A few years ago, when one of Rafi Holtzman’s employees called him from Europe and said she forgot her bright pink suit pants she needed for a trade show she was attending, he went to her house and, not wanting them to get crumpled in his suitcase, carried them by hand on the plane. He got odd looks, but it was just one way the CEO of Luidia Inc., a creator of interactive whiteboard technologies, showed his employee that he cared about her.
Holtzman also drinks his coffee with employees so he can talk to them, and he bought employees expensive ergonomic chairs so they would be comfortable. And when any of his nearly 100 employees have family emergencies, he says he’ll see them when it’s over instead of expecting them to work during the crisis.
“Even if you’re a cold-hearted capitalist, you still want to act like this because it buys you the thing that money can’t buy — it’s the personal responsibility, it’s the self-motivation — salaries will not do that for you,” he says. “Salaries are short-term sugar highs. If people understand you’re there for the long-run … it goes a long way.”
Smart Business spoke with Holtzman about how values affect a company.
What role do values play in an organization?
There are two kinds of motivation in human life — and it’s basically falling into two buckets. One of them is fear and the other one is love. Fear is a great motivator for a short-term burst — if you’re running away from a wild animal or doing a very fast project that you need to do right now and kill yourself to finish it. But if you really want to sustain growth, creativity, teamwork for the long run, then you have to be highly motivated to continue this for the long run, and the only way I know how to do that is personal involvement. I’m using the term love, but it’s a lot more than that. It’s a combination of respect and personal responsibility and taking things really personal.
It helps a lot if you believe in that. You can fake it and do pep talks. A lot of companies will say that people are their strongest assets. But from my experience, not a lot really do mean it on the basic level. If you can really believe in that, you’re a large part of the way there.
How does showing care to employees help the business itself?
You have to go really outside the box to get support that will last for years. Most organizations manage to keep the people they don’t want to keep — we like to keep the people we do want to keep.
Changing employees is bad for you. It’s also hideously expensive. A stabilized company is always good rather than changing employees all the time — this going up and down and the learning curve and the hiring process puts stress on everybody.
How do you hire well the first time so you have a stable company?
Don’t compromise. Wait a bit more and don’t compromise. As a matter of compensation, it’s not always the highest monetary compensation that brings you the best candidate. You really have to see if there’s a fit on the vision both in the day-to-day activity and in the long run. People who fit in with the company values and, at the end of the day, are proud of their work, get significant points over somebody who just thinks of work as work.
What questions do you ask to get a good match?
The top question I ask is, ‘Tell me about the project you are proud of.’ I remember one candidate going, ‘Look, I started this, I made the proposal to the department of defense, I developed the process, I went all the way from idea to actually selling it, and it was a great thing because the company sold a lot of them. What I got from this I got taking ownership from one end to another.’ He had pride of ownership that he did a good product — he was really high on my list.
The other question is, ‘What do you want to do when you grow up?’ You find out a lot about people when they answer this question — there’s only one good answer and that’s I don’t want to grow up. One of them said chocolate taster — that was a good answer.
How to reach: Luidia Inc., (650) 413-7500 or www.e-beam.com