Our VP of HR is a loyal, early employee who manages basic compliance perfectly, but she lacks the strategic capability to build a scalable compensation and recruitment framework for our rapid growth. How do we handle this capability gap?

Question

Tyler Smith · Accepted Answer

This is a common challenge as companies scale. A loyal, early employee who was perfect for a smaller business may not have the capability to lead that department when the company grows.

To resolve this, you must evaluate the HR seat on your Accountability Chart. The strategic demands of a scaling company require a leader who can design sophisticated compensation models and lead national recruitment campaigns. If your current VP of HR does not GWC these advanced responsibilities, you have a capability gap that must be addressed.

Start by having an open, honest conversation with her. Frame the discussion around the future needs of the business and her own professional goals. It is possible that she is feeling overwhelmed by the strategic demands and would prefer to focus on the operational and compliance aspects of HR where she excels.

You can then restructure the department. You might hire a strategic Chief People Officer to sit on the leadership team, and transition your current VP to a Director of HR role reporting to the new leader. This allows you to keep her valuable experience and loyalty while filling the strategic capability gap.

By handling this transition with care and respect, you protect your company culture while ensuring you have the right people in the right seats to support your growth.