Why HR is Vital

Growth chart

Ready for Growth?

HR professionals in SMEs can help drive sustainable organisation performance


Organisations go through different growth phases that can roughly be split into 4 stages.

During their time they will have varying needs for people management, organisational development and infra-structure to ensure sustained growth.

Effective people and business management is important when an organisation grows beyond the start up stage and become critical when reaching the end of the entrepreneurial stage, although each stage has its own additional requirements, challenges and opportunities.

Regular reviews and forward planning is essential to prepare for the next developmental stage of the organisation. People management professionals can add significant value to this process and the organisation’s bottom line. It is essential that appropriate changes are implemented in a timely fashion to meet new business requirements, ensuring the business stays ahead of the game and remains competitive.

Research by the CIPD, June 2012 (www.cipd.co.uk) “Achieving sustainable organisation performance through HR in SMEs” calls the 4 stages

  1. Entrepreneurial Edge
  2. Emerging enterprise
  3. Consolidating organisation
  4. Established organisation

The CIPD concludes that “Human Resources (HR) functions have a vital role to play in driving long-term performance in SMEs, whatever the stage of organisation transition. More specifically, it is through identifying the current stage the organisation is in, and then anticipating and responding in a timely way to opportunities and challenges presented at inflection points, that HR professionals in SMEs can help drive sustainable organisation performance.

Interested in knowing more? Contact Lykke Leszczynski, Director of Your HR Business Partner Ltd on 07475 018 057 or email Lykke@YourHRBusinessPartner.org.uk for an informal discussion.