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Viral Loop: From Facebook to Twitter, How Today’s Smartest Businesses Grow Themselves
The Viral Loop by Adam L. Penenberg talks about companies which have reached massive scale in few years without blowing millions due to the viral nature of their product. Discover what makes companies and their products viral.
The valuation of a startup is one of the ways to measure its impact. CB Insights has compiled a report on the highest valued startups in the world. Many startups are united by their quest for achieving the valuation of $1billion or more. There are more than 500 unicorn startups in the world as of November 2020.
A startup’s value is determined by its ability to create a compelling value proposition for the market, its size, recent exits, demand for the products and execution capabilities. As many as six of the top 10 startups are from the US, three are from China and one from India. Here’s a look at the highest valued startups in the world.
1. ByteDance
ByteDance is a Chinese AI startup & the parent company of TikTok. The company was founded by Zhang Yiming in 2012. The company has a staggering valuation of $140 billion in just 8 years since it was founded.
ByteDance has a core product offering called Toutiao. It is a content platform serving the global market. While Toutiao started as a new recommendation engine, it has evolved into a content platform for delivering contextual content based on user preferences. ByteDance had over 800 million daily active users in November 2018 & overall 1 billion users on its content platforms.
ByteDance uses machine learning algorithms to understand content (videos, text and images) and provides personalised information recommendations for its users. The company has also developed a AI bot that can write news articles within 2 seconds after the event. The company has a revenue of around $20 billion in 2019 and over 60,000 employees around the world.
2. Didi Chuxing
Another Chinese company, Didi Chuxing grabs the spot for the second highest valued startup at $62 billion. The company provides transportation and on demand ride sharing options for users. It was founded by Cheng Wei in 2012.
Didi Chuxing also provides automobile services including sales, leasing, financing and maintenance of vehicles with automakers. The company provides on demand digital platforms for automakers to reach users. The company has 550 million users as of 2019 and over 11,000 employees.
Uber China was acquired by Didi in 2016 at $35 billion. Uber China was reported losing $1 billion annually at the time. Uber also picked up a minority stake in Didi as part of this deal.
3. SpaceX
SpaceX is one of the most popular startups in the world. The space exploration startup is one of the most ambitious projects started by Elon Musk in 2002. The goal of the company is to reduce space transportation costs.
SpaceX was the first private company to send a liquid propellant rocket to reach the orbit in 2008. It is also the first private company to send astronauts into space and have developed reusable rocket prototype. The US based startup had a revenue of $2 billion in 2019 and employs over 8,000 people as of May 2002.
4. Stripe
Stripe is an American startup and financial services company. It is headquartered in San Francisco. The company was founded by Irish brothers, John and Patrick Collison in 2010. The financial services company developed a SaaS based platform for payment transactions on ecommerce sites, mobile apps and web applications around the world.
Stripe provides APIs for businesses to help them send and accept payments over the internet. Stripe has a valuation of $36 billion and is the fourth highest valued startup in the world. It has over 2,500 employees & a revenue of $380 million in 2019.
5. AirBnB
AirBnB is the world’s most popular online vacation rental marketplace. The startup was founded by Brian Chesky, Joe Gebbia and Nathan Blecharczyk in 2008. According to CB Insights report, the startup is valued at $18 billion.
AirBnB provides on demand rental accommodation to millions of users worldwide. It also offers an easy way for people to list their rental properties and earn money with online bookings. The company had a revenue of $4.7 billion in 2019 and employs 6,300 people as of 2020.
AirBnB has been affected due to Covid and the company had to fire 25% of its staff this year & significant drop in rental bookings this year. However, the startup is all set for an IPO in December 2020.
6. Kuaishou
Kuaishou is another video sharing Chinese start-up that is among the most valued. The company was founded by Su Hua & Cheng Yixiao in 2011 and is a TikTok competitor. Apart from China, the app remains among the most downloaded in Google Play & Apple App store.
Kuaishou has a valuation of $18 billion. It has over 200 million active daily users on its platform as of 2019. The company uses AI for creating video content tailored for users. The company generated a revenue of $7.2 billion in 2019 & employs around 2,400 people.
