How to Avoid Burnout

Employee Burnout

When we asked for advice about avoiding burnout, our inbox just about blew up. We received more tips on this topic than any other we’ve written about so far, and the emails are still coming. Read on for the best of the bunch, from entrepreneurs who have never lost their way to those who have succumbed but managed to reignite their passion. Then drop us a line and let us know how you stay resilient.

“As a serial entrepreneur and someone who’s managing multiple businesses simultaneously, I have firsthand experience with burnout—and how to avoid it. My top pointers: (1) Pare down to square up. List each month’s top 10 absolute must-do tasks. Whittle them down to three. Accomplish these first. (2) Don’t prioritize your schedule. Schedule your priorities. Ignore the rest. (3) Do something dissimilar. Cultivate an enjoyable discipline or hobby, which will refresh and reinvigorate.”
—Chetan Rao, co-founder, Wodehouse Tea

“As an entrepreneur who ended up in the hospital from adrenal failure, I have definitely been there. Business owners have to work long, hard hours, especially in the beginning. You would think I would have slowed down, but I still work 12–14 hours a day. The difference is the level of stress. If I’m working long hours without too much stress, and if I make the work fun, I can handle it. But you have to know your own body and when you need to slow down or stop. That’s a hard thing for a business owner to do. If you can’t figure it out, take frequent breaks. Do something mindless. It makes a big difference.”
—Julie Austin, CEO, Creative Innovation Group

“You may be tempted to cancel plans with friends, take business calls while out and about, or even spend family dinners on the computer—all to prioritize your business. But far too often entrepreneurs hit a wall and burn out by working this way. Having a work-life balance will increase your overall satisfaction and will likely lead to more productive time spent on work. The trick is to set a schedule for yourself and make sure you stick to it. Over time, you’ll start to focus on the most important work because you will treat your time off more seriously and will have to prioritize accordingly.”
—Siavash Ghazvinian, entrepreneur and owner, EthicalTree

“The advice I would give a founder on the edge of burning out is to immediately step away from work. It is much better to take a holistic attitude about trying to accomplish tasks over the long run than trying to cram too much work into a short period of time. Immersing oneself in work when in burnout mode is counterproductive.”
—David Reischer, Esq., CEO, LegalAdvice.com

“I’ve burned out twice, and am now more productive on a 40-hour work week. I work less but am substantially more productive. Silicon Valley has built an unhealthy culture of ‘hustling’ that looks good on the surface to investors and the market, but ultimately the quality and pace of output isn’t where it should be. Working smarter, shorter hours has led me to the most productive years in my career. I now operate two businesses and am at peak productivity.”
—Adrian Del Balso, CEO, Little Universe

“You have to learn to take a step back and ruthlessly prioritize. Here are two things I found particularly helpful: (1) Stop doing unnecessary work. Not everything you are doing is adding value. Have you heard of the 80:20 principle? It shows that with 20 percent of the work you can deliver 80 percent of the value. Take a look at everything you’re doing, automate what you can, and stop doing the stuff that isn’t adding value. (2) Be generous and give to others. I know it seems counterintuitive to add something to your already full plate, but trust me, it’s worth it. From my own experience, I have found volunteering to be hugely beneficial to my mental health and stress levels.”
—Claire Whittaker, product manager, Amazon UK; writer, Artificially Intelligent Claire

“Burnout was a constant struggle until I made a simple behavioral change: taking one day per week off from working. I tend to burn the candle pretty hot through the work week and then often much of the day on Saturday as well, but I take Sunday completely off. No email, no calls, no work-based productivity of any kind. For me, this day of ‘not being allowed’ to work is incredibly restful because I don’t have to worry about whether I need to be working. The decision has already been made, and now I can just enjoy the rest.”
—Grant Hensel, CEO, Nonprofit Megaphone

“The key to avoiding burnout, especially as your company grows, is the ability to delegate. If you want to grow, you have to learn to let go! One of the things that has helped us enormously is creating playbooks for each of the positions in our office. This is a full how-to, complete with screenshots, so it’s very easy to onboard new employees and ensure that what you expect from them is 100 percent clear.”
—Serena Holmes, president and CEO, Tigris Events Inc.

“This is a really important topic that has a bit of stigma attached to it. Being an entrepreneur is no easy feat. Before I start to burn out, I look for a little pick-me-up. It’s never a substance—rather, it’s a social interaction. My team members know I’m their leader, but that doesn’t mean I have to be rock solid 100 percent of the time. I have identified several team members who I’m able to turn to, each for a different purpose: one I go to for advice, another for a funny story or quick joke, someone else when I just need to blow off a little steam, and yet another when I need someone who’s always game for a little physical activity to reenergize. This strategy might sound simple, and it is. It is okay for a leader to be human and to need social support.”
—Reuben Yonatan, founder and CEO, GetVOIP

“My company, Robin, launched as a B2C startup in 2016. A little more than a year later we recognized that regardless of how much effort and how many hours we invested in making the business work, we simply didn’t achieve sustainable growth. Thus, we decided to transform Robin into a B2B business. In the process of admitting defeat…and starting from scratch, I experienced enormous stress, insomnia and even panic attacks, especially before meetings with investors. To get back on my feet and avoid a complete burnout, I [engaged in] substantial self-reflection, which resulted in a complete change of my personal habits. I started maintaining a sustainable routine that included eight hours of sleep, less coffee, less alcohol and a healthy balance between time invested in [work] and my personal life.”
—Adam McIsaac, CEO, Robin Media Inc.

“An extremely valuable process to learn about and perfect is time management. By moving your mindset from a constant state of trying to find more time (which is a major contributing factor to burning out) to understanding how to best structure your time, your conception of success could look a little healthier.”
—Kate Brodock, CEO, Women 2.0

“Prior to founding my business, I was involved in several early-stage, venture-backed startups. To say that I’ve ‘been there’ is an understatement! For me, the thing hanging between staying sane and balanced versus being burned out is avoiding the temptation to try to do everything. That meant drawing clear distinctions between which activities I or my team would manage, and which activities we were knowingly putting on the back burner. In my current business, we are focused on three key marketing areas: research, strategy and operations. The know-how exists internally to do a whole host of other marketing activities, everything from content writing to social media to PR. But we’ve learned to say ‘no’ and stay focused. Trying to tackle everything means no activity gets the full, undivided attention it deserves.”
—Laura Troyani, founder and principal, PlanBeyond

