We discussed last week how Web3 projects and companies face unique Operations challenges and opportunities in managing talent, fostering collaboration, and driving innovation.
Today, we’re sharing some insights on why they also demand specialized people Strategies, sharing examples to help founders and leaders adapt to the specific realities of the sector, like market fluctuations, funding needs, and Web3 native talent.
Decentralization and Fluidity:
Web3 projects tend to embrace decentralization, breaking free from traditional organizational structures. This is an amazing feature to have in response to market fluctuations and the fast-paced nature of the industry, and people strategies should prioritize adaptability, comfort with ambiguity, and self-management skills. For instance, hiring practices can focus on upskilling team members to react quickly to market changes, while a skills-based hiring approach can attract talent that thrives in uncertain environments. Adapt by design, not by chance.
Emphasis on Community
Communities play a vital role in driving Web3 projects’ success, especially during early-stage funding rounds - as I’ve addressed recently with founders and builders in the space. People strategies need to emphasize branding and building strong relationships with internal teams and external stakeholders like users, developers, and investors. Creating policy opportunities for open communication, knowledge sharing, and transparent decision-making nurtures community support, which is crucial to keep your inner and outer communities engaged and maintaining momentum. Build teams, as much as you build product.
Remote Work and Global Talent:
This point seems self-evident at this stage, but it’s often dismissed how the borderless nature of Web3 projects plays remote work and fosters global talent. We should address the challenges and opportunities of remote work, ensuring team members feel connected to the organization's mission, despite the market, funding, or growth pace. A decentralized mindset means people are becoming increasingly reliant on tech to stay connected, and investing in a tech strategy for collaborative resources will help maintain a high-performing team. Tech, not people, is defining how well people deliver together.
Continuous Learning and Adaptability:
With the Web3 industry being in a constant state of flux, teams and leaders need to learn and adapt continually. Have a vision for a culture of continuous learning, keeping people up-to-date with the bleeding edge of knowledge and industry trends. This approach can be invaluable during periods of market volatility or when pivoting the project to further secure funding. Encouraging engagement with educational resources, involvement in communities, conference or workshop attendance, and creating internal knowledge-sharing platforms, and even inter-project collaborations can help achieve this - if ever there was a space where cooperation beats competition, it’s this one. Investors and consumers alike are increasingly vetting your people’s IQ as much as your roadmap and product. Upskilling pays back.
Inclusivity and Diversity:
I really believe Web3 has the potential to create a more inclusive and equitable future, and better because of it. In a rapidly evolving ecosystem, diverse perspectives can be instrumental in navigating change and identifying new opportunities. People strategies should actively prioritize inclusivity and diversity, attracting talent from different backgrounds and fostering an environment where everyone feels empowered to contribute their unique insights. Also, Web3 is evolving so rapidly, no homogenous group of people can keep track of progress on all fronts. Don’t shy away from putting soft diversity metrics into place, and promoting accountability for it. You will notice, for example, how globally distributed inputs, will bring your product closer to a globally distributed market. Allow yourself the benefit of diverse inputs.
Web3 Native Talent:
As Web3 continues to mature, the need for specialized talent with a deep understanding of blockchain, crypto, and decentralized technologies continues to grow. People strategies should identify and nurture Web3 talent, individuals who can bridge the gap between traditional industries and the unique challenges of Web3. Have a plan to source from the talent market, but also invest in the development of Web3 talent in outer communities by rolling out learning initiatives, and you can build a strong foundation for long-term success. Build today the talent you want to see tomorrow.
So yes, adapting your People Strategy to the unique realities of the web3/crypto/blockchain industry is not only advisable but a requirement. By focusing your strategy on decentralization, community-building, distributed work, continuous learning, inclusivity, and Web3 native talent, organizations can create an environment that fosters the all-important innovation and go a long way towards long-term success - a luxury for many in a volatile industry. As founders and builders in the Web3 space mature, it's vital to navigate these very specific challenges that have outgrown legacy HR, to pave the way for a more adjusted People Strategy that partners with teams, leaders, and business.