7. Instacart
Instacart is a grocery delivery & pick-up service in America & Canada. The startup was founded in 2012 by Apoorva Mehta, Max Mullen and Brandon Leonardo. The on demand service allows users to order online grocery & provides them options from various retailers with a personal shopper. The personal shopper is a recommendation engine based on user preferences.
Instacart is headquartered in San Francisco, California and serves over 5,500 cities in America and Canada. Instacart has a valuation of $18 billion.
8. Epic Games
Epic Games is an American game and software development company. Epic Games was founded by Tim Sweeney in 1991, back then the company was known as Potomac Computer Systems. The company was started in his parents’ house.
The company built Games as a service for its users. The traditional video games are now being offered as an online service to the users (GaaS). In 2019, Epic Games reported a revenue of $4.2 billion. Epic Games had over 1,000 employees as of 2020.
9. One97 Communications/PayTM
One97 Communications is the parent company of PayTM. It is the most valuable Indian startup as of now with a valuation of $16 billion. PayTM is an online payment system and financial technology company. The wallet service from PayTM is used for online shopping, mobile recharges, train bookings, grocery stores, tolls, pharmacies etc.
PayTM was founded by Vijay Shekhar Sharma in 2010. The company now provides digital wallet services, banking, & PayTM Mall app for its users. The company generates revenue from commissions on usage of its platform and from escrow amounts from its wallet services. The startup had a revenue of $500 million in 2019. PayTM employs close to 10,000 people in India.
10. DoorDash
DoorDash is the second food delivery service to be featured among the 10 highest valued startups in the world. It offers logistics services to offer food delivery from restaurants on-demand to its users. DoorDash was founded in 2013 by Tony Xu, Evan Moore, Stanley Tang and Andy Fang. The American company has expanded to serve over 4,000 cities and covers over 340,000 restaurants/stores in the US, Canada & Australia.
The startup is valued at $16 billion and had a revenue of $1.9 billion as per Nov 2020 SEC filing. The company generates its revenues from commissions it receives on orders placed on its platform. It employs around 3,279 people as of Nov 2020.
Innovative Growth hacking ideas are ways to creatively differentiate your business to gain more customers at a rapid pace. With the world changing the way it did in 2020, many businesses are looking to adopt creative ideas to reach their customers faster using digital technologies. Growth hacking strategies are employed by most of the successful businesses that operate digitally.
The exponential rise in adoption with increasing popularity of platforms like Slack, Dropbox & Uber etc. can be attributed to creative growth hacking ideas. These ideas are at the heart of building products that go viral and where users are incentivised for sharing and bringing other users on-board. Growth hacking is a super effective way to multiply your reach and grow your customer base with exponential returns. Here’s a look at 7 innovative growth hacking ideas for building your business:
1. Pre Launch Target
Growth hacking starts with defining an audience for your idea. Who needs to try your product or service? Who is your customer? Once you define your customer, think about where your customers hang out.
Build an email list, gather facebook profiles, Online directories, Youtube channel subscribers etc for your business. A pre launch list will help you create a tailored message that you can communicate to your audience.
i) Highlight the value proposition in one line for your customers & why they should try
ii) Provide a way for your target audience to try your product or service
iii) Incentivise them for sharing your products and service with others.
iv) Call to action is the key. Get them to register and try out things. Make this bold, large and actionable.
2. Existing Platforms
One of the ways you can acquire a large user base is to tap into the existing networks. Airbnb famously developed a growth hacking strategy that helped them build users on its platform from Craigslist.
When Airbnb was launched, it developed a creative website that displayed the rental options for users with high quality photographs. They employed a hack where every listing that was created on Airbnb was also listed on Craigslist.
The catch was that Cragslist wasn’t as well designed as Airbnb. But it had a much larger user base. So, when users searched Craigslist for rental options, they could see rental options from Airbnb with links etc. They invariably tried Airbnb and found it much more to their liking than Craigslist. This simple strategy helped Airbnb develop its initial user base with success and helped them reach more users.
The idea of integrating your product or service with an existing platform with a bigger user base can be done in thoughtful and creative ways. Think about the biggest networks used by your customers and how you can creatively tap them.
Your growth hacking option could be a strategic collaboration with a partner. For e.g. if an existing platform can promote your product or service to its user base, you could offer a commission for every sign-up or sale.
