TREAT EVERYONE FAIRLY--NOT NECESSARILY THE SAME

One of the areas I think managers often make a mistake, is to have a firm set of rules that apply to all equally, at all times. I believe that to optimize an organization's performance, you must manage people as individuals. Different people respond in a dramatically different manner to the same stimuli. An employee with one type of personality may respond to an independent assignment with pride that you've showed such confidence in them. Their colleague, with a different personality, may treat the same assignment as a sign of neglect and lack of caring about them. Each of these people may be equally capable, but how you manage them will greatly affect their ultimate performance. This area is where managers really earn their money, in my opinion. Figure out how to get the most out of every single employee, while maintaining an overall environment that still appears equitable, and fair to everyone as a whole.

TIE COMPENSATION TO THE LONG TERM SUCCESS OF THE COMPANY

I want all of my employees to think like owners. So give everyone stock options--that's my strong advice. If that isn't desirable or practical for some reason, figure out a reasonable proxy, to try to get the same results. Utilize Profit sharing programs based not only on short term results, but long term as well. It's important to get everyone to share your goal--which is building the long term value of the company. If your compensation looks like that of a King, and theirs looks like that of a serf--it won't happen. Cut everyone in on a piece of the pie, and your slice will end up much bigger in the end.

BUILD TEAMWORK WITH GROUP GOALS & INCENTIVES

Just as it's important to tie everyone to your long term goal for the company, it's also important to tie people to each other. I've seen many cultures which are very collaborative, where everyone is pulling in the same direction. There are organizations which have the greatest chance of success--the whole ends up being bigger than the individual parts. But all too often, even in early stage tech companies, I see companies where the employees seem to be fighting each other in an attempt to get ahead. They are expending energy fighting over the biggest piece of a still small pie, rather than using that same energy to expand the pie for everyone. Cutting everyone in with stock options helps. But I also recommend that part of each employee's incentive compensation be based upon their internal team reaching its objectives--not just the achievement of individual goals. I find this really helps create greater teamwork, and ultimately a higher value company.

HOLD EMPLOYEES ACCOUNTABLE--BUT WITH COMPASSION

Finally, the sum of it all is that I don't recommend a country club environment, where no one is responsible for their actions. On the contrary, I recommend that you do your best to attract high performers, give them the tools to do their jobs, and hold them accountable for their actions. But do it with respect, helping them in every way that you can. And above all, treat them with compassion.

That's my take on hiring and retaining employees for high tech companies--what's yours?