REINFORCEMENT
In operant conditioning, reinforcement occurs when an event following a response causes an increase in the probability of that response occuring in the future. Response strength can be assessed by measures such as the frequency with which the response is made (for example, a pigeon may peck a key more times in the session), or the speed with which it is made (for example, a rat may run a maze faster). The environment change contingent upon the response is called a reinforcer.
Types of reinforcement
B.F. Skinner, the researcher who articulated the major theoretical constructs of reinforcement and behaviorism, refused to specify causal origins of reinforcers. Skinner argued that reinforcers are defined by a change in response strength (that is, functionally rather than causally), and that which is a reinforcer to one person may not be to another. Accordingly, activities, foods or items which are generally considered pleasant or enjoyable may not necessarily be reinforcing; they can only be considered so if the behavior that immediately precedes the potential reinforcer increases in similar future situations. If a child receives a cookie when he or she asks for one, and the frequency of 'cookie-requesting behavior' increases, the cookie can be seen as reinforcing 'cookie-requesting behavior'. If however, cookie-requesting behavior does not increase, the cookie cannot be considered reinforcing. The sole criterion which can determine if an item, activity or food is reinforcing is the change in the probability of a behavior after the administration of a potential reinforcer. Other theories may focus on additional factors such as whether the person expected the strategy to work at some point, but a behavioral theory of reinforcement would focus specifically upon the probability of the behavior.
The study of reinforcement has produced an enormous body of reproducible experimental results. Reinforcement is the central concept and procedure in the experimental analysis of behavior and much of quantitative analysis of behavior.
• Positive reinforcement is an increase in the future frequency of a behavior due to the addition of a stimulus immediately following a response. Giving (or adding) food to a dog contingent on its sitting is an example of positive reinforcement (if this results in an increase in the future behavior of the dog sitting).
• Negative reinforcement is an increase in the future frequency of a behavior when the consequence is the removal of an aversive stimulus. Turning off (or removing) an annoying song when a child asks their parent is an example of negative reinforcement (if this results in an increase in asking behavior of the child in the future).
o Avoidance conditioning is a form of negative reinforcement that occurs when a behavior prevents an aversive stimulus from starting or being applied.
Skinner discusses that while it may appear so, Punishment is not the opposite of reinforcement. Rather, it has some other effects as well as decreasing undesired behavior.
The study of reinforcement has produced an enormous body of reproducible experimental results. Reinforcement is the central concept and procedure in the experimental analysis of behavior and much of quantitative analysis of behavior.
• Positive reinforcement is an increase in the future frequency of a behavior due to the addition of a stimulus immediately following a response. Giving (or adding) food to a dog contingent on its sitting is an example of positive reinforcement (if this results in an increase in the future behavior of the dog sitting).
• Negative reinforcement is an increase in the future frequency of a behavior when the consequence is the removal of an aversive stimulus. Turning off (or removing) an annoying song when a child asks their parent is an example of negative reinforcement (if this results in an increase in asking behavior of the child in the future).
o Avoidance conditioning is a form of negative reinforcement that occurs when a behavior prevents an aversive stimulus from starting or being applied.
Skinner discusses that while it may appear so, Punishment is not the opposite of reinforcement. Rather, it has some other effects as well as decreasing undesired behavior.
Distinguishing "positive" from "negative" can be difficult, and the necessity of the distinction is often debated. For example, in a very warm room, a current of external air serves as positive reinforcement because it is pleasantly cool or negative reinforcement because it removes uncomfortably hot air. Some reinforcement can be simultaneously positive and negative, such as a drug addict taking drugs for the added euphoria and eliminating withdrawal symptoms. Many behavioral psychologists simply refer to reinforcement or punishment—without polarity—to cover all consequent environmental changes.