3. Incentivise Customers
When customers use your products, incentivise them. Make every interaction with your product meaningful for the users. For e.g. when Facebook was launched initially, it had developed an algorithm, which helped with friend recommendations. These friend recommendations were tailored to build a fast network for its users and lure them with feeds they’re interested in.
LinkedIn uses a similar strategy for building a professional network. It also provides options for endorsements and recommendations etc. This gamification essentially provides a reward for using the product to the customers. Dropbox used a strategy where once the user’s free storage expired, they could add extra storage by referring friends who signed-up on Dropbox.
Viral products and companies reward its customers. Remember the network chain marketing companies like Tupperware. They built their network by adding more people and rewarding people with larger networks who joined them.
4. Personalisation & Recommendations
Every consumer loves a platform tailored to his needs & choices. The growth of Netflix as the preferred video streaming service has a lot to do with the recommendations and personalisation based on user demographics.
When users create an account on your product or service, do they get personalised options? The recommendations and choices can make a big difference. Twitter adopted this approach for sharing the twitter accounts that users can follow. When the users follow the twitter accounts of influencers, they get recommended feeds and content to their liking.
Youtube also has a powerful recommendation engine. It suggests content based on the user’s history and interests. It also provides intuitive sharing options for users to upload new videos and share them with in their networks.
5. Leverage Communities
Growth hacking ideas are based on leveraging communities that have similar shared interests. These communities could be social groups that go out for cycling, tracking, tech events or virtual groups on social media.
The communities have people with shared hobbies. It makes tapping into their interests easier by sending a message that appeals to the members. Uber built its initial user base by tapping into the tech community. The Uber team went to tech events and offered free rides to users who were attending. The service was used by people who liked it and shared their experience with others. They did this initially in San Francisco and replicated their success to other cities.
Communities provide feedback groups to companies for trying out their products and services. When users share their experience with each other, it adds credibility and increases adoption of your product or service. Social proof is a great way to enhance value for your business.
6. Use Scarcity or limited Offers
Products with a scarce availability are grabbed quickly by the users. When organisations offer a limited time window for trying products or a trial by referral, it can help attract quality customers.
This strategy was adopted by Gmail for introducing its email to customers. Only users with existing accounts could invite new users on the Gmail platform. This soon became a marketing tactic and Google employed this tactic to create an enormous interest for its email service.
Scarcity can be a great resource when you are offering a product or service to a customer’s need.
7. Complementary Content & Services
Many companies have been able to leverage the digital content for building a powerful brand. One Dollar Shave Club is an online subscription service for razors and male grooming products. The startup was able to build on its brand on the back of a funny viral video. The company has since then created a string of popular videos and funny viral marketing strategies to popularise its subscription services.
A large number of startups are investing in creating high quality content for their users. Mail Online is the world’s second most popular news website behind New York Times. It has been able to achieve high sales for its business without affecting its newspaper sales. It offers a wide range of content mix on its website. The online content generates money from click baits and ads. By offering complementary products and services, companies are able to achieve brand recognition and improve sales for their business.
Technology is at the forefront & catalysing the changes in the world. The physical world is getting transformed into a digital one. The technological innovations are creating a new world and solving challenges at a massive scale. Here we look at the top 10 emerging technologies based on a report from WEF & Scientific American magazine. This report analyses emerging technologies that have the impact to transform the society, governance and industries around us.
2020 has been a year dominated by healthcare agenda. The study looks at options and viabilities of using technological advancements for fast tracking vaccination. The report looks at technology as an agent of change, the opportunities they bring and the potential risks posed by them. For e.g. how can digital replicas help in making clinical trials safer and faster for patients? Is it possible to replace human volunteers with digital replicas for clinical trials? Here’s a look at some of these innovations and technologies that can impact the world around us:
1. Microneedles for Painless Injections & Clinical Tests
Microneedle devices are painless ways of injecting patients and drawing blood samples. The micro sized needles typically moving towards commercialization for rapid and painless blood sampling for diagnostics, clinical trials and healthcare monitoring.
The US & Europe have approved a blood collection device, which can be used by lay people to collect blood samples without any medical personnel. People can take their own blood samples and send them to labs for clinical trials.
