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May 22, 2025The Growth Plateau: How to Manage When Employees Have Reached Their Capacity
When Growth Outpaces Capability
Let’s face it – businesses are built on growth. But what happens when your team, the very engine of your success, simply can’t keep up? It’s a tough pill to swallow when you realise some of your key people may have hit their limit. The truth is, people are not machines. Even your strongest performers have their thresholds, and if growth outpaces capability, you’re left navigating a very delicate situation. As someone who’s been at the coalface of SME leadership for over two decades, I’ve seen this challenge crop up time and again. So, how do you tackle it? Let’s explore the realities of managing a team when they’ve maxed out their capacity – and how you can handle it without losing sight of the bigger picture.
Why Do Employees Max Out Their Capabilities?
First, let’s get to the root of the issue. People hit their limits for all sorts of reasons:
• Lack of training – Perhaps they’ve not had the opportunity to upskill as the business grows.
• Outdated tools or processes – Your team might be fighting battles with systems that just don’t cut it anymore.
• Personal bandwidth – Life outside of work matters, and sometimes personal circumstances impact professional performance.
• Exponential growth – What was manageable last year might now be an overwhelming mountain.
The reality is, as businesses evolve, so must the people within them. But it’s not always as straightforward as it sounds.
The Warning Signs
Spotting when someone’s reached their capacity isn’t always easy, but there are a few key indicators:
1. Quality starts slipping – Even your high performers are making uncharacteristic mistakes.
2. Burnout symptoms – Frustration, short tempers, or disengagement creep in.
3. Missed deadlines – Tasks are piling up, and priorities are muddled.
4. Loss of enthusiasm – They’re doing the bare minimum and no longer bringing fresh ideas to the table.
The sooner you recognise these red flags, the better equipped you’ll be to intervene before it spirals out of control.
Addressing the Plateau
So, what’s the solution? It’s tempting to push people harder when the pressure’s on, but trust me, that’s a short-term fix with long-term consequences. Instead, try these approaches:
1. Upskill and empower – Invest in training that arms your team with the tools they need to meet new challenges head-on. Growth needs preparation.
2. Restructure workloads – Don’t just pile on more. Look at how tasks are distributed and see where you can streamline or delegate.
3. Hire strategically – Sometimes, the best move is adding fresh talent to alleviate the strain on your existing team.
4. Prioritise downtime – Burnout is real. Make sure your people take the breaks they need to recharge.
5. Encourage career development – If someone feels stuck, offer them opportunities to explore different paths or step up to new challenges.
Setting Realistic Expectations
Let’s be clear: expecting superhuman effort from your team is a recipe for disaster. Growth must go hand-in-hand with clear, achievable expectations. Unrealistic demands lead to resentment, exhaustion, and ultimately, a high turnover. Instead, focus on setting transparent goals that align with your team’s current capacity, while actively working to improve their ability to deliver.
The Cost of Ignoring Capacity Limits
Here’s the harsh truth – ignoring the problem won’t make it go away. If you bury your head in the sand, you’re risking:
• Productivity dips – Overwhelmed employees simply won’t perform at their best.
• High turnover – Frustrated people will look elsewhere, leaving you scrambling to replace them.
• A toxic culture – A stressed, disengaged team impacts morale and creates a domino effect across the business.
• Stunted growth – If your team can’t keep up, your business won’t either.
The stakes are too high to ignore this issue.
When Progress Isn’t Always Upwards
The key takeaway? Growth doesn’t always mean charging ahead at full speed.
It’s about finding the balance between ambition and sustainability. Sometimes, that means admitting that your people have reached their limit and working with them to find solutions that work for everyone.
As leaders, we need to stop equating “maxed out” with failure. Instead, we should view it as an opportunity to reassess, restructure, and reimagine how we’re supporting our teams.