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- THE HUMAN COMPANY PLAYBOOK v1.0 l u m i n a r y l a b s | l u m i n a r y - l a b s . c o m | @ l u m i n a r y l a b s
- FOrEwOrd In April 2015, Luminary Labs convened a broad cross-section of founders, thinkers, and doers for a lively discussion on how employee-favorable policies are shaping 21st century business models. Recently, major corporations have radically rethought how they do business by estab- lishing livable wages, developing creative equity plans, offering paid parental leave policies, and even pulling out of an entire state in protest of discrimination. In addition to sending a strong signal that people come first, these organizations are also making an economic argument to investors that employee- friendly policies pay dividends in reduced turnover and improved business outcome. But what about small companies, and what about startups? Over the course of the evening, we discussed the forces behind this sea change, generated examples of new and creative business imper- atives, and together, started writing a guide for the more human company. Follow ing the event, we curated examples from a diverse set of growth companies to form this play- book. While no single policy or company is perfect, it is our hope that this compila- tion will provide practical examples for the startup community. We see this playbook as a living document, and look forward to hearing how your com- pany is meeting this 21st century mandate. Sara Holoubek CEO & Founder Luminary Labs
- TABLE OF CONTENTs compensation 4 Plated: Equity for All .............................5 Offerpop: Have a Stake in Success .........6 Pinterest: Have Options for Your Options ...7 Ampush: Savings that Grow ...................8 HealtH and Wellbeing 9 General Assembly: We Have You Covered ..10 Squarespace: Keep It Simple ................ 11 The Muse: Taking the Pulse .................. 12 Luminary Labs: Sick Means Sick ............ 13 Etsy: Be Happy .................................. 14 alloWing for life 15 Upworthy: The Value of Downtime ........ 16 Traackr: Stay Flexible .......................... 17 Chartbeat: It Takes a Village ................ 18 Change.org: Leave When You Need It ... 19 career trajectory 20 DigitalOcean: Funding Learning ............ 21 360i: Doubling Down on Reviews ......... 22 Next Jump: Choose your Leaders .......... 23 Birchbox: Happy Tribatical ................... 24 SocialCode: Learn the Code ................ 25 Managed by Q: Everyone Cleans ........ 26 bibliograpHy 27 tHank you 29
- 4 of 29 for the companies in this section, compensation is more than a paycheck. plated and offerpop have made it possible for every employee to have a stake in their success through access to equity. pinterest has shown that progressive equity plans make it easier for team members to share in the rewards of growth. ampush has found that supporting financial goals through 401k savings plans is both feasible and valued by employees. COMPENsATiON
- 5 of 29 âevery emplo yee is an inte gral p art of the plated teamâ¦ we be lieve o ur non -exem pt, hourly fulfillm ent cen ter tea m mem bers a re our mo st impo rtant r esourc e, as t hey ar e the clo sest to our cu stomer â¦they are th e backb one of our co mpany .â PLATEd EqUiTY FOr ALL tHe company 400 employees, founded in 2012 tHe policy Plated offers full-time, non-exempt, hourly employees in their fulfillment centers the opportunity to participate in an Equity Stock Options program, at no cost to them, subject to a minimum eligibility period. HoW tHey do it Plated administers this plan themselves, rather than using outsourcing services. They believe itâs important to provide a tailored approach to educating all employees on how the Equity Stock Option Plan is structured and managed, and its potential value.
- 6 of 29 ââWhe n offe rpop s ucceed s, we a ll succe edâ isnât a just a catchy saying . each of us has a real stake i n the c ompan y.â OFFErPOP HAvE A sTAKE iN sUCCEss tHe company 135 employees, founded in 2005 tHe policy Offerpop provides options to every employee as part of their initial offer. Options vest over 4 years, with 1-year cliff vesting and then monthly vesting afterwards. The 4-year schedule rewards employees who stick with the com- pany for the long haul, in addition to grants based on tenure or performance. HoW tHey do it Offerpop uses Anvil to automate their stock option administration process. They offer sessions for new hires explaining what an option is, with a focus on making employees comfortable asking options-related questions.
