We recently had the chance to catch up with Peter Platzer, CEO of Spire. Spire is building a space-based constellation of small satellites to gather data about activities on Earth. By providing unique data from any point on Earth, every hour, Spire offers a competitive advantage for organizations that require insight into areas such as global trade, weather, shipping and supply chain, illegal fishing, and maritime domain awareness.
Peter is renowned for having built an incredible team and for fostering an environment where employees grow and thrive. Becoming a Spire employee is harder than many Ivy League admissions programs; only 1 in every 130 interviewees getting hired. They have yet to fire anyone and have nearly doubled in the past year so their process is definitely working for them.
Here are some of his takeaways for managing and hiring talent in any startup organization:
• As a CEO, you should be spending 50% of your time on people. Between hiring, coaching & mentoring, promotions and other people matters, this is where a majority of my time goes. Since people are the scarcest and most important resource to building an incredible company, it’s time well spent.
• Hiring process matters. Putting in time upfront to make sure you have a good hiring process pays off in dividends. It’s important to provide a positive and consistent experience with the firm that is also respectful of everyone’s time. At Spire, we respond quickly to candidates, use a very quantitative assessment tool, and provide robust feedback to each person, regardless of the outcome. This has actually lead to a number of referrals from people that did not get an offer, but left feeling inspired about the work that we do.
• Employees need to feel like they are making progress, which is not defined by titles, but responsibilities. At Spire, we don’t have traditional titles, organizational charts, and performance reviews. We make sure people are challenged and progressing, but they are there to do what they love, not seek a title. We provide career coaching based on what each employee feels intrinsically motivated by and what they want to develop. This model has really worked for us.
• Your first talent hire should be a sourcing professional who loves to source. If I were ever in the business of hiring a sheepherder, I would hire the type of herder who just loved doing that so much that if they didn’t have a flock of sheep, they would start herding whatever else they could find. Just as a physicist loves solving complex physics problems and a sheepherder loves herding, you will get good people if you hire a sourcing professional that loves finding great people.
• Don’t wait too long to find this person. We hired our first talent employee when our company was ~30 people and we could have done it earlier. Even though we are still less than 100 employees, almost 10% of our staff is dedicated to talent.
• Keep raising the hiring bar as you go. After your employees have been at the company for more than two years, they should feel like they would no longer make it through the interview process. You want to be continually raising the bar as you grow.
• Relocation expenses can be the easiest money you’ve ever spent. Sometimes startups are worried about paying relocation expenses, especially at the earlier stages of a company. If you are already at the point of making someone an offer and they have met all of your other criteria, it’s worth spending a few thousand dollars to help them relocate effectively, if that is important for them. The sheer cost and time it takes to find and retain good talent makes this a negligible amount.