As the Web3 landscape evolves at a rapid pace, organizations are redefining their approach to people management, and the decentralized and agile nature of Web3 requires a reassessment of traditional People processes. This article explores how we can adapt to the new work culture and develop a leaner, more efficient approach focused on capability, delivery, and development, hoping to tease just enough that you kickstart some conversations around the issue.
In the Web3 era, certain traditional People processes may become obsolete or require significant adjustment due to the very nature of Web3 as a business and organizations alike. Below we’ll cover 5 core processes, and why you shouldn’t assume they are to be rolled out as you might know them:
Hierarchical job leveling: Web3 organizations often have flatter and decentralized organizational structures, roles expand and retract, and benchmark data is too fluid, making traditional job evaluation systems less relevant. Develop more flexible definitions that account for the mutability of roles and responsibilities in these organizations. More typical, crystalized job levels might otherwise be outdated before they finish the sign-off round.
Long-term career planning: The dynamic nature of Web3 organizations requires employees to adapt frequently to new roles, projects, and skill requirements. With moving across projects, collaborations, and gig culture, the opportunities for people to build their own growth path no longer depend on one single employer. Instead of predefined career paths, focus on creating adjustable, competency-based models that allow people to shape their careers within the needs of the organization. Flexibility goes both ways and where it’s requested, there’s an expectation it should also be given.
Annual performance reviews: In the fast-paced Web3 environment, real-time feedback and more frequent performance reviews are preferred over annual performance reviews. With short roadmaps, fast delivery turns, and project-based approaches becoming the standard, there’s a real risk of setting goals for a timeframe that can fast become outdated, resulting in performance reviews looking at targets long gone irrelevant. Invest in agile and ongoing performance management systems that enable continuous improvement and growth. The approach should be not a passive “review” but ongoing “steering”.
Traditional Hiring Practices: Web3 organizations often have global and decentralized operations, and rely more on online platforms, networks, and communities for talent acquisition, making traditional recruiting methods less effective. Embrace innovative sourcing strategies to attract the best talent in this new environment. Consider referral programs, sharing bounties in web3 communities, condensing multiple superficial screenings into fewer but deeper conversations, and flexible probation periods that recognize informed decision-making often comes after joining. Aside from C-suite and Board roles, understanding if a candidate is right has never been so time-conscious, you need to trust the communities as a source, and answer those questions in just a few deep-dive interactions.
Rigorous onboarding and offboarding: Given the shorter retention periods and higher employee turnover, Web3 organizations can streamline their onboarding and offboarding processes. Understand what the role needs delivery-wise, and tailor to enable the new hire for it. HR has a habit of over-engineering the onboarding process for all their hopes and dreams, with most of it missing the target because it’s too much information. The same goes for offboarding. Help managers ensure the work is passed on seamlessly, the person leaving has a great story to tell until the very end, and you will have done a great job. Listen to your customers and their expectations, and don’t assume you know better than them.
Long-term retention strategies: As retention periods become shorter and employees embrace a more flexible work culture, HR strategies focused on long-term engagement are becoming less effective and driving organizations towards unsustainable measures. Instead, focus on creating an environment that enables employees to efficiently achieve results, learn and grow in their roles, regardless of their length of service. It’s ok that people don’t choose to stay for longer, and the sooner HR makes peace with it, the sooner it can contribute to their development instead of taxing them for it. Reward often and fairly, rather than attaching rewards to seniority.
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Decentralized decision-making: Centralized HR processes may become obsolete as these organizations understand decentralization and collaboration. The introduction of decentralized autonomous organizations (DAOs) or similar models to People Management can enable employees to actively participate in shaping policies and practices, promoting transparency, adaptability, and innovation. By involving employees in decision-making and aligning HR processes with their needs and expectations, organizations can create a more agile, efficient, and inclusive work environment that thrives in the rapidly changing Web3 landscape. More on this, coming soon.
In short, the Web3 work culture requires a re-evaluation of traditional HR processes to keep pace with the rapidly changing business landscape. By adopting a more flexible, competency-based approach and decentralized decision-making, HR can adapt to the changing needs and enable both people and businesses. It requires, however, a deliberate effort to acknowledge the limitations and adapt legacy HR practices.