3 people challenges startups face when scaling—and how to solve them

Question: What would it take for your people strategy to truly match the speed and ambition of your startup’s growth?

Scaling your startup is exhilarating—hitting growth milestones, onboarding new talent, and building out teams. But when your people processes can’t keep up, growth slows, frustrations mount, and even the best ventures can falter.

The good news? These challenges are solvable. By proactively addressing the people side of scaling, startups can build a solid foundation for sustainable growth. Let’s explore three common challenges—and how to overcome them.

Challenge 1: Inefficient people operations

The problem:

As startups grow, people operations often lag behind. Processes like hiring, onboarding, and compliance may be inconsistent or nonexistent, leading to confusion, inefficiencies, and even legal risks.

The impact:

Without scalable systems, startups face slowed growth, frustrated teams, and high turnover as employees struggle to adapt to undefined or ad-hoc processes. This becomes—you guessed it!—a time-consuming and costly cycle for organizations that need to move fast.

The solution:

Start by creating frameworks that ensure consistency and clarity in key areas:

• Standardize hiring and onboarding processes to set employees up for success.

• Develop scalable training programs to align skills with business needs.

• Stay compliant with relevant employment laws.

• Audit your current operations to uncover inefficiencies and gaps.

Starting small can go a long way. Don’t underestimate the power of documentation and templatization, both can save you and your team significant time.

With these steps, you can simplify day-to-day people operations and free up leaders to focus on growth. That’s where my People Ops Blueprint comes in: a tailored roadmap to streamline the basics, from hiring to training, and create a foundation that drives, rather than stalls, your growth.

Challenge 2: Misaligned teams and culture

The problem:

In the fast-paced startup environment, founding teams often juggle competing priorities at high speed, leading to miscommunication, interpersonal clashes, and unclear roles. As new hires join, these dynamics can worsen, creating further disconnects.

The impact:

Miscommunication, disengagement, and reduced productivity can bring growth to a halt. If left unresolved, misalignment can fracture teams and jeopardize the company’s future.

The solution:

Intentional team alignment ensures that everyone is moving in the same direction. Key steps include:

• Conducting diagnostics to uncover misalignments and opportunities.

• Facilitating workshops to clarify goals, roles, and ways of working.

• Providing ongoing coaching to strengthen team dynamics and improve productivity.

As I often remind leaders: If we’re not building teams and ways of working intentionally, then we’re doing it unintentionally. And unintentional systems often lead to toxic behaviors, lower productivity, and costly cultural norms.

That’s why I created the Team Alignment Accelerator: to help startups unify their teams, formalize ways of working, and foster collaboration and trust– so everyone is rowing in the same direction.

Challenge 3: Scaling culture without losing identity

The problem:

As startups grow, culture can become a sticking point. Tenured employees may fear the company is becoming “too corporate,” while newer hires struggle to adapt and feel a sense of belonging. Subcultures begin to emerge—sometimes in ways that hinder alignment.

The impact:

Without clear cultural direction, startups risk cultural clashes, disengagement, and higher attrition. Employees can lose sight of what makes the company unique, which negatively impacts morale and productivity.

The solution:

Codify your culture so it can scale alongside your business. Key steps include:

• Conducting assessments (like surveys and focus groups) to identify cultural strengths and gaps.

• Clearly defining your company’s values and norms.

• Engaging leaders and employees to integrate culture into daily operations. This one sounds easy, but it’s not. Trust me.

Here’s the truth: Culture is one of those words that means nothing and everything at the same time. The most successful organizations I’ve worked with build their culture intentionally. It’s not top-down—though leaders play a critical role in modeling and communicating values. It’s not bottom-up—though employees should have a seat at the table. And it’s not solely owned by HR—though people strategy must align with culture and be clearly communicated to resonate.

My Custom Culture Playbook helps startups create a scalable cultural framework that preserves their unique identity while allowing for growth and flexibility.

When you need more hands-on support

For many startups, the challenges of growth evolve daily. In these situations, a Fractional HR Leader can bridge the gap, providing strategic oversight of your people operations while managing hiring, onboarding, and employee engagement. This approach keeps your people strategy aligned with business goals while staying nimble– and at a fraction of the cost of a full-time hire.

I work with startups, scale ups and small businesses to provide flexible HR strategy and support via retainers starting at 10 hours/month, scaling up as needed.

Conclusion: Build a people strategy that powers your growth

Scaling a startup isn’t easy, but the right people strategy can make all the difference. By addressing inefficiencies, aligning your teams, and codifying your culture, you’ll create a foundation for growth that lasts.

Remember, as a leader, you don’t have to do it all alone. If you have questions, need advice, or want a partner to help lighten the load, don’t hesitate to reach out.

Vanessa