Retention, the secret sauce for keeping your A-team.
Second part of our HR Trends conversation with Geraldine Butler-Wright , scaleup Chief People Officer ex PayPal, livehealthily.com and StreamElements
Topics Include
Retention, secret sauce for keeping your A-team intact.
Help with restructuring the management team.
Building a balanced growth plan without funding.
Retention, the secret sauce for keeping your A-team intact.
Ell: Do you have any advice for companies needing to hire and retain good people, but with a lighter budget.
Geraldine: The tightening of the VC’s purse strings has brought some positives. Companies have to be far more intentional and specific about the talent they need and their org design.
When hiring in today’s climate, or any time for that matter, aim to secure the very best "Tier A" talent you can afford. Having a smaller but ace team will mean greater productivity and better results and that is a fact. Aim for high talent density always. This is especially key for startups with a pre-market fit product. Your early day hires will set the tone for hiring for years to come – if you get it right, it's the gift that keeps on giving.
Look for people who genuinely love tackling problems and aren't afraid to get their hands dirty, no matter their job title. It's really not about their years of experience or qualifications. Also, figure out if they're good with uncertainty and if they can adapt in tougher times – super important for startup life.
Retention is such a massive topic. The real retention magic is when your top-tier talent vibes with each other. It creates the kind of energising environment that keeps people around for the long haul, and of course, cuts down on rehiring costs and then ramp up, which impacts the bottom line of the business.
High-calibre talent is motivated by working alongside “stunning colleagues”, as Netflix puts it. Think of it as the secret sauce for keeping your A-team intact. This is why solid org design and high talent density focussed recruitment is beyond important.
It's important to acknowledge the impact that your people are making. Remember to say thank you and point out the positive dent they have made in the business any chance you get. This is one of the most simple and powerful retention tools out there and costs zero.
Ask your people how they like to be recognised too - some may love a public acknowledgement at an All Hands, where others would prefer it at a 1:1.
When you paint a picture of what lies ahead for the company, include in your visualisation what your people’s career can look like on the journey ahead. Co-create career paths – this will matter more to your people than any trendy perk.
Restructuring the organisation chart
Ell: There is a common challenge with early management hires, where the company needs a different skill set for the next stage of growth, maybe outgrowing the original Leadership team. What steps would you advise to help with restructuring?
Geraldine: All eyes are on founders when a member of the early days leadership team exits, and how this is handled sets the tone for the entire culture of the Company.
When problems pop up, face them head-on and quickly. Talk directly to the leader involved about concerns. Get their thoughts and see if you can find a solution together to bridge the gap. If not, part ways with kindness, respect and generosity.
Be like a camel not a unicorn
Geraldine: In response to tightening markets and macroeconomic influences, there is a growing trend for companies to behave more like camels not unicorns - by this I mean to organically grow, and generate revenue from the get go, rather than follow the ‘blitzscaling’ unicorn methodology which only works really in a buoyant market with optimal conditions and funding.
‘Camel’ companies have a balanced growth plan, and as such are able to survive through crises. They sustain, grow steadily and thrive in adverse conditions. Many VC’s are certainly turning more to camel type companies, rather than unicorns. So too are top talent, where there is still demand and movement in the market. There’s more of a hunger for stability than ever before, and it’s understandable given very volatile times.
Helping first time founders understand the value of HR
Ell: We have noticed that first time founders are typically the most reluctant to invest in their HR and Talent functions. I think without the benefit of previous experience, it can seem like a lower priority. In contrast, second or third time business owners totally get it. They understand the value and are comfortable building HR teams and outsourcing hiring to trusted agency partners.
Geraldine: Sometimes HR can stand for human remains in people’s minds - especially if they have experienced high compliance and policy driven HR departments which seem designed to wrap people up in red tape.
I’m super glad to see a change in our field, which is far more human centric and business partner focussed.
As a Founder, if you are wondering if the time is right - or maybe you are receiving pressure from investors or the board - I’d recommend having conversations with senior People, HR and Talent people, so you can get more of a flavour of the kind of things they do, typically these conversations are free to start the relationship. I have a feeling that you will be pleasantly surprised.
