Mr Moules discusses various ways startups attempt to retain employees, and makes it clear that money, being an extrinsic motivator, doesn't work. To know why, watch this humorous exposé based on the work of Dan Pink.
We get free coffee!
Having come to Silicon Valley and survived two booms and two busts, I've witnessed (and enjoyed) many attempts to make employees feel a sense of community, camaraderie and belonging, as tools for higher retention. These attempts have included:
Unlimited Frappucinos
Company ski trips to Tahoe
Friday beer bashes
All-hands meetings, where the CEO has been in a dunk-tank
Free lunches (who said there was no such thing)
Free massages
Free concierge service
"Free" car (haha the taxman smiled all the way to the treasury with that!)
All of these incentives have more or less been extrinsic ones, and like Mr Pink predicts, have become old. Perks like these get taken for granted, and treated like rights, then abused, ignored and even criticized.
Mr Moules describes the experience of meeting the Queen (a customer of one of his case companies) as an experience that is not likely to be forgotten, hence making the case for unique experiences being likely to encourage intrinsic motivation.
What I've learned
In the last six months, I've learned four things, which might seem rather obvious but are in fact often overlooked during the hiring process.
1. The motivation to perform, excel and stay needs to come from within, and this needs to be demonstrated by the potential candidate. Does the candidate believe that the cause you, as a founder, are working for, is bigger than herself and yourself? Don't let your love for a candidate cloud your vision and assume that she has this motivation. Put her to the test during her probationary period (yes, pay well for this probationary period!)
2. Hire slowly, fire quickly. Enough said.
3. Empower your team by giving them ownership over the entire company. Only then will they understand and be able to feel their importance. Give them a little bit of trust, then, if they pass the test, a little more. See how they react when they are given unexpected responsibility (eg, when you're on a flight or you're sick). Is it "not their problem" and do they do nothing? Or do they try hard to avoid potential problems, and represent the company with pride just like you would?
4. Learn what your candidates passions and dreams in life are. And, if this candidate is passionate about your company, make sure that being with your company will allow this candidate's passions to flourish. Only then will the employee be truly happy. While it might not be your responsibility as a founder to provide a venue for candidates to develop their passions, if your company happens to be a vehicle, you'll see much of the passion transformed into love for your own company.
Although I made many friends at Liberate Technologies, I often wondered what I was doing working for a company that made software for TV when I didn't even have a TV of my own :)
Love
What's paradoxical about love and religion is that there is more published work about these two topics than about anything else: novels, self-help books, literary analyses, plays, comedies, sacred texts, manuals, poems, translations, blog posts, magazines, tweets. And yet, these are the two topics where no matter how much you read, you won't be further enlightened.
So, you may read all the books and blogposts you want trying to understand what love is. But when you experience love, you'll know that it's love, even if you hadn't read those books.
The same goes for hiring.
When you have the right candidate who is right for your company, you'll just know. And, like in a marriage, if you have to try hard to retain her, you're with the wrong employee.
Drink this for me! Or, I'll create that for us
I think there are two types of cult:
When I read this excellent essay on how to hire like you're hiring for a cult, I'd love to think the author was talking about the latter type of cult :)
