From Startup to Scaling
In the startup phase of a company, the entrepreneur does a lot themselves, including HR tasks: recruitment, hiring, employment contracts, development. But as the company grows further, scaling has certain consequences. What worked before now works less or not at all. Leading 25 employees is different from leading 7 employees. Where multiple employees previously filled multiple roles, there is now a need for clearer role and task allocation. And for clarity in areas such as compensation, performance criteria, etc. Often, what was once obvious is no longer so, and more communication and documentation are required. The first discussions about differences in compensation arise in the workplace. Will you continue to handle all HR tasks as an entrepreneur?
Delegating HR Tasks
It’s time to delegate some HR tasks to an HR specialist. Whether this happens from 25 employees or from 50 employees depends heavily on the type of company and the extent to which basic processes have already been systematized. It’s also good to consider whether to initially use an external HR advisor or hire someone internally. The advantage of an external HR advisor in the initial growth phase is that the foundation can be laid for further growth. As I often say, “basic hygiene” must be in place first. A strong foundation is the basis for further growth. And with further growth, there is often a need for a different type of HR support.
Types of HR Support
In the maze of HR roles, Ulrich’s HR model can provide a useful guide. Dave Ulrich, an American professor, distinguishes in his seminal work “Human Resource Champions” four roles for HR.
The Role of HR in Company Growth
The role of HR depends heavily on what is needed and what is already established in HR.
First and foremost, it’s important to have the HR ‘house in order.’ This includes:
- Streamlining employment conditions
- Absence procedures
- Personnel administration
- Performance and evaluation systems
It’s also important to (have) investigate(d) what can be automated.
A good HR advisor will quickly be able to investigate and advise on what is needed.
And as the organization continues to grow, the role of the HR advisor or HR manager will also change. There is more need for an “HR business partner,” the strategic partner. For the HR manager in this role, it is a prerequisite that administrative workload is reduced.
Selecting the Ideal HR Manager
When the time comes, what are the optimal qualities of an HR Business Partner or HR manager? And what should the board, the CEO, pay attention to? The HR manager or HR business partner:
- Must speak the language of the board. That means HR and the board have a shared vision for the future. And that means there must be trust on both sides.
- Knows the organization and the specific culture.
- Is communicative and persuasive.
- Is a strategic partner and knows how to challenge the board with their own vision of the organization.
- Has good professional knowledge and similar experience.