Research is also progressing on integration of microneedles and wireless communication devices. Microneedles are integrated with wireless devices to measure a biological molecule from blood samples, prescribe a drug dose and then deliver that dose to the patients. This could help in advancing personalised healthcare services.
Ofcourse, this field requires extensive results, accuracy and methodology to find its way into our day to day lives. Theranos, a company founded by Elizabeth Holmes, had a peak valuation of $10 billion. The company made many claims around blood testing technology, which proved to be false. The company had to shut down in 2018 and Elizabeth is indicted for conspiracy & fraud.
2. Sun Powered Chemistry
Many chemicals are made by using fossil fuels. However, a novel approach of using sunlight to convert waste carbon dioxide into useful chemicals. This could reduce the emissions considerably. Climate change is an important issue that needs to be addressed by industries and governments around the world. Use of sunlight activated catalysts, or photocatalysts is reducing the need for using fossil fuels & using unwanted Carbon dioxide gas as a raw material for producing chemicals.
This essentially helps in creating solar refineries for producing chemical compounds that can serve as raw materials for several industries. These molecules and compounds are helpful in creating products like medicines, detergents, textiles and fertilizers.
3. Virtual Patients
People have been waiting for the Covid-19 vaccine for quite sometime now. They want the clinical trials to be faster and safer, so that they can have the access to the vaccine when they want it.
Virtual patients are replacing humans for clinical trials. The simulations are helping with faster and safer trials. The algorithms are able to diagnose diseases with greater accuracy. The images from patients are being used for detecting diseases. There is a growing case of doctors being assisted, if not replaced by technology very soon.
Even for under trial patients, technology can be quite useful. It could save lives, speed up trials and fast track preventive vaccination. The virtual organs simulate human organs by feeding anatomical data drawn from high resolution data of the actual organ into a mathematical model that governs the organ. It is complex with several algorithms running into the equations, data & mathematical modeling that represent the functioning of human organs. Computer based diagnostics are gaining new momentum and will see more developments in the near future as regulators approve its commercial usage.
4. Spatial Computing
Spatial computing is the convergence of physical and digital worlds. It represents emerging technologies that integrate physical objects digitally using smart sensors and devices. Factories can use spatial computing to build automated manufacturing capabilities using robotics, industrial engineering and the internet of things.
The spatial mapping could add new capabilities that power our day to day lives. For e.g. Alexa devices controlling the home appliances, LEDs etc. This technology will help people and machines interact in a smart way. It’s finding great applications in healthcare, transportation, manufacturing and homes already.
5. Digital Medicine
The case for digital medicine has got stronger in 2020. Digital medicine is a combination of use of apps and software for treating patient’s physical disorders. For e.g. mobile apps are able to diagnose and prescribe preliminary treatment for patients usings symptoms like users’ voices, locations, blood, sugar levels and texting activities etc.
Today smartwatches are able use sensors to detect & alert people for conditions like atrial fibrillation, an anomalous heart condition. The digital medicine technology received a great booster with Covid-19, a case where millions of people received recommendations on their mobile devices.
6. Electric Aviation
Air travel had a share of 2.5% in global carbon emissions in 2019. A number projected to triple by 2050. Electric aviation could be a very effective approach to counter this problem. Several companies like Airbus, Ampaire, MagniX etc are working on electrical flights.
While some airlines have started offsetting their contributions to atmospheric carbon, significant cutbacks are still needed.
The electric airplanes could cut down carbon emissions. The electric propulsion would also cut down fuel costs by up to 90% & maintenance costs by nearly 50%. The electric airplaces will also eliminate noise by approximately 70%.
A strong reason for airlines to invest in this technology lies in potential savings in operational costs. The environmental benefits will also be quite notable.
7. Lower Carbon cement
The global construction industry requires cement for building our world. Yet, it produces 8% of the total carbon dioxide produced by humans in the world. Cement production is one of the largest producers of carbon dioxide. As per Chatham House report, 4 billion tonnes of cement are produced every year. The figure is expected to rise to 5 billion tonnes over the next 30 years.
