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Navigating Business Growth: Choosing the Right Hiring Strategy

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Hi friends,
Have you ever experienced the excitement of watching a team member excel at their tasks, and as your business expanded, you entrusted them with more responsibilities, hoping they'd rise to a management role?

I've been there multiple times. Despite my best efforts to support their growth—offering additional training, time, and encouragement—it often became clear that while they excelled in their initial roles, management wasn’t the right fit for them.

In these cases, my business growth would stall, waiting for this transformation that, frankly, never happened. When I eventually brought in someone externally to take over the management role, it usually didn't sit well with the team member who had to step back, often leading them to perform even worse than before. Building from the bottom up was fraught with such challenges.

As a startup owner, when I first began, it made practical sense to hire people to take over the more routine tasks. This allowed me to concentrate on generating income and shaping the vision for my practice. We would hire based on necessity, from the bottom up, nurturing hopes that as the business grew, these individuals would too, stepping into leadership roles.

This approach is budget-friendly and offers ambitious individuals a chance to climb the ranks, a typical trajectory for cash-strapped entrepreneurs.

One clear instance where the limitations of the bottom-up approach became evident involved an admin lead whom I promoted to manager. This team member was exceptional at their initial role, excelling in task completion, patient relations, and building a positive reputation for our practice.

However, their transition to a management position revealed a significant challenge. Despite their undeniable competence in direct tasks, they struggled with delegation. Faced with a choice between doing a task quickly themselves or allowing a trainee to learn through experience, they invariably chose the former.

While this was efficient in the short term, it ultimately hindered the development of our new staff and set them up for failure. The situation reached a turning point when it became apparent that this team member could not adapt to their new role's demands. Despite numerous training sessions and support, they were unable to embrace the essence of management—empowering others.

This realization was disheartening, and regrettably, when it became clear that a step back to their previous role was the only viable option, they chose to leave our practice instead. Losing them was a painful reminder of the pitfalls of trying to force professional growth where the fit isn't right.

However, I recently embraced a different strategy—the top-down approach—especially useful when my practice needed a major reset. This method involves hiring your management team first, who then help fill out the rest of the roles. This structure is often adopted by well-funded, rapidly evolving startups and brings numerous advantages, such as stronger strategic and cultural alignment, efficiency in hiring, and improved onboarding and retention.


My personal turnaround came when I appointed an operations director during a pivotal reset phase. Once aligned on our core values, he was instrumental in building a team that not only shared these values but lived them daily. From the receptionist to the office manager, and even our financial manager, each new hire strengthened our core values and enhanced our team dynamics. We've reached a point where our team culture feels stable and robust enough to withstand future challenges.

PROS OF THE TOP-DOWN APPROACH

🗹 Leadership and Vision from the Start:
You set the cultural and operational tone right from the beginning, ensuring that every team member fits into this framework.

🗹 Strategic Consistency:
Your management team can deploy strategies that reflect long-term goals without the disjointedness that can come from patchwork team development.

🗹 Rapid Scaling and Problem Resolution:
With experienced leaders, scaling operations and resolving issues happen more efficiently and effectively.


PROS OF THE BOTTOM-UP APPROACH

🗹 Cost Efficiency:
It's less expensive to hire entry-level employees who grow with the company over time.

🗹 Organic Growth and Loyalty:
Employees who grow with the business are often highly loyal and deeply understand the company culture and operations.

🗹 Flexibility:
This method allows for more flexibility in hiring and can be adapted based on immediate business needs and financial constraints.

CONCLUSION:

The right hiring strategy depends on the phase your business is in and the specific challenges you face. For me, switching to a top-down approach was a game-changer during a critical pivot, allowing for quick, strategic alignment and a revitalization of our workplace culture. Each business season might call for a different strategy, and it's crucial to choose the one that best aligns with your current objectives and future aspirations.

Remember, every step we take is a learning opportunity, and each strategy offers unique lessons that contribute to our growth as leaders and innovators. Until next time, think about what your business needs most right now and consider how your hiring strategy can support that vision.

Share this with colleagues who are navigating their own business growth—it's always better when we learn and grow together!

Written by Kevin Ng, DDS

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