Primary reinforcers
A primary reinforcer, sometimes called an unconditioned reinforcer, is a stimulus that does not require pairing to function as a reinforcer and most likely has obtained this function through the evolution and its role in species' survival. Examples of primary reinforcers include sleep, food, air, water, and sex. Other primary reinforcers, such as certain drugs, may mimic the effects of other primary reinforcers. While these primary reinforcers are fairly stable through life and across individuals, the reinforcing value of different primary reinforcers varies due to multiple factors (e.g., genetics, experience). Thus, one person may prefer one type of food while another abhors it. Or one person may eat lots of food while another eats very little. So even though food is a primary reinforcer for both individuals, the value of food as a reinforcer differs between them.
Often primary reinforcers shift their reinforcing value temporarily through satiation and deprivation. Food, for example, may cease to be effective as a reinforcer after a certain amount of it has been consumed (satiation). After a period during which it does not receive any of the primary reinforcer (deprivation), however, the primary reinforcer may once again regain its effectiveness in increasing response strength.
Often primary reinforcers shift their reinforcing value temporarily through satiation and deprivation. Food, for example, may cease to be effective as a reinforcer after a certain amount of it has been consumed (satiation). After a period during which it does not receive any of the primary reinforcer (deprivation), however, the primary reinforcer may once again regain its effectiveness in increasing response strength.
Secondary reinforcers
A secondary reinforcer, sometimes called a conditioned reinforcer, is a stimulus or situation that has acquired its function as a reinforcer after pairing with a stimulus which functions as a reinforcer. This stimulus may be a primary reinforcer or another conditioned reinforcer (such as money). An example of a secondary reinforcer would be the sound from a clicker, as used in clicker training. The sound of the clicker has been associated with praise or treats, and subsequently, the sound of the clicker may function as a reinforcer. As with primary reinforcers, an organism can experience satiation and deprivation with secondary reinforcers.
HR STRATEGIES VIS-À-VIS RECESSION
HR STRATEGIES VIS-À-VIS RECESSION
As most of us in the Convention Management and Hospitality Industries can attest, the past year has been fraught with challenges and crises. In response to terrorism, biochemical scares, government security warnings and economic downturn the public in general, as well as associations and their members, have battened down the hatches: tourism, travel and conference participation have, until very recently, all been fairly depressed.
In the past year or so we’ve seen an increasing number of HR startups emerge. Some have raised capital, others are bootstrapping. And they’re tackling a broad array of issues in different ways. There have been numerous job matching startups pop up (others have disappeared), startups focusing primarily on employers, others tackling job seeker opportunities. Almost universally, recruiters tell that hiring top people is harder during a recession. And at a macro-level, you can’t ignore the trends – the work force is getting older (even if people will now be forced to work longer than they thought), there aren’t enough young people to fill all the jobs, and the way people are communicating and interacting is changing. A recessionary blip can’t radically change those trends.
In the past year or so we’ve seen an increasing number of HR startups emerge. Some have raised capital, others are bootstrapping. And they’re tackling a broad array of issues in different ways. There have been numerous job matching startups pop up (others have disappeared), startups focusing primarily on employers, others tackling job seeker opportunities. Almost universally, recruiters tell that hiring top people is harder during a recession. And at a macro-level, you can’t ignore the trends – the work force is getting older (even if people will now be forced to work longer than they thought), there aren’t enough young people to fill all the jobs, and the way people are communicating and interacting is changing. A recessionary blip can’t radically change those trends.
Strategies needed to rejuvenate and to make HR startups survive are:
1. Generating Community Solidarity and Team Synergy. An industry wide need for cohesion and closeness was brought home during the January 2002 Professional Conference Management Assn (PCMA) Annual Meeting in Nashville. Two hundred attendees showed for my "Practice Safe Stress: Managing Stress and Building Team Cooperation through Humor," despite being held on the last day and the early morning after "Party with a Purpose."
The turnout and the overwhelmingly enthusiastic and creative responses to the interactive and workplace specific exercises and group sharing indicates, more than ever:
a) People are looking for tools, techniques and tips for getting a home and work life handle on stress and conflict and
b) participants need to vent with knowing others; they desire renewing relationships and connecting with a larger community for support and strength in numbers in a highly uncertain world.
