Business Sherpa Group
Business Sherpa Group                       HR     Strength.                              Guidance.                       ...
BackgroundMargo Crawford  Ø    25+ years of HR experience (12+ years in start-ups as a        founder and business sherpa...
IntroductionThemes •    HR in start-ups today – best practices •    Planning your organization •    Recruitment vs. Strate...
What has changed…Start-up realities in 2012  •  Start-ups today know cash is king, so:     •  They will not grow larger th...
What has changed…Some additional pressures:  •  Finding people has never been easier; finding talent     has never been ha...
HR in start-ups – getting it rightSmall companies can be ‘best-employers’through:1.  Effective planning2.  Discipline with...
Business Plans & HR Plans – usual approach         HUMAN	  RESOURCES	                                                     ...
Organization Design Life Cycle Strategic“DEFINE”                                              •    Founders	  and	  early	...
Organization Design Life Cycle                                                                                   •  Expect...
Organization Design Life Cycle Strategic“DEFINE”                                                                          ...
So what!!! Strategic“DEFINE”                             May	  have	  Individuals	                               who	  cov...
So what!!! Strategic“DEFINE”                             In	  Cme	  will	  only	  be	                               able	 ...
So what!!! Strategic“DEFINE”                                                                                              ...
Impact on the company.Ø    Leaders drawn into day to day operational activities….not out in front of      customers enoug...
Plan the organization - not the headcountSo in planning the organization:   Ø    Consider the potential future critical g...
Features of strong organization planning  Key	            Run	  the	       Define	  ‘What’	                              Bu...
Financial                                                                                                                 ...
Executing on a plan – discipline & best practicesØ    Thinking about organization – sets foundation for many HR best     ...
Finding talent:     Strategic Sourcing vs. Recruitment                                                            Conventi...
Strategic Sourcing vs. Recruitment                                                                                 NEAR-­‐...
Strategic Sourcing & Recruitment                                    NEAR-ACTIVE       ACTIVE               PASSIVE CANDIDA...
HOW - Strategic Sourcing & Recruitment            Understand your perfect candidate!            Same principles as underst...
HOW - Strategic Sourcing & Recruitment         Understand your perfect candidate!         Same principles as understanding...
HOW - Strategic Sourcing & Recruitment            Understand your perfect candidate!            Same principles as underst...
HOW - Strategic Sourcing & RecruitmentUnderstanding who you are targeting; what they care about and how to reach themwill ...
Effective RecruitmentTight Execution is Key•  Know what you are looking for and when•  Think of a highly targeted approach...
Sourcing – a new world.                                                                                There is a LOT of n...
Sample Sourcing Strategy & Recruitment Plan                                      Business Sherpa Group
Social networking tools                Pro’s                              Con’s                                  TipsHuge ...
Social networking tools                                             90                                              ?     ...
Social networking tools                          Business Sherpa Group
Social Networking Tools – Best PracticesØ    Post your opportunities on your corporate Linked In and personal LIØ    Pus...
WRAP UP      The Case for Candidate Relationship ManagementØ    Increasing competitive pressuresØ    Sourcing tools crea...
WRAP UP      The Case for Candidate Relationship ManagementØ    Similar concepts to Customer Relation Management principl...
THANK YOU!QUESTIONS or COMMENTS                        Business Sherpa Group
12-­‐02-­‐10	     37	     Business Sherpa Group
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Human Resources and Recruitment in Startups - Entrepreneurship 101

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Emphasis on the importance of human resource planning early on in the start-up process by looking at the legalities of hiring employees, the process of recruiting and how to manage and pay employees.

