As an Online Business Manager (OBM), I often help clients navigate the complexities of team growth and hiring. Today, during a call with my CSM alumni group, we covered one of the most important topics for service providers: knowing when and how to grow your team.

There comes a point for every solopreneur when managing everything alone just doesn’t work anymore. You’re juggling client work, marketing, admin tasks, and operations, and it leads to overwhelm, stress, and eventually, burnout. The solution? Build a team that supports your growth and takes some of that load off your plate.

But when it comes to hiring, there are two main strategies: vertical hiring and horizontal hiring. Both are great options, but choosing the right one depends on your business model and goals. Let’s dive into what each approach looks like, and which might be right for you.

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Vertical Hiring: Building a Team of Specialists

Vertical hiring involves bringing on specialists to handle different functions of your business. For example, if you’re growing a consulting business, you might hire a dedicated marketing team that includes a social media strategist, a content writer, and a PPC expert. Each person focuses on a specific aspect of your business, bringing high-level expertise to that area.

Benefits of Vertical Hiring:

• Expertise: You get people who are highly skilled in specific tasks, which can drive better results.
• Clear Roles: Specialists know exactly what they’re responsible for, leading to less confusion and smoother workflows.
• Higher Efficiency: Because they focus on one area, they often get faster, high-quality outcomes.

Challenges:

• Higher Cost: Specialists typically come at a higher price point.
• More Coordination: You may need to manage more people or departments, which requires strong leadership to ensure alignment.

Businesses with specialized teams see a 24% improvement in project completion rates compared to teams with more generalists (McKinsey, 2022). This shows how powerful specialists can be in driving efficiency and success.

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Horizontal Hiring: Building a Team of “Unicorns”

On the flip side, horizontal hiring is all about bringing in generalists, or “unicorns,” who can wear multiple hats and perform a variety of tasks. This is common in agencies where, for example, social media managers can handle content creation, analytics, strategy, and more. Each team member might manage multiple clients or accounts but can adapt to different needs and platforms.

Benefits of Horizontal Hiring:

• Flexibility: Generalists can take on a wide range of tasks, making your team adaptable to changing needs.
• Cost-effective: Since generalists can do more, you might be able to hire fewer people, which saves money.
• Client Variety: With team members who have diverse skills, you can match them with different types of clients or projects.

Challenges:

• Skill Gaps: Generalists are great at many things, but they may not have deep expertise in one area.
• Burnout Risk: As your business grows, asking generalists to manage too many tasks can spread them too thin.

While generalists offer flexibility, 40% of businesses eventually need to hire specialists to cover skill gaps as they expand (LinkedIn Workforce Report, 2023). This highlights the importance of balancing the roles on your team as you grow.

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Which Hiring Strategy is Right for You?

When deciding whether to hire vertically or horizontally, consider the following factors:

• Budget: Do you have the resources to pay for specialists, or do you need to stretch your budget by hiring generalists?
• Business Needs: Is your business growing in complexity, requiring deep expertise, or do you need a flexible team to handle multiple client needs?
• Long-term Vision: What type of team structure supports your vision? Are you building a specialist consultancy or a versatile agency that adapts to different client projects?

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Conclusion: Scaling with Less Stress

Both vertical and horizontal hiring have their place in growing your team, but the right choice depends on your goals. Vertical hiring gives you expert skills for focused growth, while horizontal hiring provides flexibility and adaptability. As you scale your business, keep in mind that building a strong, well-structured team is the key to reducing overwhelm and driving long-term success.

Ready to scale your team? Let’s chat about how to implement the best hiring strategy for your business!