Conference attendance signals that no relationship or partnership should be taken for granted. Laughing and playing with others becomes its own stress reducing and morale building reward. When given the chance to come together in diverse teams, people will generate inspiring processes and innovative win/win solutions that demonstrate team synergy: the whole is truly greater than the sum of its parts.
2. Linking Pre-Conference Commitment and Courage. Clearly, face-to-face meetings and conferences is the way to tackle trauma and temporary setback. Yet intervention can begin pre-conference. Registering and traveling to an out-of-town conference itself is an affirming action that toughens one''s psychological muscle and fiber in the face of threat. Let me give an example. Taking AMTRAK from Washington, DC to New York''s Penn Station three days after 9/11, no doubt stirred some stress hormones. But I''m also convinced that by quickly testing my vulnerable state (and surviving "the dreaded possible"; see #5 below) I short-circuited a potential constrictive anxiety spiral. Facing the fear increased both my short-and long-term, personal and professional degrees of freedom. And the longer one stays in a security shell, the harder it is to venture out.
3. Implementing Training/Morale-Building Programs. In today''s vulnerable climate reaching out to association/organizational staff, as well as membership or clients, is critical. For example, in the early 90s, the US Postal Service in response to a tumultuous period of restructuring and high profile incidents of violence expanded their mission statement: responsiveness to employee well-being was added to customer service and efficient profitability as operational pillars. One consequence: stress and violence prevention focus groups were held at postal facilities across the nation. (And believe me, I''ve been postalized.)
1. Generating Community Solidarity and Team Synergy. An industry wide need for cohesion and closeness was brought home during the January 2002 Professional Conference Management Assn (PCMA) Annual Meeting in Nashville. Two hundred attendees showed for my "Practice Safe Stress: Managing Stress and Building Team Cooperation through Humor," despite being held on the last day and the early morning after "Party with a Purpose."
The turnout and the overwhelmingly enthusiastic and creative responses to the interactive and workplace specific exercises and group sharing indicates, more than ever:
a) People are looking for tools, techniques and tips for getting a home and work life handle on stress and conflict and
b) participants need to vent with knowing others; they desire renewing relationships and connecting with a larger community for support and strength in numbers in a highly uncertain world.
Conference attendance signals that no relationship or partnership should be taken for granted. Laughing and playing with others becomes its own stress reducing and morale building reward. When given the chance to come together in diverse teams, people will generate inspiring processes and innovative win/win solutions that demonstrate team synergy: the whole is truly greater than the sum of its parts.
2. Linking Pre-Conference Commitment and Courage. Clearly, face-to-face meetings and conferences is the way to tackle trauma and temporary setback. Yet intervention can begin pre-conference. Registering and traveling to an out-of-town conference itself is an affirming action that toughens one''s psychological muscle and fiber in the face of threat. Let me give an example. Taking AMTRAK from Washington, DC to New York''s Penn Station three days after 9/11, no doubt stirred some stress hormones. But I''m also convinced that by quickly testing my vulnerable state (and surviving "the dreaded possible"; see #5 below) I short-circuited a potential constrictive anxiety spiral. Facing the fear increased both my short-and long-term, personal and professional degrees of freedom. And the longer one stays in a security shell, the harder it is to venture out.
3. Implementing Training/Morale-Building Programs. In today''s vulnerable climate reaching out to association/organizational staff, as well as membership or clients, is critical. For example, in the early 90s, the US Postal Service in response to a tumultuous period of restructuring and high profile incidents of violence expanded their mission statement: responsiveness to employee well-being was added to customer service and efficient profitability as operational pillars. One consequence: stress and violence prevention focus groups were held at postal facilities across the nation. (And believe me, I''ve been postalized.)
