how to attract top talent: transforming your startup into a talent magnet

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How to Attract Top Talent: Transforming Your Startup

Into a Talent Magnet…#talentmagnet

Sirk RohChief Operating OfficerEarly Growth Financial Services

Tom ByrneVice PresidentWells Fargo Insurance

Amanda ChristoffManaging Director Premier, Inc

Karen ReinholdShareholderHopkins & Carley


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Why Worry About Attracting Talent?

Your talent is a key driver for long-term company success.

If you don’t have cash, to attract and retain top talent, you need to use the tools of:

Stock Options

Benefits Payroll


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Presentation Overview

• Hiring plan• Current marketplace• Sourcing• Stock options• 409a valuation• Benefits / PEO• Payroll• Legal considerations


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Talent Acquisition 101

• Identify and Prioritize Your Hiring Needs- Based on your corporate objectives, create a hiring plan and the metrics around achieving them before

you dive into hiring. - Office Manager is often the first strategic hire for a small growing start-up.

• Current Market Place

- High salaries

- Competing with public stock

- Talent expects money and more…

• Sourcing: - Employee referrals are ideal!- Form a partnership with a recruiting firm who understands your organization and can deliver top talent

quickly- Leverage social media to find passive candidates.- Depending on the volume of hires, consider a contract recruiter


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Is Your Organization a Talent Magnet?

• Understand your company’s unique value proposition– Whether you’re an underdog or an innovator, speak

to your differentiators and their scalability• In this “war for talent,” you must understand your

unique value proposition to the candidate’s future• Be clear on your company’s mission and values

- Hiring practices should reflect this and employees should embody them.

- Ask interview questions that address these criteria

Being connected is the key to happy employees! Take a holistic view of employee development


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Stock Options

Structuring stock options

What is the strike price?

Stock options vs restricted shares


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Understanding Equity Compensation

• Aligning incentives • Long-term vs short term• Individual contributors vs strong teams• Employee pool• Vesting is a powerful tool• Early exercise (or not)


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409a Valuations

• What is a 409a valuation• When do you need a 409a• What considerations go into a

409a


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Benefits

• When do you offer benefits• PEO or Open Market?• Short & Long-Term Considerations • Benchmarking• Building Culture


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350

Start-Up(Seed/Angel)

20

Emerging Company(Series A)

75

Maturing Company(Series B, C, International,…etc.)

IPO

Understanding How Growth Impacts

Talent Acquisition

2-3


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Building a Culture: The Open Market

Perks Employee Benefits

• Days off for Volunteering• On-site Fitness Classes• Open Vacation policy

($100 to buy something cool for the office)

• Employees can give awards to co-workers for going above and beyond

• Onsite Haircuts, board game nights, pool tables, foosball, D&D, Scooters in the hall…

• Homebrew/Winemaking competitions

• Onsite Bar, Daily Bacon

• Leave of Absence: 4 months- Paternity and/or Maternity, Extended Personal Leave

• Dependent Coverage

• Customized Communications

• In-house HR Personnel and Resources

• Wellness Incentives


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PEO

Call Center

FSA, Leave of Absence Administration, Outsourcing

COBRA Administration

Human Resources

Payroll

Employee Benefits

Workers’ CompensationEmployment Practices

Liability


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ADVANTAGES OF THE OPEN MARKET

• Significant savings by eliminating administrative fees & returning the tax benefits.

• Worker’s compensation premium reduction. • Autonomy with employer/employee (ER/EE) relationship – no co-

employment.• More flexibility in plan options.• Other potential savings, i.e. Prepayment Assurance charge, payroll

tax caps, 401(k) tax credits. • Ancillary product savings & enhanced benefits by bundling to your

advantage not just their all or nothing bundle.• Broker contacts with expertise in employee benefits and P&C,

negotiating with carriers and direct access for employee and employer customer service.

• The latest in cloud HR technology and end-user experience.• HR support and guidance tailored toward your organization’s

needs.• A more customized approach to servicing your employees.• No contracts, long-term commitments, or cancellation fees…

renewal period can be when you want it.• Good for Start-up, Emerging, Maturing, and IPO stages and

beyond

ADVANTAGES OF A PEO

• Significant savings potential by being on their tax payer ID and leveraging pooled rates.

• All in one provider, all in one access to all things employee related for the employee.

• Shared legal risk due to co-employment.

• Can help a small group compete with larger group style benefits more affordably.

• COBRA is integrated into payroll and HR termination process.

• Can help a small group get SOX compliant, but usually not ideal for later IPO and M&A stages due to contracts and co-employment arrangements.

• Good for Start-up and Emerging stages


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• HR Director (3-4 months)

• Payroll (2-3 months)

• Benefits (2-3 months)• Payroll System• Benefits (Plan Design,

Carrier Mkt., Open Enrollment)

• Infrastructure• Unplug PEO • Implement all systems• All at the Same Time!

Select Vendors/Partners

Implementation

Execute

Moving out of the PEO: The 6-9 month Process

step 1

step 2

step 3


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Legal Considerations

Restrictive covenants (non-solicitation)

Illegal or unenforceable comp agreements

Exempt vs. non-exempt

Employee vs. contractor

Confidential information

Basic employment policies you need


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Conclusion


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Thank You and Q&A

Tom Byrne

650.413.4209

[email protected]

@WellsFargo

Sirk Roh

415.234.3437

[email protected]

@EarlyGrowthFS

Karen Reinhold

408.286.9800

[email protected]

@HopkinsCarley

Amanda Christoff

415.273.3504

[email protected]

@EarlyGrowthFS

mailto:[email protected]





how to attract top talent: transforming your startup into a talent magnet

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