- 7 of 29 âWeâv e just m ade it much easier for team m ember s to lea ve in o ne of t he most c ompet itive re cruitin g envi ronme nts of all t ime. b ut that âs a tra de-off we go t comfo rtable with.â PiNTErEsT HAvE OPTiONs FOr YOUr OPTiONs tHe company 700 employees, founded in 2010 tHe policy People who have worked at Pinterest for at least 2 years and decide to leave for any reason are given 7 years to exercise their options instead of the usual 90 days. HoW tHey do it Pinterest started by gaining alignment on their philosophy around retention and equity. They offer some questions other companies should ask themselves: Do you believe that equity is part of annual compensation and that your team should have access to it early? Or do you believe that itâs intended to be a reward only if and when the company goes public or gets acquired? This philosophy will drive the decision.
- 8 of 29 âampu sh car es abo ut the wellbe ing of our emplo yees, a nd we want to pro vide h elpful tools fo r them to rea ch thei r long- term g oals. provid ing a 4 01k pl an is a huge benefi t in itself, a nd ad ding a match ing co mpone nt is icing o n the c ake.â AMPUsH sAviNgs THAT grOw tHe company 150 employees, founded in 2009 tHe policy Ampush offers both traditional and Roth 401k options for full-time employees, and Ampush matches $0.50 per $1.00 up to 4% of the employeeâs base annual salary with an auto- increase of the deferral percentage by 1% each year (100% vested). HoW tHey do it Their plan began in 2014 with balance of $0, and they grew it by implementing auto- enrollment and providing an employer match structured so that employees would be incen- tivised to contribute more. Theyâve also part- nered with advisors to offer informational sessions and webinars, and distributed help- ful resources from their 401k partners.
- 9 of 29 HEALTH & wELLBEiNg the companies in this section believe that healthy companies need healthy employees â meaning they shouldnât have to worry about paying for a doctorâs visit or losing pay when theyâre ill. general assembly, squarespace, and the muse prioritize insurance coverage. at luminary labs sick means sick, and etsy uses employee happiness as a measurement for overall health.
- 10 of 29 âping p ong ta bles an d beer kegs c an be fun, but we âve fou nd can didate s and emplo yees most a ppreci ate pra ctical c onside rations like afford able m onthly health benef its cos ts, elimina ting th eir mo nthly p hone b ill, and the ability to tak e our classes for fre e.â gENErAL AssEMBLY wE HAvE YOU COvErEd tHe company 400 employees, founded in 2011 tHe policy General Assembly covers 90% of health insurance premium costs for every one of its U.S. employees. HoW tHey do it GA was an early adopter of Sherpaa, the healthcare concierge service that provides employees with a dashboard to access physi- cians, insurance information, and more. This has helped the company provide better rates (and reduced employee contributions), and also means GA employees have in-a-moment access to medical advice and resources.
- 11 of 29 âone of the compa nyâs co re valu es is to simplif y, and this e xtends to our health insura nce po licy. by ensur ing all emplo yees remain health y and happy , weâre enabl ing them t o be p roduct ive in the wo rkplac e.â sqUArEsPACE KEEP iT siMPLE tHe company 508 employees, founded in 2004 tHe policy Squarespace covers 100% of the premium for employees and their dependents, begin- ning the first of the month following their hire date. They cover both in- and out-of-network expenses, and provide global medical insur- ance to all employees for personal travel. HoW tHey do it Squarespace recommends finding a health insurance program that is easy to setup and maintain. They strive to offer a fantastic policy to all employees, while keeping the sign-up process as streamlined as possible. They prioritize administrative efficiencies to ensure the program is sustainable and can scale with the companyâs growth.
- 12 of 29 âitâs im portan t for u s as a compa ny tha t our team i s healt hy and has g ood co verage ; we cer tainly donât w ant the m opti ng out of insura nce be cause itâs exp ensive .â THE MUsE TAKiNg THE PULsE tHe company 51 employees, founded in 2011 tHe policy The Muse covers 100% of medical insurance and 80% of dental insurance for its employees. HoW tHey do it The Muse decided to focus on health insurance after surveying its employees to understand which benefits, social activities, and ideas they care about most. Itâs important to manage- ment that the team has a voice in decisions that impact them, and every time theyâre asked, they give great feedback that allows The Muse to keep improving.