For a rebound effect, consider training programs or support groups that will engage:
a) emergencies - help employees share their post-9/11 anxieties - from emotional post-trauma debriefings to understanding company emergency/security procedures; publicized threats may stir up 9/11 memories,
b) reorganization - help staff deal with the possibility or reality of organizational consolidation, downsizing (or "frightsizing," my preferred term) by acknowledging the sense of loss, if not a "losing team locker room" atmosphere and by appropriately discussing strategies for confronting future vulnerability; such actions reduce dysfunctional rumor-mongering and passive or aggressive acting out, e.g., work slowdowns, sabotage, harassment, destructive territoriality, etc.,
c) travel issues - help staff overcome anxieties regarding overnight travel and out-of town work assignments.
For all the above interventions, a trainer or training team with the appropriate psychological credentials, not simply a "motivational speaker," is strongly advised. Finally, regularly invest in your human capital by having a staff appreciation week or with periodic on-site/off-site events that help employees feel they are a vital part of the organization’s "big picture."
4. Dispensing Organizational IRAs. Providing "Incentives, Rewards and Advancement Opportunities" clearly is a staff motivational tool. However, IRAs can also energize and literally bring together a membership. For example, shortly after 9/11, one association offered free airfare for members to attend a conference. Okay, so their intent was less altruism and more about satisfying exhibitors. Nonetheless, this crisis-driven, "out of the box" strategy: a) helped save a conference, b) preserved business alliances and good will while c) promoting a sense of community when industry personnel and players needed it most.
While many associations may not have this option, why not higher attendance discounts for members with multiple conference registrations. With a "let''s make it happen" attitude, promotional giveaways by exhibitors or conference programs that balance high tech and high touch along with other IRAs..."If you build it (and market it right), they will come!"
5. Spreading the Humor. Infusing the industry as a whole -- buyers and suppliers, staff, volunteers and members -- with "healing humor" would be an invaluable and inspiring gift. Provide both light and enlightening programs for in-house training and conference programming. Sometimes major planning isn''t necessary; healing humor may only require a deft touch at a sensitive moment. Consider the repertoire of a Southwest Airlines employee at a traditionally somber moment. Reviewing takeoff procedures, the steward, holding both oxygen mask and float cushion, suddenly says, "Since part of this trip will be over water, in the unlikely event that this flight becomes a cruise"...and before he could complete his instructions, waves of laughter rolled through the cabin.
Clearly, there''s no joking away the terrible tragedies of 9/11, yet as the comedic genius, Charlie Chaplin, understood, more than ever we need to laugh: "A paradoxical thing is that in making comedy the tragic is precisely which arouses the funny...we have to laugh due to our helplessness in the face of natural forces and (in order) not to go crazy. Facing our doubts and demons, whether getting on a plane or being apart from family while attending a conference are all vital components for long-term relief and rejuvenation. As the psychiatrist, Ernst Kris, noted: "What was once feared and is now mastered is laughed at." And as the Stress Doc inverted: "What was once feared and is now laughed at is no longer a master!"
6. Distinguishing Probable vs. Possible. A coping strategy we can all employ is reducing "stinkin thinkin." And a great first step is valuing the difference between "What is possible?" and "What is probable?" When decision-making is driven by "the possible" (adverse consequences) then we are nearly always anxious, vulnerable and on the edge. With a fertile mind, almost any negative influence or occurrence can be lurking in the shadows.
However, if we evaluate situations more objectively, often with the help of dependable feedback, thereby discerning what is a reasonable expectation or likely result, that is, "the probable," we can more competently and confidently: a) assess past-present-future issue indices and indicators, b) identify more accurately the problem-solving context and critical content and c) generate more reliable, optimally risk-taking and productive problem-solving options and actions.
