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4 Critical HR Mistakes Companies Make That Hurt Their Growth Business success relies on a strong foundation in human resources. Learn these four common missteps that companies make that can get in the way of reaching their full potential.

By Trent Bryson Edited by Dan Bova

Opinions expressed by Entrepreneur contributors are their own.

In the ever-evolving landscape of business growth, companies must navigate a myriad of challenges that extend beyond visionary ideas and innovative products. Thriving in this environment requires not only a strategic vision but also a strong foundation in human resources. As organizations expand, the importance of robust HR practices becomes even more pronounced. Here we'll look at the significance of strategic HR support and highlight four common missteps that growing companies should avoid in order to foster a strong HR structure.

Related: 6 Costly Mistakes CEOs Make Managing Business Insurance and How to Avoid Them

The Complex Journey of Business Growth

Growing companies encounter a host of unique challenges, including resource constraints, fierce competition, and changing market dynamics. Amid these priorities, the need to cultivate a healthy work culture and effective HR strategies can often be overshadowed.

The Power of Strategic HR

Strategic HR streamlines and operationalizes people and recruiting functions by aligning HR practices and processes with business goals and strategies. By nurturing a positive work culture, promoting employee engagement, and optimizing talent management, strategic HR delivers a competitive advantage that directly influences productivity, employee retention, and overall business performance.

Related: Get a business insurance quote in 3 simple steps

Avoiding Common Missteps in HR for Growing Companies

While recognizing the value of strategic HR support is crucial, it is equally important to steer clear of common missteps that can weaken an organization's HR structure. Here are four such missteps to avoid:

  1. Ignoring Talent Development: Growth-focused companies often overlook employee development in the pursuit of expansion. Neglecting training and skill enhancement can stifle long-term success and hinder employee satisfaction. Do not simply put someone in a role and say "go." Invest in teaching them your way of doing things. Invest the time in creating best practices for the onboarding process, annual reviews, and feedback.
  2. Lacking the Right Talent: The common way to grow a company is through hiring people you know to fill a role. The best companies in the world define the role, and then search for the best possible candidate they can find for success. Do not take the easy route and hire someone to fill a spot. Hiring is easy. Firing is hard. Hire right the first time. Hiring is constant and the best candidates usually have a job versus those looking for a job. It is an active process that can change the game for your growing company. At our company, we call it "filling the bench." To use a sports analogy, some of the most significant championships have been won by bringing talented people off the bench to win. We find clients will move on from low performers if they have a quality player ready to come in and contribute. Think about filling your bench in advance of needing someone.
  3. Failing to Address Employee Engagement: Disengaged employees are more likely to underperform and eventually leave the organization. Growing companies must invest in strategies that foster a sense of belonging, purpose, and motivation among employees. In the era of remote and hybrid work, this becomes even more critical to create a community.
  4. Neglecting Clear HR Policies: A lack of well-defined HR policies can lead to confusion and inconsistency. Companies should establish comprehensive policies covering areas such as hiring, onboarding, performance evaluation, and code of conduct. These policies allow you to fire faster when you have an underperformer with a reduced risk of retaliation.

Strategic HR Support: The Solution

Growing companies can avoid these missteps by seeking strategic HR guidance from specialized companies offering support on a fractional basis. These support providers offer tailor-made solutions to address specific challenges and help companies create a robust HR foundation that aligns with their growth objectives while not crushing the expense side of their P&L.

HR's Critical Role in Success

As companies chart their course through the complexities of growth, the role of strategic HR support cannot be overstated. By nurturing a positive work environment, nurturing talent, and aligning HR practices with business goals, organizations can position themselves for sustained success. Simultaneously, avoiding common HR missteps is imperative to maintain a strong HR structure. With strategic HR support and a vigilant approach to avoiding pitfalls, growing companies can build a workforce that embodies adaptability, innovation, and long-term prosperity.

Want an assessment of your organization by highly trained HR Professionals? Reach out to the experts at

This article was co-written by Trent Bryson and Kristi Pastore

Trent Bryson

Entrepreneur Leadership Network® VIP

CEO of Bryson

Trent Bryson, CEO of Bryson Financial, has established success as the leader of one of Southern California’s leading insurance brokerage and corporate retirement firms. Bryson’s vision and expertise have led him to receive regional and national awards and recognition, such as City Bank National’s Entrepreneur of the Year.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

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