Every year, in its September issue, Inc. magazine publishes its \u201cInc. 5000\u201d annual ranking of the fastest-growing private companies in America.\u00a0 Two years ago, when the Inc. 5000 list for 2015 came out, we extracted some of the highlights in an attempt to learn what characteristics all these entrepreneurs have in common that make them successful.\u00a0 We will attempt to do the same thing here with the Inc. 5000 list for 2017, but with a focus on the people side of the equation.\u00a0 So, if you\u2019d like to learn how these top entrepreneurs hire and retain the best people, please continue reading below.<\/p>\n
Inc. magazine\u2019s 5000 fastest-growing private companies in the U.S. (revisited)<\/strong><\/p>\n Inc. surveyed the companies on the Inc. 5000 list.\u00a0 Of the companies that responded to that survey, 62% said that hiring and retaining good people was the biggest obstacle to their growth.\u00a0 That\u2019s almost double the number of respondents who cited other obstacles to growth.\u00a0 So what do these respondents say they are doing to keep their rosters full of quality people?<\/p>\n While there are a variety of benefits the surveyed companies offer to attract and hold good employees, a number of those benefits are aimed at giving employees a degree of autonomy or self-direction.\u00a0 For instance:<\/p>\n Among the surveyed companies, 66% said they actively work at achieving a work\/life balance while only 34% said work\/life balance is \u201ca nice fantasy.\u201d<\/p>\n And then there were a few survey questions about pay.\u00a0 Almost half reported that the wage gap between their highest and lowest paid fulltime employees was in excess of $100,000.\u00a0 When asked, \u201cWho is the highest paid employee at your company?\u201d, 28% responded \u201cNot me.\u201d\u00a0 The top vote-getters for highest paid employee were tied at 20% . . . Head of Operations and Head of Sales.<\/p>\n To build and keep an innovative workforce, one respondent advised, \u201cHire great talent and listen to them.\u00a0 Unfortunately, most companies fail here.\u201d\u00a0 Others recommended building a great company culture.\u00a0 One cautioned, \u201cWhen you\u2019re growing like mad and hiring fast, it\u2019s easy to ignore red flags and bring in someone who\u2019s not a good fit.\u00a0 Do so too often, and you can alter your company\u2019s DNA irreparably.\u201d\u00a0 Another said, \u201cWhen we have a bad culture fit, no matter how good the person is, we fire that person.\u00a0 I fired my top sales guy.\u00a0 His ego grew too large and he abused relationships, and we fired him.\u201d<\/p>\n Respondents were asked to choose three qualities they believe are responsible for their success.\u00a0 Not surprisingly, \u201cDetermination\u201d was on top with 65% of the vote, followed by \u201cRisk-Taking\u201d at 57%, and \u201cVision\u201d at 47%.\u00a0 Strangely, \u201cLikeability,\u201d at only 13%, barely made it onto the list.\u00a0 Yet we know customers do business with people they know, like<\/u><\/em><\/strong>, and trust.\u00a0 We also know that employees will stay longer at a company when their boss is someone they know, like<\/u><\/em><\/strong>, and trust.\u00a0 So you\u2019d think \u201cLikeability\u201d would have fared better than a lowly 13%.\u00a0 But it didn\u2019t.\u00a0 Still, not all of the respondents were quite so hard-hearted.\u00a0 Asked \u201cWhat is the best thing about being a founder?\u201d, one respondent said, \u201cBeing able to provide opportunities to my employees that allow them to live the life they would like to.\u201d\u00a0 Another answered, \u201cBeing a job creator.\u00a0 There is satisfaction in giving people a career.\u201d\u00a0 However, on the flip side of that, many founders agree with this one who said, \u201cThe hardest thing about being a founder is knowing that I\u2019m responsible for the livelihood of my employees.\u201d<\/p>\n Here are some other noteworthy, people-centric quotes from the respondents to Inc.\u2019s survey:<\/p>\n \u201cFocus on growing other people, not just yourself.\u201d<\/p>\n \u201cWhen we see somebody we like, I say, \u2018Holy cow.\u00a0 I don\u2019t care if we have a job for them or not.\u2019\u00a0 We hire them.\u201d<\/p>\n \u201cStructure trumps strategy. Work super hard on the structure of whatever business you\u2019re in so you can scale that business.\u201d\u00a0 His point being, strategies will change over time, but if you have the right structure in place, your organization will be able to adopt to those changes in strategy.<\/p>\n There you have it.\u00a0 Bits of wisdom from Inc. magazine\u2019s 5000 fastest-growing companies list.\u00a0 We\u2019ve tried to focus here on what these successful entrepreneurs do with the people side of their businesses . . . how they attract and keep the best.\u00a0 But there\u2019s more, much more, to learn about the challenges entrepreneurs face when their companies are experiencing very rapid growth . . . strains on their organizations that you might not guess unless you\u2019ve been through it before.\u00a0 If your company is in a fast-growth mode, or may be soon, the September 2017 issue of Inc. will be a useful primer to tell you what to expect and what to prepare for<\/p>\n","protected":false},"excerpt":{"rendered":" Every year, in its September issue, Inc. magazine publishes its \u201cInc. 5000\u201d annual ranking of the fastest-growing private companies in America.\u00a0 Two years ago, when the Inc. 5000 list for 2015 came out, we extracted some of the highlights in an attempt to learn what characteristics all these entrepreneurs have in common that make them<\/p>\n\n