Catapult to Success: The Power of Human Resources in Scaling Your Business

Posted by Mike McGowan on 8/30/19 7:24 AM
Mike McGowan
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It is highly expected that scaling will have a significant impact on your business operations. You’ll realize that some processes that worked well in the past, are no longer effective in this crucial stage. As your team grows, communication will also become more complicated and challenging. Therefore, you have to make sure that interaction within your team runs smoothly. Otherwise, people would have a hard time getting things done because of communication issues.

So, what is the best tool to manage scaling? It is no other than your Human Resources Department.

When your business first started, you may have survived without an actual HR department. But as you grow, you will have to establish one to be able to scale successfully. Here are some ways that HR can help in minimizing the difficulties of scaling:


Planning out your company’s growth




You had five people in your team when you first started. Then five more were hired. Depending on how your organization expands, your business may soon be a hundred-man operation. Operating as a startup, you hire people based on prevailing needs and the resources available. You often have to ask your employees to multitask, change roles, and sometimes even both. However, as you scale these methods will be more difficult to manage and you’ll need to be proactive rather than reactive when it comes to your company’s expanding size. Base your hiring decisions on your current need. It is ideal to plan when you’ll be hiring more people as you scale your company.


Getting Rid of the Unnecessary Factors

The scaling phase is all about growth and it requires you to let go of things that hinder it. As your company evolves from being a startup to something bigger, you might realize that there are things you no longer need. Changes in skill set requirements, processes, and management may need to be enforced so that you can effectively scale your company.

It’s time to make tough decisions. Identify which job positions, processes, and even people you may no longer need because they are only hindering your growth. Be objective in evaluating the business practices that no longer help you in your thriving business. You still need to show compassion and empathy in dealing with employees, but as HR for a scaling business, you must ensure that nothing is slowing its progress.


Collecting and analyzing data




Make sure to regularly gather data about people-related issues. This makes the process of human resource planning easier. Employee data gives you an idea on how your employees are dealing with the growth of your business. Furthermore, details on operational expenses for training, benefits, and recruiting will help you determine if you are aligned with your budgets and goals. Do consistent and regular tracking of analytic data on HR-related concerns such as employee retention, attrition, and productivity. Record assessment results, so you can create a database to help you analyze trends and guide you in making decisions.


Identifying potential leaders

A growing business requires managers, although not all management needs can be found in your current workforce, there are several benefits in tapping into long-standing employees. It also helps if you have a great training program since you already have a pool of potential leaders within your company. These employees have a deep understanding of your company’s operation more than any new hire.


Scaling a business requires not only cutting edge technology but also a formidable workforce for it to succeed. Planning your company’s growth starts with understanding your employees and their contribution to your business.

Topics: Productivity

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