Six Key HR Strategies for Scaling Your Business
Scale or Growth: Is There a Difference?
Scale and growth do not mean the same thing. While they are often used interchangeably, they are actually two distinct concepts. Company growth refers to the increase in revenue, profits or market share over time. Scaling, on the other hand, refers to the ability of a company to increase its output or capacity without incurring proportionate increases in costs.
Growth can be achieved through a variety of means, such as increasing sales or expanding into new markets. Scaling, however, requires a specific set of strategies and tactics that allow a company to increase production or capacity while keeping costs under control.
For example, a company that experiences growth by increasing its sales may need to hire more employees and invest in additional resources to meet the increased demand. This may result in increased costs that can impact profitability. On the other hand, a company that scales its operations may be able to increase production without hiring additional staff or investing in additional resources by optimizing existing processes, automating certain tasks or leveraging technology.
Focusing on growth alone should not be the only business objective. Business leaders should set their sights on how to grow and scale efficiently.
Growth adds complexity
As an company grows, it can become more complex to manage. Here are a few areas in which growth can add complexity to HR for an organization:
Increased workforce: You may need to hire additional employees to manage the increased workload. Managing a larger workforce may require more resources, including additional management, HR and administrative staff.
Increased compliance requirements: You may be subject to more compliance requirements, which can add complexity in terms of HR compliance, reporting and risk management.
Expanded operations: As a business expands, it may need to operate across multiple locations, which adds complexity in HR-related requirements such as compensation range transparency in job postings, multi-state wages and local withholding requirements, to name just a few.
Higher demand for technology: As a business grows, it may need to invest in new technologies and systems to help manage the increased complexity. This can include upgrading software, hardware and networking infrastructure.
Six key strategies to help your company scale
There are many strategies that can help a company scale to achieve its business goals. Every business function—from sales and marketing to finance and operations—has unique opportunities to drive scale.
The HR team is in a unique position to help support scale through these areas:
- Talent acquisition plan
- Performance management system
- Leadership development program
- HR technology solutions
- Culture of continuous learning
- Working with HR experts
Let’s look at each.
STRATEGY 1: CREATE A TALENT ACQUISITION PLAN
Companies wanting to grow will most likely need to also hire additional employees in order to add sales and production capacity to meet increased demand. But growing your workforce can bring challenges such as: can you hire the best and brightest talent so they can deliver incremental value to the business vis-à-vis their cost, and can your HR team do this efficiently at scale? To do this, an organization may need to create a scalable talent acquisition plan.
Your talent acquisition plan should consider strategies to attract and hire top talent. This may include developing a strong employer brand, leveraging social media and other platforms to reach potential candidates and developing a referral program to encourage existing employees to recommend candidates. (See “Six Ways to Attract Top Talent: How to Become an Employer of Choice.”)
Of employers in 2023 report difficultly in filling roles - a 17-year high.1
1. “2023 Global Talent Shortage” (manpowergroup.com). Accessed May 17, 2023
Here are some of the key components that you should consider in a talent acquisition plan:
- Competitive compensation and benefits to attract top talent candidates from the start
- Screening and selection processes to efficiently manage candidate applications end-to-end
- Job descriptions clearly defining the responsibilities and requirements of each position
- Effective sourcing strategies the organization will use to attract candidates
- Candidate experience to ensure a positive candidate experience throughout the hiring process
- Onboarding new hires so they are set up for success from day one
- Metrics and analytics to measure the effectiveness and efficiency of the talent acquisition strategies
1. “2023 Global Talent Shortage” (manpowergroup.com). Accessed May 17, 2023
STRATEGY 2: CREATE A CULTURE OF CONTINUOUS LEARNING
Continuous learning is essential for business growth and success. Adding incremental skills to existing employees is often the most efficient way for an organization to scale talent. Therefore, organizations should consider providing employees with opportunities for training, professional development and skill-building to help them be competitive in their industry.
return for every $1 companies spent on reskilling and career mobility2
2. A Guild analysis of all employers the company works with on reskilling and career mobility efforts found that for every $1 companies spent they had a $3 return on their investment. Research also suggests that these investments help
A company with a strong culture of continuous learning can help build its identity based on shared values, attitudes and beliefs that its employees matter. Commitment to a culture can help a company focus on its vision. By getting your culture right, you empower employees to innovate and make the right decisions for your business which can help speed growth at scale.
people ar estimated to need new skills globally in the next two years alone3
3. 5 Numbers That Explain The Talent Gap — And What Leaders Can Do About It (forbes.com) Accessed May 17, 2023
STRATEGY 3: IMPLEMENT A PERFORMANCE MANAGEMENT SYSTEM
Clear expectations and align goals: A performance management system helps to establish clear expectations for employees, so they are aligned with the organization’s goals and objectives.
