It Worked for 20 Employees, But Fails at 50: Scaling Your People Practices

Growing a business from a small team to a larger organization brings many challenges. One of the most common pitfalls I see is that people practices that worked well when a company had 20 employees suddenly fail when the headcount reaches 50 or more. This shift can stall business growth and create frustration among leaders and employees alike. The key to overcoming this hurdle lies in understanding why early systems break and how to adapt your people practices without overbuilding.

In this post, I will share practical steps to help you scale your people practices effectively, focusing on talent development for growing business. Whether you are a business owner or a leader, these insights will help you build a strong foundation that supports growth beyond the early stages.

Team collaborating on people practices for scaling

Why People Practices Fail as You Grow

When your business has 20 employees, communication is often informal. Everyone knows each other, and processes are simple. You might rely on direct conversations, spreadsheets, or basic tools to manage hiring, performance, and development. This approach works because the team is small, and the culture is easy to maintain.

As you approach 50 employees, these informal systems start to break down. Here are some reasons why:

• Lack of clarity in roles and responsibilities: Early on, employees wear many hats. As the team grows, unclear roles cause confusion and duplicated efforts.

• Inconsistent communication: Without structured channels, important information gets lost or misunderstood.

• Limited talent development focus: When everyone is busy, investing in employee growth often takes a backseat.

• Inadequate performance management: Feedback becomes irregular, and managers struggle to track progress.

• Over-reliance on founders or a few key people: Decision-making bottlenecks slow down the organization.

  
  

Recognizing these issues early helps you avoid costly mistakes that can stall business growth.

How to Adapt Your People Practices for Growth

Scaling your people practices requires intentional changes that match your company’s size and complexity. Here’s how to approach this transition:

1. Define Clear Roles and Responsibilities

At 20 employees, roles are flexible. By 50, you need clear job descriptions and accountability. This clarity helps employees understand expectations and reduces overlap.

• Create detailed role profiles for each position.

• Communicate these roles across the team.

• Review and update roles regularly as the business evolves.

  
  

2. Establish Structured Communication Channels

Informal chats won’t cut it anymore. Implement communication systems that keep everyone informed and aligned.

• Use team meetings with clear agendas.

• Adopt collaboration tools like Slack or Microsoft Teams.

• Encourage regular one-on-one meetings between managers and employees.

  
  

3. Build a Talent Development Framework

Talent development for growing business is critical at this stage. Employees want to see a path for growth and skill-building.

• Develop training programs tailored to different roles.

• Encourage mentorship and peer learning.

• Set individual development plans during performance reviews.

  
  

4. Implement Consistent Performance Management

Regular feedback and goal-setting keep employees motivated and aligned with company objectives.

• Introduce quarterly performance check-ins.

• Train managers on giving constructive feedback.

• Use simple tools to track goals and progress.

  
  

5. Delegate Decision-Making Authority

Avoid bottlenecks by empowering managers and team leads to make decisions within their areas.

• Define decision rights clearly.

• Provide guidelines and support for managers.

• Encourage a culture of trust and accountability.

  
  

Manager coaching employee on talent development

Practical Examples of Scaling People Practices

To illustrate these points, here are examples from companies that successfully adapted their people practices:

• Tech Startup Scaling Roles: A software company grew from 15 to 60 employees. They introduced clear role definitions and created a leadership team. This reduced confusion and improved project delivery times.

• Retail Chain Improving Communication: A retail business with 45 employees implemented weekly team huddles and a messaging platform. This improved coordination between stores and the head office.

• Consulting Firm Focusing on Talent Development: A consulting firm with 50 employees launched a mentorship program and quarterly training workshops. Employee engagement scores rose by 20% within a year.

• Manufacturing Company Enhancing Performance Management: A manufacturer introduced quarterly reviews and goal tracking software at 50 employees. This led to better alignment with business goals and higher productivity.

  
  

These examples show that adapting your people practices is not just theory but a practical necessity for business growth.

Avoiding Overbuilding Your People Systems

While it’s important to evolve your people practices, overbuilding can create unnecessary complexity and costs. Here’s how to avoid that:

• Start with simple, scalable processes.

• Focus on what solves your current pain points.

• Use tools that grow with your business.

• Involve employees in designing new practices.

• Review and adjust regularly based on feedback.

  
  

This approach keeps your people systems lean and effective, supporting growth without becoming a burden.

Final Thoughts on Scaling People Practices

Growing from 20 to 50 employees is a critical phase where your people practices must evolve to support business growth. Clear roles, structured communication, talent development, consistent performance management, and delegated decision-making form the foundation of successful scaling.

By adapting thoughtfully and avoiding overbuilding, you create a workplace where employees can thrive and contribute to your company’s success. Start by assessing your current practices, identify gaps, and take deliberate steps to build systems that fit your growing team.