7. Recognizing and Responding to PTSD. If after putting into practice the above strategies, you still have forgotten how to laugh or are in a post-9/11 or workplace downsizing funk -- having generalized anxiety and irritability, sleep disturbance, weepiness, and/or exhaustion -- then you may be experiencing some Post-Traumatic Stress Disorder effects. Heroic coping or, at least, "holding it together" during times of crisis, ironically, may set the stage for "burnout" or some exhaustive wear and tear in our coping armor weeks and, even, months after the traumatic fact. Don''t suffer in silence. (Remember, misery doesn''t just like company...it likes miserable company. You are not alone! ;-)
Seriously, we all have engaged in some degree of grieving after a combination of acute (terror) and chronic (recession) tragedies and setbacks. Such life stressors often mingle with other unfinished psychological baggage we''ve been quietly carrying around. Consulting with a mental health professional is the best way to forestall depression, to rebuild pre-trauma or pre-crisis coping and most important restore a sense of hope
In closing, seven action concepts have been posited for helping the Conference Management and Hospitality Industries rebound as a psychological and economic community. By: 1) Generating Community Solidarity and Team Synergy, 2) Linking Pre-Conference Commitment and Courage, 3) Implementing Training/Morale-Building Programs, 4) Dispensing Organizational IRAs, 5) Spreading the Humor, 6) Distinguishing Probable vs. Possible and 7) Recognizing and Responding to PTSD we can grieve and laugh, bond and rebound together as individuals, companies, associations and industries -- as a higher power, healing alliance of renewed commitments and rejuvenated connections. Surely a plan to help us all...Practice Safe Stress!
8. Painkiller vs. Vitamin: Don Dodge, Director of Business Development for Microsoft’s Emerging Business Team and a veteran startup guy, talks a great deal about painkillers vs. vitamins. Is your solution a “nice-to-have” vitamin or a true painkiller?
He points out that very often companies are more willing in tough times to try new things, if it can be proven to be a true painkiller, and when the economy is tanking that truly comes down to saving money.
9. “Me Too” Startups: HR is not unique in this, but there are a lot of “me too” startups. One of the reasons is that it’s quite easy to recognize the opportunities in the market. For starters, it’s a huge market. Secondly, while there are some big, established players, the market (in most areas) is wide open. And thirdly, we’re seeing more and more disruption of traditional businesses (be it newspapers or big job boards as two examples), which is a great time for startups to jump in. Some people even argue that copycat startups are in a better position to win than first movers. That may be true, but the HR space is crowded. Startups need to find clear and simple differentiators that they can take to market and hammer home.
10. Balancing Innovation and Tradition: At the end of the day, innovation wins. If you don’t believe that you can’t possibly run or be involved in a startup. But at the same time, it’s absolutely critical that you understand the market’s willingness to be an overall early adopter of innovation. As I’ve heard too many times, “No recruiter will ever lose their job posting on a big job board.” That may be true today, but it won’t hold true forever. Still, HR startups need to be cognizant of traditional models, features, and methodologies and messaging. If you don’t innovate, you die. But at the outset, it’s also important to find traditional leverage points to acquire customers.
11. Revenue Rules: You’re not going to see a lot of HR startups raising huge dollars for the next little while. The market is just too messed up. And that means you either bootstrap on an extremely tight budget while you search for your business model, or you institute model out-of-the-gate and make money as fast as you can. I tend to lean towards generating revenue vs. building a business based on other metrics like traffic or free customers, only to run out of money (and therefore time) before hitting a tipping point.
12. Thought Leadership: Unless you have many millions of dollars burning a hole in your bank account, you’ll find it hard to generate enough attention, leads and sales through advertising and marketing. It’s noisy out there, and traditional advertising and marketing strategies may not prove as effective as need be. But HR has a growing appetite for information; as things evolve all around us, recruiters are interested in what’s going on and how they can leverage new technology, new strategies, etc. to benefit their efforts. HR startups need a voice. There are lots of examples worth looking at: Jason Alba at Jibber Jobber for example. HR startups – ideally through the founders – need to establish credibility in a marketplace that’s seen many startups come and go with the “latest, greatest tool.”