- 13 of 29 âWeâre consta ntly su rprised by ho w man y new e mploy ees co me fro m env ironme nts where sick m eans âp ower t hrough it.â We encou rage th em to take th e time they n eed to recu perate , so w e can all stay health y.â LUMiNArY LABs siCK MEANs siCK tHe company 14 employees, founded in 2009 tHe policy Luminary Labs provides employees with 8 paid sick days a year, and strictly enforces a âstay home, get betterâ rule when team members feel under the weather. At the first sign of illness, sniffling employees are often sent home to rest and recuperate. HoW tHey do it Luminary Labs puts recuperation first, and knows that itâs important for employees to recover quickly so they can bring their A-game to work and life. Keeping these values at the forefront, other team members work nimbly to pick up the slack and prioritize pending deliverables.
- 14 of 29 âWha tâs miss ing fro m so m any em ployee survey s is the perso nal ele ment. instead of retrofit ting a standa rd mea sureme nt syst em, we be gan by figurin g out w hat we value most a s a co mpany and w orked backw ards toward s how we me asure those v alues.â ETsY BE HAPPY tHe company 757 employees, founded in 2005 tHe policy Inspired by the country of Bhutan, Etsy pub- lishes an annual Happiness Report based on an employee survey which over 90% of employees typically respond to. Etsy then anonymizes responses and makes them avai- lable to the entire company, in addition to releasing a summary report to the public. HoW tHey do it Etsy partnered with University of Pennsylvaniaâs Positive Psychology Center to use the PERMA framework, a model to study happiness with core elements of psychological well-being. The survey evaluates employee sentiment about life outside of work, their colleagues, and Etsy as a company.
- 15 of 29 the following employers support fulfilling careers by empowering the non-work activities that enrich their employeesâ lives. importance is placed on working to live, not the other way around. they believe that parents, regardless of gender, should spend time with the recent additions to their families. upworthy incentivizes vacation and traackr maintains flexible remote work environments, while chartbeat and change.org make sure parents get the time they need with their children. ALLOwiNg FOr LiFE
- 16 of 29 âWe s trongly believ e that taking time away from w ork is import ant for our st affâs well-be ing as well a s their work. â UPwOrTHY THE vALUE OF dOwNTiME tHe company 80 employees, founded in 2012 tHe policy After 3 months of full-time employment, Upworthy provides an employee with a yearly $1,000 vacation stipend to reimburse staff members for vacation-related expenses. Staff members can use the full amount at once or can submit partial requests for expenses for different trips. HoW tHey do it Everyone at Upworthy has unlimited time off â the company enforces a minimum, not a maximum. And to make sure folks are actually recharging, they offer the vacation bonus and require that the time be used for taking a actual âphone-off, not-checking-inâ vacations.
- 17 of 29 âchart beat g enuine ly belie ves in creatin g an inclusiv e work place, and th at mea ns buil ding a com pany w ith pol icies th at cate r to ev ery- one fro m our interns to sea soned employ ees.â CHArTBEAT iT TAKEs A viLLAgE tHe company 98 employees, founded in 2009 tHe policy Chartbeat provides primary caregivers with 12 weeks of paid maternal or paternal leave, plus 4 weeks of transitional flex time at 100% salary. Secondary caregivers are eligible for 6 weeks paid leave at 100% salary. HoW tHey do it Chartbeat suggests other small companies survey teams to ask them to prioritize benefits and perks. Employee opinions matter and itâs up to leadership teams to craft a policy, like maternal and paternal leave, that makes sense for their company culture.