“Human brains were not designed to multitask. Focusing your mental energy can help you get more things done without burning out. I recommend starting each Monday by planning out your must-do projects and blocking out non-negotiable work time (in segments of 1.5–2 hours) on your calendar. You’ll be able to sprinkle in smaller to-dos throughout the week while ensuring you’re accomplishing the biggest tasks that are most impactful to growing your business.”
—Kara Fasone, PhD, co-founder and chief wellness officer, Wise & Well Academy

“Having been an entrepreneur for 20-plus years with three different businesses, I have been through several burnout periods. Most entrepreneurs I know are excited by new challenges, and when you are in the weeds trying to address those challenges, it’s the most thrilling part of being an entrepreneur. You may be working crazy hours, but the adrenaline and drive to solve the problem keeps you motivated and moving forward (well, that and lots of coffee and bourbon). It’s only after the challenge has been addressed and the post-surge hangover sets in that burnout starts to rear its ugly head. There are two ways I have found that keep this roller-coaster ride from turning into burnout. One is to cap my workload at 55 hours. After 45 hours, I’m not very productive, and I have found that the law of diminishing returns applies once I hit 55 hours. The second way I keep myself motivated is by never finishing a project without having the next challenge already in mind. For example, we recently revamped our product offerings and overhauled our website for the first time in four years, which was a big undertaking. But before we finished that project, I already knew that my next project would be implementing a better lead-gen process. I am really enjoying it, and it’s opening up new ideas and strategies, which I find exciting.”
—Jeff Kear, owner, Planning Pod

“Go to sleep with a clean mind (and inbox). I’m a big believer in not letting your inbox pile up, causing you stress overnight. Finish your work for the day, and then turn the phone off for a solid couple hours before sleep. Celebrate small wins. It’s super important to recognize the ups, because you are for sure worrying about the downs.”
—Adam Tishman, co-founder and CEO, Helix Sleep

“Avoid shiny object syndrome. As entrepreneurs, it’s so easy to get overwhelmed by all the social media platforms and marketing strategies out there. Trying to master them all will just lead to burnout. Pick a few strategies that play to your strengths, and focus on those.”
—Taylor Mack, owner, SilverFire Books; social media marketing strategist, Small Biz Refined

“Find the ‘why’ behind your business. If you’re just in business for the money, then you might as well have a job. Why did you start your business? What would your customers lack if you didn’t do what you do? I can honestly say that I could die tomorrow and know my life mattered because every single day I am blessed to impact my clients’ lives and businesses. They say when you love what you do, you never work a day in your life. That’s true. It’s not the coaching that wears me out—that energizes me! It’s the networking and selling and billing and collecting and taxes, etc.—all the stuff that’s NOT coaching. But then I come back to why I do that stuff—to impact people’s lives and businesses—and it’s all worthwhile.”
—Elene Cafasso, MCC, Enerpace, Inc., Executive Coaching

“It’s incredibly important not to forget about self-care. When you’re starting a business, you really do put every bit of yourself in it, and days can get extremely long. When I got an angel investor and was able to hire full-time staff, it reduced stress dramatically. I hired good people I could trust and offloaded responsibilities to them, and now am able to work a 40-hour week. Another thing is, treat yourself like you treat your employees. Take that darn vacation. The company will not fall apart without you.”
—Michael Sunderland, managing director, Full Stack Talent

 

“I founded a business in my parents’ garage after leaving a lucrative job in finance. I worked on my businesses for several years without seeing any reward, and on many occasions experienced burnout. I poured everything I have into my businesses. I have plenty of experience with managing stress and finding an effective way to recharge my batteries: (1) Delegate smaller tasks. I hired a part-time executive assistant purely to manage my calendar, emails and appointments. (2) Mandatory Sundays off. It’s the only way to get a real breather each week. (3) Start work early. I noticed that I am incredibly inefficient when I work later at night, so I force myself to go to bed relatively early so that I can get up at 5 a.m. The early morning gives me a chance to work without interruption. (4) Do not listen to podcasts. I used to incessantly listen to podcasts throughout the day, during my commute and when I got home. I noticed that they were contributing to my stress since they kept my brain constantly firing. I’ve since switched to music.”
—Jeff Rizzo, CEO, RIZKNOWS and The Slumber Yard

“We don’t take on clients or jobs that aren’t the right fit for us. We know who our customer avatars are, and if an opportunity presents itself that isn’t a great fit, we won’t take it just because the money is there. We won’t let money be the force that drives us to burnout.”
—David Gafford, founder and CEO, Fusion Creative

“I take a break during the day to take a walk or do a workout. While I’m walking I’ll listen to a podcast about entrepreneurship. The physical activity helps my body relax, and when I’m listening to an inspirational story from an entrepreneur, I get back to work energized and ready to face any challenges that come my way.”
—Raya Khashab, co-founder, EzClocker

“Psychology is without a doubt the hardest part of being an entrepreneur. I’ve been able to keep up my fighting spirit despite often working long hours. There are a few things that have really made a difference: Being passionate about the business itself, not the end results; taking care of my physical fitness with challenging workouts, enough sleep and a healthy diet, and having great co-founders and colleagues. Since you’re going to be working a lot, it’s really important that you enjoy spending time with the people you work with.”
—Jesse Nieminen, co-founder and chairman, Viima

How to Deal with HR Issues When You Don’t Have an HR Department

work conflict

The human resources function has changed markedly in the past few decades. The department that has historically been tasked with managing benefits, payroll and the hiring process now plays an integral role in shaping corporate strategy, developing leaders, creating policies and seeing companies through volatile times. Startups can use HR strategically to help shape the company culture, manage employee relations, attract and retain talent, and minimize risk to the business. But what do you do if you don’t have an HR function? Laura Burgess, PHRca, SHRM-CP, CHRS, an HR business partner at Murdock Martell, weighs in.

Connecticut Innovations: Thanks for talking to us, Laura. Let’s dive right in. Most early-stage startups don’t have an HR department. Are there HR policies they should put in place anyway?

Laura Burgess: It really depends. A startup could need wage and hour policies immediately if it has exempt and non-exempt employees, and it could need travel and expense policies if it has a significant number of sales employees or employees who travel for business. It could also need a basic handbook accompanied by manager training to ensure consistency and a positive company culture.

CI: What should HR policies cover?

LB: I recommend a handbook. When working with a startup, I start with a handbook questionnaire and then customize the handbook for the startup. The discussion about the handbook offers the company’s founders a good starting point for topics to think about and helps ensure that employees understand the company’s expectations. It can take only a few hours to get a major document in place.

CI: In the absence of an HR lead, who should handle HR issues?

