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6 Ways HR Can Supercharge Business Growth
At some point in its lifecycle, every company must grow to survive and remain competitive, but growing a company—and growing it right—can feel like a catch-22.
Overall, growth is positive; it means that the company has successfully expanded its customer base, increased revenue, or produced more products. But with so many competing priorities that must be managed under strained resources, business growth, if managed poorly, can be a negative feedback mechanism over time.
The People Problem
One of the most challenging aspects of growing a business is figuring out headcount and managing people through times of change. When an organization brings in new money from funding or sales, it can be tempting to go out and hire quickly towards the laundry list backlog of items company leadership has been trying to get to for a while.
However, adding new headcount too quickly can be dangerous for a growing company. Companies that are hiring fast often rush through the process to get bodies through the door rather than taking their time to seek out the right candidate. This can lead to expensive hiring mistakes, poor performance, company bloat, and the additional costs of recruiting even more people.
But as a business scales, its responsibilities increase. Employees are usually handling more without a change in compensation (initially, at least). That means, conversely, if the company doesn’t keep up the hiring pace to take pressure off current employees, morale, productivity, and engagement will likely drop, leading to high turnover and lost revenue.
Human resources often get overlooked by growing small and medium businesses as an afterthought, an unnecessary expense, or just a necessary compliance function, but quality HR is actually directly correlated to successful growth, and companies that tap into the power of HR to scale can actually supercharge their growth.
Unlocking the Power of HR to Drive Growth
This week’s guest on America Back to Work helps growing companies do just that. Belinda Waggoner, president and founder of People People, which helps entrepreneurs manage HR through growth, is a seasoned HR executive passionate about shaping workplace cultures that drive organizational success.
With a diverse background spanning startups to established corporations, she has honed her expertise in strategic HR leadership. Waggoner is dedicated to fostering inclusive workplaces and leveraging innovative HR strategies to empower teams for sustained success. She’s typically called in when an organization is a couple of years old, has a handful of employees, and one of the first things they have to do is “undo” their HR policies because they’re often not compliant or set up to scale.
Hiring for Scalability
When a company is growing, its priorities are regularly shifting, and needs constantly evolving. That’s why it’s vital to bring new people onboard who will make a long-term impact and can grow with the business. HR and recruiting professionals can help businesses make retention-friendly hires by looking for the leadership and soft skills necessary to navigate difficult periods of growth and push company culture in the right direction, like resilience, teamwork, and time management. Additionally, HR can scan for individuals with skill sets that fill skill gaps today and provide the skills that will be needed months or years down the road.
Retention Tactics to Reduce Turnover
Getting employees in the door is half the battle for a growing company; the other half is keeping them when the going gets tough. Growing pains are inevitable, but turnover doesn’t have to be. HR retention tactics can go a long way in reducing the negative effects of growth on employees—including fostering a positive workplace culture where employees feel valued and engaged, creating an employee recognition program that honors hard work, and adjusting compensation to match increased workloads (to name a few).
Training and Development for Long-Term Sustainability
HR can also drive and support growth by developing and upskilling current talent. By setting up a comprehensive learning and development program, HR can fill current skill gaps that are holding the company back and plan for the skills that will be needed in the future––not only enhancing the capabilities of the current team but also managing risk down the line. Learning and development programs have also been proven to boost morale and job satisfaction, boosting retention rates by up to 60%.
Prioritizing Mental Health to Prevent Burnout
Employers ask a lot of employees at fast-growing companies, bringing an increased workload and fast-paced turnaround times to their day-to-day work lives. In the face of these added responsibilities, burnout is a very real risk, which means that lowered engagement, diminished productivity, and high turnover are also very real risks for companies that are scaling up their operation (since these are common outcomes of burnout). HR can prevent burnout by creating a culture of well-being where employees are encouraged to prioritize their mental health, have access to wellness benefits, and take time off when needed. HR professionals can also sit down with managers to figure out how to better manage workloads.
Leveraging Data for Strategic Decision-Making
HR departments collect and house some of the company’s most important data. While other departments focus on customer data, product info, and other private intellectual property, HR manages critical employee data. By analyzing and monitoring trends around employee performance, turnover rates, engagement, and recruiting, HR can equip C-Suite leaders to make better, data-driven decisions as they grow—decisions that ensure that business goals are not at the expense of valuable human capital.
Navigating Legal and Ethical Terrain
As a company grows—growing its headcount and locations along the way—so do its compliance requirements. HR professionals can protect the company from expensive adverse legal action by staying on top of relevant labor laws and ethical guidelines from regulators as the company grows and its compliance profile shifts. Plus, a strong ethical foundation for employment enhances a company’s reputation and improves its employer brand, making attracting top clients, investors, and prospective employees easier.