What To do When Your Company is Growing Faster than Your Team

Growing a company is exciting. But it also generates challenges. One of the most difficult of which is, “What do I do when my company outgrows a loyal employee?”

Some of the employees who help you build a $1 million company can’t help you build a $10 million-dollar company. Some of those will not be able to help you build a $100 million dollar company.

This isn’t just true for growing revenues. Any healthy company will grow and innovate in some way. Some seek to improve quality. Some do this by expanding locations or geographies. Others add new lines of products or services. Others build or acquire synergistic companies that they work alongside.

Any improvement or growth within the company is change. Not everyone can or will make that change. Not everyone can or will grow with you.

What it Looks Like

Imagine the faithful bookkeeper of the $1 million-dollar startup. She learned her skills on the job. She may do a fantastic job. But she may not have the ambition or abilities needed to grow into being a controller of a $10 million dollar company. And in only the rarest of situations will she have the ambition or ability to be an effective CFO of a $100 million dollar enterprise.

Don’t interpret this as an error or failure on her part. The $1 million-dollar business she originally signed up for has changed. She may even have been instrumental in driving that change. But it doesn’t necessarily mean she is doing something wrong if she doesn’t want to – or isn’t able to – change.

The problem starts when this dynamic isn’t acknowledged or addressed in a timely way. As leaders, we can’t ignore how well individuals on our team are growing with the company.

How to Mitigate

A component of growth is the need to move away from roles that are built around personalities and preferences towards positions based on functionality and strategy. Don’t be rigid about this. But generally, smaller organizations need employees willing to be “jack-of-all-trades”. Growing companies increasingly need specialization, expertise, and reliability.

The best way to reduce friction and disappointment is to talk about what growth will look like. Specifically, how it will likely impact the roles and responsibilities of individual positions, especially those in leadership, management, and technical roles. You can gain a perspective on growth with a simple thought experiment:

Imagine your organization operating at two or three times the size it is right now.

– What changes or additions in terms of staff will be required to manage this comfortably? 

– What new resources or facilities will be needed?

– What new skills or functions might be required? 

This exercise should help you identify which functions will need to be added or will require:

• Specialization: Dedicated focus and time.
• Expertise: Qualified individuals trained in their field.
• Reliability: People who effectively self-manage their energy, priorities, time, and quality.

The point is to prepare expectations for where the company is going.

How to Address Individuals Who Aren’t Growing

ONE: Express Appreciation

Begin by expressing appreciation for their loyalty and contributions to the company. Make it clear that their dedication is valued.

TWO: Discuss Company Goals and Expectations

Share the company’s goals and how employee growth aligns with these objectives. Explain why it’s beneficial for employees to grow along with the company, but do so without pressuring them.

THREE: Understand Their Perspective

If they don’t seem interested, engage in a conversation to understand why they might not be interested in growth or advancement. This includes employees who want a promotion but don’t want to invest in extra training or development. There might be personal or professional reasons, and it’s important to listen without judgment.

FOUR: Identify Opportunities for Compromise

Sometimes, employees may not be interested in traditional paths of growth (e.g., promotions), but they might be open to other forms of development (e.g., taking on different responsibilities, flexible working hours). Explore these alternative paths together.

FIVE: Offer Support

If an employee is apprehensive about growing because they feel inadequate or unprepared, offer support in the form of training or mentorship. Often what appears to be a lack of ambition is actually a lack of confidence.

SIX: Respect Their Decision

If an employee remains uninterested in growing, it is important to respect their decision. As long as they are fulfilling their current responsibilities effectively, it’s their right to make career choices that best suit their circumstances.

SEVEN: Reevaluate Roles and Responsibilities

If necessary, reevaluate their role within the company. If possible, find a way to retain them in a position that doesn’t require growth but still contributes positively to the company.

EIGHT: Maintain Open Communication

Make it clear that the door is always open for future discussions. People’s circumstances and perspectives can change over time, and it’s important that they feel able to approach you if they ever reconsider.

NINE: Monitor and Evaluate Performance

Keep an eye on their performance to ensure that it remains consistent. Loyal employees who are not interested in growth can still be very valuable assets if they are dependable and effective in their roles.

TEN: Encourage a Positive Work Environment

Ensure that the work environment remains positive and inclusive, even for those who aren’t pursuing advancement. This will help in retaining their loyalty and maintaining morale.

It can be difficult to talk about change. But having tough conversations early, while people are still succeeding in their roles respects them and helps preserve the relationship. Waiting until there is a problem not only puts off the inevitable, it makes it worse.

Growth is exciting and a great opportunity. Equip your team to grow. Plan for those who may choose a different path.

Take good care,

Christian

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