When Do You Need a VP of People?
The trigger is not headcount — it is decision complexity. When your hiring decisions start to outpace your founders' bandwidth, when your compensation philosophy has never been written down, or when you are about to scale from 60 to 150 employees without a structured people system, you are already late.
Companies between 50 and 150 employees almost universally delay this hire. The cost is invisible at first — higher attrition, inconsistent manager quality, offers that lose candidates in the final stage, and a culture that starts to fragment as the founding team's influence is diluted. By the time the problem is obvious, it is already expensive.
The right moment to start the search: six months before you need the person in seat. VP of People searches for strong candidates typically take 8–12 weeks. Starting when you are in crisis means you will hire reactively — and reactive people hires almost always underperform.
What a Great VP of People Actually Builds
The best VPs of People at high-growth companies are builders, not administrators. They own the people infrastructure of the company — compensation architecture, performance frameworks, manager capability, hiring systems, DEI strategy, and culture codification. They are the person who makes your company scalable as an organisation, not just as a product.
In practice at a 100–300 person company, a strong VP of People will: build a hiring operating model that reduces time-to-offer by 30–50%, design a performance management process that managers actually use, implement an L&D framework that retains high performers, and act as the CEO's strategic partner on org design during headcount planning.
They are distinct from a Head of HR in a critical way: a Head of HR manages compliance and process. A VP of People shapes the organisation's capacity to execute. That distinction is worth $50K–$100K in compensation — and it is worth defining before you open the search.
Why VP of People Searches Fail
Three failure patterns dominate this search:
- Stage mismatch: Hiring a VP of People from a 2,000-person company into a 100-person startup is almost always wrong. The skills for process maintenance and the skills for people infrastructure creation are different. Verify the candidate has built from scratch, not just managed at scale.
- Founder dependency: Many companies hire a VP of People who defers to the founders on every significant decision. That person is a Chief of Staff with an HR title. If they cannot tell you what they would change about your organisation in the first 90 days, keep looking.
- Contingency recruiting: Strong VP of People candidates are not browsing LinkedIn job posts. They are heads-down building people systems at their current company and being approached selectively. A contingency recruiter incentivised by speed — not quality — will not find the top tier of this market.
The VP of People Hiring Process: Step by Step
Step 1 — Define what you need built, not just managed. List the three biggest people infrastructure gaps in your company. The VP of People you hire should have a specific track record of solving exactly those problems.
Step 2 — Require a 90-day plan presentation. At the final stage, ask top candidates to present what they would build in their first 90 days. The quality of that presentation tells you more than ten interviews. Look for specificity, prioritisation logic, and founder-alignment.
Step 3 — Back-channel references aggressively. Speak to the people who have reported to this VP of People in a previous company. Ask specifically: what did they build that wasn't there before? What broke under their leadership? Would you work for them again?
Step 4 — Structure the role for builder success. Give the VP of People direct access to the CEO, budget authority for their first build cycle, and a clear mandate — not a dotted-line structure that kills momentum before they start.
VP of People Compensation Benchmarks (2026)
For a Series B company (50–200 employees), expect base salary in the range of $175K–$240K, with total cash compensation including bonus reaching $210K–$300K. Equity grants for VP of People roles typically run 0.25%–0.6% vesting over four years.
For a late-stage growth company (200–500 employees, Series C+), base salary runs $240K–$340K with total cash $290K–$420K. The equity premium decreases relative to other C-suite roles but remains a critical component of retention for high performers in this function.
"41 days. A $275K search. Two firms failed in 60+ days. That's not luck — that's a different system."
— Majhi Group case study. Read the full case study →