- 18 of 29 âgene rous, p aid pa rental leave elimina tes the fin ancial hards hip of unpaid leave and ensure s that all fam ilies ar e able to spe nd import ant tim e with new c hildren . the r esult is that emplo yees a re less stresse d, mor e engag ed, an d mor e prod uctive when they come back t o work .â CHANgE.Org LEAvE wHEN YOU NEEd iT tHe company 300 employees, founded in 2007 tHe policy Change.org provides 18 weeks of fully paid parental leave for every new parent globally â regardless of gender, or whether the child is biological or adopted. Leave can be taken non-consecutively, within one year of the childâs arrival. HoW tHey do it Change.org conducted a robust cost-benefit analysis. They believe building the right cul- ture of support, and attracting and retaining top talent, far exceeds the policyâs cost.
- 19 of 29 âour v acatio n and remote work policie s reflect that a lthoug h we w ork ha rd and are co mmitte d to o ur jobs , we re cogniz e everyo ne has lives o utside of wor k.â TrAACKr sTAY FLExiBLE tHe company 30 employees, founded in 2009 tHe policy Traackr blends an unlimited vacation policy with a remote workforce to give employees maximum work/life flexibility. With a team spread over the U.S. and Canada, employ- ees work with their managers to customize daily work schedules and enable extended trips abroad. HoW tHey do it As a company without a full-time HR depart- ment, implementation was very organic and based on employee needs. Internally they use communications solutions like Slack and weekly all-hands meetings that promote trans- parency and cross-departmental collaboration, so remote employees are just as dialed in as those on site.
- 20 of 29 the companies in this section believe that an investment in their employeesâ growth leads to better retention, leadership, and results. digital- ocean promotes learning through books and conference attendance, while 360i and next jump focus on fostering leaders through man- ager and peer reviews. meanwhile, birchbox celebrates career longevity with âstay interviews,â and socialcode steeps new bies in the companyâs learning culture. at managed by Q, senior leaders mop floors to understand what it takes for their team of cleaners to thrive. CArEEr TrAjECTOrY
- 21 of 29 âbecau se our missio n is to create an am az- ing ex perien ce for develo pers, w e wan t to crea te an a mazin g expe rience for ou r emplo yees to o.â digiTALOCEAN FUNdiNg LEArNiNg tHe company 170 employees, founded in 2012 tHe policy DigitalOcean gives each employee a Kindle loaded with books that have influenced the founders, and also funds attendance to at least one conference per year related to an employeeâs career growth or personal devel- opment. All managers attend a 6-week inter- active learning bootcamp on managerial skills. HoW tHey do it DigitalOcean believes that as part of a rapidly growing company, every employee deserves the opportunity to grow and develop with them. They have discovered that developing and supporting team member growth drives the innovation the company needs to build the best and simplest cloud infrastructure experience.
- 22 of 29 âour g uiding princi ple is s imple. We b elieve that al ignme nt on t hree th ings is the m ost import ant: W hat do our em ployee s want ? What does o ur com pany n eed? W hat do our clients need? â 360i dOUBLiNg dOwN ON rEviEws tHe company 800 employees, founded in 2004 tHe policy Rather than annual performance reviews, 360i has twice-a-year reviews focused on person- alized development in order to create career ownership. 360i also ensures cross-functional knowledge sharing at a capa bilities day where teams teach one another about agency offerings and highlight the best work in every practice area. WHy tHey do it Instead of top-down management, 360i uses a âteam of teamsâ approach. Aligning on goals on the individual and team levels provides the accountability and business context for the agency to thrive.
- 23 of 29 âour m antra is âbett er me + bett er you = better us.â W e belie ve tha t in ord er to m ake the wo rld a b etter p lace, w e each need to focu s on b etterin g ours elves p hysica lly, emotio nally, m entally , and spiritua lly.â NExT jUMP CHOOsE YOUr LEAdErs tHe company 200 employees, founded in 1994 tHe policy At Next Jump, the leadership team is an ann- ually peer-voted group of 21 individuals named MV21. The team reflects and rewards the employee growth process; 70% of the group are âhome grownâ leaders who started in entry-level positions and developed into company leaders. HoW tHey do it Each year, the entire company votes on 21 individuals they want to see as leaders. The staff considers who takes ownership, deter- mining which team members are role models in their focus on personal development and deliberate growth, in giving back by coaching other Next Jumpers, and in showing empathy for clients and users.
