“Always recruit for the entrepreneurial spirit and growth will follow.” CEOs Reveal their HR Strategies

Posted on October 5, 2011 by Maggie Conroy in Best Practices, Entrepreneurs

By Maggie Conroy, Trusted Advisor to TriNet’s marketing team

Noveda Technologies CEO Govi Rao

Today’s title encompasses just one of many insightful ‘words of wisdom’ shared by Noveda Technologies CEO Govi Rao during our Executive Roadmap Series webinar: Building Success in an Uncertain Economy. Govi and ETM-Electromatic CEO Tom Hayse revealed their HR management strategies to TriNet clients as featured guest panelists. Our CEO, Burton M. Goldfield, served as moderator and contributor, making for a very lively Q&A session.

Our panel identified three main challenges—which they prefer to reference as ‘opportunities’

1. Significant Growth in Number of Employees
2. Management Changes and/or Layoffs
3. Benefits for a Diverse Employee Population

ETM-Electromatic CEO Tom Hayse

Each of these opportunities was examined further to reveal best practices and first-hand experiences. Below is a sampling of the insight gleaned from the conversation; if you’d like more, please download the event solution brief.

Regarding No. 1: dealing with significant growth in a company:

• Always recruit for the entrepreneurial spirit and growth will follow. Govi states, “Always look for creative people who are able to recognize the opportunity in front of them. Market- and game-changers require a different DNA.”
• Don’t be in a rush to hire. Tom says, “If you hire based on a person’s resume without looking at their personality and fit with your company culture, you are stuck with that person. Remember ‘no one’ in a position can do a better job than a bad hire. Interview multiple people at least three times before hiring—don’t forget due diligence—and pay attention to red flags.”
• Scalability is a key factor to success. Govi stresses, “Nimble growth can only be realized if you scale with agility and speed. Noveda went from 12 to 52 people in the last 18 months. Our goal is to soon be at 100 employees. To find great people I use networks, schools, and I even look to my friends at TriNet for assistance. HR outsourcing should be a collaborative partnership – an extension of your company not just a separate HR firm.”

Opportunity No. 2: management changes and layoffs for small- to medium-sized companies:

• Continually review teams to determine optimal size. Some departments may need to grow, while others may need to shrink. “I review people, processes, and strategy for at least two hours on a weekly basis so I don’t fall behind or become out-of-sync,” says Govi.
• When managing layoffs, be “pessimistically realistic” and cut boldly, give a generous severance, and maintain focus on the team that still remains. “Small, frequent cuts decrease morale and are more expensive in the long run,” says Tom.
• Don’t be afraid of management changes. Stability is important, but our CEOs say they have never looked back and wished they had waited longer to make major management changes when they were clearly necessary. Waiting only exacerbates the situation.

And finally, No. 3: how to deal with a growing company’s need for diverse employee benefits:

• As the workforce grows, employee needs become more complex. The ability to offer multiple plans that address changing and varying demographics is critical to success.
• Benefits absolutely make a difference in the ability to hire and retain top employees. Tom shares his formula: “Provide benefits that are better than what employees could get themselves, pay to market, share in success above market, and treat people well.
• Allow employees a healthy family/work balance. “I want their whole family to be excited about our employees’ jobs,” says Govi. “I want people who care and who want to make a difference in the world, and an employee can’t do that as well if their family isn’t on board.”

If you’re a client who participated in this webinar, help us keep the conversation going by providing your feedback in the comment section below. If you’re a client who  missed this first webinar, and are interested in more details, please reach out to your HCC for access to the presentation. As this is an ongoing series, if you’re eager to sign up for the next webinar, please let your HCC know.

To the small business owners, entrepreneurs and startup executives reading this post, if you’re interested in learning more about TriNet, please reach out to us for a free consultation.