Achieving Hypergrowth: Top 3 Growth Hacks for CEOs and HR leaders
What’s hypergrowth and what does it mean for your business? According to the World Economic Forum, if your annualised average rate of revenue growth between two given years is more than 40%, you’re experiencing hypergrowth. 1
It’s an exciting stage. You’ve joined an exclusive group that’s become synonymous with tech start-ups showcasing their innovations. This is the time to capitalise on your successes and ramp up your hiring. But that presents a problem.
Recruiting top STEM (Science, technology, engineering. mathematics) fast is no mean feat. Across the globe, STEM talent is in low supply and high demand. 7/10 HR directors and decision makers said they had found it difficult to hire staff with STEM skills in the last year and 9 out of 10 said that their recruitment of such positions is taking longer than expected.
So how can you grow even faster despite the low supply of top tech talent? That’s why I’m sharing my top 3 growth hacks that CEOs and HR leaders must adopt in order to achieve hyper-pace hiring. The first hack? Agility.
Growth Hack #1: Agility
You must have the right number of people, with the right skills, the right behaviours, in the right roles. This process is known as headcount planning or org charting. Your headcount plan will inevitably change to accommodate new ideas, technologies and opportunities. However be warned. Constant revisions and delays to your headcount plan will kill your recruitment operation’s productivity unless you upgrade your recruitment model.
A traditional recruitment model is too slow to adapt to the demands of a fast growing business. In 2013 I supported King, the makers of hit game Candy Crush Saga. Their success was a phenomenon and they aimed to grow by 6 times in 2 to 3 years. However their headcount plan frequently changed.
"An agile model can increase the output of your recruitment operation by 200%"
The result? Around 50% of vacancies were either cancelled or revised. Hiring productivity was halved. That left three ways to proceed; 1) scale up recruitment efforts to accommodate the situation and deliver 9 times growth or 2) stop altering the headcount plan or 3) change the recruitment model.
What did we do? We changed to an Agile recruitment model. The result? We doubled the output of our recruitment efforts. An Agile model is more efficient because leadership set priorities frequently and the recruitment operation focuses on just those roles. At the end of the search period everyone gets together to review progress, remove blockers and set new priorities. It’s fast, efficient and increases productivity because it’s highly focused.
Adopting an Agile approach to recruitment is my first hyper-pace growth hack. It means more output from your recruitment operation. But that’s not the only way to hack hypergrowth. You can also achieve your growth aspirations by hiring fewer people. Let's take a look at my second growth hack.
Growth Hack #2: Employee Turnover
People you regret leaving your business are referred to as employee turnover. CIPD defines it as “the proportion of employees who leave an organisation over a set period (often on a year-on-year basis), expressed as a percentage of total workforce”.
"A strong employer brand can improve your employee turnover by as much as 60%"
Losing good people is hindering your ability to increase your headcount at pace. That means you need to tackle your turnover head on. But how?
Did you know that the average employee turnover rate in an organisation with a strong employer brand is 10%, while the overall turnover average is 16% (Joon & Zhou)? An employer brand is “a set of attributes and qualities, often intangible, that makes an organisation distinctive, promises a particular kind of employment experience, and appeals to those people who will thrive and perform best in its culture' (CIPD).
Coinbase experienced the benefits of a strong employer brand directly. They built a platform to buy, sell and store cryptocurrency. However from 2013 Bitcoin’s value plummeted from $1200 to $200. Did its employees flee a sinking ship?
According to Khalid Halim, Executive Coach to CEO at Coinbase, “They didn't lose that many people...So, you have to pause and ask: what kept them there? If you spoke with the leadership team and employees at that time, they believed in an open financial system for the world, and that it was only a matter of time before the world changed. They were determined to be a part of that.” 2
Employer brand is a flag for what you believe in and offer. Those that stand for the same ideals will not only follow but stick by your side.
A strong employer brand is a great way to reduce turnover. As is hiring the right people for your culture. This brings us to my third growth hack.
Growth Hack #3: Hyper-productivity
Did you know that in Science, Technology, Engineering and Mathematics professions, compared to the average employee, top talent is 8 times more productive (McKinsey)? That means a team of 80 average employees can have a similar output to a team of 10 high performers. With the right people you can increase your output and reduce the need for more headcount.
To build a hyperproductive culture your business needs four key capabilities. The first is to know ‘What Good Looks Like’ (WGLL) when it comes to talent. You need both a solid understanding of the predictors of future performance, a conscious awareness of the culture you’re building and know the characteristics of people who will perform well in your organisation.
The second capability is to identify brilliant minds. You must have a tailored assessment process that separates top talent who’ll fit your culture and increase your productivity.
The third ability is to present your business as an employer of choice. Not only to draw more top talent into your hiring funnel but also to get top talent keen to join when presented with an offer.
"Top talent is up to 8 times more productive"
The fourth is the capability to nurture an environment where top talent will be engaged. This includes your mission, vision and values. Your management, leadership and communication style. Your recognition process, reward and compensation. You must provide the right tools, opportunities for growth and build a culture where top performers work with other top performers.
Build a hyperproductive culture and you’ll reduce your employee turnover and increase productivity. A smart hack to more growth while reducing the demand on your recruitment operation.
Summary
Hiring more might be your first thought when strategizing on how to capitalise on your hypergrowth status. But take a pause for thought. Top STEM talent is in high demand and low supply.
In this article I’ve shared my top 3 hacks to achieve your growth aspirations;
1. Build an Agile recruitment operation which pivots with changing demands. This could double the output of your recruitment operation as it did at King.
2. Reduce turnover by crafting a culture and creating a compelling employer brand. This could improve your turnover rate by as much as 60%.
3. Increase your output with fewer resources by building a hyperproductive culture where you’re hiring top talent that’s up to 8 times more productive than average employees.
Each of these hacks will reduce the demand upon your recruitment operation and increase the productivity of your business. That means less cost and more revenue.
If you aspire to grow at hyper-pace our consultants are at hand to help. Speak to us now by clicking apply.
