A growing business will experience growth pains as it expands and requires more resources to get to the next strategic level. Finance, materials, people – all resources that are needed in order to grow. As the business grows, so do the challenges. In this article we’ll explore the specific people challenges that upscaling businesses will come across and have to overcome.
1. HR compliance and regulation
Perhaps the most obvious challenge that comes with more people is more HR admin. Small businesses often lack the resources and expertise to manage growing numbers of employees which can lead to compliance gaps and potential legal risks. What was manageable on a smaller scale becomes an obstacle to further growth and a daily headache for the senior leaders. Without finding a solution, the business exposes itself to risk, ends up with unhappy staff and fails to recruit the new ones needed for expansion.
Growing businesses will often partner with an HR consultancy, like ProspHR Solutions, to ensure they are proactively kept updated on relevant regulations and also the practical HR admin support so the leadership can focus on other strategic business initiatives.
2. Talent acquisition and retention challenges
The next most apparent people challenge to upscaling businesses is attracting and retaining the right talent. Trying to attract and retain top talent without a structured approach will make this even more of a challenge. Reaching the point where additional resource is imminently needed is too late.
A successfully scaling business will have identified the skill vacancies it will have as part of the strategy to grow over the next 2-3 years. Having a longer-term perspective on the roles that need to be filled gives the business more time to plan and to identify where these individuals can be sourced from. For example, in competitive marketplaces where there aren’t enough skilled people for the roles available, sourcing talent via apprenticeships and the company ‘growing its own’ initiatives can be extremely effective. The company is not solely reliant on the job market, competing against other employers, some who may have a more established employer brand.
Growing businesses should implement a robust recruitment strategy that not only focuses on attracting talent but also on retaining them. Competitive compensation packages is one way, but investing in your employees’ development and giving them growth opportunities not only boosts retention, it can also enhance productivity and morale.
3. Cultural shifts and barriers.
The final challenge upscaling businesses will face as they grow, is the shift in culture. Small businesses often start with a close-knit team where communication flows effortlessly. Changes in the company culture can be more subtle but left to fester can lead to a disconnect between teams and departments. As the company continues to expand, the disconnect can become a problem that impacts collaboration and productivity. This can then lead to an increased level of staff turnover and difficulty recruiting new people in.
Successfully growing businesses will invest in building a strong company culture from the outset. It will involve clearly defining your core values and ensuring that every team member understands and embodies them. If the culture change is already a challenge, start to help bridge communication gaps through regular team-building activities and feedback sessions.
Is your growing businesses feeling the pressure of these common people challenges?
If your business is growing, that’s great! The fact that you recognise some of these challenges means you’re already one step closer to implementing solutions to resolve them. Your business will thrive if you prioritise regulatory compliance, focus on talent acquisition and nurturing a strong company culture. But you don’t have to do it alone.
At ProspHR Solutions, we specialise in helping businesses like yours overcome HR hurdles and unlock their full potential. We will maximise the capability of your teams with our expertise. To find out how, book a Prosperity Call today. Contact us today at helpmybusinessthrive@prosphrsolutions.com or call on 0345 548 2124.
