When HR is inconsistent or reactive, frustration creeps in.  

The HR Trajectory as Your Company Grows 

In the early stages, HR often falls to whoever can take it on, the owner, CFO, or office manager, and the focus is mostly on getting paperwork right. But as your team grows, the needs shift from simply handling tasks to intentionally shaping the employee experience. That’s where structured HR support becomes essential. 

• < 20 employees: HR is typically informal and manual. Payroll and basic records get handled, but leaders often need guidance on setting expectations, improving communication, and creating a positive foundation for culture. Outsourced HR can bring that structure without adding headcount. 
• 20–50 employees: As the team expands, people need consistency — clear onboarding, defined processes, responsive support, and someone to help leaders navigate day-to-day employee questions. An internal hire or outsourced HR partner ensures both compliance and culture-building stay on track. 
• 50+ employees: Complexity increases. Organizations need intentional systems for benefits strategy, performance management, leadership coaching, employee feedback, and cultural alignment. At this stage, businesses benefit from either dedicated internal HR leadership or a strategic outsourced partnership that can support higher-level initiatives.
   

How does strategic HR support enhance the employee experience? 

Whether you’re managing HR fully in-house or with an external partner, the goal remains the same: create an experience that empowers employees, not frustrates them. Strategic HR support drives that by focusing on: 

• Better benefits: Employees see competitive plans because the HR function is plugged into market trends. 
• Streamlined processes: Onboarding, payroll, and performance reviews run smoothly, and when the process works, the experience is better. 
• Consistent communication: Clarity on policies, transparent updates, and regular touchpoints build trust. 
• Employee-manager connection: When HR supports leaders to engage meaningfully, employees feel heard and invested. 
  

Why the Stakes are High 

In the U.S., only about 31% of employees report being engaged with their work and organization, one of the lowest levels in a decade, according to Gallup. That means the vast majority of workers are at risk of being disengaged, or actively disengaged, and that has a real impact on productivity, turnover, and culture. Strong HR systems don’t just prevent those risks; they create the structure for meaningful connection and sustained engagement. 

Which leads to a key question for many growing businesses: How do you structure HR in a way that keeps employees engaged while supporting growth? That’s where the balance between outsourcing and internal investment comes in. 

Outsourcing HR vs. Building an Internal Team 

Every growing company eventually hits the point where HR can’t just be “someone’s side job.” When that happens, you have two options: outsource or bring HR in-house, and both can support a healthy culture when done well. 

• Outsourced HR isn’t just a compliance safety net. The right partner strengthens culture, builds better processes, supports managers, creates consistent employee experiences, and provides strategic guidance as you grow. You get access to experienced HR leadership without taking on additional salaries. 
• Internal HR becomes a strategic asset when your organization needs someone woven into the day-to-day fabric of the business. With an inside lens, they can lead long-term talent and culture initiatives, support the everyday moments that shape employee experience, and partner with leaders to make informed, real-time decisions. 
  

Build your HR Function with Lutz 

At Lutz, our talent team offers Outsourced HR and HR Consulting services that can help your business design a scalable HR solution. We’ll work alongside your leadership team to build a workplace where employees can thrive at every stage of their journey. Whether you need short-term guidance, long-term partnership, or help shaping your next phase of growth, we’ll meet you where you are. Contact us to learn more.