Feedback and coaching: A performance management system can help to identify high-potential employees, providing a structure to improve employee performance and develop new skills.
Companies with effective performance management
as likely to outperform their competitors.4
Accountability: A performance management system helps to ensure everyone is working towards the same goals and that individual performance is aligned with the needs of the business.
Data-driven decision making: A performance management system can provide HR data and insights that can be used to help make effective informed decisions about staffing, training and development efficiency.
more likely to report higher employee productivity. 4
4. Effective Performance Management in 2023 (clearcompany.com). Accessed May 17, 2023. Individual results may vary.
STRATEGY 4: DEVELOP A LEADERSHIP DEVELOPMENT PROGRAM
As a business grows, it becomes increasingly important to develop a strong leadership team and develop the next generation of leaders within the organization, enabling the organization with talent it needs to succeed. Reasons include:
of companies report there is a leadership development gap.5
- Helps with leadership continuity as the business grows so the organization has a strong line up of future leaders who can be prepared to take on new challenges as the business scales.
- Develops leadership skills including communication, strategic thinking, decision-making and team management. These skills are critical for success as the organization grows and becomes more complex.
- Fosters a strong culture so today’s and tomorrow’s leaders are aligned around the organization’s values and priorities, which is critical for maintaining a cohesive and productive workforce as the business scales.
- Supports change management so leaders are better equipped to guide their teams through periods of change, which is essential for successfully scaling a business.
- Promotes innovation so leaders have strong innovation skills and are better equipped to identify new opportunities and drive innovation as the company grows.
more likely to report higher employee productivity.5
5. Leadership Statistics 2023: Demographics and Development (teamstage.io) Accessed May 17, 2023
STRATEGY 5: LEVERAGING HR TECHNOLOGY SOLUTIONS
Utilizing technology tools to streamline HR administration and to capture data insights provides a wealth of knowledge on what is working to help you scale your business and what is not. The challenge is what to do with the data and how to use it. Leveraging HR technology platforms not only saves time but also helps drive strategic decisions. A data-driven approach can help a company assess human resources by function, role, location and more. Some of the uses of HR technologies that can help manage your workforce include:
of HR leaders say that driving better business outcomes is their top priority for technology transformation.6
Employee data management: HR technologies can allow for centralized management of employee data, including employee information, employment history, benefits and performance records. This streamlines administrative tasks such as updating employee records, generating reports and tracking employee metrics. Employee self-service portals: Self-service portals empower employees to access and update their own information, such as personal details, benefits enrollment, time-off requests and performance reviews.
Recruitment and applicant tracking systems (ATS): ATS tools help streamline job postings, resume screening, interview scheduling and communication with applicants, making it easier to help identify and hire qualified candidates efficiently.
Onboarding and training platforms: These platforms provide new employees access to the necessary resources and information, reducing paperwork and streamlining the onboarding experience.
Time and attendance management: Utilizing time and attendance management can help automate time calculations, enforce leave policies, generate timesheets and integrate with payroll systems, reducing errors and saving time.
Performance management software: These tools provide a centralized platform for managers and 6 employees to set goals, track progress, provide real-time feedback and conduct performance evaluations.
Data analytics and reporting: By leveraging analytics and reporting features, HR administrators can make data-driven decisions by analyzing and interpreting data related to employee metrics, such as turnover rates, training effectiveness and performance trends. They can also identify areas for improvement.
Expense management: Employees can create and submit expense reports that can be approved online or through a mobile app, which pushes to payroll processing for reimbursement
Payroll processing: Whether you have full-time or part-time employees in one state or many states, each scenario has unique requirements. Payroll systems provide employers a way to manage payroll including processing, tax withholding and reporting. The right payroll systems simplify the task of paying your employees.
Data intelligence is not just about the current view of the workforce; leveraging technology will help drive your HR strategy to anticipate future needs. Data analytics can predict future gaps based on modeling of employee attrition or retirement. An HR team skilled at employee analytics could also map required skills to future job expansion to generate a strategic recruitment plan and timeline to scale for growth. It can also add a new dimension to the traditional employee satisfaction survey
STRATEGY 6: WORK WITH HR EXPERTS
Small business owners can get bogged down with administrative tasks, payroll, compliance and sensitive HR matters when their business starts growing. The added work can take time away from focusing on strategic business issues. More efficient processes and real-time technology platforms can lift the burden and help achieve economies of scale.
