The Importance of Early People Operations in Startups

When launching a startup, the initial focus is often directed towards product development and satisfying early adopters. However, even at this nascent stage, implementing foundational “people ops” strategies is crucial for future success, as highlighted by Caro Chayot and Dan Hynes, talent partners at venture capital firm Atomico.

Both Chayot and Hynes are integral to Atomico’s operational support division. Their primary function involves assisting portfolio companies in attracting, nurturing, and retaining top-tier talent throughout all phases of growth.

Expertise in Scaling Teams

Chayot’s background includes a leadership role within Twitter’s EMEA HR department. During her tenure, she oversaw the expansion of the business from two to six markets and facilitated team growth from 80 employees in London to 500 across the region.

Prior to her work at Twitter, Chayot dedicated nine years to people operations at Google, gaining extensive experience in talent management.

Hynes brings a similarly impressive track record, having led talent acquisition and staffing initiatives at prominent tech companies like Google, Cisco, and Skype.

Proven Growth Strategies

While at Google, Hynes spearheaded the expansion of the EMEA team from a base of 60 in London to 8,500 employees throughout Europe by 2010.

Subsequently, at Skype, he directed a talent team that successfully scaled the organization from 600 to 2,300 employees within a three-year period.

These experiences demonstrate the value of proactive people operations, even in the earliest stages of a company’s development. Establishing strong foundations for talent management is essential for sustained growth and achieving long-term objectives.

Caro Chayot’s Leading 3 Recommendations

1. Envision Future Organizational Structure and Recruit Accordingly

Typically, when establishing a hiring strategy, founders concentrate on immediate needs and existing team deficiencies. However, Dan and I advocate for a broader perspective. While addressing current requirements is essential, anticipating future developments is equally crucial. Consider the projected state of your company in a year or eighteen months. Team sizes and functional areas will vary depending on your business model – be it a marketplace, SaaS platform, or consumer-focused enterprise.

Founders should also contemplate the potential growth trajectory of new hires over the next 18 months. Individuals already operating at peak performance may lack the capacity to evolve into the employees your organization will require in the future.

2. Clearly Define Your Company Culture and Integrate it into All People-Related Processes

If organizational design represents the “what,” then culture embodies the “how.” This involves establishing core values and guiding principles. While it may appear abstract, articulating the essence of working at your company is paramount for attracting and retaining top-tier talent. These clearly defined values can be leveraged throughout the talent management lifecycle to cultivate a strong employer brand.

Consider the impression you want potential employees to gain from your website. What qualities will you seek during the interview process to ensure alignment with your cultural values? How will you foster employee development and administer compensation? These are all manifestations of your company culture.

Equally important is addressing cultural scalability. Culture will inevitably evolve due to factors like new hires or shifts in work arrangements, such as increased remote work. Identifying core values that must remain constant – like a user-centric approach – is vital. Adapting to change is natural and positive, but consistent review and proactive adjustments are necessary.

3. Proactively Address Diversity to Avoid Future Imbalances

The Series A funding stage, where Atomico frequently invests, presents a significant opportunity for founders to implement measures preventing the accumulation of diversity debt. We recognize our responsibility as investors and talent specialists to provide the necessary tools for early intervention. To foster a diverse organization from the outset, founders can focus on three key areas:

Prioritize Diversity in Leadership. Many early-stage companies have not yet established a formal C-suite or executive team, offering an ideal opportunity to build a diverse leadership foundation. Starting at the top simplifies the process of attracting, hiring, and retaining diverse talent across all organizational levels.

Establish a Clear Understanding of Inclusion. Founders often prioritize hiring when addressing diversity, but focusing on inclusion – how to retain the diverse talent you acquire – is equally important. Define what inclusion means to your organization and integrate these principles into your company culture.

Develop a Strategic Approach to Accessing and Cultivating Diverse Talent. Some founders reactively seek candidates when immediate needs arise, such as needing an engineer. However, a long-term perspective is crucial. While filling an immediate role is acceptable, proactively building a pipeline of diverse candidates for future positions is essential. Numerous resources are available to build a diverse candidate pool, including specialized networks and internship programs. We can provide valuable support through introductions to CTOs within our portfolio, sharing their experiences in building diverse teams, or connecting founders with specialized recruitment firms for senior-level hires.

Dan Hynes’ Top 3 Recommendations

1. Conceptualize People Operations as an Integrated System

The people operations department should be regarded with the same strategic importance as sales, marketing, or any other core business function. This necessitates meticulous tracking of successes and failures, continuous improvement, and a data-informed approach to building and refining your operational framework.

Consider not only the current state of the company but also its projected growth and organizational changes over the next 12 to 18 months, mirroring Caro’s advice. A holistic system encompasses the company’s core vision and mission – its fundamental reason for existence.

This system also defines the desired culture, establishes clear leadership and management competencies, outlines a compensation philosophy (including equity allocation), and governs crucial processes like hiring, onboarding, internal communications, and performance development. Effective implementation requires a systemic perspective, recognizing the interconnectedness of these elements.

While HR plays a vital role in delivering these experiences, the ultimate responsibility for establishing the foundational system – a compelling mission and vision – rests with the CEO and founders. Especially for companies in the Series A and Series B funding stages, inspiring employees is paramount to achieving ambitious goals.

The Significant Contribution of Skilled Recruiters to Organizational Success

Exceptional recruiters function as highly effective talent scouts, acting as the extended senses of a company’s foundational teams. A truly outstanding recruiter possesses the ability to articulate the company’s value proposition more persuasively than even its most seasoned sales executives – a deep understanding of the mission, vision, and product development trajectory is crucial. Recognizing such individuals warrants a substantial investment.

Organizations are increasingly prioritizing the early integration of recruiting personnel into their structures. In the United States, this often occurs around the fifteenth employee, while in Europe, it may be closer to the fortieth or fiftieth. These professionals arrive from diverse backgrounds, including executive search, former leadership roles, and sales. However, a unifying characteristic defines them: a genuine passion for witnessing the professional growth of candidates they place and the resulting sense of fulfillment.

During the Series A funding stage, the emphasis isn't on establishing a large-scale recruitment infrastructure. Instead, success is often achieved through resourceful strategies. Supercell, renowned for its effective promotion of Finland and Helsinki as desirable places to live and work, serves as a compelling illustration.

The Critical Importance of Effective Onboarding

Having secured talented recruiters, cultivated a positive company culture, and completed a successful hire, the onboarding process must not be overlooked. This involves swiftly enabling new employees to reach peak productivity. Attention to detail is paramount in ensuring a seamless transition.

Prior to an employee’s start date, ensure all necessary equipment is fully operational. This allows them to begin work immediately without technical delays. Proactively share relevant information – presentations, videos, sales pitches, product details, and marketing materials – before their first day. Avoid burdening new hires with administrative tasks upon arrival; instead, establish clear objectives for their initial week and month, followed by a probationary review to confirm mutual satisfaction between the employee and their manager.