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Human Resources and Recruitment in Startups - Entrepreneurship 101

  1. 1. Business Sherpa Group
  2. 2. Business Sherpa Group HR Strength. Guidance. Support.Entrepreneurship 101Human Resources &Recruitment in Start-Ups Business Sherpa Group
  3. 3. BackgroundMargo Crawford Ø  25+ years of HR experience (12+ years in start-ups as a founder and business sherpa) Ø  HR Professional of the Year Ø  Co-founder of Meriton Networks (optical networking start-up) from formation to sale 8 years laterBusiness Sherpa Group Ø  Business Sherpa Group is a full service HR team - from executive level to new grad HR professional – providing full HR functionality for small enterprises Ø  Supporting over 20 companies in Ottawa and Toronto Business Sherpa Group
  4. 4. IntroductionThemes •  HR in start-ups today – best practices •  Planning your organization •  Recruitment vs. Strategic Talent Sourcing •  Effective recruitment in 2012 Business Sherpa Group
  5. 5. What has changed…Start-up realities in 2012 •  Start-ups today know cash is king, so: •  They will not grow larger than they absolutely must •  Each new hire must = best decision for the next dime spent •  Marketing efforts focused on reach to customers, partners & investors - not on creating local presence •  May have to last longer before realizing an exit •  These are all significant hurdles for effective HR and recruitment Business Sherpa Group
  6. 6. What has changed…Some additional pressures: •  Finding people has never been easier; finding talent has never been harder •  Social media for professional use has been fully embraced and now is being exploited – creating a lot of noise •  Supply and demand – lingering tech bubble in Silicon Valley could become a threat locally •  Time and bandwidth pressures have not lessened!! Business Sherpa Group
  7. 7. HR in start-ups – getting it rightSmall companies can be ‘best-employers’through:1.  Effective planning2.  Discipline with best practices will save $$, time and build the best team and culture3.  Strategic talent sourcing vs. recruitment Business Sherpa Group
  8. 8. Business Plans & HR Plans – usual approach HUMAN  RESOURCES   MARKET   •  More  of  a  budgeCng   •  Customers   exercise  than   •  CompeCtors   organizaCon  plan   •  Partners   •  Headcount     •  Influencers   •  Maybe  a  Ctle   Product   •  posiConing   •  Maybe  a  level   SoluCon   FINANCIAL   Service   TECHNOLOGY   •  Business  case   •  Features  &  specs   •  Pricing,  costs,  margin   •  Technical  milestones   •  Resources  needed   •  Schedule  &  road  map   •  Investments  required   •  What  it  will  look  like   •  Budget   •  What  it  will  do   Business Sherpa Group
  9. 9. Organization Design Life Cycle Strategic“DEFINE” •  Founders  and  early  staff  take  on  mulCple  roles   •  Usually  a  build  up  of  technical  resources  (sr.  level)  Operational •  Selling  is  performed  by  CEO,  CTO,  founders   “PLAN” •  Board  –  focus  on  direcCon  and  advice,  supporCng  team   to  achieve  early  proof  points   Tactical “DO” Formation •  Proof points •  Get resources •  Achieve milestones •  Early customer engagement Business Sherpa Group
  10. 10. Organization Design Life Cycle •  ExpectaCons  focus  on  customer   Strategic engagement  “DEFINE” •  Technical  team  may  be  pulled  into   more  customer  based  acCviCes   •  Timelines  Cght  for  product  and   technical  deliveries  Operational •  AddiConal  financing  requirements   “PLAN” arise   •  Board  –  expectaCons  increase   around  customer  acCvity  and   accurate  reporCng  and  forecasCng   •  More  business  operaConal  needs  to   Tactical manage  more  staff,  transacCons  and   “DO” reporCng   Formation Pre-revenue •  Proof points •  Product ready •  Get resources •  Customer engagement wins •  Achieve milestones •  Clarity on forecast & results •  Early customer engagement •  Internal operations forming Business Sherpa Group
  11. 11. Organization Design Life Cycle Strategic“DEFINE” ExpectaCons  Operational in  all  areas   “PLAN” increase  and   intensify   Tactical “DO” Formation Pre-revenue In revenue •  Proof points •  Product ready •  Tight execution: design, build & delivery •  Get resources •  Customer engagement wins •  Internal operations smooth and robust •  Achieve milestones •  Clarity on forecast & results •  Strong performance/reporting •  Early customer engagement •  Internal operations forming •  Established customer base Business Sherpa Group
