How is Box’s culture evolving as it grows and matures?
As mentioned before, Box began to change their strategy from consumer-facing company to a business and enterprise-facing company. Next, the company began selling to small and medium business, and then it started gaining traction in the enterprise.They were huge shifts between these decisions, and Box had to keep change their strategy in order to survive in this quick change industry, which fit with Box’s culture that they want to keep improving their services, learning new knowledge, expanding new markets, and making big impact to the society.
To keep growing, Box had to find new markets and lines of business because they knew they were facing more and more competition. So Box was always looking for something new to the markets and creating new products that complemented its goods and core products. Just like Box’s culture, they like changes and they can act faster than other opponents that are why Box can maximize their market potential while creating an environment where people feel ownership and enabling entrepreneurship to go to build and fuel further growth. What Box does is continuing to go fast, and to be operating at an executive level to keep great talent interested and let everyone get involved.
How do Box HR practices fit with the corporate strategy and culture? Asses the evolution of HR practices as the company has grown and matured.
There are four parts of HR practices that used in the development of Box. First of all is hiring new talent members. Box was growing very fast which needs to hire more employees to support the operation. When Box was founded in 2005, they only had few members and did not need a recruitment team to consider this topic. But as the company grew, Box needed to construct a recruiting team, create a clear business strategy and figure out what kind of company culture that was the most important value in the Box. And also, set criteria that what kind of people will fit in the company, and then develop a formal hiring process. However, I believed Box chose differentiation as their business unit strategy, which is hard to attract talented engineers. At the beginning, Box recruited people through their own networks, but that was not yielding enough quantity and qualified people. The only thing they can persuade talented people to join them was their CEO, Levie a new future superstar in silicon valley. After Box grew into a large company, they started to focus on why people choose Box, whom to hire, and what human resources they can find. I think the recruit team did the competency modeling that gave them three main characteristics for people considering working for Box, such as working on interesting and complex problems and finding stimulating work, having a good team work, and having a stable high-growth environment.
When Box was considering what kind of people is suitable for the company, they decided that the candidates who can fit into the company culture were the first choice. Next, due to talented employees were hard to find, Box recruited some managerial positions by using internal hiring. This strategy was good because Box not only retains the best people by keeping them engaged, but also giving them the opportunity to do something else within the company.
In short, the HR team needed to practice hiring process which started from developing a hiring rubric. I think the team did the skills inventory that helps them to understand what skills, education, and experience of current employees had, and then outline the KSA that fit with the company’s need and finally created their job descriptions. Moreover, when Box was hiring new employees, they liked to bring other team members into the hiring process, which also met the company’s culture that they want everyone involved in everything includes recruited new members.
Next, the second parts of HR practices were compensation. In Box’s early stage, many new employees were focused on building a large and successful software company. Instead of chose cash compensation and benefits they would like to gain more responsibilities to the company. However, Box expanded into a big company the company compensation shifted to cash package. Here was the problem that new team members were getting paid more than old employees, but Box needed to offer more salary than other companies due to the extremely competitive environment, or they might lose talented people. In addition, when Box was trying to recruit more established and executive talent. They started to think about the benefit packages because they need to change their HR strategy for those new talent candidates who saw benefits were important elements when working in Box.
To sum up, Box wants to reward the highest performers and drive the right behavior in the company by giving them these cash compensation or benefits. Moreover, Box also weed out low performers quickly. In order to fulfill these processes, they established a rating system that correlated to what an employee’s pay, along with market-driven ranges and benchmarks. The evolution of compensation which met with Box culture that they want current employees have high performance and attract new high performed members when the company grew, so they change the compensation system quickly to satisfy everyone’s need.