How to avoid role duplication when growing a business

Companies that grow at an accelerated pace run the risk of hiring too aggressively, resulting in an overgrown organization with duplicated roles.

Tesla seems to have experienced this issue. In an April 15 email to employees, CEO Elon Musk announced layoffs affecting more than 10% of Tesla’s workforce. He attributed the need for cuts, in part, to the company’s “rapid growth,” which led to “duplication of roles and job functions in certain areas.”

“As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity,” Musk wrote.

Rapid-growth companies tend to set aggressive business goals that come with equally aggressive headcount plans, Neil Costa, CEO of recruitment marketing agency HireClix, told HR Brew. But when a headcount plan is too bold, it can result in duplicating roles.

HR and finance can work together to keep the headcount plan in check, he noted. By reviewing market data on compensation and “payroll and personnel costs,” they can determine if a manager’s hiring plan is too bullish, he said in a follow-up email to HR Brew. This can ultimately help prevent role duplication and layoffs.

“The last thing HR or finance wants to do is slow growth,” Costa said. “But there’s gotta be an angel on the other shoulder.”