13. Understand the HR Ecosystem: The HR ecosystem is large and complex. There are lots of vendors, and I’ve often said that it’s impossible to move one inch to the left or right without stepping on a whole bunch of toes. Understanding your position in that ecosystem is critical. And, you need to understand how you can work with those around you; going it alone in the world of HR is very hard
a) emergencies - help employees share their post-9/11 anxieties - from emotional post-trauma debriefings to understanding company emergency/security procedures; publicized threats may stir up 9/11 memories,
b) reorganization - help staff deal with the possibility or reality of organizational consolidation, downsizing (or "frightsizing," my preferred term) by acknowledging the sense of loss, if not a "losing team locker room" atmosphere and by appropriately discussing strategies for confronting future vulnerability; such actions reduce dysfunctional rumor-mongering and passive or aggressive acting out, e.g., work slowdowns, sabotage, harassment, destructive territoriality, etc.,
c) travel issues - help staff overcome anxieties regarding overnight travel and out-of town work assignments.
For all the above interventions, a trainer or training team with the appropriate psychological credentials, not simply a "motivational speaker," is strongly advised. Finally, regularly invest in your human capital by having a staff appreciation week or with periodic on-site/off-site events that help employees feel they are a vital part of the organization’s "big picture."
4. Dispensing Organizational IRAs. Providing "Incentives, Rewards and Advancement Opportunities" clearly is a staff motivational tool. However, IRAs can also energize and literally bring together a membership. For example, shortly after 9/11, one association offered free airfare for members to attend a conference. Okay, so their intent was less altruism and more about satisfying exhibitors. Nonetheless, this crisis-driven, "out of the box" strategy: a) helped save a conference, b) preserved business alliances and good will while c) promoting a sense of community when industry personnel and players needed it most.
While many associations may not have this option, why not higher attendance discounts for members with multiple conference registrations. With a "let''s make it happen" attitude, promotional giveaways by exhibitors or conference programs that balance high tech and high touch along with other IRAs..."If you build it (and market it right), they will come!"
5. Spreading the Humor. Infusing the industry as a whole -- buyers and suppliers, staff, volunteers and members -- with "healing humor" would be an invaluable and inspiring gift. Provide both light and enlightening programs for in-house training and conference programming. Sometimes major planning isn''t necessary; healing humor may only require a deft touch at a sensitive moment. Consider the repertoire of a Southwest Airlines employee at a traditionally somber moment. Reviewing takeoff procedures, the steward, holding both oxygen mask and float cushion, suddenly says, "Since part of this trip will be over water, in the unlikely event that this flight becomes a cruise"...and before he could complete his instructions, waves of laughter rolled through the cabin.
Clearly, there''s no joking away the terrible tragedies of 9/11, yet as the comedic genius, Charlie Chaplin, understood, more than ever we need to laugh: "A paradoxical thing is that in making comedy the tragic is precisely which arouses the funny...we have to laugh due to our helplessness in the face of natural forces and (in order) not to go crazy. Facing our doubts and demons, whether getting on a plane or being apart from family while attending a conference are all vital components for long-term relief and rejuvenation. As the psychiatrist, Ernst Kris, noted: "What was once feared and is now mastered is laughed at." And as the Stress Doc inverted: "What was once feared and is now laughed at is no longer a master!"
6. Distinguishing Probable vs. Possible. A coping strategy we can all employ is reducing "stinkin thinkin." And a great first step is valuing the difference between "What is possible?" and "What is probable?" When decision-making is driven by "the possible" (adverse consequences) then we are nearly always anxious, vulnerable and on the edge. With a fertile mind, almost any negative influence or occurrence can be lurking in the shadows.
However, if we evaluate situations more objectively, often with the help of dependable feedback, thereby discerning what is a reasonable expectation or likely result, that is, "the probable," we can more competently and confidently: a) assess past-present-future issue indices and indicators, b) identify more accurately the problem-solving context and critical content and c) generate more reliable, optimally risk-taking and productive problem-solving options and actions.
