The Next Level

Avoiding the pitfalls of fast growth.

Pampered. Pragmatic. Persnickety. These are not the employee attributes that build fast-growth companies, but all three describe a group of employees that fast growth entrepreneurs must confront when hiring. Since the Great Recession of 2008, my advice to entrepreneurs is to run, baby, run when it comes to hiring this group.

Oh, by the way, I am not talking about Gen X or Gen Y employees; I am talking about their parents — at least some of them. Many thrived in an economy and work environment where they received multiple job offers, signing bonuses and automatic raises just for showing up. In other words, they got used to a reality that will not soon repeat itself. Today, post-crisis, workers have to justify their existence, why they are being paid. What value do they add? Meanwhile, the people who are stepping up in the new economy are the Great Recession graduates, new employees who were born into the new reality.

Let me be clear: I don’t mean to generalize. No group is all good or all bad or all anything. But the new reality is that entrepreneurs look at employees in two ways: they are either adding profits to the company or they are taking profits away. When I ask employees who remember the good old days to justify their salary, they do not even like my asking the question. But their children are different.

Those who have graduated from college in the last five years have the upper hand in landing these new jobs in the fast-growth companies where most new jobs are created. When I interview recent graduates, I sometimes feel as though I am talking to my dad, who lived through the Great Depression and never really got over it. If you talk to recent grads, you hear the hard-luck stories of deleted college funds — money that was supposed to send them to out-of-state schools.

Instead, they stayed home, went to the local college and waited on tables. And they have been hardened for what is still a tough economy in which to expand a company or be hired. Put it this way: I don’t think having a bring-your-dog-to-work day is high on their list, and there is no pushback on wearing business attire, either. Also, they do not have a lot of outside obligations that take them in and out of work five times a day. These Great Recession graduates are perfect players in fast-growth companies where a hunger to work and a will to win override the need for entitlements, praise and corner offices.

I have said it before — managing a fast-growth company is like walking on thin ice and riding rapids at the same time. No company needs people who cannot go with the flow and get stuff done. The Great Recession graduates do not question or doubt a job that has a tough mission. In short, they know how to survive, they will follow a vision and they want to make a difference.

I do not see that as often with the parents. Yes, there are lots of exceptions, but too many experienced employees are trapped in the easy-money past and have stopped trying to keep up. The first thing holding them back is that many have taken a pass on understanding social media as a business strategy. When I ask an experienced employee about social media, I’m told, “I am on Facebook and thinking about trying Twitter.” When I ask my own children or recent graduates about social media, here is the answer: “It is how we communicate.” Social media, Google and video represent a sea change; they have destroyed the knowledge gap that used to exist between entry-level employees and experienced employees.

Some may suggest that I am not respecting the value of experience. Here is my answer: I’m not convinced that that experience is relevant anymore. Here’s a real-world example. At the Oxford Center for Entrepreneurs, we recently began hiring for our M.B.A. entrepreneur program. I was interviewing to hire recruiters, and I’m sure many of the experienced candidates could have been good employees. Many talked enthusiastically about how they would figure out the best places to visit and recruit M.B.A. candidates for our program.

But being enthusiastic isn’t good enough anymore, especially if you are asking for the kinds of salaries that were paid before the economic crisis. It was the recent graduates who asked us, “Isn’t driving to college fairs expensive?” The person we hired is a 24-year-old who suggested an integrated social media strategy to motivate hundreds of Web sites to drive traffic to our site. By the way, the recent graduates with two years’ experience wanted this: an opportunity to grow, $45,000 in annual salary and commission on revenue brought to the company. The experienced candidates wanted three times the salary and were quite concerned about not having their own offices.

Here’s another example. We recently hired five C.E.O. apprentices right out of business school and within two days they had all set up shop and congregated in an empty conference room where they sat face-to-face, collaborating on projects and generating ideas. Again, this is how they communicate. When they’re not using social media, they prefer face-to-face discussion, challenging each other in an open environment.

Let me repeat: I don’t mean to generalize. I recently hired a 51-year-old legacy employee with a sterling pedigree. He didn’t dwell on the good old days, and he approached me with a confident and humble view about a fresh start. These are good signs to spot, and when you see them, you should hire the experienced employees who get it — but a lot of them do not. Here is my recommendation for those who are struggling with the transition: Don’t try to reinvent yourself for fast growth. Instead, be yourself, and do what you always wanted to do.

I have a good friend who has had a terrific 25-year career in pharmaceuticals. With retirement approaching, she was eagerly courted by venture capitalists to join any one of a multitude of biotech start-ups. After visiting several of the companies, she told me: “I realized I was 52 and had crossed the line. I saw all of the problems in these companies. I felt sorry for them and decided not to do it. But they were happy and could not wait for tomorrow.” What is she going to do? What she always wanted to do. This fall she is going back to college as a freshman nursing student.

So I don’t think experienced employees should stop thinking about tomorrow — I just think some of them should stop thinking about joining a fast-growth company. Most do not have corner offices anyway.

Cliff Oxford is the founder of the Oxford Center for Entrepreneurs. You can follow him on Twitter.

Article source: http://boss.blogs.nytimes.com/2013/04/03/why-i-like-to-hire-great-recession-graduates/?partner=rss&emc=rss