  12. 12. So what!!! Strategic“DEFINE” May  have  Individuals   who  covers  a  lot  of   territory  in  early  days  Operational “PLAN” Tactical “DO” Formation Pre-revenue In revenue •  Proof points •  Product ready •  Tight execution: design, build & delivery •  Get resources •  Customer engagement wins •  Internal operations smooth and robust •  Achieve milestones •  Clarity on forecast & results •  Strong performance/reporting •  Early customer engagement •  Internal operations forming •  Established customer base Business Sherpa Group
  13. 13. So what!!! Strategic“DEFINE” In  Cme  will  only  be   able  to  cover  porCons   of  requirements  Operational “PLAN” Tactical “DO” Formation Pre-revenue In revenue •  Proof points •  Product ready •  Tight execution: design, build & delivery •  Get resources •  Customer engagement wins •  Internal operations smooth and robust •  Achieve milestones •  Clarity on forecast & results •  Strong performance/reporting •  Early customer engagement •  Internal operations forming •  Established customer base Business Sherpa Group
  14. 14. So what!!! Strategic“DEFINE” Leaving   significant   criCcal   gaps  Operational CapabiliCes   “PLAN” may  be  limited   in  the  face  of   greater   expectaCons   Tactical “DO” Formation Pre-revenue In revenue •  Proof points •  Product ready •  Tight execution: design, build & delivery •  Get resources •  Customer engagement wins •  Internal operations smooth and robust •  Achieve milestones •  Clarity on forecast & results •  Strong performance/reporting •  Early customer engagement •  Internal operations forming •  Established customer base Business Sherpa Group
  15. 15. Impact on the company.Ø  Leaders drawn into day to day operational activities….not out in front of customers enoughØ  Leaders with a huge number of direct reportsØ  As scaling pressures increase – response is to add more bodiesØ  Start seeing major bottlenecks in some roles (doing too much and too many decisions flowing through one individual)Ø  Titles for early stage leaders – blocking senior leader hires at a latter stageØ  Mix of titles (reflecting what was offered vs. organization plan) – confusion over reporting, responsibilities, career pathØ  Board expectations not being met (reporting, performance)Ø  Challenges in hiring sales – sometimes too early, sometimes wrong DNAØ  Lack of separation of roles leading to weaker strategic decisions e.g. product management - development -sales Business Sherpa Group
  16. 16. Plan the organization - not the headcountSo in planning the organization: Ø  Consider the potential future critical gaps – feature these into your plan Ø  Also as you bring people in at different stages, consider if these hires will also leave gaps later on Ø  Consider that the requirements for planning, reporting, coordinating will increase – these will be important resources Ø  Individuals performing multiple roles will need to eventually gravitate to fewer or one…… plan to build in for separation of role Ø  There will always be the need to be looking forward from a market and technology perspective and at the same time address the market and technology now Business Sherpa Group
  17. 17. Features of strong organization planning Key   Run  the   Define  ‘What’   Build     Reach     Deliver     Design  FuncCons   business   market   technology   &  Test   &  Sell   &  Support   Generally   Marketing External   & Comms Prod. Head of Facing   CEO Mgmt. CTO Head of R&D Head of Ops. Sales Customer Support &  Sr.   Head of Design Head of Prod. Leadership   CFO Bus. Dev. Market. R&D Leaders Manufact. Sales Eng.           Prod. Bus. Dev.   “Define  &   Market. Plan”     Marcomms Logistics PM Install & TestGenerally   Controller Manuf Eng. Mark. Supp. Product Market Engineers Internal   Accountant Technical Supply chain Research Scientists Support Office Mgr. planners Lab Tech Sales Eng. Facing   HR Techs. Test Tech Media Trainer   Marketing QA Customer Purchasing Research Research collateral PM Support “Do”   IT assistant Relations assembly Sales Supp. Business Sherpa Group
  18. 18. Financial Technical Customer Milestones Milestones Milestones Milestones Organizational Seed Formation Early Proof of CEO CFO CTO (P/T?) PLM Customer Funding Concept BD Lead HR (P/T?) Series A Sales V.1 Customer Product R&D Sr. R&D Trials BD/ Marcomms QA Company Launch Strategic SE s V.1 GA Revenue R&D Product Int./Jr. Strategic Admin. Support Sales Customer (Hunter) Sales Series B (F/T) VP CFO Repeat V.2 Sales Sales Product + Margin Revenue New Sales VP Accounts (Farmer) Marketing V.2 GA Product Yearly Accountant COO? Repeat Revenue Sales Growth HR (F/T?) Sales Support New V.1 Accounts Series C Sustaining Repeat Quarterly Sales Support Customer Revenue Growth Integrating Organization Plan & Business Plan New V.2 Accounts IPO/M&A SustainingBusiness Sherpa Group
