Working in a small business environment is a unique feeling, and once your business starts to expand, it´s hard to hold onto. Small businesses are hands-on, one-in-all-in, and it takes employees with that kind of spirit to make it through the difficult times starting out. You may have needed your Accounts Manager to answer the phones while your Receptionist (if you were lucky enough to have one) was out to lunch and you were out on client calls. Your new Business Development Manager may have had to sit in a workstation in an open plan office. Not everyone is suited to a small business environment.
By that very same token, as your successful business inevitably expands, your team may be a little apprehensive about changing the environment. There may be concern about ´red-tape´, or ´corporatization´ - two frequently cited reasons why people are lured away from the big organizations and are attracted to the autonomy and informality of a small business environment. But with success comes growth, and if you want to continue to be successful, it is almost imperative that you expand. Business expansion is a major change, however, bringing new responsibilities and new challenges. Indeed, finding venture capitalists, increasing staff numbers and expanding your office space may pale in comparison to some of the new business challenges you face. To maintain morale and productivity, you need to be sure that you have your existing team on board before the expansion takes off.
In many ways, business expansion is similar to workforce reduction. Your team will face uncertainty about a number of issues, such as:
- What role will I play in the future of the company?
- Will the company´s values change?
- Will the culture of the company change?
- Will I like the new employees coming on-board?
As with any major business change, the key to keeping your team on side as you expand your business is communication. If your efforts to grow your business are to succeed, you must keep your employees in the know of what is happening -what will become of them, how their roles will change, what your plans are for the future, and what you want to achieve?
Like an effective advertising campaign, your communication to your team needs to be simple, consistent and continuous. Try to anticipate all of the questions that they are likely to have and work out the answers to those questions. Never lie, but never assume that you will know everything. If questions are raised that you are unsure about, tell your team so. They will appreciate your honesty and openness.
Individuals want to be involved in changes that occur around them and they want to understand what is happening. During any company change, there is an increased need for information and well thought-out communication goes a long way in easing the anxiety associated with change, and in helping to ensure that you continue to achieve the company´s goals going forward.
In addition to the concerns you will have for your existing employees, as you expand you will need to bring new team-members on board. It is critical that this is done right - your selection practices can make or break you.
The financial loss from a bad hire can be considerable, as the total cost of employee turnover is typically one year´s salary, and for some occupations, can be in excess of two year´s salary. High staff turnover and recruitment difficulties combine to produce increased workload and stress on the remaining employees. This can add further costs, as productivity and morale can decline.
There is action you can take to increase your chances of selecting the right employees and minimizing costly recruitment mistakes.
One of the main reasons new employees fail is mismatched cultural fit. This can occur when the employee´s personal style, values, way of working and/or managing does not match your company´s existing culture.
To overcome this hurdle, try to establish success factors for new positions before conducting any interviews. Success factors should encompass both the job requirements and the cultural aspects of your company, which can have an impact on an employee''s ability to do the job and reflect what is important for the position i.e., ´can they do the job?´ (ability), ´will they do the job?´ (motivation), and ´how do they fit?´ (interpersonal style).
Share the success factors with your team and others involved in ensuring the employee´s successful performance in the role and gain their input and ideas. If you keep these points in mind as you conduct your next search, you will not only increase your chances of hiring the right person, you will also build a cultural foundation for your company as it grows, and protect yourself from significant financial loss.
Your employees are your company´s most valuable assets. Ensuring that you get your people strategies right is critical your company moves forward in growth. Your people are the foundation of your business - never lose site of this as your business continues to grow and expand.
Sherry Cadorette is the Chief Learning Officer with Drake Beam Morin, Inc. She is responsible for building the capability of DBM''s human resources by aligning the workforce to meet current and future business needs. She is also responsible for developing a worldwide learning organization and increasing the knowledge sharing and talent profile of employees around the globe. In addition, Sherry oversees the development of all new products and product extensions and the enhancement of all current products and services.
