Organizational Wellness

Team Scaling for HR Leaders — How to Grow Effectively

Last Updated Nov 4, 2024

Time to read: 10 minutes

Your company’s taking off faster than a rocket fueled by energy drinks and ambition. Exciting, right? But hold on to your ergonomic chairs, HR leaders, because with great growth comes great responsibility — that’s why it’s so important to learn how to scale effectively.

Almost half of all new businesses fail within five years, according to the Bureau of Labor Statistics. That means many companies struggle to manage their growth effectively. Scaling too quickly without the right structures might lead to chaos, so it’s essential to build a foundation for long-term success when you scale your team.

So, how do you scale your team and support the people already in place? Let’s look at what makes scaling such a challenging period — and how to jump over the hurdles like a pro.

What Is Team Scaling?

Scaling is defined as a “time-limited process of exponential growth” in a study published in the Journal of Business Venturing. This sets it apart from other types of growth, like gradual or organic growth.

Team scaling is the strategic process of growing your workforce to meet increasing business demands without losing that secret sauce — be it culture or efficiency. It’s the art of being able to match your team capacity with your workload so you can continue to deliver high-quality work while maintaining profits.

Effective team scaling is one of the most important tasks for startups, as growing pains can be catastrophic. Proper scaling supports sustainable growth, preserves company culture, boosts efficiency, maintains your competitive edge, and nurtures employee satisfaction.

Almost three-quarters of high-growth digital businesses fail due to premature scaling, according to a study published in the Technological Forecasting and Social Change Journal. Imagine two startups, both experiencing rapid growth. Startup A scales thoughtfully by hiring strategically and implementing proper onboarding procedures. Six months later, it doubled in size but maintained its innovative company culture and high employee satisfaction. Startup B, however, hires frantically to keep up with demand, neglecting cultural fit and proper training. Fast forward six months and startup B is dealing with high turnover, communication breakdowns, and diluted company culture.

The moral of the story? Scale smart, not just fast. Even if it can be tempting to grow as fast as possible, having a solid scaling strategy is critical for the long-term health of your company.

Strategies for Successful Team Scaling

As your company grows, implementing the right strategies can make the difference between chaotic expansion and smooth scaling. Here are a few key approaches to help you scale your team effectively:

Align With Company Goals

Before you start hiring, it’s a good idea to get some clarity on your company’s mission and objectives. Knowing this helps you hire people who both possess the right skills and resonate with your company’s direction. This will make everyone’s lives easier, as aligning with company goals can significantly impact worker health and wellbeing, according to a 2022 study in the International Journal of Environmental Research and Public Health.

Develop a Talent Pipeline

Don’t wait until a position opens up to start recruiting. It might be a good idea to create a talent pipeline that’s always flowing. Some ways to do this are networking, attending industry events, and keeping your eyes peeled for potential superstars. Keep a wish list of people you'd love to hire if the right opening presents itself.

Improve Onboarding

When you welcome someone into your home, you want them to feel comfortable — it’s the same for your company! First impressions always matter. Creating an engaging onboarding process to help you start on the right foot. You’ll give newbies a roadmap for success, introduce them to key players, and immerse them in your culture.

Take Advantage of Tech

Let technology be your scaling sidekick. Consider using HR software to streamline processes, collaboration tools to keep communication flowing, and project management apps to keep everyone on track.

Invest in Company Culture

As you grow, you’ll want to nurture your company culture. Regular team-building activities, clear communication of values, and leading by example all help. Remember, culture isn’t about having a foosball table in the lobby — it’s about creating an environment where people actually want to play together.

Stay Flexible

Be ready to pivot according to market demands. Maybe you need to adjust your organizational structure or create new roles. Embrace change and be open to feedback.

Develop Internal Leadership

Don’t forget to scale your leadership with your team. Identify potential leaders early and invest in their development. This is crucial for retention, too, as about 9 out of 10 employees consider professional development to be “important” or “very important,” according to a BetterBuys survey of 2,000 workers.

Common Challenges in Team Scaling (and How to Overcome Them)

As your team grows, you’ll likely encounter some bumps in the road. But fear not! There are ways to overcome every hurdle.

Challenge: Maintaining company culture during rapid growth.

Solution: Think of your company culture as your secret sauce recipe. As you scale, you’ll want to keep that flavor consistent, even when you’re cooking for a crowd! Start by documenting your core values — they’re the key ingredients. Then, sprinkle them liberally throughout your hiring and onboarding process. And don’t forget regular team-building activities to keep your team onboard with the company values.

Challenge: Communication breakdowns in an expanding team.

Solution: Keeping everyone in the loop can feel challenging as your team grows. Setting up clear channels for communication, like Slack or Microsoft Teams, allows for easy access to everyone in the company. Having regular all-hands meetings can also help keep everyone on track when it comes to the company’s direction. It may feel like you're over communicating sometimes, but every communication is an investment in building a team.

Challenge: Providing effective onboarding for a high volume of new hires.

Solution: Onboarding at scale makes it difficult to personalize an introduction. The key is to create a standardized but flexible process. You could use tech to automate the task basics like sending digital welcome messages but keep the human touch, like hand-picking a new hire’s mentor. Spread onboarding over a few weeks to give employees a chance to get the ropes of their new jobs and come up with questions.

