The size of your company dictates your approach to developing successful employee partnerships.
High technology companies, specifically electronic manufacturers, vary in many ways. Corporate culture differs from company to company. These are factors to consider before joining a company.
Over the span of my 30-year career, I have observed many corporate cultures. My overall perception is that company size, stage of growth, and location all affect employee development.
To simplify the issue, I will focus on three company sizes�small with less than $10 million in sales, mid-size having less than $100 million in sales, and multinational exceeding $100 million in sales with offices worldwide�and some key differences including recruitment, motivation, and employee retention. A common element in all companies is great people. However, different people will excel in different organizations.
Particular Needs of Each Company
Small companies put great demands on their employees. Individuals are asked to multitask just so the company can survive. Resources usually are scarce. Prioritizing work seems impossible because every task is a priority.
Most small companies have a limited product offering. Because of the small number of products, survival of the company relies on consistent delivery of these products. Also, if a problem occurs, everyone involved with the product gets called to solve it, stealing time away from other projects. This also can be frustrating to the designer or the marketer who is working on the next generation of products.
As the company grows, more travel is required to promote products and visit potential customers and vendors. Since cash is limited, working with the bank becomes a key relationship. The founders must develop the expertise to handle a diverse set of duties, otherwise company growth is severely limited. These are just a few of the challenges for a small company.
Mid-size companies have a different set of challenges. The founders usually have decided to bring in professional management to assist with the growth. However, founders are reluctant to give up control.
Professional managers contribute by building organizations. This may not be an easy transition for the company.
When preparing to take the company public, consistent results will be required for this transition to be successful. This means the founder must be familiar with finance or bring in someone with experience in a public offering. In any case, it is a big change.
Multinational companies face other obstacles and require additional skill sets that were not necessary in the small and mid-size companies. First, products may vary depending on local requirements and need more extensive research. Certainly, additional product qualification and regulatory testing will be required.
The last area that will change is finance. The company will require access to banking and legal advice in multiple countries, which can be tricky since each country has specific laws and methods of accessing capital. If the company has established well thought-out, reasonable strategies and tactical executions, then the growth to this stage can be a smooth transition.
All of this can be accomplished as part of a normal growth plan of any technology company. The four key elements are relevant technology, leadership, finance, and good people. But fitting talented people into your organization creates a unique challenge.
Employees and Their Growth Paths
Small companies are the most impacted in lack of resources. Financing and the number of products are limited so workers must be available to perform various tasks outside their general job descriptions.
Design engineers may serve as production engineers. The marketing staff will be burdened with sales responsibilities. Accountants will cover cost issues and human resources. Even the CEO may meet with customers and handle the banking duties.
When thinking of expanding and adding staff, it is best to recruit rather than just interview or train people. For each of these disciplines, I believe the company will be best served by adding senior people that are familiar with multiple areas within a company.
When recruiting, you can set specific goals and select individuals who can accomplish these goals. I have found that there are people who enjoy multitasking, even thrive on it.
It is possible to find this characteristic in a less senior employee, but you will not get the experience. Training then becomes essential, but the company may not be equipped to adequately provide it. The risk of having an unfulfilled employee will increase with less experienced employees.
A mid-size company has grown to more than 100 employees. They are at the point where hard work alone will not lead to success. To be successful, change must occur. Five-year plans and corporate strategies must be created. In preparation for a public offering, additional checks-and-balances systems need to be put in place. The quality system also must be updated.
As the organization grows, new challenges are beginning to surface. The future will have stakeholders with new concerns, concerns that must be addressed if the company is to meet the new objectives of a public offering. Customer expectations will grow higher.
For that reason, some additional avenues of growth are required. Here are some suggestions:
� Recruiting objectives need to be broadened. New disciplines in finance and planning must be created.
� The company must start to train employees. Those who want to advance their careers will need to expand their knowledge.
� Managers now must lead in a different way. Guidelines need to be followed and deadlines met.
� The company may need a change advocate. It would be best if this person existed within the organization, but it may be necessary to bring in someone from the outside.
All of this must occur while the company maintains its levels of customer service and profitability. While the changes will be gradual, they must be deliberate. In addition, these changes will have an affect on the corporate culture because the mix of employee talent requirements also will change.
The multinational company with a much broader scope of business has employees spanning the globe as do the stakeholders. Business is conducted using multiple currencies. Customers from different parts of the world have diverse product requirements and validation processes.
The challenge of growing the company has further intensified. Communication is more demanding since a percentage of the stakeholders may speak English as a second language. They like being associated with a multinational company but may find it difficult to understand the direction of the company.
In addition, the company now requires employees who are responsive to cultures other than their own. Continuing to build this organization requires more diverse sensitivity. All these factors add a new dimension to company growth and finding and retaining the best employees. Basic business principles apply:
� Regardless of size, organizations should always hire up.
� Find people that want the position and have the necessary qualifications.
� Consider all employees to be major stakeholders in the company. Treat them with respect, and you will get respect in return.
� Proper training and opportunities for employees will yield a significant contribution to employee retention.
If you keep things simple by breaking issues down to the simplest levels, most people will understand and move forward with the direction desired�quickly. The world is complicated enough. Don�t add to the confusion.
Conclusion
Employees are a company�s most important asset. To make the employee partnership successful, you must consider multiple facets of the employee relationship. Their desires and abilities to meet or exceed these desires tie directly to the company resources.
Company size will have a large affect on how resources are applied. Make sure employees are aware of this during the recruiting and retention processes. This will lower turnover and help employees find satisfaction in their professions.
About the Author
Bruce P. McGrath is vice president of sales and marketing for ADLINK Technology. Mr. McGrath has more than 30 years of experience in technology-related companies and has held management positions with several companies including Industrial Computer Source (now Kontron) and Burr-Brown (now Texas Instruments). ADLINK Technology, 8900 Research Dr., Irvine, CA 92618, 949-727-2077, e-mail: [email protected]
February 2006