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Ask HN: How much info should founders share with early stage employees?

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Re: Ask HN: How much info should founders share with early stage employees?

#81
My experience kicks in quite a bit north of where you are, but for what it’s worth, I joined a company as employee ~150 that practiced near total transparency on everything.

We went public, are now north of 8,000 employees, and it’s still nearly as transparent as when I joined - financials, product metrics, anonymized employee trends/HR data, major decisions… the list goes on but pretty much everything is done in the open with only a handful of exceptions.

I can’t think of a situation where that level of transparency was a hindrance to the company or regretted by our founders as far as I know… in fact the opposite, I think it creates a culture of ownership and makes people feel valued and respected.

As an employee, now that I’ve experienced having that level of access, I’ll never join a place that doesn’t offer a similar level of transparency.

Edit: Adding a couple thoughts based on some comments I’m seeing. I really believe that restricting information to specific people or keeping it from people who “might not understand it” is wrongheaded.

If people are interested and curious, help them learn. If they aren’t, who cares? When there was feedback about wanting to better understand financials, our CFO did an hour long walkthrough of SaaS economics. When new legislation forced operational changes, our general counsel walked us through not only what we needed to do differently but how he approached his job and situations like this. People come to work (especially at startups) to stretch and to learn, regardless of their role or level.

Re: Ask HN: How much info should founders share with early stage employees?

#82

Share it all. Complete transparency. Show them the cash flow. At your small size you will benefit from the additional trust and alignment this will bring. You may find yourself delighted in finding that many of your team can see and solve problems that you may have missed. You can be super secretive to combat the BigCo mentality like Apple when you have the first class problem of being a BigCo.

Great way to have leaks and create lousy hygiene around information security. Culture is most difficult to revert then. The default should always be on a need-to-know basis. Anything else should be justified.

Couldn’t disagree with you more.

Re: Ask HN: How much info should founders share with early stage employees?

#83

Earlier quoted context omitted.

Great way to have leaks and create lousy hygiene around information security. Culture is most difficult to revert then. The default should always be on a need-to-know basis. Anything else should be justified.

There are very few startups that need to be in “stealth mode”. If anything, startups need to be more vocal to get themselves on the map and to do way way more customer development.

Are you sure, specially in easily copied technology domains?

In my experience, software, business processes, and hardware are best kept close to the vest until sufficient momentum and maybe market saturation is reached.

It does not matter if the item holds a copyright/patent/trade mark; they are post even re-active solutions. It's like an ambulance after a car crash. Excellent if there are good doctors in the ambulance, but better the avoid the car crash all together.

Re: Ask HN: How much info should founders share with early stage employees?

#84

Earlier quoted context omitted.

Your explanations for why employees at an early stage startup might care about upcoming business deals seem to be missing the obvious one to me, that you’ve employed people who are thinking about the business as a whole rather than their tiny slice of the picture. The single most vital thing in an early stage startup is acquiring customers, and these deals are how that’s done, why wouldn’t one of seven employees at t…

> why wouldn’t one of seven employees at the company want to know about how the business is doing? If the early-stage employees have significant equity in the company, then they'll be very interested in how the company is doing. If their upside is paycheck, bonus and equity proportional to their salary (as you'd find in an established company), then one employer is as good as another. I think the question of how much…

I doubt this is true. I can believe that it's a good idea to give people equity at the margin. But in my experience loyal people are loyal. People who put themselves first put themselves first. I think there's very little correlation between how good people are and how good they think they are.

Take a good, valuable or loyal employee and treat them badly and you can probably lose them. Take a bad, incompetent or disloyal employee and no matter how much you compensate them I suspect you can not change them.

Re: Ask HN: How much info should founders share with early stage employees?

#87
post #35

Earlier quoted context omitted.

> To me it seems like there is some other, unstated reason to be less transparent Hiring, mostly. If you hire people that don't want, care, or are able to understand the full picture, the transparency won't pay off. But at small sizes, you generally want to hire people that both can and are eager to understand the whole picture.

If you have cash and you're transparent, your employees are likely to ask for it if you have a personal relationship with them. I would say this is frequently even the case for big picture employees. I'm saying this also as the lowest compensated person at my company for ~5 years. To me it's more of an ideal world vs real world. Ideally you can share everything, in reality the outcome is likely to have a negative imp…

We have plenty of money in the bank and our company is profitable. I’ve employed over 100 people during our 13 years of business. Not once have I ever had an employee say “hey man, I noticed you guys have more than the bare minimum level of working capital in the bank! How about you give me some?” Never.

If you were telling everyone you were broke, asking them to believe in the mission and endure low pay for the cause, and then it leaks out that you have plenty of cash, then yeah, I can see this question coming up.

Re: Ask HN: How much info should founders share with early stage employees?

#88

Earlier quoted context omitted.

I rarely find the "people will be confused by full transparency" line very convincing. To me it seems like there is some other, unstated reason to be less transparent - because confusion is easily remedied by prioritizing certain information while making the rest just accessible if someone wants to look.

I also used to think this way, until I tried being fully transparent with my team. There really are people whose mindset is 100% "what should I do?" and never "what are we doing?" I think the mistake is assuming it correlates with seniority or skill or something; it seems to be independent of both. On the other hand, I'd never want a "what should I do?" person as an early startup hire.

My experience has been that there are employees who don’t really want to understand the big picture and just focus on their work.

I have never seen transparency hurt the productivity of these employees. They know they can look and see the big picture any time, they just don’t bother to look:

Re: Ask HN: How much info should founders share with early stage employees?

#89
> Or is giving too much information ... risky if an employee leaves

What is your actual risk exposure here?

For most startups the existential threat isn't competitors, it's lack of traction. There's basically nothing that a competitor could find out that would substantial hurt the startup, especially nothing that they won't find out anyways.

There are obvious exceptions (e.g. you're a hedgefund and have a trading strategy which could be wiped out if someone bigger started exploiting the same opportunity), but they're called exceptions for a reason.

Re: Ask HN: How much info should founders share with early stage employees?

#90

Share it all. Complete transparency. Show them the cash flow. At your small size you will benefit from the additional trust and alignment this will bring. You may find yourself delighted in finding that many of your team can see and solve problems that you may have missed. You can be super secretive to combat the BigCo mentality like Apple when you have the first class problem of being a BigCo.

Not everyone wants all the information and with many business plans, knowing the full version might be confusing to people working on today's stuff. I advocate balancing full transparency (I certainly don't mean to hide any info!) with a culture that can create a time and place for conversations that might go beyond today's work.

If they're confused you've hired the wrong people
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