Challenge: Maintaining clear role definitions as the organizational structure expands.

Solution: When your org starts looking more like a Picasso than a neat flowchart, it’s time to get clear on roles. Document job descriptions as a sort of ultimate user manual for your company. Regularly update those as your company evolves, and consider implementing a system for tracking goals and key performance indicators (KPIs). The clearer the roles, the less chance of a “who’s on first” situation in your team!

Challenge: Maintaining the quality of hires during rapid scaling.

Solution: When you’re hiring fast, it’s tempting to hire anyone just to get the extra pair of hands. However, you don’t want to end up with the wrong people on your team just because you need help in a crunch. Develop a structured interview process that checks for both skills and cultural fit. Consider using pre-employment assessments for potential hires to check culture fit.

Technology in Team Scaling

As your team expands, using the right tech can make all the difference in managing your scaling efforts effectively. From streamlining hiring processes to improving employee engagement, HR tech tools can help you turn your startup into a modern, growing organization. Here are some of the key technologies that can help you scale your operations:

Applicant Tracking System (ATS): Having an ATS is like your personal talent scout. Tools like Greenhouse or Lever can help you manage job postings, sort resumes, and track candidates faster.
Human Resources Information Systems (HRIS): An HRIS is the control center of your HR operations. Platforms like BambooHR or Workday can handle everything from onboarding to time off tracking.
Learning Management Systems (LMS): As you scale, keeping your team’s skills sharp is crucial. An LSM like Docebo or TalentLMS allows you to create, manage, and track training programs easily so your employees can level up their skills quickly.
Performance management software: Tools like 15Five or Lattice help you keep your finger on the pulse of your team’s performance. Manage check-ins, goal tracking, and feedback, all from the simplicity of an app.
Employee engagement platforms: Platforms like Culture Amp or Officevibe help you measure and boost employee engagement, gather feedback, and build a sense of community.
Communication tools: Communication is key in a scaling team. Tools like Slack or Microsoft Teams allow you to have a virtual office where everyone is just one chat away. They help keep conversations organized and accessible, whether your team is spread across one floor or several continents.

Measuring and Evaluating Team Scaling Success

Tracking and analyzing key metrics becomes more important as your company starts to scale. By monitoring the right data points, you can identify areas of success, pinpoint challenges, and make informed decisions to optimize your team’s growth. Here are some of the top metrics to keep an eye on:

Employee engagement surveys: Think of these surveys as your company’s emotional weather forecast. Regular pulse checks can tell you if your team is feeling sunny and motivated or if there are storm clouds brewing. Look for trends as you scale — are engagement levels staying high, or do they dip with each growth spurt?
Retention rates: This is your “Are they into us or not?” metric. Keep an eye on how these rates change as you grow. If you’re seeing more lower than higher rates, it might be time to revisit your scaling strategy.
Time-to-fill for open positions: In the scaling game, unfilled roles cost the company potential earnings. Track how long it takes to fill each position. If you notice that each position is taking longer to fill, you might need to rethink your recruitment process.
Performance metrics aligned with business goals: Notice what happens to your business goals as new hires onboard. Align individual and team KPIs with your overall business objectives to ensure everyone’s moving in the same direction.

The Role of HR Analytics

Now, you need a way to tie everything together. HR analytics plays a crucial role in transforming raw data into actionable insights for effective team scaling. You can use HR analytics to:

Identify trends: Detect patterns in hiring, retention, and performance that may not be obvious.
Predict future needs: Use historical data to forecast hiring requirements and potential skill gaps.
Optimize processes: Pinpoint inefficiencies in recruitment, onboarding, or training processes.
Demonstrate return on investment (ROI): Quantify the impact of HR initiatives on business outcomes. This is important as you continue to invest in employee wellness. As revealed in Wellhub’s State of Work-Life Wellness 2024 report, over half of all companies see a return of over 100% from their investment in a wellbeing program — meaning they get more than $2 back for every $1 invested.

Data only helps you if you use what you learn from it to improve. HR analytics can help you continuously refine your scaling strategies.

Scale Your Team While Boosting Employee Wellbeing

Team scaling is more than just adding numbers to your workforce — it’s about growing strategically while maintaining a positive, productive work environment. From implementing the right technologies to measuring success through key metrics, effective scaling requires a holistic approach that considers both business needs and employee wellbeing.

A comprehensive employee wellbeing program can be your secret weapon in successful scaling. About 9-in-10 employees think it’s important for their company to value their wellbeing, according to an American Psychological Association survey. By focusing on employee engagement, mental wellness, and work-life wellness, you can create a resilient workforce ready to grow with your company.

Ready to take your team scaling to the next level while prioritizing employee wellbeing? Contact a Wellhub Wellness Specialist today to see how we can help.

Company healthcare costs drop by up to 35% with Wellhub! (* Based on proprietary research comparing healthcare costs of active Wellhub users to non-users.) Talk to a Wellbeing Specialist to see how we can help reduce your healthcare spending!