  19. 19. Executing on a plan – discipline & best practicesØ  Thinking about organization – sets foundation for many HR best practices: Ø  Job levels and compensation planning Ø  Clearer understanding of what is required in roles Ø  More compelling job descriptions Ø  Effective sourcing and recruitmentØ  Other foundational HR best practices critical for optimizing performance: Ø  Setting out employment terms, policies and practices Ø  Looking at total rewards; not just salary – benefits, options, career growth, incidental rewards Ø  Performance management Ø  Employment agreements, protecting IP and confidential information Ø  Professional development & employee engagementØ  Not out of reach – many ways of achieving best practices Business Sherpa Group
  20. 20. Finding talent: Strategic Sourcing vs. Recruitment Conventional sourcing BUT this is a very strategies really only competitive market! target active or near- active candidates. NEAR-ACTIVE ACTIVE PASSIVE CANDIDATE CANDIDATE CANDIDATECareer  Sasfacon  Factors  Like  People  Happy  in  Job  CompensaCon  SaCsfactory  Career  is  growing  Learning/having  new  experiences  ExciCng  Work  Fulfilling  other  needs  (altruisCc)   Business Sherpa Group
  21. 21. Strategic Sourcing vs. Recruitment NEAR-­‐ACTIVE   NEAR-ACTIVE ACTIVE   ACTIVE PASSIVE CANDIDATE   PASSIVE  CANDIDATE CANDIDATE   CANDIDATE CANDIDATE   CANDIDATE Perfect Candidate Active Near Active Active Active Near Active Near Active AcCve   Active Near Active Active This approach ignores a very Near   AcCve  This approach is not large addressable market Near   AcCve   Active AcCve   AcCve   Active Activetargeted to the perfect Activecandidate for the Active Activecompany. Near Most sourcing draws in Active Active Active those actively or thinking about a career change. Active Business Sherpa Group
  22. 22. Strategic Sourcing & Recruitment NEAR-ACTIVE ACTIVE PASSIVE CANDIDATE CANDIDATE CANDIDATE Effective Recruitment Campaigns CRM – Candidate Relationship Management Program Active Active Near Active Business Sherpa Group
  23. 23. HOW - Strategic Sourcing & Recruitment Understand your perfect candidate! Same principles as understanding your customerSEGMENTATION •  Research the profile of the perfect candidate for each role •  What are the attributes, behaviours, career patterns and indicators of high potential •  What are the relevant career satisfaction factors Ø  This will inform key messages to these target candidates Ø  AND channels to reach them Business Sherpa Group
  24. 24. HOW - Strategic Sourcing & Recruitment Understand your perfect candidate! Same principles as understanding your customerMESSAGING •  Based on what you know and what you discover – develop the messages and brand that speaks to these passive candidates •  GOAL is to implant the idea of your company as a career choice to all passive and active ideal candidates •  This messaging will be heard through branding, recruitment activities, marketing programs, speaking notes, and on-line activities and promotions Business Sherpa Group
  25. 25. HOW - Strategic Sourcing & Recruitment Understand your perfect candidate! Same principles as understanding your customerCHANNELS •  Based on what you know and what you discover – develop strategic sourcing programs that address a full spectrum of channels to REACH the active, near- active and passive candidates •  Develop plans and programs with a view to: Ø  find talent Ø  nurture relationships Ø  convert passive candidates to active candidates Ø  close on perfect candidates Business Sherpa Group
  26. 26. HOW - Strategic Sourcing & RecruitmentUnderstanding who you are targeting; what they care about and how to reach themwill result in: 1.  Clarity on what a successful candidate looks like for your organization And avoid hiring based on what skills present themselves 2.  Creating a compelling job posting that will speak to the best candidates for your company – giving higher likelihood of good matches And avoid generic descriptions that cast a wide net and loses the interest of your highest potential hires 3.  Allows you to roll out an effective recruitment campaign that will reach the target candidates that are best for your organization Avoid shotgun approaches that can be noisy and expensive that miss reaching your high potential hires Business Sherpa Group
