The Biggest HR Challenges Faced by Growing Companies

Businesses with employees of around 150 to 200 usually have a small team of HR with a leader. Of course, this leader has to overcome a number of hurdles every business day, which become acuter if a business expands at a rapid rate. Some of the most common challenges to HR consultancy services are discussed here with suggestions to tackle them and ensure the organisation or company is not held back.

  1. Managing the culture change

There comes a time when the owner of a business is no longer the ‘entrepreneur’ but a ‘leader of people’. This means that by hiring an HR team will mean relinquishing more control by the owner. This mostly causes issues as many founders would wish to retain a huge amount of influence across all areas of the business. They would want to be the ones who are making key decisions, even concerning employees despite having a specialist team for such. Conflicts will come in place between the HR team and founders.

Also, as the number of employees grows with the business, the HR department will have challenges as they try to cope with the changing issues of growing numbers. This will mean asserting their influence in a smaller growing company to make things happen. Remember the HR department has to have an ‘entrepreneur spirit’ of their own, have the confidence to win employees over, and demonstrate that good functions in HR will suit the business well.

  1. Managing the ever-growing administrative burden

Every new hire comes with more administration since the company is growing. The HR tea has to look for ways to manage the increased number effectively. This kind of a challenge is inevitable since carrying out the administration is necessary. It can’t be de-prioritised or ignored. The HR department has to find ways to do the basis concerning administration in the most efficient way possible prior to dealing in more strategic activities. There have been issues of dealing with administration aspects manually which has led to many more problems, especially when it concerns many employees such as 500.

In such scenarios, challenges are caused by human error obviously. This affects reporting and there are times it takes days to complete basic people-related management information (MI). Since every hire increases the chances of the risk of legislative exposure, compliance is difficult to stay on top when the HR is buried under loads of admin tasks. In a growing business, it is possible the HR consultancy services will be required to establish and document new processes and procedures since keeping up to date through an ever-changing raft of workplace regulations is the ideal method of protecting the business with its employees.

This will mean more workload for the HR team. The General Data Protection Regulation (GDPR) controls the use of personal data. This will be most obviously involve the HR in more work, and more challenges. The most common and ideal way of dealing with the many issues that come with the growing number of employees is the introduction of HR technology. As a business’ HR, you get to automate much of administrative tasks. You also get to enable managers and employees to process lots of HR transactions thanks to self-service.

  1. Improving the recruitment process

Relatively, the challenges to HR come to the recruitment process and obviously, the HR department has a huge role to play. HR will be involved in the employer brand, employee value proposition (EVP), candidate acquisition, onboarding and all other aspects of the recruitment process. At the end of it, it is the duty of HR to make sure the right people are hired at the right time. The HR can use the experience of the existing employees to ease the process. You can also analyse the data of your people and you’ll most definitely find clues that can help you make better decisions, and of course more strategic actions.