Gusto: Executive Hiring Framework & Process

Executive Hiring & Management at Gusto

In this case study, we highlight the following four processes at Gusto, designed to ensure that leaders brought in not only meet the role's qualifications, but also align with the company’s culture and values:

Executive interview process
Calibration and Support After Hiring
Managing Senior Executive Performance
Frameworks for Goal Tracking and Feedback

Remember that the timing for implementing hiring playbooks, best practices, and frameworks below can vary based on the size and complexity of your organization. While larger companies may need these processes sooner, smaller startups can gradually introduce them as the need arises. The key is to maintain alignment, clarity, and open communication throughout the hiring and management processes.

I. Executive interview process:

1. Initial Screening:

All executive candidates go through an initial screening, typically conducted by a member of their People team.
This initial conversation helps Gusto gauge the candidate's interest in the company and assess their fit in the role

2. SPOT Document:

Gusto uses a document called SPOT (Specifics, Purpose, Objectives, and Talk) to get clear on the criteria for the executive role.
It outlines the specific qualifications they’re seeking, the purpose of the role, and the objectives the candidate will be expected to achieve.
The SPOT document helps ensure alignment and clarity in their hiring process.

3. Match Talks:

Before bringing candidates onsite, Gusto often conducts match talks, which involve in-depth conversations with candidates.
These talks serve a dual purpose: inspiring the candidate about Gusto's mission and values and helping them assess whether they're a good fit.

4. Onsite Interviews:

Candidates who pass the initial stages are invited for onsite interviews.
Each interviewer has a specific role and set questions, ensuring a consistent and unbiased evaluation.
Gusto typically has no more than 9 interviews, each with a unique focus.

5. Homework Assignment:

Candidates are given a homework assignment with a specific prompt.
They are expected to spend a minimum of five hours but no more than ten hours on this assignment.

6. Panel Discussion:

Candidates participate in a panel discussion with four or five team members.
This session allows them to hear feedback and insights from their team and engage with the audience effectively.

7. Values Interview:

In a 20-minute values interview, Gusto assesses the candidate's alignment with their core values.
Gusto looks for individuals who demonstrate a "driver" mindset and are in it for the collective success of the team.

8. Clear Communication of Expectations:

During the interview process, it's crucial to be specific about what Gusto expects the executive to accomplish over the next 12 to 18 months.
Clear communication of expectations helps ensure alignment and clarity from the beginning.

II. Calibration and Support After Hiring:

After an executive is hired, it's essential to set them up for success and maintain alignment with their role and the company's objectives. Here's how Gusto achieves this:

1. Onboarding and Explanation:

In the first few months, provide the executive with a comprehensive understanding of the business.
Explain the company's vision, mission, strategy, and design, and encourage them to share their observations and feedback.

2. Regular Check-Ins:

Schedule regular check-in meetings, ideally two hours at the beginning and end of each week, for the first three months.
Use these meetings to calibrate, discuss progress, and address any concerns or questions.

3. Open Communication:

Create a safe space for open and candid communication.
Encourage the executive to share their observations and concerns, and be open to feedback.

4. Clarity of Expectations:

Make sure the executive understands your expectations and the company's strategy.
Clarify your thought process and share key insights, such as how you pitched fundraisers or recruited talent.

5. Respect for Sacred Company Values:

Identify aspects of the company culture and values that are essential to you.
Communicate why these values are important and be open to discussions on how to align with them.

III. Managing Senior Executive Performance:

1. Focus on Systems, Not Blame:

When goals are not met, focus on understanding why it happened rather than assigning blame.
Encourage discussions about the reasons for missing targets and what can be learned for future success.

2. Private Feedback:

Provide constructive feedback in private, emphasizing a commitment to improvement.
Avoid public criticism, as it can undermine team morale.

3. Clarity in Communication:

Ensure clear and specific communication of expectations and results.
Use one-on-one meetings to assess progress against agreed-upon initiatives.

4. Effective Apology:

As a CEO, be willing to apologize when necessary, both for not meeting commitments and for any mistakes.
Master the art of an effective apology to build trust with your team.

IV. Frameworks for Goal Tracking and Feedback:

1. 1:1 Document:

Utilize a structured 1:1 document to track progress and outcomes.
Start each meeting by reviewing results and key initiatives, fostering alignment.

2. Radical Candor:

Embrace the Radical Candor framework, which involves challenging directly and caring deeply in communication.
Balance deep care with crisp challenges in your feedback.