June 2023
Matt Compton
At the Oregon Venture Fund, we are continuously working to support our portfolio companies. One area that always bubbles to the top is compensation and talent. Startup CEOs not only have the responsibility of building their business, but they are also building their team and culture.
At our most recent annual compensation and talent workshop, we were fortunate to have the help of our Venture Partner, Susy Dunn, lead the discussion and share her vast expertise. Thank you, Susy!
The workshop focused on topics related to designing effective compensation programs, hybrid work realities and strategies, and leading high-performance teams. We brought together CEOs, heads of people, experts, industry leaders, and practitioners to share insights, exchange best practices, and address the challenges faced in today's dynamic work environment.
Here’s a high-level overview of the topics discussed...
Topic 1: Designing a Scalable Compensation Program
The first section focused on designing a scalable compensation program that aligns with the organization's goals, values, and market competitiveness. Key highlights from this session included:
Understanding Compensation Philosophy: Define a clear compensation philosophy that reflects the organization's culture, values, and desired market positioning. For example, a company could choose to benchmark at just below median on base comp but 75th percentile on equity to match the early build stage of the company and support their value of we all think like a shareholder first. A comp philosophy can also evolve over time as a company matures through various stages of scale and scope.
Job Evaluation and Market Analysis: Determine strategies of conducting comprehensive job evaluations and market analysis to determine appropriate salary ranges and ensure internal and external equity. At least annually, a company should review salaries through an equity lens.
Variable Pay and Incentive Programs: Explore various variable pay and incentive programs that motivate employees and drive performance, such as bonus structures, profit-sharing plans, and performance-based rewards.
Total Rewards Approach: Adopt a holistic approach to compensation by considering non-monetary benefits, recognition programs, flexibility in work times and location, and career development opportunities.
Topic 2: Hybrid Strategies for Success
The second topic delved into the challenges and opportunities presented by hybrid work environments, offering strategies for organizations to successfully navigate this new paradigm. Key takeaways included:
Have a point of view: The CEO and people leader need to have a clear point of view on remote work. It’s fine to continue to experiment but we are at a point now where companies need to be planful in how they structure work. For some companies, remote is appropriate where factors like the ability to recruit national or global talent are more important than in person collaboration. Other companies may find that their in-person workflows are critical and need to be optimized within a single location. The key is to have a key point of view and focus on company performance as ultimately the measure of success.
Redefining Work Structures: Adapt work structures to accommodate remote work, flexible schedules, and virtual collaboration, while ensuring effective communication, collaboration, and accountability.
Technology and Infrastructure: Invest in robust technological solutions and infrastructure to support remote work, facilitate seamless communication, and ensure data security.
Employee Engagement and Well-being: Implement initiatives to foster employee engagement and support the mental and physical well-being of hybrid teams. Most hybrid companies invest in monthly, quarterly, or annual all team in-person gatherings that produce meaningful work and allow ample time for personal connection.
Performance Management: Revisit performance management processes to account for remote work dynamics, setting clear expectations, providing regular feedback, and leveraging technology for performance tracking.
Topic 3: Leading High-Performance Teams
The final topic emphasized the role of effective leadership in driving high performance within teams. Key insights shared during this session included:
Leadership Competencies: Identify and develop leadership competencies that align with the organization's values and foster a culture of high performance.
Building Trust and Psychological Safety: Create an environment of trust and psychological safety that encourages open communication, collaboration, and innovation.
Coaching and Development: Implement coaching and development programs to empower employees, enhance their skills, and cultivate a growth mindset within the organization. The exact format matters less than frequent, direct, and continuous feedback with expectation setting.
Team Dynamics and Diversity: Recognize the importance of diverse teams and fostering an inclusive environment that leverages the unique strengths and perspectives of each team member.
Thanks to all who participated! The workshop provided valuable insights into designing scalable compensation programs, implementing hybrid strategies, and leading high-performance teams. Participants gained practical knowledge and actionable strategies to address the evolving needs of their organizations. We found that the workshop also served as a platform for knowledge sharing and collaboration among CEOs, people team leaders and board directors. We walked away impressed with the nuance and insight of the leaders across the OVF portfolio.