As rapid growth is seen to be an indicator for high market acceptance and great success, it is clear to be the main objective and strategic priority for most companies (Barringer et al., 2005). Furthermore, it seems to have an impact on employee retention and talent attraction. The modern workforce is attracted to these organizations because high-growth environments are paired with a fast-paced, agile, and productive work atmosphere (Muse et al., 2005).
Even though rapid growth brings countless advantages, it is also a stage in an organization's life cycle that can be accompanied by challenges and obstacles. After all, organizations are social organisms and growth naturally leads to changes that can cause employees to have feelings of tension, nervousness, uncertainty, and confusion (Aninkan, 2018). Furthermore, employees in such fast-growing environments can experience a huge amount of pressure which can result in internal disputes, employee dissatisfaction, and mental health issues. Other challenges are that organizations outgrow their strategies, that decision-making suffers, or that available resources become insufficient (Hambrick, 1985).
Demir et al. (2017) observed that the human factor in organizations is the key to hyper growth of businesses. Educated, highly-skilled, motivated, and engaged employees, as well as transparent leadership strategies, drive organizational growth. While companies scale and grow, it is essential to focus on projects that ensure the employee experience doesn’t suffer. As a first step, it could be of great value to understand how your workforce perceives the changes that are linked to the companies' growth.
To gain insight on how your company’s employees experience your companies growth and to build out data-driven employee focussed and healthy growth strategies, we recommend using Leapsome’s Hyper Growth Survey. The 22 items (see listed below) are divided into six categories: Company Growth Experience, Company Growth Benefits, Company Growth Communication, Company Growth Contribution, Company Growth Strategy, Company Growth Culture.
One of the main issues of being a fast-growing company is to maintain your company culture (Inc., 2017). A strong and consistent culture is significant to maintain top talent and increase their engagement to achieve your growth goals (Ojo, 2009). Researchers have found that companies that experience hyper growth often experience communication issues (Rutherford et al., 2003). In times of change, transparent communication and strategy are especially important, as it was shown by Yue et al. (2019) to be positively associated with organizational trust and openness to change among employees. It is therefore beneficial to gain knowledge on how your employees experience transparency and communication within your company. Equally important is that your employees are motivated to support organizational growth. This can be achieved by the employee's feeling of being a contributor to the growth success and their perception of personally benefitting from it (Aninkan, 2018).
- Due to sufficient information and training, I feel well-prepared for the changes associated with our company growth.
- What kind of concerns do you have regarding the growth of [Company]?
- I have the feeling that my needs are being taken into account during the company growth.
- I feel that I have an impact on [Companys] growth.
- I know that in the long run, I will benefit from [Companys] expansion / growth.
- I believe that due to the growth of {Company} my career development opportunities have increased.
- I feel that I am well-informed about the growth goals of [Company].
- My manager communicates effectively that everyone is involved to reach the growth target.
- I know who to contact if I have questions or concerns about the rapid growth of [Company].
- I know how my work supports the growth goals of [Company].
- Each team receives recognition and praise for their contribution to the growth.
- The growth strategy set by the management is taking [Company] in the right direction.
- I share the vision of [Company] to reach our growth goals.
- I think the organization is mature enough in its processes and has enough resources to handle the growth.
- Sustainable growth is a high priority at [Company].
- I believe that even though [Company] is growing quickly, the upholding of our company values remains a top priority.
- When new employees are hired, I have the feeling that cultural fit is a selection criteria.
To evaluate the results, we recommend using several analytic tools you can find in Leapsome’s survey module. Further guidance on how to effectively use the tools can be found in this article.
Based on the findings from your surveys, you have the chance to gain insight into how your employees perceive the rapid growth of your company. The results provide you with perfect indications of how you can take action (for example, using action items) to get your employee's support during growth stages while supporting them.
During hyper growth, you must consciously bring people, systems, and processes into line with the increased demands of the exploding organization whilst not abandoning the values and techniques that made their growth possible in the first place (Hambrick et al., 1985). Being aware of challenges that your employees face during hyper growth and being able to act on it encourages a healthy workplace culture and motivated workforce (Ojo, 2009).
Literature
Aninkan, David Olusegun. “Organizational Change, Change Management, and Resistance to Change–an Exploratory Study.” European Journal of Business and Management 10.26 (2018): 109-117.
Barringer, Bruce R., Foard F. Jones, and Donald O. Neubaum. “A Quantitative Content Analysis of the Characteristics of Rapid-Growth Firms and Their Founders.” Journal of business venturing 20.5 (2005): 663-687.
Demir, Robert, Karl Wennberg, and Alexander McKelvie. “The Strategic Management of High-Growth Firms: A Review and Theoretical Conceptualization.” Long range planning 50.4 (2017): 431-456.
Hambrick, Donald C., and Lynn M. Crozier. “Stumblers and Stars in the Management of Rapid Growth.” Journal of business venturing 1.1 (1985): 31-45.
Hiatt, Jeff. ADKAR: A Model for Change in Business, Government, and Our Community. Prosci, 2006.
Inc. 5 Ways To Maintain Your Company Culture During Growth. https://www.inc.com/rhett-power/5-ways-to-maintain-your-company-culture-during-growth.html. (2017, 13. Juni).
Muse, Lori A., et al. “Commitment to Employees: Does It Help or Hinder Small Business Performance?.” Small Business Economics 24.2 (2005): 97-111.
Ojo, Olu. “Impact Assessment of Corporate Culture on Employee Job Performance.” Business Intelligence Journal 2.2 (2009): 388-397.
Rutherford, Matthew W., Paul F. Buller, and Patrick R. McMullen. “Human Resource Management Problems over the Life Cycle of Small to Medium‐Sized Firms.” Human Resource Management: Published in Cooperation with the School of Business Administration, The University of Michigan and in alliance with the Society of Human Resources Management 42.4 (2003): 321-335. doi:10.1002/hrm.10093
Yue, Cen April, Linjuan Rita Men, and Mary Ann Ferguson. “Bridging Transformational Leadership, Transparent Communication, and Employee Openness to Change: The Mediating Role of Trust.” Public relations review 45.3 (2019): 101779.