It wasn’t long ago where employers were scrambling to cater to what seemed like every employee’s whim. Virtue signaling became synonymous with brand and suddenly a paycheck was the least important measure of an employer’s worthiness, in its place the fundamental demand to serve the social ‘good’. The dynamics that led to this power shift were a perfect storm of cultural and generational change capped off by the warp speed transition to virtual employment, otherwise known as the pandemic. Although COVID now feels like a lifetime ago, the employer power which has remained locked down, is just now starting to return to work.
Suddenly, the pendulum that was pushed so hard in one direction, and seemed pinned at its limit, has loosed itself from its bonds and now seems to be barreling down and picking up speed in the other direction – where it finally rests, no one knows. If there was a singular metric that summarized performance around the call-to-action which dominated the last half-decade, it would be DEI. Diversity, Equity and Inclusion – and more specifically how committed organizations were to it. How much were they focusing on it? Spending on it? Touting it? As such it also serves as an equal measure of corporate flight in the inverse direction. Mentions of DEI and in earnings calls this year have dropped roughly 82% since Q2 of 2021.
Of course these push and pull battles are most visibly waged by large organizations with equally large coffers and profiles. This isn’t to say that early-stage startups weren’t on the exact same battlefield, fighting to earn the rights to employ the same top talent. They are just asked to do so with far fewer resources and available time, as everyday at a startup is a do or die battle all its own.
With the privilege of evaluating and working alongside a wide array of early companies and their teams, despite all of the above, we find the best companies seem to be generally unaffected – or at least not pulling themselves apart at the seams. The question is of course, why? If there’s one learning that stands above all others from the past two years at In Revenue, it’s this – when it comes to startup success, people are all that matters. The startups that understand that maxim also approach hiring more so as a relationship, and less than the traditionally simple value exchange. What this looks like in practice is the same as it does in successful marriages and personal relationships – upfront transparency is critical.
The reason many early stage companies suffered less during COVID, and the resulting DEI tidal wave, was simple. They already had the hard conversations about what mattered to their business, what they stood for, and what success looked like for all involved. There were no surprises, at least in the cultural realm. So while large global organizations tripped and stumbled their way through the sudden requirement to understand their workforce, and acquiescence to their newly voiced demands, the best startups just kept on chugging. Working toward a unified mission rather than trying to build the plane inflight.
In a few weeks, we’re going to go deep on this topic with a good friend of mine, Stacey Lewis, on The Cheat Code & Friends podcast. Stacey has been helping enterprises navigate these waters through her consultancy and herself operates a startup. She’s identified what forms high-performing teams and what sets them apart from environments who are instead beholden to the never ending pendulum swing of employee / employer power.
So, be on the lookout for that episode here in a few weeks, because if hiring is truly the secret sauce to building successful startups, companies have a lot to learn.
