When a business takes off due to robust demand, it often needs to grow rapidly by hiring and onboarding new people. This growth is a great sign that the venture enjoys a lucrative business model.
Yet growing too rapidly can also pose challenges for the business and even threaten the workplace culture. Here are my top tips for dealing with the human resources challenges of rapid growth.
The problem with rapid growth
According to best practices in human resources, companies should “hire slow and fire fast,” but this concept can be hard to follow during periods of rapid growth. The business needs manpower quickly, and management feels the pressure to fill roles.
As a result, however, sometimes businesses with rapid growth hire too fast, and some new team members will be a bad fit. Worse yet, leadership and management at these fast-growing companies are sometimes so busy that they become slow to address underperformance.
These dynamics can weigh the whole organization down. Competent team members may start resenting picking up the poor performers’ slack, leading to a dip in job satisfaction and higher turnover. Moreover, the company culture can suffer, leading to an atmosphere of disorganization and chaos.
Employees doing other employees’ work, decreased employee enthusiasm, high turnover, and a chaotic atmosphere are four of Forbes’s 15 signs of a company trying to grow too quickly.
The good news is that HR can help overcome these challenges. In my experience, there are three main ways to manage rapid growth effectively: establishing consistent, effective communications throughout the company; implementing wellness checks; and tailoring compensation to best match individual employees’ motivations.
Managing rapid growth with consistent communication
Consistent communication between the team and management can help overcome the challenges inherent in rapid growth. Weekly team meetings are a great way to check in and keep a finger on the pulse of your staff.
By talking to the team on a regular basis, management can identify when stresses are looming or staff are feeling overwhelmed. This awareness enables leaders to recognize when there’s a need to create a new position and act to fill it sooner rather than later.
In some cases, leaders get so busy trying to find ways to keep the company growing and, in turn, ensuring stability for the company and staff, that they don’t have the time to be consistent. Having middle management host these recurring meetings and keep them informed is a great workaround.
Implementing wellness checks
Conducting one-on-one wellness checks with staff members who appear to be struggling also helps. When someone is going through a hard time, it can show in their facial expressions, body language, or even in their work.
That’s why I use large meetings to scan for signs of burnout or dissatisfaction. If there’s someone I’m worried about, I check in with managers first. If they confirm that the person could benefit from support, I will reach out to the relevant team member.
However, be careful about how you contact the employee. When approached by someone from HR, staff members commonly feel like they have been called into the principal’s office. That’s why I try to be intentional and say, “This is just a wellness check; you are not in trouble!”
In the meeting, I try to be honest that their manager had said something felt off, and they were concerned, but I am careful not to pry. I let them share what they are willing to share.
In addition, I also sometimes do random check-ins. If it’s been a while since I’ve seen someone, I might send a text on our internal messaging service to say hi or an email to see if they would like to hop on a video call.
Offer the right combination of salary and benefits
Making sure employees are getting the proper remuneration is another key element. Try to be competitive with other employers, adapt to changes in the economy, and reward exemplary team members.
The truth is that this is not always possible, however. HR professionals need to have a clear understanding of how the company is doing. When the company’s budget is constrained, it’s time to get creative. Offer alternative incentives like hybrid schedules or the ability to work remotely. Many people, especially members of the younger generations, value flexibility and autonomy above financial rewards. Others value time over money, so extra PTO can also be a powerful motivator for staff.
The important thing is to have statistics and reasoning for salaries and benefits packages. You can never make everyone happy, so it’s essential to be able to provide these explanations and step through your logic. Be fair and open, and most people will understand.
In addition, review compensation packages every year, keeping the entire team in mind as well as the business’s constraints.
Practice self-compassion
Communicate consistently, stay informed, get creative, and be prepared to justify compensation decisions. By following these guidelines, you can give your business the best chance of scaling up successfully.
Finally, periods of rapid growth are challenging times, so make sure to practice self-compassion. You’ll never get it right every time. Mistakes will be made. Sometimes you’re going to hire a bad fit. Sometimes you’ll give a raise to someone who didn’t deserve it. Just learn from the mistakes and protect the company from repeating them. Everyone is human, and you are, too.
