The third HR practice was changing their promotions process. When Box started in 2008, the company was going through rapid growth, and the promotion cycle was also rapid because it kept people engaged. Nevertheless,, these quick promotions also caused some problematic, for example, someone did not have the experience to know the different scenarios and to have a plan on how to fix some specific problems. So they slowed down the promotion cycle slowed because Box was able to recruit external and experienced people. Also, Box HR team realized that instead of training employees to develop the new skills, which were time consuming, they would like to allocate them in the other role that might let these people became A players in specific positions. HR team also created a more new formal promotion process, which made everyone participate in promotion decisions, and which met with the company culture. Moreover, HR teams created career paths for employees. The career path work was helping employees understand and make them feel good that there is a career plan for them. This kind of practice will also help Box to increase the strength of company culture by training their employees during their career plans.
Finally, the last HR practice of the Box was changing their performance evaluation process. Due to the company’s rapid growth, they need to evaluate employees’ performance, which could understand if they were all working in the same direction. Performance evaluation metrics were traditionally by using a rating system to measure each individual’s performance, but also compared their performance with past years. In addition to these evaluations, Box started processing performance evaluations across the whole organization. All managers got together and talk about what excellent performance meant for the company. The company cultures showed up even in the evolution of performance evaluation, which Box wants their employees have high performances that can grow their own careers faster through performance evaluations that tell employees what kind of behaviors fit with the company and what performance that the Box is looking for. Moreover, performance evaluation processes involve many mangers because Box’s cultures said they want every member participates all of their activities.
What are the biggest HR challenges that Box faces with growth? Make some HR practice recommendations.
I think the biggest HR challenges for the Box are recruiting qualified highly talented employees, keeping old members stay and provide high performance, and revising company cultures then reinforce them when they are still expanding scale. Box needs to be special if they want to compete with other companies such as dropbox and Google Drive, but the talent candidates are rare in this market. I think Box can increase their based pay and provide better benefit packages when recurring people. And with some incentive bonus which can also tell those candidates that working with Box can make more money if they put lots of heart and provide high performances. Furthermore, they have completed succession plans for developing new skills or gain more responsibilities. Just like Box culture that wants employees have abilities to start their own business in the future. All of these methods might help Box attract more talented people and create more opportunities to have a successful career in Box.
Next, if Box wants their good employees stay longer and contribute more to the company. They can consider some incentive pay plans, which motivate employees to keep their superior performances and try to stay in the positions as long as they can. For example, health insurance, and nice pension options is effective ways to retain those A players. And also, giving benefit packages like bonus or stock option to reward those A players that will encourage them to improve performance into higher levels.
Last but not least, revising company cultures and then reinforce them. Because of the scale of Box grew bigger and bigger, they already did some changes to their previous company cultures. However, I think Box already has some excellent organizational cultures, and next thing they need to focus on is how to implant these cultures into every employees’ heart. In my opinion, HR can use their CEO, Aaron Levie, as a legend that can induce employees’ initiatives to become as good as this legend. Second, creating some special rituals or ceremonies that can let the employees feel they are part of the organization and have a tight connection with it. After creating cultures, HR needs to reinforce it by using some tools. First of all, during the recruitment of a new employee, HR can select those candidates who fit with the organization as well as the jobs. Next, employee training program is also a good way to reinforce organizational cultures. Third, rewards and incentives system are additional ways to fulfill this mission. Setting rewards to lure employees follow Box’s cultures which can strengthen the culture also increase their job satisfaction.