People Function Maturity Model
Find your stage. Understand your risks. See what comes next.
Built by Richard A. Hinton
Most organizations know their People function needs work. What they often lack is a clear picture of where they actually are — and what the next right move looks like. Use this model to find your stage, understand your risks, and see what the path forward looks like.
Stage 1
No function
Starting point
People work lives with the founder or ops lead. Nothing is documented. Hiring is ad hoc.
Stage 2
Reactive
High risk
Someone owns HR but spends most time putting out fires. No proactive infrastructure.
Stage 3
Foundational
Building
Core systems are in place. Policies, onboarding, and basic performance processes exist.
Stage 4
Strategic
Scaling
People strategy is tied to business goals. Leadership alignment is strong. Data informs decisions.
Stage 5
Scaled
Optimized
The function runs with consistency and excellence. Culture is a competitive advantage.
Stage 1
No function
Starting point
You are here if your answer to 'who owns HR?' is 'all of us' or 'no one really.'
What this looks like
- Hiring decisions are made reactively, often by the founder or a generalist
- No documented policies, job descriptions, or onboarding process
- Compensation is set by gut feel with no benchmarking
- There is no one whose job it is to think about people
Key risks at this stage
Legal exposure from undocumented employment practicesCulture drift as the team grows without shared normsLoss of early hires who needed more structure than they got
What the move to the next stage looks like