- 24 of 29 âWe w ant to remind long-t erm em ployee s how m uch w e truly value them and th eir contrib utions to the compa ny and suppo rt them i n think ing ab out wh atâs ne xt.â BirCHBOx HAPPY TriBATiCAL tHe company 400 employees, founded in 2010 tHe policy On their third anniversary, Birchbox employ- ees receive an increase in equity, 3 consecu- tive weeks of vacation with a travel stipend, an invitation to dinner with the CEO, and a â3 Years & Beyond Stay Interviewâ with their manager. HoW tHey do it Birchbox uses the performance management tool Namely to implement the Stay Interview. Theyâve developed questions by searching through Stay Interview literature and adapting practices to match Birchboxâs culture and val- ues. Development Opportunity is one of their top-rated engagement factors, and Birchbox actively cultivates a continued culture of learn- ing and growth through its various programs.
- 25 of 29 âthis p rogram gives employ ees the landsc ape to und erstan d the impac t they can an d will ha ve at t he larg er com pany a nd tea m level. i ts larg er rea son fo r being is that we are a lear ning c ulture and th is prog ram is all a bout o ffering an op en bo ok to unders tandin g soci alcod e.â sOCiALCOdE LEArN THE COdE tHe company 196 employees, founded in 2010 tHe policy Every 8 weeks, SocialCode requires all new employees to attend a 3-day training that delves into the ins and outs of the company and industry. Each cohort graduates from the program with an understanding of how they fit into the big picture. The session culminates in a âforget the codeâ happy hour with the local office so new employ ees get to know their hosting office as well. HoW tHey do it The program is led by SocialCodeâs training team. Their advice: donât aim to make your grassroots training program perfect, get it started and iterate. Employees are hungry and engaged, so feed them with your mission, vision and know-how.
- 26 of 29 âit is c ritically impor tant th at ever yone i n the organ ization under stand what g oes int o makin g our clients happy to kee p us a ligned as an organ ization and e mpath etic to the needs of our colleag ues wh o work in the field.â MANAgEd BY q EvErYONE CLEANs tHe company 400 employees, founded in 2013 tHe policy At Managed by Q, everybody cleans. Whether joining as a software engineer or an office cleaner, the first week on the job begins with learning how to clean an office late into the night. This policy ensures that the entire com- pany, regardless of position, stays aligned and acutely aware of the hard work required of their field operators for Q to succeed. HoW tHey do it Management has embraced this policy as central to the company culture. They also put a big focus on promoting from within: all of Managed by Qâs supervisors have been promoted from entry-level roles, and itâs not unusual for cleaners to move up the ranks.
- BiBLiOgrAPHY benefits design âHow Google weighs all of its crazy- awesome perks,â Business Insider. Jillian DâOnfro, 04/07/15 alloWing for life âThe Return of the nine-to-five,â The Economist, 11/10/14 âSilicon Valley: Perks for some employees, struggles for parents,â New York Times, Claire Cain Miller, 04/04/15 âAn unusual new policy for working mothers,â Washington Post, Jena McGregor, 03/06/15 âWork Hard, Live Well,â Medium, Dustin Moskovitz, Dustin Moskovitz, 08/20/15 âA Toxic Work World,â New York Times, Anne-Marie Slaughter, 09/18/15 âHow our Small Startup Affords to Offer Paid Maternity Leave,â Mary Ellen Slater, 03/18/15 âBeyond doing half the Parenting,â Anil Dash, 09/28/15 âThe Great Divide in Workplace Benefits,â New York Times, 09/23/15 âGetting Creative About Benefits for Parents with Midweek âPlaydates,ââ David Zax, 10/02/15 27 of 29 