The growth of a company inevitably requires adjustments to its operations, which can lead to concerns and resistance within teams. Human resources expert Céline Desmarais explains how to manage these challenges effectively.
Growth affects more than the size and revenue of a company; it also changes its culture, management and structure. These developments are often a source of concern for employees, and at times even for managers. To ensure that expansion remains under control and that the company maintains its performance, a central challenge is to convince all teams of the purpose of this evolution while encouraging them to participate in it. Without the active involvement of staff, the process may be significantly hindered. Human resources expert Céline Desmarais from the School of Engineering and Management of Yverdon (HEIG-VD) outlines how to carry out this transformation successfully.
What are the main challenges linked to the expansion of an SME?
Céline Desmarais: An increase in workload is often observed, without a corresponding increase in resources or in the time available to employees. There is also the perception of fragmented authority and reduced control: for employees, expansion can mean a smaller role in decision-making, more bureaucracy or new reporting obligations, which may create issues.
There can also be a dilution of implicit know-how: informal processes that contributed to the company’s initial success may become sources of tension or misunderstanding as the structure grows more complex. One example is a company whose operations relied on autonomy and collective intelligence and which, after a merger, integrated a large number of young employees. Although technically competent, these newcomers did not have the informal knowledge and reference points of more senior colleagues. This led the SME to abandon its model based on collective intelligence and adopt a more vertical, hierarchical structure. Such a development can be problematic for some employees and may affect staff turnover, as well as production.
How can employers anticipate and avoid these problems?
Desmarais: In a company, concerns and priorities differ depending on one’s role. It is therefore important for roadmaps to include as many perspectives as possible, so that they are understood and accepted, and to limit potential disruptions when the transformation is implemented. Employees should be actively involved in reorganizing work, for example through workshops or discussion groups to report on the realities on the ground. This involves, for example, defining the practical details of implementing strategic decisions taken by management, unforeseen impacts or conditions for success. This also gives employers a broader insight into operational constraints.
A clear narrative must also be developed around the expansion. Management should clearly explain the reasons for the reorganization, its objectives and the concrete benefits it will bring for both the company and its employees. It should avoid restricting explanations to aspects such as return on investment for shareholders, for example. It is also important to emphasize the company’s purpose, the broader value of its expertise and any improvements in working conditions.
Can the company provide guarantees to staff to limit a loss of decision-making power or an increase in bureaucracy?
Desmarais: In cases of internationalization or integration into a large group, it is often difficult to avoid such a loss of control or a formalization of processes. This is also seen in start-ups: beyond a certain stage, investors require the company to structure and regulate its operations. However, this step can be managed internally to reduce disruption or avoid imposing an overly rigid framework on employees. One example is a Geneva-based SME that chose to maintain the versatility of its employees and avoid strict compartmentalization of roles by training them in tasks, such as accounting, that would otherwise have been formalized and assigned to a specific department.
How can employers address staff reluctance regarding expansion strategies?
Desmarais: Managers and executives often consider employees to be resistant to change by default, and sometimes irrationally so. Yet employees’ concerns are often legitimate, as expansion involves significant changes to work processes. Transparent communication from management is essential, as it can help clarify information and reduce uncertainty, at least in part. But this is not sufficient on its own. Companies should also listen to employees and take their concerns into account, whether these relate to workload, the evolution of their tasks or the preservation of the organizational culture.