LB: It is important for HR to handle HR issues. An HR consultant is less expensive than reaching out to your employment attorney. An HR consultant can also work within the company’s financial constraints. Many times when I’m working with an early-stage startup, I am asked to stay within a specific budget.

CI: Is it necessary to devote time to onboarding, or should new hires expect to be thrown into the deep end?

LB: Onboarding is a very important component of company culture and growth. It does not take much time to set up the onboarding process with a canned email, a package of all required forms, and some follow-through.

CI: How do you keep employees happy when there’s not much opportunity for growth?

LB: The startup is the opportunity for growth. The startup needs to position the job as one where the new hire will wear many hats (job roles) and continuously grow as the company grows. The opportunity to define and perfect a role can challenge an employee. Employees grow by personally defining what they like and do not like about several roles they may have in a company.

CI: How important are performance reviews? A lot of startups skip them.

LB: Most startups skip performance reviews until they have about 30 employees. Performance reviews can be conducted at any size company, but generally they’re not necessary until the company enters high-growth mode. The tool then becomes important for evaluating employees, role needs and compensation practices.

CI: What’s the best way to terminate a poor performer? Is there a way to limit risk to the company? What if the employee is in a protected class?

LB: Document, document, document. Most states are “at-will.” If your startup is in a litigious state, however, an employee can file a claim for anything. It is always best for the company and the employee to have documentation around poor performance. It is also important that the company show that it was fair and reasonable in its approach to the decision. Some startups have every terminated employee sign a separation agreement whereby the terminated employee releases any claims against the company.

CI: What options are there for startup employees who feel they’re being harassed or discriminated against?

LB: Employees should reach out first to their immediate supervisor or manager. If that’s not a viable option, they should reach out to an executive-level member of the startup. Harassment and discrimination should never be tolerated, and employees should have written steps and processes to follow if they feel they are being harassed or discriminated against.

CI: What’s the best way for a startup to handle
…office romance? 

LB: Communicate to all employees the expectations around office relationships. Create a policy expressing the expectations.

…hygiene issues?

LB: Hygiene issues need to be handled kindly and sometimes delicately. Sometimes a manager can discuss the issue privately with the employee. This is also something an HR consultant could come on site to do.

…hostility/fighting among employees? 

LB: Expectations should be set through manager communications, through company leaders and in written policies that outline the expectation of behavior and the consequences.

…an employee who needs to take extended leave to care for a family member or undergo medical treatment?

LB: This is a strong reason for an HR consultant or internal HR person. In federal and state law there are many rules, processes and forms to comply with. It is important to provide fair and consistent practices when applying the laws and regulations around leaves of absence.

CI: If a startup decides to hire a consultant, what should it look for?  

LB: Human resources is a large field with lots of people who may specialize in one area, such as compensation or employee relations. HR-related startup needs include compliance, payroll, policies, onboarding and terminations. Startups should make sure the consultant they hire specializes in startups and has several years of experience. It is good to look for someone that has a PHR or SPHR certification from HRC (HR Certification Institute) or an SHRM-CP or SHRM-SCP certification from SHRM (the Society for Human Resources Management). This shows that they are a member of an HR group and have good resources behind them.

CI: Anything else startups should know with regard to HR? 

LB: It is not expensive to get advice and guidance from an HR consultant. By doing so, as the company grows it will ensure that it is constantly staying compliant and putting into practice policies and processes that protect the company and show employees that the company values them.

CI: Thank you, Laura.

LB: You’re welcome.

Laura BurgessLaura Burgess consults with startups in technology and life sciences and specializes in compliance, process improvement, handbook and policy creation, employee relations and training. Reach her at lburgess@murdockmartell.com.

 

Simplifying HR, Benefits and Payroll with Technology

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applicants sitting waiting for interview

Whether your company is firmly established with hundreds of employees or is a new, two-man startup, managing your human resources, benefits and payroll functions is not an easy job. The employee responsible for those areas must stay on top of an increasing number of reporting rules, federal and state regulations and data management requirements, and, unless your systems are integrated, likely is not able to make complex decisions quickly. Tracking data through disparate manual systems and complying with myriad rules and regulations can be a costly drain on resources, leaving your employee frustrated and your company vulnerable to risk. Fortunately, new digital services designed to streamline these functions are cropping up everywhere. Read on to see if one might be right for you.

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Team Building Ideas for Small Businesses

[cs_content][cs_section parallax=”false” separator_top_type=”none” separator_top_height=”50px” separator_top_angle_point=”50″ separator_bottom_type=”none” separator_bottom_height=”50px” separator_bottom_angle_point=”50″ style=”margin: 0px;padding: 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][x_image type=”none” src=”http://ctinnovations.com/wp-content/uploads/2017/04/Content-Detail-Paper.jpg” alt=”” link=”false” href=”#” title=”” target=”” info=”none” info_place=”top” info_trigger=”hover” info_content=””][/cs_column][/cs_row][/cs_section][cs_section parallax=”false” separator_top_type=”none” separator_top_height=”50px” separator_top_angle_point=”50″ separator_bottom_type=”none” separator_bottom_height=”50px” separator_bottom_angle_point=”50″ style=”margin: 0px;padding: 45px 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][cs_text]Team Building ideas for a Small Business
team building meeting

Looking to ensure that your team stays focused and collaborative? Read on for some fun, free team-building exercises you can do to open the lines of communication and keep everyone on task.

 

 

 

 

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How an Intern Can Impact a Small Business

[cs_content][cs_section parallax=”false” separator_top_type=”none” separator_top_height=”50px” separator_top_angle_point=”50″ separator_bottom_type=”none” separator_bottom_height=”50px” separator_bottom_angle_point=”50″ style=”margin: 0px;padding: 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][x_image type=”none” src=”http://ctinnovations.com/wp-content/uploads/2017/05/Content-Detail-Headphones.jpg” alt=”” link=”false” href=”#” title=”” target=”” info=”none” info_place=”top” info_trigger=”hover” info_content=””][/cs_column][/cs_row][/cs_section][cs_section parallax=”false” separator_top_type=”none” separator_top_height=”50px” separator_top_angle_point=”50″ separator_bottom_type=”none” separator_bottom_height=”50px” separator_bottom_angle_point=”50″ style=”margin: 0px;padding: 45px 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][cs_text]How an Intern Can Impact a Small Business

Thinking about hiring an intern for your company? Concerned that training one will be too much work, or just plain not worth it? Wondering how an intern can contribute to your company? This podcast features representatives from three Connecticut companies that have had great experiences hiring interns. You’ll learn:

  • How to find and hire interns
  • What types of projects interns can work on
  • How interns can benefit your company
  • What lessons the companies learned after working with interns
  • and more
If you’re interested in hiring your own intern, our Technology Talent Bridge Internship program may be able to help subsidize the cost.

