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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.

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from zero to sixty employees

From Zero to Sixty Employees

Doug Blizzard

CAI, Inc


what is pay for performance
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
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 employees1
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
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
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
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
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?
what we see too often
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
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

Performance Feedback

Advancement Opportunities

Vision Insurance

To be Heard

Health Insurance


Clear Job Description

Paid Vacations

Jury Pay

Flexible Schedules

How Will You Keep Great People?

Work from Home

Holiday Pay


Flexible Spending Account

Medical Leave

Safe Environment

Clear Mission

401k Savings

Bereavement Pay


Profit Sharing


Career Line of Sight

Tools and Equipment

Meaningful Work


A Good Boss

Life Insurance

Stock Options


Wellness Programs

Paid Time Off

Tuition Reimbursement

High Standards

Disability Insurance


Health Fairs




Great Pay

Fair Treatment


Job Enrichment

Ethical Workplace


How Will You Keep Great People?

  • Offer competitive pay and benefits
  • Hire good people managers
  • Outplace bad performers
from zero to sixty employees1

From Zero to Sixty Employees

NCBiotech Entrepreneurship Essentials

“Human Resources Basics

for the Entrepreneur”

Doug Blizzard

CAI, Inc.