As a startup grows, its informal culture might not withstand this process. Adding new team members or appointing a new manager who didn’t work there during the early period may make the company realise it needs to change its HR approach. Procedures not designed for fast-growing companies tend to show themselves.
Such organisations have to implement HR processes before they actually need to do this in order to prevent small problems from turning into big ones. Having signed employment contracts, managed performance and kept up with the legal aspects of running the business provides a growing team with a better foundation than just goodwill. Below are five fields that should be considered in advance.
Outdated employment contracts and workplace policies
An employment contract is supposed to contain more information than the position and salary of an employee. Notice period, confidentiality clause and other details have to correspond to the duties of a worker at the moment, and this is possible only if the contract is updated along with the development of the company.
Similarly, a workplace policy has to be revised regularly. A manual that covers expectations regarding conduct, complaints, disciplinary procedures, flexible work and health and safety of workers provides every employee with the same document and eliminates a situation when one has to find out the information from different sources. Regular revision of the handbook according to the current laws, instead of its original drafting, is much more effective.
Inconsistent handling of absence and performance problems
Unexpected absence causes additional stress for those who cover the workload. Patterns of frequent absence are usually revealed only when someone looks into the numbers instead of judging the situation based on managers’ impressions. Objective examination of the attendance records helps identify problems in advance and prevent them from becoming a routine part of work.
Document everything. It is the same for performance problems. Clear expectations from the very beginning, regular feedback, not an unpleasant surprise once a year and a written record of all discussion and agreements at every step are necessary. In case no progress is achieved despite the proper support (for example, training or mentoring), having a written record helps defend any further actions instead of making them arbitrary.
Inconsistent HR procedures used by a manager
None of these actions will work if there are written procedures for one manager and personal interpretation for another. When a business hires a new site or a manager who did not participate in the process of creating an informal approach to the problems, the same problem is being handled in different ways, and such inconsistency turns a minor disagreement into a formalised one.
It is not about collecting more papers; it is about ensuring that every manager works with the help of the same written procedures and not on his or her own intuition, with the control of their adherence as the team grows.
Maintaining compliance with UK employment law obligations
UK employment law includes statutory leave, working arrangements and data protection. None of them stands still, and what used to be a compliant contract or dismissal procedure a few years ago can turn out to be inappropriate according to the current legislation, especially the aspects related to discrimination and dismissals. The latter changes much faster than many employers expect.
Those businesses that review their handbook or procedures only after receiving a complaint are often caught unprepared. Regular audits of contracts, policies and procedures for dismissing workers according to the current requirements, instead of waiting until a problem occurs, are much more cost-effective.
Protecting employee wellbeing under growing pressure
Employees’ wellbeing tends to deteriorate exactly at that time when the business can afford it the least – at that time when the workload is the highest and attention is spread too thin. Creating the culture in which employees can raise their concerns in advance is much more helpful in this situation than any formal policy.
Regular check-ins, realistic workloads, and flexible working arrangements help with day-to-day needs. Employee assistance programs, occupational health support or private healthcare advice can be additional tools in cases when more than just discussion is needed, though nothing can substitute professional medical care and nothing will work without basic measures described above.
Where external HR support is needed
It does not necessarily mean creating an internal HR department. When contracts, absence cases or disciplinary questions appear on the same desk quicker than they can be answered, it means that external HR help is needed.
Rewritten text: UK employers who want to evaluate their options for this type of help often consider providers such as www.avensure.com together with internal management because the level of help provided can adjust to the needs of the business and not vice versa.
Implementing this help while the business is growing and not after a dispute has occurred already is the main difference.
HR challenges for growing small businesses, answered
What are the main HR challenges for a small business as it grows?
All of them originate from the same cause: informal arrangements that worked well for a small group of three or four people become a problem when these arrangements are being applied to a significantly bigger number of employees. The aspects that cause problems first are contracts and policies, consistent handling of absence and performance, compliance with employment laws and protection of employees’ wellbeing amid increasing pressure.
Why does moving away from informal HR arrangements matter so much?
Informal arrangements imply consistent application of rules despite not being formally written, and this consistency starts disappearing when more than a few people and more than one manager work in the organisation. Standardised procedures decrease the inconsistency which usually leads to disputes.
When should a growing business bring in external HR support?
A useful sign is when questions about contracts, absence or performance appear more quickly than they can be answered. This usually means that the current approach has reached its limit, not that it is just a busy period.
How does supporting employees’ wellbeing benefit a growing business?
Supportive workloads and good communication improve retention and productivity of employees, and early identification of employees’ concerns using this kind of culture is much cheaper than addressing chronic absence or disengagement.