The podcast:

About the Participants

Dawn Alderman

Dawn AldermanDawn Alderman is director of automation and production at AxioMx Inc. Dawn applies the latest in epigenetic technology, leading the production of affinity reagents for some of the most challenging targets for customers worldwide. Previously, she was a scientific manager at Affomix (now a part of Illumina). Earlier in her career, Dawn conducted research at Neurogen Corporation and VaxInnate. Dawn also serves as an adjunct faculty member at the University of New Haven. You can contact Dawn at dalderman@axiomxinc.com.

 

 

Dan Delventhal
Dan DelventhalDan Delventhal is director of sales and marketing at KenCast Inc. of Norwalk. Prior to joining KenCast in 2013, Dan was vice president of business development at RecoveryPlanner.com, a leader in business continuity planning and management software and consulting. Previously, he was CEO at CONNECTapps.net, a hosting and IT solutions company he founded and later sold to employees. He also founded and owns MowGreen, an organic, gasoline-free lawncare company. You can contact Dan at dandelventhal@gmail.com.

 

 

Bruce Seymour
Bruce SeymourBruce Seymour is the managing director of MEA Mobile, a product lab based in New Haven. MEA Mobile is Connecticut’s leading mobile and web specialist, having developed over 300 apps and websites for clients since 2012. Bruce is a registered MSI Global Expert and the inventor of four patents. He is a proud member of the Connecticut Technology Council and passionate about apps, Irish stone walls and Connecticut startups. You can contact Bruce at bruce@meamobile.com.

 

 

Dong Wang
Dong WangDong Wang is manager of production at AxioMx Inc., a provider of rapid antibody development and production services. The custom, synthetic antibody fragments produced are used by customers in life science research, diagnostic tests and therapeutics development. Dong has extensive knowledge and experience in protein discovery. He was previously protein production group leader at Illumina, senior research associate at Affomix and a biochemist at Arvys Proteins. You can contact Dong at dwang@axiomxinc.com.[/cs_text][/cs_column][/cs_row][/cs_section][cs_section parallax=”false” separator_top_type=”none” separator_top_height=”50px” separator_top_angle_point=”50″ separator_bottom_type=”none” separator_bottom_height=”50px” separator_bottom_angle_point=”50″ class=”cs-ta-left” style=”margin: 0px;padding: 45px 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][x_image type=”none” src=”http://ctinnovations.com/wp-content/uploads/2017/04/backtocontentlibrary.png” alt=”back to content library” link=”true” href=”http://ctinnovations.com/access-content-library/” title=”” target=”” info=”none” info_place=”top” info_trigger=”hover” info_content=”” class=”back-image”][/cs_column][/cs_row][/cs_section][/cs_content]

Hire a Payroll Vendor?

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Weigh the Pros and Cons of Payroll Outsourcing 

Payroll is a complex function that involves detailed and confidential recordkeeping, tracking and reporting – and businesses must be sure to comply with diverse regulatory requirements. So, should a business tackle this in-house or turn to a skilled vendor that can handle that function for the enterprise? What are the pros and cons?

To answer these questions, we compiled advice from an article that Paychex shared with us and turned it into an infographic. You can download it below.

 
Link to PDF[/cs_text][/cs_column][/cs_row][/cs_section][cs_section parallax=”false” class=”cs-ta-left” style=”margin: 0px;padding: 45px 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][x_image type=”none” src=”http://ctinnovations.com/wp-content/uploads/2017/04/backtocontentlibrary.png” alt=”back to content library” link=”true” href=”http://ctinnovations.com/access-content-library/” title=”” target=”” info=”none” info_place=”top” info_trigger=”hover” info_content=”” class=”back-image”][/cs_column][/cs_row][/cs_section][/cs_content]

Why Outsourcing HR May Be the Smartest Decision Your Business Makes

[cs_content][cs_section parallax=”false” separator_top_type=”none” separator_top_height=”50px” separator_top_angle_point=”50″ separator_bottom_type=”none” separator_bottom_height=”50px” separator_bottom_angle_point=”50″ style=”margin: 0px;padding: 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][x_image type=”none” src=”http://ctinnovations.com/wp-content/uploads/2017/04/Content-Detail-Paper.jpg” alt=”” link=”false” href=”#” title=”” target=”” info=”none” info_place=”top” info_trigger=”hover” info_content=””][/cs_column][/cs_row][/cs_section][cs_section parallax=”false” separator_top_type=”none” separator_top_height=”50px” separator_top_angle_point=”50″ separator_bottom_type=”none” separator_bottom_height=”50px” separator_bottom_angle_point=”50″ style=”margin: 0px;padding: 45px 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][cs_text]Benefits of HR Outsourcing – Why it May be a Smart Decision
applicants sitting waiting for interview

HR may sound boring, but it’s important. Learn how venture-backed small businesses can benefit from doing it right.

According to a Harvard Business School study, as many as 75 percent of startups fail. Essentially, the companies in the study couldn’t generate a profit in order to pay back their investors. As many business owners know, being profitable is not just about creating a successful product or solution and selling it, but also sorting out how to efficiently and effectively manage day-to-day operations, like human resources (HR), within a budget, which in turn affects the bottom line.

Developing a value proposition, gaining traction in the market and trying to make sense of the overall business model is tough. Having the right people on your team eases these challenges. Although HR can be difficult for businesses of any size, the growing complexity of managing HR processes today presents a significant challenge for small companies starting out – in particular, because these companies have fewer resources.

Scope and Complexity of HR

HR is not only about hiring and firing. It’s also about offering benefits that attract and help retain workers, such as healthcare benefits, retirement plans and workers’ compensation insurance; procuring time, expense and payroll management tools that keep employees paid and happy; and complying with employment law. HR has become even more complicated in the past 20 years due to regulatory compliance issues like the Affordable Care Act and the Lily Ledbetter Act. Noncompliance with these acts can cost companies dearly in expensive legal fees and penalties.

“Noncompliance with the Affordable Care Act and the Lily Ledbetter Act can cost companies dearly in legal fees and penalties.” Click to tweet.

Options for Managing HR

Employers can try to manage HR themselves, but such internal HR handling distracts from managing core business matters. Employers, particularly those with limited resources, find it hard to keep apprised of the latest HR laws when their attention is needed elsewhere. Although hiring someone full-time in-house is an option, it may not be cost effective for a small company.

