As a company grows, so does its complexity, and nowhere is this more evident than when an organization crosses the threshold of 50 employees. While this milestone is often celebrated as a sign of success, it also brings a unique set of challenges that leaders must be prepared to navigate. From maintaining company culture to addressing communication bottlenecks and dealing with increased bureaucracy, the journey beyond 50 employees can be both exhilarating and daunting.
Here, 10 Forbes Business Council members discuss the critical issues that leaders should prepare for when their company surpasses this pivotal headcount, offering insights and strategies to help them steer their organization toward continued success.
1. Impact On Self-Esteem And Emotions
As a company scales, the majority of employees inevitably have narrower responsibilities and increasingly work with and through others. To reduce the impact on self-esteem and frustration levels, prepare employees far in advance—starting even during the hiring process—to understand that success, unlike in “corporations,” also means narrower responsibilities as they become increasingly important links in the chain. – Thomas Farb-Horch, Thrive Bioscience, Inc.
2. Dilution Of Company Culture
When a company surpasses 50 employees and enters a phase of growth, leaders should prepare for the challenge of preserving the company’s culture. As a company grows, there is a risk of diluting the unique culture that may have contributed to its success in the early stages. New hires might not fully grasp or embody the company’s values and vision, potentially leading to a cultural shift. – Chris Coldwell, Quicksilver Software Development Inc.
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3. Information Flow Changes
Managers will need to cascade information, and executives will need to implement deliberate, regular opportunities to hear from employees, answer questions and share the company’s vision. Newsletters, blogs, video updates and all-hands meetings each serve a purpose in a strategic internal communication plan. – Martha Holler, ShinePR
4. Unmotivated Leaders
Leaders will be increasingly disconnected from the organization’s functions. They will transition from technical leaders involved in intricacies to managerial leaders overseeing and managing the company at a high level. This can make many leaders lose motivation as they move further away from the impact their company is having since they will have fewer interactions with staff and customers. – Abdulmuhsen Fakih, Systemize It
5. Misaligned Values And Mission
When a company surpasses the 50-employee mark, it should reexamine its value, mission and vision statements. This is the point where the company can get off course in its values and mission by chasing short-term goals or by managing size rather than the mission and goals. By keeping values and purpose on track, management can ensure that activities are done with a conscience. – Alexander Chandler, Alexander Advisory Group
6. Maintaining Agility And Innovation
Thе transition beyond 50 еmployееs typically marks a shift from an еntrеprеnеurial culturе to a morе structurеd еnvironmеnt. A significant challеngе is maintaining agility and innovation whilе introducing nеcеssary opеrational systеms and govеrnancе. Lеadеrs must stratеgically balancе еmpowеrmеnt and structurе to align with company objеctivеs whilе adapting to changе. – Khurram Akhtar, Programmers Force
7. Hiring Middle Management
In a smaller setting, direct interaction suffices, but as numbers grow, so do complexities in supervision. Leaders must understand the need to invest in organizational infrastructure and managers. Experienced leadership is critical for maintaining productivity and unity during growth. There’s no substitute for experience in ensuring success. – Blake Plumley, BluWater Capital LLC
8. Not Knowing Everyone’s Name
When your team jumps from a handful to over 50 employees, you’ll be expected to know everyone’s name, but that will be impossible to achieve. Don’t feel guilty or embarrassed by this. Instead, approach this challenge with humor and try to develop a memorization skill that will help you to remember who’s who. Your newly added team members will appreciate the effort. – Dr. David Lenihan, Tiber Health
9. Ensuring Seamless Coordination
As we expanded globally, ensuring seamless coordination across diverse teams became paramount. Crossing the 50-employee mark led us to invest more in scalable communication tools and processes, allowing us to align our international remote team efficiently and provide exceptional property management services worldwide. This approach ensures cohesive and sustainable growth for years to come. – Johan Hajji, UpperKey
10. New Requirements
A total of 50 employees is the threshold when a company becomes an ALE or applicable large employer. An ALE has to comply with the offering of insurance to avoid Affordable Care Act penalties. They must understand the following terms: MEC, MVP, affordability, full-time equivalent, a look-back period, 1094/1095-C, variable hour, etc. Failure to make the right offer to employees can lead to significant penalties. – Louis Bernardi, BritePath
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