Doug Blizzard CAI, Inc

From Zero to Sixty Employees
Doug Blizzard
CAI, Inc
What is Pay for Performance?
“Staffing is the most important decision
you will ever make. When you have good
people, your company can do anything.”
Ed Ryan
The complexity of any organization is created because of
the number of people, not the amount of revenue, you
have. Money and processes are easy to manage compared
to the dynamic impact that people bring to the table.
1-10 Emp.
11-19 Emp.
20-34 Emp.
35-57 Emp.
…the crabgrass in the lawn of small business
Stage I: 1-10 Employees
• Key Challenge: Survival
• CEO centric - 90% of CEO’s time spent as the
specialist and selling while only 10% as a manager.
• Hiring: Critical that new hires “fit” the company –
prefer a small startup philosophy.
Stage I: 1-10 Employees
• Key Regulations
FLSA– min. wage, overtime, child labor, exemptions, records.
OSHA – Safety standards, ensure safe workplaces
Equal Pay Act – equal pay for same work
Immigration Acts – verify legal work authorization
Polygraph Protection - Generally prohibits polygraphs at work
Other laws protecting jurors, veterans, union activities and
health insurance portability
– Various NC laws including unemployment, workers
compensation, Wage Payment, Retaliatory Discrimination, New
Hire Reporting, Identify Theft, Parental School Involvement, etc.
Stage II: 11-19 Employees
• Key Challenge: Growing Sales, manage cash flow
• Still CEO Centric. But starting to “departmentalize”
• Hiring: replacing a few people you’ve outgrown –
still focus on quality people.
• Key Regulations
– Civil Rights Act (15)- Prohibits discrimination on basis of race,
color, religion, sex (including pregnancy, sex harassment),
national origin, & genetic information
– ADA (15) – Prohibits discrimination on basis of disability
Stage III: 20-34 Employees
• Key Challenge: Delegate or risk losing key employees;
manage cash flow
• Enterprise Centric – CEO lets go or burns out
• Delegating, managing and team building begins
• Communication critical
• Hiring:
• Key Regulations
– ADEA (20) – prohibits age discrimination
– COBRA (20) - Provides Group Health Insurance Continuation
Stage IV: 35-57 Employees
• Key Challenge: building internal processes; manage
cash flow
• CEO spending 70% of time managing
• Hiring:
– Experienced Managers
• Key Regulations
– Family Medical Leave Act (50)
Key Themes
• As you grow it becomes less about you and more
about your people.
– Bad hires are devastating for small companies:
The effects of poor performance felt throughout the company
Bad hires are more likely to sue / file claims
80 / 20 rule
Low morale / high turnover drain efficiency & profitability
– Losing key employees affects many aspects of the firm.
• Gut Check: Are you ready to let go?
How Will You Find Great People?
What we see too often…
We’re in a hurry – haven’t planned
We let resumes define the role
We ask predictable interview questions
Interview prowess is more important than
demonstrated success in hiring decision
We don’t involve co-workers in the process
We don’t adequately verify credentials
We [may] hire the right skills, but the wrong fit
We get to do it again…
How Will You Find Great People?
…recruit employees like you do clients
Always be Recruiting…
Hangout where the key prospects hangout
Create compelling / engaging job postings
Entice stars with Critical Success Factors
Intelligently use referrals / Social Media
“Show me” interviews: looking for past behaviors
to predict future behaviors.
• Assessment tools and Background Checks
Advancement Opportunities
Vision Insurance
Paid Vacations
Work from Home
Flexible Spending Account
Clear Mission
Bereavement Pay
How Will You Keep Great People?
Career Line of Sight
Meaningful Work
Tools and Equipment
Stock Options
High Standards
Wellness Programs
Fair Treatment
Ethical Workplace
Profit Sharing
A Good Boss
Paid Time Off
Clear Job Description
Tuition Reimbursement
To be Heard
Disability Insurance
Health Fairs
Great Pay
How Will You Keep Great People?
Offer competitive pay and benefits
Hire good people managers
Outplace bad performers
From Zero to Sixty Employees
NCBiotech Entrepreneurship Essentials
“Human Resources Basics
for the Entrepreneur”
Doug Blizzard
CAI, Inc.

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