To minimize the challenges posed by HR management, startups can turn to HR outsourcing companies. HR outsourcing companies can take care of services such as payroll administration, employee benefits, and HR management like recruiting, hiring and firing. They also provide risk management tools in connection with compliance, legal and related risks such as workers’ compensation, employee practices liability insurance and company policies. In addition to providing more time to address issues outside HR, outsourcing HR helps employers stay current with state and federal regulations and reduces the risk of employee litigation. At its best, HR outsourcing organizations operate as a strategic and aligned business partner with the company, which in turn allows the company to better plan for future growth.

Here are some numbers to consider. According to a Small Business Administration study, the average small business owner spends 25+ percent of his or her time handling employee-related paperwork. This average can increase to a staggering 35-45 percent if the tasks include recruitment, hiring and training of new employees. HR outsourcing companies save business owners time by taking on this burdensome responsibility, while helping them remain compliant.

Even better, outsourcing HR can save companies money. For example, HR outsourcing companies are often able to offer their customers healthcare discounts of roughly 2 to 5 percent. Savings can jump even higher when HR outsourcing companies bundle a variety of HR services (e.g., healthcare, payroll and staffing) for customers.

“HR outsourcing companies are often able to offer their customers healthcare discounts of roughly 2 to 5 percent.” Click to tweet.

Types of HR Outsourcing Providers

If a startup company decides to make the move to an HR outsourcing provider, it’s important to know that such providers come in a few varieties. Some offer comprehensive packages, while others allow you to pick and choose what you need. Most fall into these four basic categories:

  • Professional employer organization (PEO): assumes full responsibility of human resources administration, essentially becoming a partner of the company. It becomes a co-employer of a company’s workers. Employer responsibilities are shared or allocated between the company and the PEO. This includes legal requirements for employers and responsibilities for hiring, firing and financial compensation. As full-service providers, they often provide services like on-call consulting, sending consultants who will come in to train staff or even settle a dispute.
  • Business process outsourcing (BPO) organization: encompasses outsourcing in all fields, not just HR. BPOs either put in new technology or apply existing technology in a new way to improve processes. A BPO makes sure a company’s HR system is supported by the latest technologies, such as self-service access and HR data warehousing.
  • Application service provider (ASP): hosts software on the Web and rents it to users. This includes both packaged and customized software to manage payroll, benefits, etc.

Keep in mind that even while using outsourced HR, it’s possible to maintain some of the HR in-house. A company might choose to keep hiring in-house while outsourcing payroll or expense management, if it suits the company’s needs.

HR presents a complex set of challenges to businesses, especially to small and growing ones. There is no one-size-fits-all approach to outsourcing HR, so a company should be sure to research its choice carefully. Not only will such a company’s employees be thankful, but its investors will too, when they see the potential cost effectiveness of HR outsourcing and the ability of the company’s internal team to concentrate on managing the core business.

(See related TriNet white paper.)

About the Author

Peter DembrowskiPeter Dembrowski is a regional vice president of sales at TriNet in New York. TriNet is a strategic partner to small businesses for HR, benefits, payroll, employment law compliance and risk reduction. With more than 15 years of experience, Peter has assisted a wide range of companies with their HR needs. He has worked with technology, venture capital, accounting, financial and other professional services firms. You can contact Peter at Peter.Dembrowski@trinet.com.

 

Link to PDF[/cs_text][/cs_column][/cs_row][/cs_section][cs_section parallax=”false” separator_top_type=”none” separator_top_height=”50px” separator_top_angle_point=”50″ separator_bottom_type=”none” separator_bottom_height=”50px” separator_bottom_angle_point=”50″ class=”cs-ta-left” style=”margin: 0px;padding: 45px 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][x_image type=”none” src=”http://ctinnovations.com/wp-content/uploads/2017/04/backtocontentlibrary.png” alt=”back to content library” link=”true” href=”http://ctinnovations.com/access-content-library/” title=”” target=”” info=”none” info_place=”top” info_trigger=”hover” info_content=”” class=”back-image”][/cs_column][/cs_row][/cs_section][/cs_content]

A Startup Blueprint for HR and Insurance

[cs_content][cs_section parallax=”false” style=”margin: 0px;padding: 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][x_image type=”none” src=”http://ctinnovations.com/wp-content/uploads/2017/05/Content-Detail-News.jpg” alt=”” link=”false” href=”#” title=”” target=”” info=”none” info_place=”top” info_trigger=”hover” info_content=””][/cs_column][/cs_row][/cs_section][cs_section parallax=”false” style=”margin: 0px;padding: 45px 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][cs_text]A Startup Blueprint for HR and Insurance

You’ve recruited, interviewed and identified the ideal professionals to fill open positions within your growing business. Job offers have been extended and accepted. Now what? Here are some mandatory actions you must take as an employer to satisfy the Internal Revenue Service (IRS), Social Security Administration (SSA) and federal government.

1) Obtain an Employer Identification Number (EIN) by applying with the IRS on its website, www.irs.gov, or by calling 1-800-829-4933.

2) Set Up Records for Withholding Taxes. There are three types of withholding taxes, which must be kept on file for at least four years.

  • Federal Income Tax Withholding (Form W-4), to be completed by the employee on or before the start date.
  • Federal Wage and Tax Statement (Form W-2), to be completed by the employer annually. Copy A of the W-2 must be sent to the SSA by the last day of February. Copies of the W-2 must be sent to employees by January 31.
  • State taxes. If you have an office in Connecticut or transact business within this state and are considered an employer for federal tax purposes, you must withhold Connecticut state tax.

3) Employee Eligibility Verification. Within three days of hiring, your new employees must complete Form I-9, a federal form used for verifying their identity and employment authorization. On the form, an employee must attest to his or her employment authorization. The employee must also present acceptable documents as proof of identity. The list of acceptable documents is found on the last page of Form I-9. As the employer, you must determine whether the document(s) appear to be genuine and record the document information on the form. You are required to maintain an I-9 file separate from other employee files, and keep a separate file of I-9 forms for employees who are no longer employed. These files must be maintained for three years from date of hire or one year post termination of employment, whichever is longer.

4) Register with Your State’s New Hire Reporting Program. All employers are required to report newly hired and rehired employees to a state directory within 20 days.

5) Obtain Worker’s Compensation Insurance. All businesses with employees are required to carry worker’s compensation insurance coverage. This can be done on a self-insured basis (rare for a startup and not recommended) or through the state’s worker’s compensation insurance program.

6) Posting of Required Notices. Employers are required to display federal and state employment-related posters that inform employees of their rights as well as employer responsibilities, such as minimum wage. Posters should be displayed in a place readily assessable to all employees.

