According to The Wall Street Journal “…research shows that 30% of company performance is driven by leadership and management. Without HR’s focus on issues like succession planning and leadership development, the leadership pipeline significantly suffers and so likely will the company’s bottom line.” As you have heard from us before, the first step to growing human resources is to determine how the department will support growth by aligning its functions with the business’s greater growth strategy. This way HR can plan for any potential challenges or changes within the business and ultimately fulfill the role for which it was intended.

Why HR is essential for accelerating growth

“For small businesses and large conglomerates alike, the human resources or personnel function can be helpful for much more than simply processing payroll or handling the open enrollment season once a year,” writes Ruth Mayhew of Demand Media, in a contribution to Chron. “Human resources plays an essential role in developing a company’s strategy as well as handling the employee-centered activities of an organization.”

In order for HR to support the growth of your organization, management must have an understanding of the relationship between human capital and organizational success. Taking the time to invest in your employees, such as during the onboarding process and through a talent-management module, for example, will help you gain a better understanding of your employees and where you need to shift your focus in order to develop, retain and engage the highest caliber of staff.

Doing so will also help to establish optimum productivity and empower your staff to contribute to the organization’s business growth strategy. The organizations that take the time to invest in employee training and the tools they need to achieve maximum performance will in turn achieve optimal business growth.

While many organizations still face uncertainty when it comes to HR compliance, it is certainly one of the most critical components to your operations. Between evolving PPACA compliance obligations, anti-discrimination laws and other daunting regulations, managing this multifaceted department presents its challenges. When you’re experiencing the first signs of growth, this can be especially challenging.

Consider divvying out responsibilities or seeking advice from an outside resource, such as an industry expert or HR vendor. With a reliable resource, your management team can alleviate tedious tasks, including HR benefits, payroll, and make sure your organization meets all mandated requirements to comply with the law. As a result, your organization will have more time to invest in other areas.

Management must also put an emphasis on career development and training. If your business is experiencing growth, your employees need tools to take your organization even further. In addition to a comprehensive training model, a streamlined payroll and expense process and access to great benefits will empower your employees to do more with fewer resources as your organization goes through the stages of growth.

The lesson here is pretty clear. When you start experiencing the first signs of growth, it’s important to shift a vast amount of focus to growing HR.