Recruiting, onboarding, payroll and benefits are just some of the HR tasks that can be automated for efficiency. There are software programs and companies that offer services but implementing HR technology or outsourcing only parts of the various HR services can be tricky and entails managing multiple vendors and processes.
For that reason, small businesses are increasingly leveraging a single vendor that can offer full-service HR solutions. These vendors, known as professional employer organizations (PEOs), are becoming more common.
With the right PEO, a small business can achieve efficiencies and position themselves for scale through the following advantages:
Get time back to focus on business: Managing payroll processing, benefits and a myriad of other HR administrative tasks can be tough and time-consuming for small business owners. A PEO can provide technology, processes and HR professionals to relieve the amount of time spent on these tasks, freeing up employers to focus on their mission
Access big-company benefits to attract top talent: A PEO can offer access to a variety of large group health care insurance benefits that otherwise may not be available to small businesses. Beyond health care plans, certain firms also provide access to an extensive range of benefits from retirement plans to pet insurance.
Benefit from HR expertise and risk mitigation: Full-service HR companies often have experts who guide clients on important and technical topics like employee relations and company benefits strategy. Some companies also deliver guidance, administration and reference resources to support compliance with ever-changing employment rules and regulations. They may also provide employment practices liability insurance (EPLI) coverage for certain employee-related claims.
Optimize people practices: Performance management systems, training and development programs help foster the high-performing workforce needed to scale. As companies expand, workforce performance and accountability can start to erode. This can be minimized with a comprehensive performance management system that stems from a strong culture.
For more information, see “Eight Advantages of Human Resources Outsourcing.”
WHAT IS A PEO?
A PEO works with small and medium-size businesses to provide human resources support, payroll processing, access to benefits and other HR administrative services. An Inc. Magazine study found companies grow faster and more efficiently when working with PEOs, particularly during uncertain times.7
SO, HOW DOES IT WORK?
A PEO provides support to you in a full range of HR functions that would otherwise be the responsibility of your business. Those may include:
Payroll processing
Access to benefits
Workers’ compensation insurance
HR consulting
Payroll tax filings
Risk mitigation
To help you with these HR functions, we work with your business under a co-employment model. As the business owner, you maintain your role as the worksite employer. You make all the decisions at your workplace, including hiring and firing, compensation, culture and more, and you allocate certain HR administration services to the PEO, the co-employer. As the co-employer, we also help you mitigate certain risks with a team of HR experts ready to help you professionally handle even the trickiest of HR situations.
7. PEOs Simplify the Path Forward (Inc.) Accessed June 13, 2023. Individual business results may vary
Scale your business with TriNet
By teaming up with a full-service HR provider like TriNet, you are freed up to focus on your people and scale and grow your business. With TriNet’s help, you can:
Build a talent acquisition plan. With TriNet’s product, Compensation Benchmark Report, powered by Salary.com and a database of 15,000 unique job titles across 225 industries by company size for every zip code, you can gain critical visibility into compensation data intelligence. And with access to comprehensive benefits and service options you can build a competitive benefits package to help you attract the very best talent.
Create a top-notch performance management system. Make smarter business decisions with better insights into your HR data with TriNet’s Workforce Analytics.
Develop your future leadership. As you scale your company, TriNet is here to help with a range of strategic services that’ll grow along with you—including organizational design, leadership development and more.
Leverage leading HR technology solutions. Manage HR in real-time with TriNet’s comprehensive platform that helps support your business growth. Easily access payroll information, view TriNet-sponsored benefits, visualize your HR data, connect with popular business applications and much more.
Create a culture of continuous learning. Critical for talent retention and growth, TriNet offers employee engagement survey and education programs, with targeted training workshops and resources in focused modules, helping employees learn, grow and be heard.
Work with HR experts. Get access to comprehensive HR resources that were once limited to large enterprises. TriNet offers you access to a variety of benefit plans, risk mitigation and HR compliance guidance, payroll services and technology. Since no two companies are the same, we offer industry-tailored HR solutions to help your organization with your unique HR challenges.
For organizations where a full PEO offering is not the right solution, TriNet offers a SaaS HCM platform that will help you manage your people, including streamlined onboarding, easy PTO tracking, organizational charts, performance reviews and much more.
