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Thursday Nov 03, 2022
Thursday Nov 03, 2022
Thursday Nov 03, 2022
Referrals are most often your most potent source of talent for your organization.
So investor referrals must be the holy grail of all referrals. After all, there is a vested interest in your company's success so why shouldn't the referrals be outstanding?
Here’s the thing to consider. Yes, these referrals are gold but it is dangerous to assume that this person will automatically thrive in your unique company. We cannot forgo a formal interview process based on a strong voucher from a trusted source.
The only way we discover if they will in fact thrive, is to be diligent in the interview process to really understand if the person desires the value your organization brings to the table. .
The decision needs to be made through evidence and buy-in rather than confirmation bias and assumptions.
He is a serial entrepreneur that has over 25 years selling and developing software and hardware products for the world.
Under his leadership, Rob and his co-founder, Todd Lucas led PTO Exchange to “Cool Vendor of the year” by Gartner in 2017 and awarded “Awesome New Technologies" at the Health and Benefits Leadership Conference in 2018.
TODAY WE DISCUSS:
- Investor referrals: The value & challenges
- The importance of proper diligence in your interview process for referrals
When we first started the business with 4 founders, 2 of us were working on the project constantly and the other 2 were not putting in the time so prior to vesting we bought the other two out.
We had to do this to keep a clean up the cap table so that we could raise capital.
Going through this process we realized having that right person at the right time joining the company is really important. So we put a simple process in place
- What the company needs or needs to know in our case.
- 3 things we are looking to have them accomplish - alignment
- 3 interviews at minimum
- Gut check - (culture, willingness to learn)
- Reference checks
When you raise capital you hope those investors will bring value and relationships. But investors aren’t there day in and day out managing the business and they sometimes associate a person's success at another of their other companies to the value that individual could bring to yours
Most of the time the investors' relationships are with the other executives and most of the time you aren’t looking for a high paid person.
An example is when we were hiring a VP of Sales as a small company.
- VC wanted them to hire a particular person
- No skin in the game
- Not a known entity to you - getting dirty
- Not the highest paying company
- Get to do things they wouldn't be able to do at a large company
- Mission-driven people - passionate about the mission
- Do they care about what we do
Why is this important to the company?
- People have to fit in with the culture
- They are a large % of the population
- They need to be able to learn, be curious, and take on responsibility
- Value in referrals
- Cannot rush or fast track the process.
- Work within your timeline
- No skipping steps
How do we solve the problem?
- Knowing when to say no to the investor
- This is sometimes tough to do when they are looking to help your business and they don’t see their input being considered
- When people try and help you, you need to understand that those suggestions or introductions come with emotions attached.
- Having a process that to hiring helps facilitate your decisions and reasoning. Which helps take the emotions out of the decision
- In an early-stage company where you might not have the money or benefits to attract the top-top tier individuals. we look for those candidates who are trying to grow into the role.
- Candidates that have the experience but do not have the title and maybe they are looking to have more responsibility because that comes with being in a small/agile company.
- They have the ability to solve problems and are open to new ways of thinking.
- Look for the hidden value in the person
- The individual needs to have the willingness to learn and take on responsibility
- Finding the intangibles that they can bring to the team.
- Usually this is in comes from their personal experiences and not their career experiences
- Personality fit
- We look for candidates that have similar passions but different problem-solving skills
- This brings diversity in developing our company’s ability to be more agile when confronted with roadblocks.
- Values fit first
- Does the person operate to the expectations of the rest of the organization?
Key Takeaways that the Audience can plug into their business today! (Value):
- Create a process - simple is best but a process that works for the size of your company.
- I have made great hires and bad hires. The difference in those decisions was not following the process and being in a hurry to fill the role. Taking things slowly, stepping back, and following a process would have shed light on what later became an issue.
- Culture fit is the most important piece.
- I have a rule of thumb.
- When making a big purchase, walk away and reflect on how this purchase is going to impact your life. Because making a wrong purchase can have a very negative impact on you. I have found the same rule applies when hiring employees.
- LinkedIn: https://www.linkedin.com/in/rob-whalen-1287077/
- Company: https://www.ptoexchange.com/
- LinkedIn: https://www.linkedin.com/company/pto/
- Twitter: https://twitter.com/ptoexchange
- Facebook: https://www.facebook.com/ptoexchange
- Blog: https://www.ptoexchange.com/blog
- LinkedIn: https://www.linkedin.com/in/rick-girard-07722/
- Company: https://www.stridesearch.com/
- Podcast: https://www.hirepowerradio.com
- YouTube: https://www.youtube.com/channel/UCeEJm9RoCfu8y7AJpaxkxqQ
- Authored: "Healing Career Wounds" https://amzn.to/3tGbtre
- Startup: www.intertru.ai
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