From Zero to Sixty EmployeesDoug Blizzard

CAI, Inc

.

What is Pay for Performance?

“Staffing is the most important decision you will ever make. When you have good people, your company can do anything.”

Ed Ryan

STAGE I1-10 Emp.

STAGE II11-19 Emp.

STAGE III20-34 Emp.

STAGE IV35-57 Emp.

The complexity of any organization is created because of the number of people, not the amount of revenue, you have. Money and processes are easy to manage compared to the dynamic impact that people bring to the table.

Employee……the crabgrass in the lawn of small business

anonymous

Stage I: 1-10 Employees

• Key Challenge: Survival• CEO centric - 90% of CEO’s time spent as the

specialist and selling while only 10% as a manager.

• Hiring: Critical that new hires “fit” the company – prefer a small startup philosophy.

Stage I: 1-10 Employees

• Key Regulations – FLSA– min. wage, overtime, child labor, exemptions,

records.– OSHA – Safety standards, ensure safe workplaces

– Equal Pay Act – equal pay for same work– Immigration Acts – verify legal work authorization– Polygraph Protection - Generally prohibits polygraphs

at work– Other laws protecting jurors, veterans, union activities

and health insurance portability– Various NC laws including unemployment, workers

compensation, Wage Payment, Retaliatory Discrimination, New Hire Reporting, Identify Theft, Parental School Involvement, etc.

Stage II: 11-19 Employees

• Key Challenge: Growing Sales, manage cash flow

• Still CEO Centric. But starting to “departmentalize”

• Hiring: replacing a few people you’ve outgrown – still focus on quality people.

• Key Regulations– Civil Rights Act (15)- Prohibits discrimination on basis

of race, color, religion, sex (including pregnancy, sex harassment), national origin, & genetic information

– ADA (15) – Prohibits discrimination on basis of disability

Stage III: 20-34 Employees

• Key Challenge: Delegate or risk losing key employees; manage cash flow

• Enterprise Centric – CEO lets go or burns out• Delegating, managing and team building

begins• Communication critical• Hiring: • Key Regulations

– ADEA (20) – prohibits age discrimination– COBRA (20) - Provides Group Health Insurance

Continuation

Stage IV: 35-57 Employees

• Key Challenge: building internal processes; manage cash flow

• CEO spending 70% of time managing• Hiring: – Experienced Managers

• Key Regulations– Family Medical Leave Act (50)

Key Themes

• As you grow it becomes less about you and more about your people. – Bad hires are devastating for small companies:

• The effects of poor performance felt throughout the company

• Bad hires are more likely to sue / file claims• 80 / 20 rule• Low morale / high turnover drain efficiency &

profitability

– Losing key employees affects many aspects of the firm.

• Gut Check: Are you ready to let go?

How Will You Find Great People?

What we see too often…

• We’re in a hurry – haven’t planned• We let resumes define the role• We ask predictable interview questions• Interview prowess is more important than

demonstrated success in hiring decision• We don’t involve co-workers in the

process• We don’t adequately verify credentials• We [may] hire the right skills, but the

wrong fit• We get to do it again…

How Will You Find Great People?

…recruit employees like you do clients

Always be Recruiting…

• Hangout where the key prospects hangout• Create compelling / engaging job postings• Entice stars with Critical Success Factors• Intelligently use referrals / Social Media• “Show me” interviews: looking for past

behaviors to predict future behaviors.• Assessment tools and Background Checks

14

How Will You Keep Great People?

Meaningful Work

Stock OptionsAutonomy

Respect

Appreciation

Career Line of Sight

High Standards

Info

rmed

Great Pay

Health Insurance

Dental Insurance

Vision Insurance

Life Insurance

Disability Insurance

401k

Sav

ings

Profit Sharing

Flexible Spending Account

Paid Vacations

Medical L

eave

Paid

Tim

e O

ff

Bereavement PayTuitio

n R

eim

bu

rsem

en

t

Flexible SchedulesWork from Home

Holiday Pay

Jury Pay

Advancement Opportunities

Fair TreatmentEthical Workplace

Safe Environment

Tools and Equipment

Care

To be Heard

Clear MissionVision

Connection

Consistency

Wellness Programs

Health Fairs

Clear Job Description

A G

ood

Boss

PTO

How Will You Keep Great People?

Offer competitive pay and benefits

Hire good people managersOutplace bad performers

From Zero to Sixty EmployeesNCBiotech Entrepreneurship Essentials

“Human Resources Basics for the Entrepreneur”

Doug BlizzardCAI, Inc.