As an entrepreneur, you want to focus primarily on the fun side of business. You want to focus on growing in the market, working on new ideas and keeping your business thriving. But once your company reaches the magic limit of 50 employees, you notice that things aren’t running so smoothly anymore. Suddenly you find yourself dealing with HR issues that demand your time and attention. How do you organize everything around employees so it doesn’t become chaos? Here are the five biggest HR challenges that growth company entrepreneurs face, along with some tips for tackling them.

1. How do you organize all HR work?

In the beginning, someone could “throw in” HR, but the work piles up and requires more expertise. Who should deal with salaries? Who keeps track of absenteeism and ensures proper follow-up? Who can employees go to with questions? Do you need to hire an HR person, or can you solve it internally? Clear HR processes are essential to avoid chaos. Establish a plan for who is responsible for what tasks, and see if there are existing employees who can advance to an HR role.

2. How do you get people to do what you want?

You notice that as your organization grows it becomes increasingly difficult to manage everyone yourself. There is more distance between you and your team and the conversations at the kitchen table no longer suffice. In a growing company you have to inspire, motivate and sometimes put out fires. Employees who have been with the organization for a while may grow into leadership positions. How do you make sure they have the right leadership skills to support you in managing the team and achieving the desired results? It is important to create an open culture where employees feel heard, but also know what is expected of them.

3. Are you paying your employees enough?

It’s no doubt familiar to you: in order to attract new employees you have to offer higher salaries, your current employees feel undervalued and doubt that they are being paid properly. It can be a constant point of discussion. So are your salaries competitive? Do you have a clear policy for grading your employees, salary increases and bonuses? Are employees leaving your organization because they can earn more elsewhere? A remuneration policy in line with the market creates clarity, the right expectations and prevents discussions. A specialized HR consultant can help draw up a remuneration policy for your organization so that your employees are rewarded fairly without putting your company out of balance.

4. Is your HR policy right?

A clear HR policy is crucial to keeping everything in order. Imagine being faced with a sudden labor dispute because the policy is not clear or appears to be outdated. Or that you suddenly find that your HR policy is not in line with laws and regulations, which could land you in legal trouble. An up-to-date handbook with clear rules and guidelines on topics such as leave, working conditions, absenteeism and assessment can prevent a lot of headaches.

5. How do your employees grow with the growth of your organization?

Employee development is important for the continuity of your business. As your company grows, so must your employees. Do you offer sufficient and appropriate training and development opportunities? A company in growth offers many opportunities, but without the right support, employees barely keep their heads above water. By investing in their development, you help them and the company remain successful.

With these five challenges and tips, you can properly organize the HR side of your organization. By ensuring clear HR processes, good leadership, fair remuneration, clear HR policies, and appropriate development opportunities, you create a strong foundation for further growth. This will allow you as an entrepreneur to focus again on what you enjoy most: building your business.

Would you like to spar with us about solutions to these challenges? We would love to help you further. Contact Natasja at Natasja@bunchmark.com and find out how we can support your business in the next phase of growth. Or use this contact form and we’ll get back to you by email or phone.