Hitting the Magic 50 Employee Mark Part 3 – Performance Management, Compensation/Benefits, and Human Resources Staffing

Over the past several weeks I have been sharing a series covering the changes to make and the things to consider when your company grows to 50 Employee. This is the third in the series. I welcome your comments and questions if there is anything you hoped I would cover that I have not.

Read Part 1 – Hitting the Magic 50 Employee Mark Part 1 – What You Need To Think About?

Read Part 2 – Hitting the Magic 50 Employee Mark Part 2 – More Formal, More Frequent Communications.

Performance Management & Goal Setting

Companies who have not yet instituted a formal performance management system are likely to set this as an important goal once they hit fifty employees. In the past goal setting may have occurred quite successfully on the back of a napkin while chatting around the lunch table with everyone. However, at 50 employees this strategy becomes ineffective. There are likely at least three reporting layers by this time – senior management, management/supervisory and individual contributors. The goal setting system, by necessity, must get more formal so that everyone is on the same page and supporting the same goals. The same goes with performance feedback. Employees deserve feedback and the more employees there are the more helpful feedback is to keep everyone motivated and moving in the same direction.


At fifty employees you will see changes in health plan offerings as fifty member groups is often a differentiation point for plan offerings and pricing. Incentive plans tailored to different levels or job classes tend to be implemented around this time. Formal salary analyses are occurring more regularly. Where the company previously had one engineer they may now have three or more. Internal as well as external salary equity comes in to play now. At fifty employees, companies who do not already have a formal recordkeeping system will want to begin investigating their options. It becomes very difficult to track employee changes on an excel spreadsheet. Most payroll services offer a human resources module and there are many cost effective HRIS (human resource information systems) on the market for smaller employers.

Human Resources Staffing

As you have read through this blog, you may already have come to the conclusion that many, if not most, companies that hit the 50 employee mark begin considering the addition of a Human Resource professional to help with the challenges of reaching this exciting benchmark. For some companies it takes the form of hiring an internal part or full time Human Resources professional. For others it means contracting with an external provider to provide project expertise or mentoring for an internal staff member.

What are your thoughts? Let's discuss:

2 Comments on "Hitting the Magic 50 Employee Mark Part 3 – Performance Management, Compensation/Benefits, and Human Resources Staffing"

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FMLA and AAP aside, are there any other government mandated things a company with 50 employees must do.

Thank you,