Talent Gaps.. if we do not move fast, we are going to lose — Hire Wells
We are all feeling it. Uncertainty, anxiety, and expectation that another ‘shoe’ my drop at any moment. For many of us who work with a lot of startups, we already know a contraction was quietly happening. Early-stage companies are missing revenue targets, having challenges raising additional rounds, or re-organizing to maximize burn rates… and I am speaking of the successful ones.
Now, the coronavirus is pushing our economy to levels never seen. The great depression:
The Great Depression of 1929 devastated the U.S. economy. Half of all banks failed. Unemployment rose to 25% and homelessness increased. Housing prices plummeted 30%, international trade collapsed by 65%, and prices fell 10% per year.
I don’t know about you, but based on what we have seen globally in the last couple weeks of the coronavirus, the great depression numbers feel like they may have already happened.
Ok, that was all pretty bleak. I get it. However, it isn’t. Here is why, and here is how companies can come out of the other side of this, the winner.
First, now that everyone in your company is virtual take another look at your headcount. Companies that succeed virtually tend to organize a bit differently. Look at companies like Buffer, Elastic, and others who have ran fully distributed teams successfully for years now. You may find you need slightly different roles.
Second, embrace it. Everyone knows the future of work is distributed, and like it or not; the future is now. Embrace a fully distributed team that includes a lot of benefits like an open talent pool that will likely produce better quality candidates as well as some marginal cost savings.
Third, focus on revenue. One of the things Elon Musk did in the earlier days of Tesla when the company needed to show a profit, he turned his entire team into a salesforce. Now I am not saying you need to go that far, but in a connected but virtual landscape, the rules are different. Empower your entire team to drive demand, and incentivize them to do so. Just like an employee referral system, create a bonus system for deals.
Fourth, get profitable. An easy way to do this is to break down the cost of EVERY expense. Take every payment that is recurring and break it down by the hour. Then, take all of your revenue and break that down by the hour. The difference is your profit or your loss. Adjust accordingly.
Finally, help each other. Not just within your own company, but other companies. Make referrals, like and share their content, write a public endorsement, refer people looking for a job. Connect, connect, connect.
If we pull together and get focused, we will startups coming out lean, profitable, and with a world-class team.
Originally published at https://hirewells.com on March 17, 2020.