An approach developed by Rutgers university is being used by a New Jersey based construction firm. This reduces carbon dioxide footprint by 30%. It uses more clay, less limestone, and less heat for making cement. There are other techniques which use bacteria and other chemical components like steel slag to reduce carbon footprint during construction. While it may not be possible to do away with traditional concrete in construction, alternate approaches are being used for building pavers, facades & temporary structures.
8. Quantum Sensing
Quantum sensing could be a disruptive technology. It could power self driving cars and autonomous vehicles. The quantum sensors could be used in vehicles to see around corners, it can also help with underwater navigation, detect volcanic activity, earthquakes and monitor a person’s brain activities.
Quantum sensing technology can be used in many fields including medical and defence applications. Governments and private investors are throwing their weight behind quantum sensors to build industry ready applications for mass scale. Case in point being the UK governments £315 million fund for Quantum Computing Programme.
9. Green Hydrogen
Green Hydrogen is produced through electrolysis. It produces hydrogen and oxygen with no other by products. The energy companies around the world are looking at ways to build renewable sources of power.
A consortium of companies has been working on a project called Gigastack. It will be used to produce green hydrogen and an industrial scale. The Energy Transitions Commission, says green hydrogen is among the four emerging technologies necessary for meeting the Paris Agreement goal, which requires decreasing more than 10 gigatonnes of Carbon dioxide every year from mining, construction and chemical industries.
10. Whole Genome Synthesis
Whole genome sequence is an exciting development. When Coronavirus was spreading, Chinese scientists uploaded the genetic sequence of Coronavirus to genetic databases. Swiss scientists were able to synthesize the entire genome sequence and even produced the Coronavirus from it. It means the virus was teleported without the physical movement.
This is just one of ways how the whole-genome is advancing medicine & other fields. Researchers use software to construct genetic sequences. These are introduced into microbes to do the desired work. For e.g. making a medicine. The software algorithms are being devised to write larger genomes.
The future will see the synthesis of assembling large DNA sequences, which can help in curing genetic diseases. The next decade will be exciting to see where genome sequencing will take us.
Employee feedback can be pivotal to guiding an organisational strategy, improving its performance and attracting a great talent pool. Employee feedback has become a quintessential way to gauge how your company is performing for its workers. It can give you great insights to unlock your team’s potential and help your company make the right moves.
According to research by Kronos & Future Workplace, 87% of HR leaders consider employee retention as a primary concern. Employee feedback is a potent weapon to enhance employee experience & guard against attrition. Organisations that hear what their employees have to say can build stronger team bonding. And it has become easier to take inputs from employees with online surveys and tools. Here’s a look at the ways your company can solicit feedback from its employees.
1. Onboarding Employees
When new employees are onboarded, it is a time to seek their inputs to see your organisation from a fresh perspective. Many of these new joinees would have worked for other companies and can bring in a good cultural mix. The new employee assessment and surveys can be done regularly in 1 month, 3 months, 6 months and 1 year time frame.
The right surveys can help your organisation answer some of these questions:
Is your organisation providing the right tools for employees to perform? Is your culture adaptive enough for people to gel with others? Is your interview process, performance measurement tools and working environment up with the best? What are the areas where employees need help? How can you improve as an organisation? Are tools & technologies measuring up with the latest industry trends?
2. Team Offsites
Office may not always be the best place to connect with employees and get their honest feedback. Many companies make it a priority to organise events, team gatherings and offsites. These events help build team bonding and employees can communicate in an informal manner. A lot of their concerns and honest opinions may be revealed during these events.
The feedback from these events can be used for course correction. When employees are heard, they feel empowered. They feel a sense of responsibility and belongingness which can augur well for the company. Not all employees will fit into your company culture. But those who stay with you must be heard and taken care of.
3. Action on Feedback
After taking inputs and feedback from employees, it will do no good if your organisation doesn’t act on it. The employees will feel valued once they see that their feedback leads to a positive and visible change.
Not all feedback will be useful or implementable. The management team needs to ensure it can prioritise feedback and incorporate the most meaningful inputs. These inputs can help the employees as well as the organisation.
A feedback report can be created with an actionable plan for implementation. The report needs to address basic questions for taking decisions as highlighted in the High Output Management by Andy Grove, former CEO, Intel:
What decision is needed?
By when?
Who should be consulted?
Who decides?
Who ratifies or vetoes?