7) Filing Your Payroll Taxes. Employers who pay wages that are subject to withholding for income, Social Security and Medicare taxes must file Form 041 with the IRS.

If these requirements seem overwhelming, a human resource consultant who specializes in this area can help you through the process. While it is exciting to begin building your staff, the complexity and related penalties for mistakes can be significant. Taking proactive measures can help avoid such risk.

Employee Benefits: Keep Your Company Competitive

Employee health and welfare benefits are a vital component of an organization’s total compensation package. Organizations should seek creative ideas when building their benefits packages to retain and attract the best talent, meet the needs of a diverse demographic and balance corporate objectives. Being cognizant of industry competition is also vital in positioning your company as an attractive place to work. Start with these steps to build your benefits package:

  • With an internal team, discuss your business’s major initiatives (corporate and benefits-related) for the year and document them in a formal work plan.
  • Consider the cost and design of those initiatives.
  • Conduct industry-specific benchmarking to compare your benefits with those offered by similar companies.
  • Design a customized benefits plan suited to your firm’s needs, budget and business dynamics.
  • Find a trusted partner to identify appropriate products and carriers and negotiate all applicable lines of coverage on your behalf.

As your organization grows, you may also need to consider implementing a system to help you manage and measure claims data. The majority of your claims will likely come from a minority of your population. Analyzing claims data and creating customized claims reports will allow you to measure risk in different areas, which will in turn allow you to mitigate catastrophic financial burdens.

Property and Casualty: Protect Your Assets

Once your employees are covered, you’ll need to think about obtaining property and casualty insurance. Contractual obligations between potential customers, suppliers, landlords or your bank requiring either liability or property coverage will determine the initial insurance. Here are items to consider:

Property coverage for computers, contents, furniture and fixtures.
Insurance requirements for leases.
Listing lenders on the property policy as loss payees.
Directors and officers (D&O) liability insurance for venture capital and private equity investors.
Errors and omissions (E&O) insurance.

The Affordable Care Act: How It Affects Employers

The Affordable Care Act (ACA) represents one of the largest overhauls of the American healthcare system since the passage of Medicare and Medicaid. The ACA has far-reaching implications for all employers, but the most significant impact is on employers with more than 50 full-time employees. For such employers, the ACA adds 3–5% to normal healthcare premiums.

There are numerous reporting requirements and tax obligations (listed below) associated with the ACA. Organizations should consider seeking assistance to ensure compliance.

Annual and Employee Retirement Income Security Act (ERISA) Notices and Reporting

COBRA Initial Rights Notice: Updated for HIX information

HIPAA Privacy Notice

HIPAA Special Enrollment Notice

Women’s Health and Cancer Rights Act

CHIPRA Notice

Market Place Notice

Summary of Benefits and Coverage

Creditable Coverage Medicare Part D Notice

Grandfathered Notice (if applicable)

Summary Plan Description

Annual 5500 (plans with 100 participants)

FMLA Federal and State Rules

Creditable Coverage Reminders, Notices and Disclosure Filing

Imputed Income for Group Term Life and Tax Choice Disability Plans

The 90-Day Enrollment Waiting Period Limitation

HRA and HSA Funding Limits

  • IRS Reporting Under ACA: Section 6055

Insurance companies or self-insured plans must report MEC plan information to:

  • IRS
  • Each individual enrolled in the MEC plan

Entities that must report:

  • Insurance companies – Form 1095B
  • Small self-insured plans not covered under 4980H – Form 1095B
  • Large self-insured plans – Form 1095C

Taxes and Fees

Patient-Centered Outcomes Research Trust Fund (PCORI) Tax

  • Effective 2013–2019
  • Insured plans: The insurance company will pay the $2 tax and pass back to plan sponsor.
  • Due every July 31 until 2018–2019

Reinsurance Fee

  • Effective 2014–2016
  • Applies to both insured and self-insured medical plans.
  • In 2014, the United States Department of Health and Human services set the amount at $5.25 per enrolled member per month, paid by the insurance company.

Health Insurance Tax (HIT) Industry Fee

  • Applies only to insured plans
  • Planned as a permanent tax
  • 2–2.5% in 2014, based on 2013 data
  • 3–4% thereafter

This document is a useful guide through the basic steps of mandatory reporting to federal agencies, building effective employee benefits packages and understanding the implications of the Affordable Care Act. However, due to the complexity of ever-changing regulations, you’ll also want to consult experts to ensure compliance and to better position your organization as a desired employer.

About the Author

Greg Fenn
Greg Fenn is a senior consultant at CBP. Greg has a passion for delivering a world-class client experience while driving efficiency and developing synergies among employees and vendors. He continually strives to understand what will make his clients successful, then, along with his team, collaboratively develops the long-term strategic vision for CBP. A veteran of the healthcare services arena, Greg focuses on strategic planning, client relationships, creating value-based processes, driving revenue and extending the overall business model through strategic partnerships. You can contact him at (800) 963-3771 or gfenn@cbp.com.

 

 

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Don’t Hire Duds!

[cs_content][cs_section parallax=”false” style=”margin: 0px;padding: 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][x_image type=”none” src=”http://ctinnovations.com/wp-content/uploads/2017/05/Content-Detail-News.jpg” alt=”” link=”false” href=”#” title=”” target=”” info=”none” info_place=”top” info_trigger=”hover” info_content=””][/cs_column][/cs_row][/cs_section][cs_section parallax=”false” style=”margin: 0px;padding: 45px 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][cs_text]Don’t Hire Duds!

Why You Should Never Skimp on the Hiring Process, Plus Three Tips to Make Your Next Candidate Search More Successful

Your company is at the point where it needs a full-time marketing person to help with customer development. In fact, you see this position as a key role – one that’s imperative to your company’s growth. Sure, you’re working at a speed that makes lightning seem slow, you have dozens of competing priorities, and you want to fill the position now. But before you rush through the hiring process, consider this: Once you hire people, you’re stuck with them. If you get lucky and they work out, great – but if they don’t, they’ll slow your growth and make your team miserable, and you’ll eventually likely have to create some type of time-sucking performance improvement process for them to follow. And once you work up the nerve to fire them, you’ll have to start the hiring process all over again. Doesn’t it make more sense to approach the hiring process as you do any other important business decision – thoughtfully and strategically? Here are three tips to guide you.

