Week 6 Blog:
Hiring dilemmas (Chapter 8, The Founder’s Dilemmas).
Keeping top performers (Conclusion, How to Hire A-Players).
A-Players want to stay with companies that they know they can progress with. Therefore they want to work for strong leaders who can help guide them to advance in their career. Strong managers and leaders help employees to want to perform better. Also making A-players want to stay with that leader or manager who encourages them and cares about their future. This will also help B-players want to be better to get to A-player level. Clarifying goals of the company and roles of responsibility will help employees to know what they should be focusing on. It is frustrating to employees when they feel they don’t know what they should be doing or what the goal is that they are trying to achieve. It’s always good to feel the sense of direction and purpose that you are working toward something. A-players don’t want to be overlooked and their work go unrecognized. They want appreciation and thrive through encouragement. I would want to go back to lost idea of incentives. Getting a greater reward for greater work. I think this also helps employees and especially A-players something to strive for and feel appreciated and acknowledged for their hard work.
The risk of hiring friends and family is what The Founder’s Dilemma, calls playing with fire. I think you should hire people based on their skill set and how they can help progress the company. If that happens to be a family member or friend then all the better if you know their work ethic and work experience. I do not agree with the thought of hiring someone just because they are your family or friend, but if they actually fit the need of the company, then I don’t see why not. The key is to see your work and personal relationship as two separate things. At work you deal with work issue and it doesn’t have to do with who they are it has to do with the issue at hand and trying to solve it together, and never blaming or pointing fingers. More go into with the approach that we are a team and if something goes wrong we handle it as a team. I don’t consider hiring friends and family playing with fire unless it is a bad hire and they are bringing the company down and you have to let them go. That’s why you need to choose the people you hire very careful and consider how they can help the company progress.
As a company transitions from startup to mature level the hiring decisions change. In the beginning startups hire more from their personal networks. They seek out generalists that can cover multiple areas of different job descriptions. They start employees off with lower cash compensation and higher equity compensation. As the company transitions it changes to hiring more impersonal contacts from executive search firms and investor networks. Responsibilities change from generalist to more specific job descriptions which is hard for some employees to transition to the changing needs of the company. Cash compensations get higher and equity compensation gets lower and turns into stock options. Read this article to learn more about the stages of a business lifecycle https://www.entrepreneur.com/article/271290.