Who needs to be informed?
4. Indirect Approach
A direct approach to employee feedback can put them in a defensive situation. Most employees will never be comfortable to speak their minds with their CEOs or the board members. Often, companies adopt a middle men approach to solve this problem. They use managers and HR representatives for this task.
The managerial staff can take feedback from the employees & feedback can be confidential. Technology driven surveys, suggestion boxes etc. can also be helpful. The idea is to identify the core reasons for improvement and not for targeting people.
5. One to One Meetings
One to one meetings are typically weekly or monthly meetings between a manager and an employee. These meetings could be anywhere from 30 to 60 mins. These meetings are very powerful ways to build rapport, assess performance and bring out issues that need urgent attention.
One to one meetings can help leaders understand the motivation of their employees. They can help them understand the needs of an employee, what he needs to increase his competence & achievement. By connecting and engaging with employees, organisations can help them perform at their best and coach them to increase their competencies.
One to one meetings were popularised by Andy Grove. They have been widely appreciated by the likes of Ben Horowitz, Marc Andreessen and several other leaders.
6. Exit Meetings
Outgoing employees can be a very good source of figuring out attention areas for your organisation. Employers and organisations can take feedback with exit meetings from employees.
When employees are quitting, they are honest and candid in their feedback. These issues can be discussed with an open mind leading to organisational growth and better retention strategies. Work life balance, learning and development, salary, location, job progress, and career development goals are some of the common issues due to which employees switch jobs.
Good organisations invest in career development of individuals, understand employee motivations and frustrations. Dale Carnegie, “the only way to influence people is to talk in terms of what the other person wants.”
7. Address Changes & Follow-Up
Employee feedback like their performance reviews is an ongoing process. When an organisation creates an actionable feedback report and incorporates meaningful and pertinent changes, it can again engage with relevant employee groups. A continuous improvement and ongoing engagement strategy can be developed for lifelong learning by organisations.
This strategy can give forums and representation to the teams to engage with management. The management can proactively create forums for feedback and seeking inputs to get progressive ideas for the organisation.
The Wrong Approach to Employee Feedback
Employee feedback needs to strike the right balance between what is useful and things that need to be ignored. When organisations become a political battleground, it can create a doomsday situation for talent and creativity. Employee feedback doesn’t work well, if your company takes a wrong approach to it:
i) Not Approachable
An open door policy builds trust, but when people have no way to communicate, they suffocate. A management team needs to be open minded and encourage communication in line with their organisation and team goals. An open door policy establishes confidence in people to talk about their concerns, ideas and even bring in new initiatives. Changes must be done proactively before you are forced to make them.
ii) No Action
The value of the feedback lies in its successful implementation. Organisations that devote time to collect feedback must be able to prioritise is implementation too. Companies that are averse to employee feedback or take no measures for incorporating them eventually discourage people from speaking up.
iii) Discuss Positives
Employee feedback is not only about the negatives or improvement areas. Infact, it can be a great way to discuss the things that are working well in the organisation. Employee feedback can reinforce the positive aspects of a company. Teams can use this as an opportunity to thank their management and show gratitude towards the best aspects of their company.
Overall, employee feedback is an effective way to learn about things that are working well in your company, build an employer brand and uncover new opportunities for employee & company growth.
Job satisfaction is gaining prominence for companies and its employees around the world. Nothing matters more to employees than being in a job where they feel they are truly making a difference, adding value to themselves and the organisation. Job satisfaction is the new frontier for the employers who want to build a loyal workforce that is engaged in world transforming products & services.
While the pandemic has allowed employees to work from home. Many have started missing the office environment and their work. Employers are looking at job satisfaction levels among employees to retain them longer. Higher job satisfaction leads to lower attrition and increases competitive advantage for companies.
Work Relationships for Job Satisfaction
Research shows that the most important thing for job satisfaction is the relationship with people you are working with. Your colleagues and boss are important for your job satisfaction.
“To be satisfied with a job, you don’t have to worry too much about finding a perfect fit for your interests because we know other things matter too,” according to Levin Hoff, an assistant professor of psychology at Houston University.
He further elaborates, “As long as it’s something you don’t hate doing, you may find yourself very satisfied if you have a good supervisor, like your coworkers, and are treated fairly by your organization.”