Tip #1: Assess candidates for more than just their technical skills. “Almost anyone can learn to do a job,” a former executive vice president at Pitney Bowes once told me. “Most people I’ve had to fire didn’t lack talent; they just didn’t fit in with their coworkers.” It’s true: Think about all the capable people you’ve worked with whom you just didn’t like. Did you want to collaborate on projects with them? Invite them to brainstorm? Ask them for advice? Probably not, which hinders innovation, particularly in a fledgling company. On the other hand, people who fit into the company culture will still be valuable even if the job requirements change, which happens all the time in the ever-changing world of startups. Hire for skills, sure, but also take a look at cultural fit. Your employees have to fit in with your brand.

Key tactics: During job interviews, ask the candidates what type of environment they like to work in, what type of management style they prefer, and what attracted them to your company. Try to probe for what the candidates value (work/life balance, great customer service, sustainability, etc.) and assess whether those values are in line with your company’s values. Ask for – and check – references. Make sure to request to speak with both a current or former supervisor and a current or former coworker.

Tip #2: Keep career progression in mind. If you’ve routinely used recruiters, you know that the good ones ask about career progression. It’s a smart thing to do. When job seekers interview with your company, they’re not only thinking about the job you have open now, but how they might progress within your organization as it grows. When I joined a startup right out of college, I started in sales (the only open position), but I had my eye on a public relations and marketing career. The company had an attractive mission and was a good fit culturally, and I knew if I stayed and worked hard and the company became successful, they’d eventually add these functions, and they did. I spent a happy decade designing and running the marketing department and later freelancing for the company when I started my own firm. Had I thought there was no future for me at the company, I would have been out looking for another job, taking years of industry information with me.

Key tactics: Think not only about the position you want to fill, but also how it may progress as your company grows. Ask yourself whether, if your company were to grow rapidly, this person would be able to handle it. If you hire someone who is overqualified, will you be able to keep that person interested? Be honest about where you are and the future you envision.

Tip #3: Test candidates in real-life scenarios. To any startup, innovation and the drive to improve the status quo should be important qualities to look for in a new hire. If, during the interview, you can get a sense that the candidate has this drive, snap him or her up. Great employees can manage themselves and are a godsend to any company, startup or not. A candidate who has talent and the motivation to succeed will know what needs to be done and have the skills to do it, walking in on day one with sleeves rolled up, ready to go, freeing you and your team up to do whatever it is you do best.

Key tactics: How do you find such people? During interviews, don’t just ask and answer questions. Instead, give applicants a relevant case study and ask how they would handle it. This gets you away from the typical canned responses from which you learn nothing: “Well, one of my faults is that I’m a perfectionist.” (Yeah, right.) You’re looking for knowledge, creativity and passion. Also ask new hires, who should have done their research on the company, how they would improve [insert something vital to your company’s success here]. This will allow you to see how they think on their feet, whether they’ve done their homework, and how they might fit in with your team. Finally, test them. If the position requires writing, ask for writing samples. If they’ll be making presentations, ask them to give you one. You don’t have to squeeze the process into one interview. It’s perfectly okay to ask them to come back. Bottom line: You want to hire employees who will stick around and pull their weight, so do yourself and the candidates a favor and put some time and effort into making sure it’s a great fit for both of you.

Bonus tips from HR executives:

  • Don’t do all the talking. You learn far more when you listen.
  • Don’t hire someone because he or she reminds you of you. Diversity breeds innovation.
  • Don’t oversell the position.
  • Don’t ask the same old questions in an interview. Ask open-ended, job-specific questions that give you a sense of the candidate’s experience.
  • Ask others in your company to participate in the interview process – this way, you’ll get different perspectives.
  • Cut bait fast if the wrong person gets through.

About the Author

Amy Hourigan

Amy Hourigan oversees marketing and communications for Connecticut Innovations, where she is responsible for helping to connect entrepreneurs, established businesses, investors and other stakeholders with the information they need to reach their goals. You can contact Amy at Amy.Hourigan@ctinnovations.com

 

 

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How to Recruit and Retain Top Talent

[cs_content][cs_section parallax=”false” style=”margin: 0px;padding: 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][x_image type=”none” src=”http://ctinnovations.com/wp-content/uploads/2017/05/Content-Detail-News.jpg” alt=”” link=”false” href=”#” title=”” target=”” info=”none” info_place=”top” info_trigger=”hover” info_content=””][/cs_column][/cs_row][/cs_section][cs_section parallax=”false” style=”margin: 0px;padding: 45px 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][cs_text]How to Recruit and Retain Top Talent that Make the Best Employees

Even in a competitive job market, you need a strategy to attract and keep good people

Identifying and assembling the right team to help your business succeed depends on what phase of growth you’re in. Are you a startup looking for investors, a company about to monetize its product, or perhaps a mid-size company moving into major distribution?

Whatever phase your business is in, you need a well-defined strategy. Your approach must include the personal involvement of the CEO and other top leaders of the organization. You may want to enlist the help of a trusted recruiter, as sometimes, especially when you are going outside the organization to fill a position, you may not want your own team to be part of the search. However, your personal involvement must always be part of the strategy when hiring management and executive-level team members. The best people are going to recognize this involvement, and they will want to join you.

What talent does a management team need?

Hiring and retaining the best talent is a challenge. Despite higher-than-optimal unemployment figures, the “brain drain” caused by baby boomers retiring means that truly qualified employees are still hard to come by.

The National Association of State Auditors, Comptrollers and Treasurers projects that the number of younger workers entering the labor market is not enough to replace those who are leaving. As of 2006, one in six workers was over the age of 55. At the same time, the 25-to-34 demographic decreased by nearly 9 percent.

That trend has continued, and it is expected to continue indefinitely, making the search for young, up-and-coming talent as demanding as ever.

Complicating the situation is the way the world has changed. The need for technical skills in a leadership team is a given, and you need to mix up the strengths of various team members. For example, if you are not a technologist, you need to find a chief technology officer. But today more than ever, every candidate for any management position, at the highest as well as the middle levels of an organization, must also possess outstanding interpersonal skills.

These so-called “soft skills” are the difference between success and failure. The traits everyone on your team needs include:

Agility and Adaptability – Managers must be able to think, adapt and change. The best managers use a variety of tools to solve new problems. In the venture capital phase, for example, a particular job may change or even vanish. Investors are looking for team members with the fluidity to help ensure a return. People need to be nimble. For this reason, adaptability and learning skills can be more crucial than technical wizardry.

Initiative and Entrepreneurialism – Leadership demands the confidence to take initiative and to trust oneself to be creative. Startups are often characterized by the team’s willingness to do a little of everything, as well as to take risks. By the same token, as the company approaches the status of “industry leader,” risk aversion is equally undesirable. The challenge is to find leaders who can create an entrepreneurial culture – regardless of the size of the organization.

