Hello everyone,
today we cover the following:
- Best practices on how to profitably build new business units into your core business
- Management without ratings and look on hiring and firing
- An alternative to H1B visas
Cover Story – Profitable Innovation Within Your Company
The CEO at eShares shares his company’s view on the development of new business units.
- Start with a leadership trifecta (tech, business, design)
- Have a monthly burn rate of $600k (too little and you are not investing enough; too much and you are wasting resources)
- Pick the right profiles for different stages of the business unit (0-1 people vs. 1-n people)
The article goes into more depth and shows the exact accounting structure for profitable innovation.
This Week’s Finest – Management Practice
Management Without Ratings (URL) – Deloitte’s HR Research showed that old rating systems (e.g. ‘1-5’) can be outdated for lots of organizations.
Alternative suggestions:
- Clearly define expectations
- Include ongoing, in-the-moment feedback
- Bring peers into conversation
- Focus on the future
- Follow-up
Expensify’s Firing Strategy (URL) – Expensify’s founder outlines their fairly straight forward HR strategy: hiring employees with an above average output function.
This post goes into detail how they scout and hire for 10x employees and how they use Performance Improvement Plans.
Worth Reading – US Work Visa Alternative
US Visa Advice (URL) – If your company is looking to hire Canadian or Mexican citizens you should consider looking into TN visas (similar to H1B but without an annual cap).
Half of US Childcare Workers on Welfare (URL) – With a median wage of $9.77 childcare workers earn on average $3 less than janitors.
2 million US workers are currently involved with caring for or educating roughly 12 million children up to the age of 5.
Please let us know what you liked, what you disliked and which topics you would love to see in the future.
Drop us a mail: hello@perengo.com
Have a great week,
Team Perengo