An IPO isn’t the Finish Line

The Big Idea

_{The What: A TLDR of the idea}

Just popped the champagne on your IPO? Congrats, but don’t get too comfy.

While an IPO is a monumental event, it can often act as a catalyst for a talent exodus. It sounds counterintuitive, right?

But think about it—your early employees just cashed in, are financially secure, and may now be eyeing new adventures.

The very milestone that's supposed to be a pinnacle of success could turn into a Pandora's box of retention challenges.

Deep Dive

_{The Why: 3 reasons why you should care}

1. Shift in Organizational Goals and Values 🗣️ → 

IPOs often come with a radical change in a company's mission and operating procedures.

Long-term projects might be scrutinized more rigorously, and short-term profitability could become the name of the game.

This switch can alienate old-timers who joined for the original mission and culture.

2. Vesting Schedules and Golden Handcuffs 🤭 →

When employees' stock options vest post-IPO, they may suddenly find themselves with a lot more financial freedom.

While some might reinvest this into the company, others could see it as a ticket to explore other avenues, leaving you in a talent vacuum.

3. The "Next Big Thing" Syndrome 🔶 → 

Once a company goes public, it's often seen as having "made it."

For many employees, especially those who thrive in a startup environment, the allure is in building something from the ground up.

The IPO can extinguish that allure, leaving employees hungry for another big challenge elsewhere.

Tactical Advice

_{The How: 3 ways to handle this}

1. Roll Over Vesting Schedules 🎢 → 

It's time to flip the script on traditional vesting schedules and introduce "re-vesting" into your playbook.

While your team keeps their original vested shares, hit them with a new equity grant that locks them in for another 3-4 years.

Think of this as a "stay bonus," a commitment renewal of sorts that says, "We're still the dream team, so stick around."

To keep your MVPs on their toes, link this new equity to performance-based KPIs that sync with your post-IPO mission. This way, you're not just maintaining the squad; you're challenging them to elevate their game.

And just to make sure they're truly all-in, slap on a one-year cliff that activates post-IPO. That way, they need to hang tight for at least a year to get a piece of the new equity action.

To learn more, click here

2. Personalized Retention Plans 👨‍✈️ → 

Instead of using a one-size-fits-all approach, get personal.

Hold "stay interviews" with your key players to not just take their pulse but actually listen to their career heartbeats. Forget about postmortem exit interviews; stay interviews are your company's preventive healthcare.

They give you real-time insights into why your top talent sticks around, allowing you to craft retention strategies that aren't just a bunch of HR buzzwords but actually resonate with each individual.

Whether Sarah from engineering is craving a sabbatical to recharge or Tom from sales is itching for a lateral move to spice things up, you’ll know and can act on it.

Remember, this isn’t a fire-and-forget mission; circle back every quarter.

Employees evolve, and so should your game plans to keep them on board.

To learn more, click here

3. Foster Intrapreneurship 💹 → 

So you built a rocket ship of a startup that's made it to the IPO stratosphere.

But how do you keep the thrill of the chase alive, especially when many were drawn to the raw adrenaline of constructing something new?

Simple: Gift them that experience all over again without making them leave the mothership.

Cue "internal startups" or innovation hubs, where departments run their own mini enterprises, tinkering with groundbreaking projects. Invite teams to pitch ideas that don't just look good on a PowerPoint but genuinely align with your company's macro mission.

Sprinkle some seed money on the most promising pitches and watch the magic unfold as these projects grow from sketch to prototype.

To kick the vibe up another notch, unleash internal hackathons or special innovation days. This isn't just about slapping the word 'disruption' on a banner.

It's about maintaining that startup spirit and driving home the point that even though your company's LinkedIn status may have shifted from 'It's Complicated' to 'In a Relationship with Wall Street,' the soul—the raw, scrappy, creative soul—is very much alive and kicking.

To learn more, click here

Learn More

_{What Next: 3 resources to learn more}