Critical Thinking and Problem-Solving – To compete in the new global economy, companies need every worker to be a “knowledge worker.” These qualities ensure a team that’s continuously focused on improving products, processes or services. Asking the right questions lies at the heart of this skill. Often these questions include: How can we do things that haven’t been done before? How and when should we change what we have been doing?

Ability to Collaborate Across Networks – The concept of teamwork today differs greatly from that of 20 years ago. Conference calls, webcasts and online meetings eliminate the need for teams to be in the same building – or even on the same continent.

Effective Oral and Written Communication, and Empathy – Effective communication is essential. The best candidates will have exceptional verbal, written and presentation skills. Find people who can be clear and concise, and who can put themselves in someone else’s shoes – from shipping clerks all the way up to senior managers. Such people are most able to communicate their thoughts effectively and motivate others.

Curiosity and Imagination – Increasingly, the marketplace demands unique products and services. All businesses – whether well-established or startup – need to make a product that’s not only competitively priced and adequately functional, but also high-tech and sustainable. Connecticut, known for its aerospace companies such as UTC and GE, boasts a strong pool of advanced manufacturing skills. But companies must also identify and recruit people with the capacity for imagination, creativity and empathy to maintain a competitive advantage.

A good place to look for these soft skills is in people with project management backgrounds. Project managers end up being very good executives because they have led teams successfully, and to lead teams, they have to have honed the skills described above.

When recruiting, think as an investor

Begin with the end in mind: the organization’s goal – your goal – is to do right by your stakeholders and make sure your organization enhances quality of life with a product that adds value to customers and a culture that provides good jobs to the community. The most important thing is to let your investors know that you are garnering resources to give them the highest return – you are protecting intellectual property (IP) and ensuring a future.

With this in mind, it may not be desirable for the original startup team to remain with you as you grow. Startups need a team with a particular set of talents, one that can attract investors, acquire capital and prepare to monetize. Later, companies need a team with another set of talents – a team that can orchestrate the move from the “hand-crafted” one-off prototype stage of production into major sales, manufacturing and distribution. Each stage of growth may need a different mix of personalities and vision.

Once you’ve identified which types of candidates your company most needs to attract, it’s time to cultivate the culture necessary to draw the best. Creating a workplace environment designed to retain talented, dedicated employees is just as important as recruiting them. Establish a culture in which people are engaged and treated with respect and consideration.

Gone are the days when, after graduation, people took the best available job and stayed for as many years as they could possibly stand, regardless of frustration or lack of fulfillment. Even in the current economy, people still assume they will make several moves during their career. They are always on the lookout for new opportunities.

For retention, think as an employee

The first step to retaining great employees is to ask yourself some tough questions from their point of view. Do your people want to come to work every morning? Is the work interesting and meaningful – or does your staff just seem to be going through motions to pull down a paycheck? Is your team still learning and growing? If not, employees will feel it is time to move on.

It’s also important to assess whether your employees enjoy spending time with one another. If staff don’t sincerely enjoy and respect the people they spend a significant part of their day with, they will eventually decide to leave your organization and start cultivating relationships at other companies. You have to motivate them every single day.

Of course, there are always situational reasons why employees look to leave their jobs, even at the best of companies.

One is that their value has been undermined. Technology, outsourcing, a growing temporary staffing industry and productivity efficiencies are all disruptive for employees. Most jobs that existed 20 years ago aren’t needed now. You must ensure that valuable employees always feel appreciated, even if their current job duties need to shift. Provide opportunities for training and education. If your staff members’ “soft skills” are strong enough, they can most likely learn many of the technical requirements of new roles. In fact, the best employees will welcome the opportunities to try new things.

Raises and bonuses only go so far in retaining top talent. Many studies repeatedly confirm that an increase in salary offers either no measurable increase in happiness above a certain level, or that this satisfaction is short-lived. In other words, the longer people stay in a position, the less important factors like compensation become.

If your people believe they cannot go farther in their careers than their natural abilities take them, you will see diminishing returns, even when those natural abilities are superb. Provide new assignments. These can drive exceptional leadership growth, and you will see people rise to the challenge.

Be family friendly

If you don’t currently allow employees at all levels of your organization to have more flexible schedules – whether it be working from home one day per week, or shifting to four, longer-than-traditional days –change your policies now.

It’s true that not all positions lend themselves to this kind of family-friendly flexibility. But for professional parents in organizations that don’t put a higher emphasis on family life, lack of flexibility is a red flag.

In turn, it’s up to you to evaluate if a candidate can really manage a department, run a division or handle travel-intensive positions while working on a more flexible schedule. In addition, you will need to provide support so that staff work and customer service don’t suffer simply because a manager needs to leave work occasionally for specific family obligations; however, the effort to create an environment that allows people to balance work and life will attract the best people.

Don’t bet on people staying put just because of an uncertain economy. Because fewer members of the modern workforce spend their careers at one place, people are less afraid to move on if their home life suffers because of work – even if it means taking a hit to a salary or title. For today’s top talent, working at a company that’s flexible to the needs of a family means a better shot at long-term success.

If your company culture matches the discussion above, the best people will seek you out.

Where and How to Find Top Talent

After all of these considerations, you need tactics for identifying the best people. The most important guiding principle is that the search should never be completely delegated to the human resources department. It is not always appropriate for the CEO personally to interview every candidate, but certainly the hiring manager and – in many cases – some peer-level employees, should be directly involved.

Networking is the best way to get out the word that you are looking for people. It’s best to select from among candidates you know or who come recommended highly by people you know. In addition, recruiting candidates who themselves have strong networks is another way to bring top talent to your door. If you need a top salesperson, for example, the candidate you hire for your chief marketing officer may be able to attract that individual along with him or her.

If possible, the people conducting the search should interview finalists over lunch or dinner. Observe how the candidate treats the wait staff. Does he or she take cues on ordering from the host? These are important indications of how the person will treat coworkers, especially people they supervise.

If you do enlist the help of a trusted recruiter to narrow the search, be wary of anyone who promises to “get you a list of candidates right away.” The recruiter who represents your company’s interests understands that it can take weeks – sometimes more than a year – to identify top talent that is compatible with your team’s style, values and goals.

NOTE: Special thanks go to several individuals who were interviewed for this article and whose insights are incorporated herein. They are:

Vern Chanski, Senior Partner and Director of Operations, Life Sciences, Hobson Associates
Kevin Didden, Founder and CEO, CiDRA, and board member, CyVek
Martin Seifert, President and CEO, Nufern Inc.

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