7. Recognizing and Responding to PTSD. If after putting into practice the above strategies, you still have forgotten how to laugh or are in a post-9/11 or workplace downsizing funk -- having generalized anxiety and irritability, sleep disturbance, weepiness, and/or exhaustion -- then you may be experiencing some Post-Traumatic Stress Disorder effects. Heroic coping or, at least, "holding it together" during times of crisis, ironically, may set the stage for "burnout" or some exhaustive wear and tear in our coping armor weeks and, even, months after the traumatic fact. Don''t suffer in silence. (Remember, misery doesn''t just like company...it likes miserable company. You are not alone! ;-)
Seriously, we all have engaged in some degree of grieving after a combination of acute (terror) and chronic (recession) tragedies and setbacks. Such life stressors often mingle with other unfinished psychological baggage we''ve been quietly carrying around. Consulting with a mental health professional is the best way to forestall depression, to rebuild pre-trauma or pre-crisis coping and most important restore a sense of hope
In closing, seven action concepts have been posited for helping the Conference Management and Hospitality Industries rebound as a psychological and economic community. By: 1) Generating Community Solidarity and Team Synergy, 2) Linking Pre-Conference Commitment and Courage, 3) Implementing Training/Morale-Building Programs, 4) Dispensing Organizational IRAs, 5) Spreading the Humor, 6) Distinguishing Probable vs. Possible and 7) Recognizing and Responding to PTSD we can grieve and laugh, bond and rebound together as individuals, companies, associations and industries -- as a higher power, healing alliance of renewed commitments and rejuvenated connections. Surely a plan to help us all...Practice Safe Stress!
8. Painkiller vs. Vitamin: Don Dodge, Director of Business Development for Microsoft’s Emerging Business Team and a veteran startup guy, talks a great deal about painkillers vs. vitamins. Is your solution a “nice-to-have” vitamin or a true painkiller?
He points out that very often companies are more willing in tough times to try new things, if it can be proven to be a true painkiller, and when the economy is tanking that truly comes down to saving money.
9. “Me Too” Startups: HR is not unique in this, but there are a lot of “me too” startups. One of the reasons is that it’s quite easy to recognize the opportunities in the market. For starters, it’s a huge market. Secondly, while there are some big, established players, the market (in most areas) is wide open. And thirdly, we’re seeing more and more disruption of traditional businesses (be it newspapers or big job boards as two examples), which is a great time for startups to jump in. Some people even argue that copycat startups are in a better position to win than first movers. That may be true, but the HR space is crowded. Startups need to find clear and simple differentiators that they can take to market and hammer home.
10. Balancing Innovation and Tradition: At the end of the day, innovation wins. If you don’t believe that you can’t possibly run or be involved in a startup. But at the same time, it’s absolutely critical that you understand the market’s willingness to be an overall early adopter of innovation. As I’ve heard too many times, “No recruiter will ever lose their job posting on a big job board.” That may be true today, but it won’t hold true forever. Still, HR startups need to be cognizant of traditional models, features, and methodologies and messaging. If you don’t innovate, you die. But at the outset, it’s also important to find traditional leverage points to acquire customers.
11. Revenue Rules: You’re not going to see a lot of HR startups raising huge dollars for the next little while. The market is just too messed up. And that means you either bootstrap on an extremely tight budget while you search for your business model, or you institute model out-of-the-gate and make money as fast as you can. I tend to lean towards generating revenue vs. building a business based on other metrics like traffic or free customers, only to run out of money (and therefore time) before hitting a tipping point.
12. Thought Leadership: Unless you have many millions of dollars burning a hole in your bank account, you’ll find it hard to generate enough attention, leads and sales through advertising and marketing. It’s noisy out there, and traditional advertising and marketing strategies may not prove as effective as need be. But HR has a growing appetite for information; as things evolve all around us, recruiters are interested in what’s going on and how they can leverage new technology, new strategies, etc. to benefit their efforts. HR startups need a voice. There are lots of examples worth looking at: Jason Alba at Jibber Jobber for example. HR startups – ideally through the founders – need to establish credibility in a marketplace that’s seen many startups come and go with the “latest, greatest tool.”
13. Understand the HR Ecosystem: The HR ecosystem is large and complex. There are lots of vendors, and I’ve often said that it’s impossible to move one inch to the left or right without stepping on a whole bunch of toes. Understanding your position in that ecosystem is critical. And, you need to understand how you can work with those around you; going it alone in the world of HR is very hard