Interest & Job Performance
When your focus is on the things you are doing, you will naturally excel at them. It helps you improve your performance, which leads to increase in pay and promotions. “Being interested in your work seems more important for job performance and the downstream consequences of performing well, like raises or promotions,” says Hoff.
Hoff and his team have conducted a study by analysing 39,600 interviews over the course of 65 years. The study was conducted using data from 1949 to 2016.
“In popular career guidance literature, it is widely assumed that interest fit is important for job satisfaction,” Hoffman says.
“Our results show that people who are more interested in their jobs tend to be slightly more satisfied, but interest assessments are more useful for guiding people towards jobs in which they will perform better and make more money.”
The study shows a strong correlation between interest and job performance. When people are doing things they love, they can often go the extra mile to create excellence. They also perform better, get promoted and make more money when the job interests them.
Job Satisfaction Factors
As organisations are looking to improve on the job satisfaction scores, a study done by Society for Human Resource Management examined 43 aspects of job satisfaction and 37 factors for employee engagement. The key findings and contributors to satisfaction are as follows:
Respect
Respect for employees at all levels was cited as the most important factor to their job satisfaction. 67% of the respondents in the SHRM report cited this as very important for job satisfaction. When employees at all levels are respected and embraced, it creates a winning culture in companies.
Compensation
Compensation is the second highest factor contributor to job satisfaction. As many as 63% employees cited good compensation very important for their job satisfaction. Competitive pay helps employees lead a financially secure life. It helps them focus on their work and not look for jobs elsewhere. It is also an important metric for making employees feel valued & part of the organisation.
Overall Benefits
The overall benefits of employment were rated by 60% employees as very important to job satisfaction. Today, organisations are coming up with innovative policies for keeping their employees happy. The benefits and policies are driven to attract talented people and keep them engaged at work.
Job Security
The job security was rated by 58% employees as very important to their job satisfaction. The job security is even more important during turbulent times and transitions like the pandemic. Employers that exhibit care and job security for their teams are able to earn their loyalty for a longer period compared to those that don’t.
Trust
The trust between employees and senior management is among the top five factors for job satisfaction. 55% of the employees rated trust between employees and their senior management as very important. Given the uncertainties of the workplace, it becomes paramount for senior management to build stronger trust with their employees.
Skills & Abilities
Opportunities to use your skills and abilities at work was the sixth factor contributing to job satisfaction. 55% of employees rated it a very important factor. Employee growth is dependent on their abilities to develop new skills and abilities. The organisations that provide opportunities for employees to showcase their skills and abilities help them grow and develop. Employees excel when they are challenged and given freedom to show their skills and talent.
Higher job satisfaction will be an important metric to build the future of companies. The remote working options and automation is creating flexibility for employees as well as organisations. Working with the first choice employers often brings out greater productivity and best results for employees. They spend more time engaged in their work and do things that add tremendous value.
The companies that invest in job satisfaction and keeping employees happy tend to attract quality talent. They are able to reduce their employee turnover, increase productivity, profits and loyalty. When the job satisfaction is high, employees want to be part of the company’s mission and growth. They feel connected and contribute to the organisation’s long term success.
Airbnb has captured the imagination of the world like no other company, especially in the travel domain. The company has skyrocketed to a valuation of close to $100 billion on its trading debut. The market value of share was $146 per share at one point, before closing at $144.71. The Airbnb had a market capitalisation of $86.5 billion on its first trading day. The Airbnb success story is the stuff dreams are made of, it has been a journey that has changed the world, it has changed the way people travel and connect with each other.
Renting out your apartment, your home to strangers sounds crazy enough and Airbnb managed to build a company with a market cap close to $100 billion with this. The rental accommodation site started by Brian Chesky, Joe Gebbia & Nathan Blecharczyk in 2008 has become a synonym of the shared economy. Jokingly, the founders call Airbnb the worst idea that ever worked. Many sceptics and experts wrote them off when they started.
The Airbnb idea was conceived when Brian Chesky and Joe Gebbia moved to San Francisco from New York. They had trouble paying their rent, at the time they weren’t employed. There was a design conference in San Francisco that attracted many visitors. But the hotel rooms recommended for the conference were all booked. So, the duo decided to share their Air Beds and breakfast for $80 per night. They received three guests for their service. And that is how the idea of rental accommodation was conceived.
