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Does size matter? Well, it depends on who you ask!
But seriously, when it comes to HR leadership roles, the size of the organization you are joining can have a big impact on your role (and therefore, your life!). For example, larger, more established organizations will have a structured HR team with a clear remit, the proverbial “seat at the table” and a whole slew of policies and procedures (for good or for bad). Start-ups or younger organizations will have looser structures, smaller teams (you’ll likely be the only HR person) and quicker access to information.
When I work with my coaching or JSA program clients, we often discuss what the right kind of environment is for them to thrive. Those who have always worked at big multinationals are attracted to the excitement of smaller organizations particularly start-ups. Whereas those who have worked their way up through the start-up scene long for the stability of a larger platform. If you are considering a move from “big HR” to “small HR” (or vice versa), there are a number of things to consider because ultimately - size does matter.
Before you can decide if “big HR” or “small HR” is right for you, there is another thing you need to know. YOURSELF.
My experience
I spent most of my career working in HR for global investment banks with thousands of employees. Things were matrixed, siloed, and sliced and diced into an endless number of departments and responsibilities. As an HR Business Parter, I was a facilitator, a relationship builder and part of a global machine. But when I joined a small organization, everything changed. It was a conscious choice to join a small company: I wanted less red tape and more autonomy. At a large company, it is hard to get things done - you have to jump through hoops and get multiple sign-offs from various stakeholders to execute a project or even make a simple hire.
Working at a smaller company brought me the expected upsides but unexpected downsides as well. There was definitely less red tape and I was able to launch several new initiatives quickly and painlessly. However, as often happens with HR, I was suddenly responsible for things that had never been under my remit before such as office administration and branding and marketing. We get stuck with the things that no one else in the company knows what to do with! So, when the pantry refrigerator broke, it was my responsibility to source and order a new one. When it was time to organize the annual holiday party, I had to scope out venues and entertainment. Like many HR leaders at small companies, I struggled with this disparity. Here are a few other things for HR leaders to think about:
HR as Agony Aunt
In smaller companies, employees have immediate access to you as their HR partner. They see you as their own personal career coach, advocate and fixer. I was shocked at the number of hours I would spend speaking with employees who wanted to complain about some injustice or get me on side to fix a problem for them. Although I agree that HR has a role as an employee advocate, I do not see myself as an “HR Agony Aunt”. I was happy to guide employees and give them the tools they needed to improve their performance or facilitate difficult conversations with managers or peers, but I did not do their dirty work for them.
Policy? What policy?
Smaller companies tend to have less of a focus on policy. Both because they’ve not had the time to focus on it and because it’s never been identified as a priority. Therefore, there is a tendency to “make things up as you go along.” This works for a while until a firm grows to a state of critical mass where employees expect more. This is particularly true if you are hiring a lot of employees from larger companies who are used to more structure. As an HR Leader, you never want to be accused of “policy for policy’s sake.” At a smaller company, if you try to throw the word “policy” around all of the time, employees and your management team will view you as a hindrance rather than an enabler of growth. So how do you find an appropriate middle ground? Because without policy, it can lead to big problems with…
Favoritism
In a smaller company, accusations of favoritism – perceived or otherwise – are rampant. Employees were rewarded with promotions or big bonuses, not because they were qualified or had performed well, but because they were the boss’s favorite and part of the inner circle. This creates a culture of distrust between employees and management. This is when policy – and the consistent application of that policy – can help to create and maintain a level playing field.
The inherent disparity of “small HR”
This leads me to the inherent conflict that I struggled with when working at a small company. Can the same person who is responsible for fixing the refrigerator also advise senior management on a complex and sensitive employee relations issue? Or can the person who is deciding on a venue for the holiday party also be taken seriously when discussing an organizational redesign? On the flip side, because of your reliability and your ability to “roll up your sleeves,” you build trust with your business and they view you as an equal partner in matters both big or small. How can you bridge the gap and separate the menial, mundane tasks to really focus on delivering the big-ticket items that actually make a difference to your organization? Sure, everyone likes to work in a tidy workplace, but if you are spending time managing the office pantry, how can you deliver the workplace of the future? In a smaller company, you have a much bigger role in shaping the culture. Some days that could mean something as simple as fixing office equipment and as complex as an organizational redesign.
Deciding what is right for you
Before you can decide if “big HR” or “small HR” is right for you, there is another thing you need to know. YOURSELF. Seriously. Do you know what kind of environment you thrive in? Are you the kind of person that likes rules or prefers to operate in ambiguity? Do you chafe at micromanagement and prefer a blank sheet to create a new HR team? What are the strengths that you bring to a role? And how can those strengths be utilized in a large organization or a small start-up? If you are struggling to answer these questions, get in touch and we can do a Hogan assessment. A Hogan assessment can help you to know, acknowledge and understand your strengths so you can bring them with you into your next role. I also recommend spending time focusing on your values. A values misalignment is the #1 reason that my clients are unhappy in their roles, either at big companies or small ones. Knowing and communicating your values can help you to make the right decision about the next step in your career.
Confused about the right environment for you? Want to better understand your strengths and values? Book in for a call. I can help.
I work with female senior leaders in Human Resources who feel stuck to help them love their work or find work they love. Like this newsletter? Please sign-up, share + follow me if you found this interesting. I write about:
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📄 Career development and career transition
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