http://www.businessinsider.com/cost-benefit-of-google-perks-2015-4 http://www.businessinsider.com/cost-benefit-of-google-perks-2015-4 http://www.economist.com/news/21631905-bye-bye-long-hours-culture-return-nine-five http://www.nytimes.com/2015/04/08/upshot/silicon-valley-perks-for-some-workers-struggles-for-parents.html http://www.nytimes.com/2015/04/08/upshot/silicon-valley-perks-for-some-workers-struggles-for-parents.html http://www.washingtonpost.com/blogs/on-leadership/wp/2015/03/06/an-unusual-new-policy-for-working-mothers/ https://medium.com/life-learning/work-hard-live-well-ead679cb506d http://www.nytimes.com/2015/09/20/opinion/sunday/a-toxic-work-world.html http://www.fastcompany.com/3043764/second-shift/how-our-small-startup-affords-to-offer-paid-maternity-leave http://www.fastcompany.com/3043764/second-shift/how-our-small-startup-affords-to-offer-paid-maternity-leave https://medium.com/working-parents-in-america/beyond-doing-half-the-parenting-d92996d7a106 http://www.nytimes.com/2015/09/24/upshot/the-great-divide-in-workplace-benefits.html http://www.fastcompany.com/3051048/second-shift/getting-creative-about-benefits-for-working-parents-with-midweek-playdates http://www.fastcompany.com/3051048/second-shift/getting-creative-about-benefits-for-working-parents-with-midweek-playdates
- BiBLiOgrAPHY (CONTâd) diversity âManaging unconscious bias.â Facebook Managing Bias. âSilicon Valley leaders, new to social issues, come together over Indiana law,â New York Times, Nick Wingfield, 03/31/15 career trajectory âWhy Top Fund Managers Want Better HR,â WSJ, Lauren Weber, 09/08/15 âDigital Taylorism,â The Economist, 09/12/15 compensation âPinterest removes golden handcuffs,â Business Insider, Jillian DâOnfro, 04/02/15 âStarbucks to revise policies for its 130,000 baristas,â New York Times, Jodi Kantor, 08/14/14 âBehind the hype over Aetnaâs minimum wage boost,â Fortune, Barbara Dyer, 01/20/15 âCorporate America strikes a liberal note on wages,â Politico, Brian Mahoney, 04/02/15 28 of 29 https://managingbias.fb.com/ http://www.nytimes.com/2015/04/01/technology/tech-leaders-new-to-social-activism-come-together-over-indiana-law.html http://www.nytimes.com/2015/04/01/technology/tech-leaders-new-to-social-activism-come-together-over-indiana-law.html http://www.wsj.com/articles/why-top-fund-managers-want-better-hr-1441749764 http://www.economist.com/news/business/21664190-modern-version-scientific-management-threatens-dehumanise-workplace-digital http://www.businessinsider.com/pinterest-stock-options-7-years-golden-handcuffs-2015-4 http://www.nytimes.com/2014/08/15/us/starbucks-to-revise-work-scheduling-policies.html http://www.nytimes.com/2014/08/15/us/starbucks-to-revise-work-scheduling-policies.html http://fortune.com/2015/01/20/behind-the-hype-over-aetnas-wage-boost/ http://fortune.com/2015/01/20/behind-the-hype-over-aetnas-wage-boost/ http://www.politico.com/story/2015/04/corporate-america-strikes-liberal-note-on-wages-116644.html http://www.politico.com/story/2015/04/corporate-america-strikes-liberal-note-on-wages-116644.html
- THANK YOU partners Weâd like to thank the individuals and com- panies who made The Human Company Playbook, v1.0 possible, as well as our partners NY Tech Meetup and The Muse. pHoto and design Thank you to the artists below, who provided the images for the book under the Creative Commons License on Flickr: Loren Kerns, flickr.com/photos/lorenkerns Jonathan Rieke, flickr.com/photos/jonathanrieke highlights6, flickr.com/photos/highlights6 Design by Dorothea Lee, farthermore.com 29 of 29 interested in contributing to v2.0? Write us: [email protected] | #humanco http://flickr.com/photos/lorenkerns http://flickr.com/photos/jonathanrieke http://flickr.com/photos/highlights6 http://farthermore.com