This poses a challenge for founders identifying and addressing potential issues as the business grows. In newer companies, this tends to focus on job stability and career roadmap, particularly so in the tech sector, where there have been unprecedented layoffs this year.
That’s why communication and transparency are key to not only provide updates to staff but also to take their needs on board. To attract, develop and, importantly, retain the right talent to support business growth, founders should set clear expectations and make sure to keep a steady stream of communication flowing throughout the business.
However, people management isn’t something that all founders can dedicate enough time to as the business evolves. But that doesn’t mean it’s any less important. Instead, it could be a sign that they need to hire a Chief Human Resources Officer (CHRO) to maintain core business values across the team.
What a CHRO can offer
CHROs really show their value when they become the main point of contact between the founder and their employees; freeing up time for founders to focus on leading the company to new heights.
They are key for resource decision-making; making sure the team isn’t overlooked, knowing where and when resources should be deployed internally, and giving guidance on tasks that should be outsourced to avoid overworking staff.
They can also be a great asset when it comes to making informed decisions about your tech stack. If employees are spending too much time on manual tasks, the CHRO will be the one to recognise that and advise the founder on how a new tool could be used to benefit the business.
How to know if you need a CHRO
When your company is considering hiring a CHRO, don’t just look at the size of your business. Look at the maturity. Think about how long employees are staying at the company. If that time tends to be over a year, you likely have a strong workforce that can be pushed further by professional oversight.
Another thing to look out for is the makeup of your senior team. When non-founding members are becoming a part of your senior leadership team, it may be the right time to introduce a CHRO to support the C-suite and take on the people function. So, for example, when approaching your next funding round, founders can focus on the raise – where they are needed.
Finally, founders should assess how far they have come since launch. You’ll know you need a specialist to manage and protect the demands of your team if the people agenda has become one of your main priorities.
Prioritising the people who help you grow
Rapid growth during the early stages of a business should never come at the expense of your people. As you manage your changing priorities, welcome delegation of the people function through a new CHRO hire. They can support the founder, as well as the broader C-Suite, in pushing the business forward while keeping the team valued, productive, and in line with the shared business vision.
Babu Vittal is People and HR Practice Leader at RTP Global.