  27. 27. Effective RecruitmentTight Execution is Key•  Know what you are looking for and when•  Think of a highly targeted approach•  Process from start to ‘in-seat’ will generally take no less than six weeks WITH all stars aligning – plan for 2 months or more if highly specialize role•  Think before you act – a little preparation will make the effort much more productive Focus in on a tight plan in the context of a bigger picture CEO HR QA Admin. Accountant COO? (P/T?) Support HR CFO (P/T?) Sr. R&D CFO (F/T?)Organizational R&D Int./Jr. (F/T) VP CTO MarketingMilestones Lead R&D Sales Customer PLM Marcomms VP (Hunter)Sales Sales Sales Support SE s (Farmer) Support BD/Sales Business Sherpa Group
  28. 28. Sourcing – a new world. There is a LOT of noise!!!High Cost Process Executive Search Recruitment Firms Internal HR Employee Referral Program Job Board Social Networking Employee Trusted Individual Low Cost Recommendations Word of Mouth Endorsement Process Low Credibility High Credibility Sourcing Sourcing Business Sherpa Group
  29. 29. Sample Sourcing Strategy & Recruitment Plan Business Sherpa Group
  30. 30. Social networking tools Pro’s Con’s TipsHuge reach in all geographies Volume is overwhelming Filter your search in terms of geography and use additional filtersCan reach specific individuals who Will be contacted by many who Use In-mails to send customizeseem to be a good fit think they are a good fit messages to candidates of interest AND follow upCan post jobs Any posting will get a huge Compelling description that speaks response from candidates around to the candidate you want to reach the world will allow for easier filteringCan target communities by Some user communities shun Preferable to have outreach fromconnecting with user groups and recruitment efforts someone in the companyusing other social media Some user groups have job boardsCan see recommendations on Some have become expert at Filter the recommendations – whichindividuals getting referrals from everyone – ones do you trust more noise Still do your own reference checksLots of statistics to look at about You have to read into these to Read with a note of skepticism –companies and individuals understand what is self-promotion always do your own due diligence vs. legitimate signs of excellence Business Sherpa Group
  31. 31. Social networking tools 90 ? 69 Business Sherpa Group
  32. 32. Social networking tools Business Sherpa Group
  33. 33. Social Networking Tools – Best PracticesØ  Post your opportunities on your corporate Linked In and personal LIØ  Push out to target communitiesØ  Search and contact those of interest with In-mail or call; customized contact onlyØ  Trust your own networks – with a critical eyeØ  Consider Ad-words to create presence in relevant communitiesØ  Post messages or tweet opportunitiesØ  Give attention to your company’s corporate profile Business Sherpa Group
  34. 34. WRAP UP The Case for Candidate Relationship ManagementØ  Increasing competitive pressuresØ  Sourcing tools creating a lot of noiseØ  Recruiters – still the most expensive optionØ  Small teams = more accurate recruitingIt is not hard – you know your perfect candidate IF you think about it inadvance! Ø  Use this knowledge to describe what you are looking for and what you offer Ø  Use this to set a sourcing strategy – who to target, where to target and what messages to use Ø  Use this knowledge to screen and select your perfect candidate Ø  Manage relationships with passive candidates – let them know about you BEFORE you need them and before they think about career changes Business Sherpa Group
  35. 35. WRAP UP The Case for Candidate Relationship ManagementØ  Similar concepts to Customer Relation Management principlesØ  Once you identify high potential targets – you want to nurture the relationship Ø  Let them know about you Ø  Contact them periodically with your news Ø  Network with them Ø  Let them know about you before they are thinking about a decision on their careerØ  This can be as sophisticated or as simplistic as you wish – the goal is the philosophy of nurturing relationships – founded on knowing your high potential candidates Planning the organization & knowing what you want and need will ultimately drive TALENT MANAGEMENT SUCCESS !! Business Sherpa Group
  36. 36. THANK YOU!QUESTIONS or COMMENTS Business Sherpa Group
  37. 37. 12-­‐02-­‐10   37   Business Sherpa Group
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