Strategic HR work that supports the scale-up journey

Rapidly growing companies need support and structure to meet the challenges that come with increased turnover and operations. But how?

We had a chat with Per Wennberg, Senior Advisor in HR and governance, about the best tips for keeping the company together and strengthening it during strong growth. You can watch the full webinar with Per here.

The HR department is especially important for scale-ups. To grow at a fast pace, you need to attract and retain the right talents, build and create a positive work culture, and ensure that managers and employees are aware of the company's values and routines. This is where the HR department can contribute.

Find the Right Balance Between Culture and Structure

Many of the companies Per works with have a well-functioning and established culture that has been built up over time. But often, experience and necessary structure are lacking, which is a requirement for the growth phase to go smoothly.

"The companies I have worked with have mainly been entrepreneur-led. The pace is high from the beginning and generally speaking, it's very exciting and energetic people who run the companies. The culture is to have fun at work," says Per.

In the light of the high energy and all the fun activities, and as the company grows, questions often arise. Why did we make this mistake again? What should I, as a manager, really focus on? Is this process optimal?

"In growth companies, you often haven't had time to set up a clear structure, which can cause problems later on," explains Per.

Strengthen the Cooperation Between CEO and HR

Hailey's employees encounter their fair share of HR managers in their daily work, just as Per has done throughout his career. The shared experience is that many of them find it difficult to get the CEO on board.

"A lot of it is about making yourself and the processes you work with relevant to the company. For HR work to be effective, the CEO and management need to be involved. There needs to be a shared understanding of what should be prioritised," says Per.

He continues:

"It is easier for me as a consultant to ask the CEO questions about how they want the company to develop and be run, and then take that information to the HR manager and HR department, rather than the other way around."

It may be a surprising insight, but if you keep that thought in mind, you have the opportunity to stay ahead. It is often easier to get the CEO on board if you present clear numbers on how changes and investments in the HR department can help the company on its growth journey. How much does a bad hire cost? What do we have to gain by investing in a new HR tool? Is it practically feasible?

Let the HR Manager Take a Place in the Management Team

Per also believes that it is common for the HR department to be represented in the management team, but that the HR manager's full competence is not always utilised.

At management meetings, current HR issues are often discussed rather than strategic ones. An example of this can be that conversations about culture, succession planning and similar are left out, and the time is instead spent discussing cultural events and the latest pulse surveys.

But the fact is that the company's growth phase benefits from stability and routines. The HR department are experts at getting employees on board and engaging them, which becomes especially valuable in times of change.

Ensure your company is ready for growth

“Many think they will continue in the same way as they always have, despite planning for something they have never had – higher revenue,” says Per.

“But before the growth phase, you need to look in more detail at how good the company actually is at recruitment, leadership and values work.”

Practically speaking, it is about developing the company's:

• Employee Value Proposition (What makes you an attractive employer?)
• Employer Branding (How will you attract the right talents?)
• Combined leadership competence (How will leadership be evaluated?)

Focus on leadership development

Competent managers are required for a successful growth journey. Arriving late to a meeting, being unprepared for a performance review or giving feedback at an inappropriate time can negatively impact employees' perception of management. No matter how many resources you put into leadership development, value work and communication, it is easy to make an employee dissatisfied.

“That's why I often talk about the importance of raising managers' minimum level to a higher level ahead of a growth period. Otherwise, you have to rely entirely on a strong culture or favourable macroeconomics,” explains Per.

“I believe in balancing cultural activities with good structure, so that managers actually have the chance to get better. I know everyone wants to be a good manager, but it is difficult,” he continues.

By understanding the importance of managers for successful growth, and allowing the HR department to support them in the right way, you can contribute to better stability.