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HighTech Human Resources in 2001

by Janice Caplan
Partner, Scala Associates

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Spectacular internet launches, astonishing growth and equally extraordinary crashes dominate our news. When trying to draw lessons from these, it becomes clear that we don’t simply have computer businesses or telecommunications businesses. More than ever, we have people businesses that design, sell or utilise computers and telecoms. It is the performance of these people that will determine success, which is why Human Resource management needs to be at the heart of the business strategy.

This article explores some of the people management issues that are specific to high-tech businesses and puts forward some ways of dealing with them

Ø       very rapid growth

Ø       use of highly skilled, task oriented individuals who are;

Ø       motivated and stimulated by their work

Ø       highly mobile

Ø       highly remunerated

Ø       not always good communicators 

Ø       massive early investment that exerts enormous pressure to ‘produce the goods’ quickly in order to turn cashflow positive

Ø       fast and often unpredictable rate of change.

These characteristics place particular pressures on recruiting, organising and motivating people. These pressures demand creative solutions.

Recruiting, Retaining, Training and Motivating

The first step is to be clear about what your Human Resource Strategy is trying to achieve:

·         attract staff in a tight labour market. 

·         select staff who will fit in, as well as having the right technical skills. 

·         ensure that staff keep developing their skills so that they, and the business, remain ahead in a competitive market. 

·         ensure that everyone is pulling in the same direction by sharing information and ideas; avoiding duplication of effort, or unidentified gaps.

·         keep staff motivated

·         reward staff appropriately and equitably

Problems and Solutions

The next step is to devise systems and processes that will meet these aims and deal effectively with the pressures and characteristics of the high-tech business.  The following questions and answers may help:

Q       Managing growth is a major challenge. As the organisation grows, greater formality is needed to avoid the growing business descending into anarchy. Yet, whilst introducing greater formality it is essential to maintain the flexibility, rapid response and motivation that creates the entrepreneurial energy. How do you do it?

A        As the organisation takes on new staff, it is essential to have good systems not just for recruitment, induction, or for initial training but also for communication and social integration. As regards the last point, you often need to establish ‘traditions’ of socialising. Staff also need to know where the business is heading, how they fit in to these plans and to have feedback on their own work.

Scala Associates has carried out several employee opinion surveys in high-tech businesses, over the past few years. The following findings show the kind of work environment that staff particularly value: emphasis on personal responsibility is of paramount importance, as is the freedom to get on with the job without someone watching over and checking and the freedom to innovate and put ideas into practise. High-tech staff also value the flexible, informal work environment that allows them personal control over working hours which partly compensates for the number of hours that they generally work. 

Balancing informality with good people management systems is hard but it can be done and many businesses achieve it.

Q       Initially the nature of the work and the pace of development keeps people stimulated and at the forefront of their field. But the pace slows and the innovative part of the work may plateau: how do you keep staff motivated? Even high-tech businesses need routine, maintenance work carried out. How do you keep people motivated when they all want to be on the leading-edge stuff? 

A       Another need becomes part of the solution: you need to keep staff constantly developing their skills and knowledge to keep at the cutting edge. Set up occasions internally for exchanging ideas and brainstorming. Make sure staff get out to conferences and seminars to find out what’s going on and what others are doing and saying. Broaden their skills with ‘hobbies’, give everyone something new to work on. Create projects to work on and, most importantly, allow time out for development work. Face-to-face discussion groups within your own organisation spread expertise, as well as developing ideas.

Q      Traditional performance management systems don’t work in a high-tech business. It is difficult to set performance goals for staff. You can’t set 12 monthly goals, for example, because when you are creating something new, it is difficult to know where it is going to take you.

A       Develop performance management processes that will recognise that people need feedback on how they are performing: they need to know their contribution is recognised and valued and they need to plan their training and development so that can be sure that they will not be left behind. Managers should establish regular performance reviews and one-to-one feedback sessions with staff to discuss their individual progress, what happens next and to identify training and development needs. Consider also systems of 360-degree feedback. These are especially valuable in flat hierarchies and where teams are fluid.

Q       It becomes difficult to innovate and think of new ideas as the workload increases and time becomes a big issue. 

A        Develop ways of prioritising, allocating work, and, in particular, making free time for staff to try out ideas or carry out research. Some firms allow staff to spend a certain amount of time as a ‘floater’ whose role is only to think and to stimulate. 

Q       As organisations grow, communication can become hit and miss. Emails and bulletin boards are often overused when one-to-one meetings would be better. Personal contact between different people, different levels and across teams becomes more difficult. 

A       Establish more formal means of communication and create occasions for contact. Brainstorm ideas in the organisation to see what people might like best. Try and establish a good mix of occasions so that people can come together informally (through special lunches, refreshments, social gatherings) and formally (at presentations, seminars and at regular and ad hoc meetings etc). Where possible, people value opportunities to get together as an organisation. Regular department meetings and team meetings are essential. 

Q       How do you find staff in times of skills shortages? 

Develop a strategic approach to recruitment. Don’t just be reactive and put an ad in the paper. Plan and be prepared with the overall message for potential recruits; what kind of an employer you are, what kind of employment package you offer, what experiences you give, what careers you offer. Be ready with knowledge of the appropriate recruitment sources and make sure staff are trained in your chosen selection methods.

A partner of Scala Associates, a human resources consultancy, Janice Caplan is a personnel and training consultant with practical experience at senior management and strategic level. She has specialist expertise in training and development, employee opinion surveys, performance management including competency profiling and 360-degree feedback and recruitment.

Do you have comments or suggestions or other ideas in this field? Give us your feedback.

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