Joe & Brian then created a very simple webpage that provided Air Beds and Breakfast booking options for people. They received three guests for their services with this simple website. The conference week validated their business model and showed them the potential in their idea. They asked local bloggers for backlinks, used craigslists hacks for acquiring their user base & created a smooth user experience that ensured growth for Airbnb.
Focus on Design & User Experience
The Airbnb success story has been built of user experience and design has played a key role in it. People who wanted to rent their accommodation uploaded photos that weren’t exactly attractive for the users. The people who wanted to book the accommodation were not able to see clearly what they were booking. Joe and Brian went as far as clicking pictures of apartments themselves and having professional photographers to upload pics that resonated with the users.
The Airbnb team used the portal and booked accommodation services to see the details of how everything works for the end users. They picked up small but important aspects that made a big difference to the user experience.
Reid Hoffman mentions in his Airbnb reflections that the founders of Airbnb approached things from the ground up. They worked towards improving the user experience and not just the Airbnb website. For e.g. the first thing someone does in a new place is look from the window. So, what can you do to make a good first impression? A window treatment doesn’t change the view, but a clean frame can improve the experience better.
The Struggles
Earlier this year, Airbnb had the toughest times it faced probably since its early days. As per Brian Chesky, “We spent 12 years building Airbnb business and lost almost all of it in a matter of four to six weeks.”
Airbnb is a travel based business and with Covid came its sternest tests. Earlier this year, the Airbnb bookings dropped between 41% & 96%. The company had to lower its valuation from $31 billion to $26 billion. It also considered delaying its IPO. The cancellations on the site made matters worse. In May, the company decided to let go 1,900 employees or 25% of its workforce spread across Americas, Asia & Europe.
The company helped its employees to find new jobs for many of its employees that were laid off. Airbnb had a series of cost cutting initiatives that included down sizing, suspending new hiring, reducing marketing, cutting down executive pay to save $800 million this year.
Bouncing Back Strongly
The company has bounced back strongly with its IPO in December 2020. The company had a targeted price at $68 per share. The company ended up raising $3.5 billion as the stock closed at $144 on its opening day. Airbnb has been able to defy the odds, it was one of the most widely awaited IPOs this year at the US Stock exchange.
While Airbnb was looking to sell 51 million shares at $56 to $60 per share, it ended up doing far better. Initially they had a target of $44 to $50 per share for Airbnb. This was also the biggest IPO at the US exchange in 2020.
The travel bans, COVID restrictions and precarious state of affairs around the world in 2020 didn’t deter Airbnb from registering a resounding entry at the Nasdaq. Infact, Airbnb had raised $1 billion in April at a valuation of $18 billion.
The valuation of Airbnb at $86.5 on its opening day makes its market cap greater than the top three hotel chains combined. Marriott, Hilton, and Intercontinental are the world’s top three hotel chains and their combined valuation on 10th December 2020 was $84.1 billion.
Infact, as per Business insider, Airbnb has more total listings worldwide than the top five hotel brands combined.
The Secret Sauce
The company has come a long way since its early days in 2008, when it was forced to sell cereals. Airbnb was low on cash and the founders had to resort to selling cereals and breakfast using designer boxes. The theme was based on the US presidential election with Obama & Mccain on the cereal boxes. It helped the startup raise around $40,000 much needed at the time.
The company now provides accommodation services through its portal and app in 200 countries around the world. It covers more than 81,000 cities and is making a serious economic impact with its presence. Airbnb has promoted cultural tourism, strengthened bonds enriched the travel experience of millions. It has also made travel cheaper and is eating into the revenue of the biggest hotel chains.
Reid Hoffman, Founder, LinkedIn & early Airbnb investor mentions, “Airbnb story is that it demonstrates how when you win a winner-take-most market with strong network effects, it can be not just industry-transforming, but world-transforming.”
Airbnb’s success story is one to savour. With so much that has gone off track in 2020 for the travel and hospitality sector, Airbnb emerges as a strong player. It shows resurgence, hope and novel ways people will travel, connect and explore the world in the future.
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