As you set your sights on growth in the new year, no doubt the question of financial planning takes center stage.
But what about the people who will actually deliver the results?
In many early-stage growth companies, the people-part of annual planning is a secondary consideration. The truth is, your team is the engine behind your growth. With a thoughtful HR strategy, that engine will be less likely to stall or break down and more likely to take your company to new heights.
What does success in HR strategy look like?
It could be doubling team size, building a more engaged team with less turnover, or shifting day-to-day business operations off top-level leaders. Like your financial plan, your HR strategy needs to be purposeful and aligned with your long-term goals.
Let’s explore possible scenarios for what an HR strategy might look like for each of the above examples.
Example 1: Doubling Team Size by Next Year
Increasing team size requires thoughtful strategy, planning, and communication. In the strategic planning process, ask these three essential questions to help clarify what roles can be deemed need-to-have rather than nice-to-have:
- What skill sets will help us achieve our business goals?
- Do we currently have these skills on the team?
- When will we need this expertise added to the team to meet our objectives?”
When a team is relatively small, exponentially expanding the team requires planning and a coordinated effort to set the new and existing teammates up for success. Partner with the finance department to ensure accurate budgeting for headcount-tied expenses such as new equipment and needed applications. Get ahead by drafting new job descriptions in advance to help accelerate job pricing and recruiting efforts. Think through what change management needs to occur throughout the organization.
With this level of strategic planning, owners and executives often find themselves taking more informed action to meet growth demands, leading to good hiring decisions, strong onboarding, and low turnover rates. To achieve that, make HR a priority from the start.
Example 2: Building a More Engaged Team with Less Turnover
Engagement is the measurement of the extra effort an employee is willing to contribute. That willingness directly correlates to employee turnover, financial performance, and company health. Conduct regular engagement surveys or pulse checks to gain valuable insight into what is working and what is not.
More than that, use these insights to define the next steps and align leaders on priorities that resonate with your team and support company goals. Be transparent with your team on known strengths, needed improvements, and next steps. Prioritize people-centric goals in quarterly planning to keep focused throughout the year.
Engagement increases when employees feel heard and see that their feedback translates into meaningful action.
Example 3: Shifting Day-to-Day Business Operations
Many CEOs of early-stage growth companies find themselves bogged down in day-to-day operations, leaving little time for strategic HR planning. To grow sustainably, you already know it is essential to step out of the day-to-day work so you can focus on long-term planning. But doing so can be challenging. Scheduled time for high-level thinking is likely to get trumped by something more pressing that arises.
One simple adjustment to start is to commit to making people and culture a regular topic in leadership meetings. Consistent discussions allow you to see patterns, anticipate challenges, and make more strategic decisions that position your business for long-term success.
As you plan for the coming year, think of HR as a critical part of your strategy. Just as you build your financial plan with your department heads’ input, your HR plan should be interconnected with your sales, marketing, and operational goals and the people leading those functions. Set an intentional HR strategy now, and build the foundation for sustainable growth for years to come.
AVL Growth Partners is a fractional finance, accounting and human resources services company supporting early-stage growth companies in pivoting to the next level of growth. We serve clients across the U.S. with offices in Denver, Austin, and Atlanta. For details, visit avlgrowth.com or connect with us at hello@avlgrowth.com.
