HR as a Growth Strategy for Small Business Success

By Rachel Bridgers of SBTDC Greenville

As your business grows, you will encounter new opportunities for structure, clarity, and culture-building. HR is an enabler of success, as growth brings new dimensions to leadership and HR priorities. HR is more than compliance – it’s a growth strategy, and a natural and positive part of the scaling process.

Many small businesses point to their people as one of the most important factors influencing their success, even more so than acquiring customers or managing cash flow. Whether it’s finding the right talent, retaining good employees, or building a strong company culture, the “people” side of growth can have a huge impact on the next stage of success. As your company scales, your approach to managing and supporting people must evolve too. 

Why HR Must Evolve as You Grow

It’s important to recognize that the needs of a three-person company are different from the needs of a 30+ person company. Small businesses often start with informal HR practices that work well when there are a handful of employees. As you grow, that growth creates a chance to formalize what works well and strengthen team alignment. You’ll also benefit from intentionally focusing on the opportunity to build structure, role clarity, and leadership capacity. The goal is to ensure your HR systems are aligned and consistent. When approached intentionally, HR becomes a strategic advantage that fuels continued success.

Recently, I spoke with Nicole Norian, founder of Chrysalis HR Consulting in Asheville, about HR strategies that support small-business growth. Chrysalis helps “small organizations build strong teams through practical HR and leadership support.”

Four Common Growth-Related HR Scenarios

As your business expands, your key priorities will evolve too, and many of them will relate to your people. In working with hundreds of small businesses, we often see the same themes repeat themselves. Each growth stage brings unique HR and leadership needs, and recognizing them early can make all the difference.

1. Startup Stage (1-4 Employees)

Instead of just focusing on payroll and paperwork, think about how you’ll bring that first hire into your business. Consider what success will look like for them in the first 90 days. Nicole Norian advises, “Beyond the logistics, it’s important to think through how you’ll onboard and train your first hire, clarify what success means for the role, and communicate expectations along the way.”  

2. Growing the Team (5-14 Employees)

Growth brings new layers of complexity, especially as you bring on more employees. The informal communication that once worked no longer does, and unclear expectations can lead to turnover and frustration. As Norian explains, “Owners often underestimate how fast misalignment grows once a team hits 8-10 people. What was once effective with casual communication now needs structure.” Establishing clear job descriptions, opportunities for regular feedback, and consistent onboarding practices results in faster productivity and helps maintain alignment as your team expands. 

3. Expanding Leadership (15-24 Employees)

Once your company reaches 15-20 employees, leadership gaps often become more visible. Supervisors promoted from within may not yet have the skills or confidence to lead others, and owners can also discover that their own leadership skills need to be developed. “Owners can’t expect supervisors to demonstrate the leadership skills that they themselves haven’t yet developed,” explains Norian. Building leadership capacity through coaching, mentoring, and targeted training programs sets your entire team up for success and results in stronger retention.

4. Scaling Up (25-50+ Employees)

As the business grows and scales, the culture that once felt natural now requires deliberate attention. With growth comes new managers, departments, and communication channels. Without intention, the owner’s original vision can fade. Norian emphasizes, “A strong culture doesn’t happen by accident. The owner must envision and define what they want it to be and lead intentionally toward it.” Protecting culture is about making decisions that reflect and promote your company’s values. 

When to Ask for Help

Even the most experienced business owners encounter new HR and leadership situations as they grow. Sometimes the hardest part is recognizing that you need a thought partner. “It’s always hard to know what you don’t know,” says Norian. “Leverage your strategic wisdom by bringing in outside expertise. Collaboration and proactive planning enable you to learn, grow, and strengthen your organization while meeting your specific business priorities. External support can be beneficial when dealing with a new HR situation that you haven’t previously encountered or addressing a situation that is similar to one that didn’t go well in the past.”

That’s where the Small Business and Technology Development Center (SBTDC) can help. Our business counselors work alongside you to pinpoint challenges, clarify your priorities, frame the right questions, and connect you with trusted HR professionals, workforce programs, or leadership development resources. You don’t have to navigate complex people issues alone, and knowing when to bring in help is one of the best leadership decisions you can make.

Final Thoughts

Sustainable growth depends on strong people practices. HR isn’t a one-time setup; it’s a set of evolving strategies that shape how your business attracts, develops, and retains talent. The SBTDC is here to help you think strategically about that growth, whether it’s strengthening your leadership, connecting you with the right resources, or supporting your next stage of development.