Insights and advice from Pitch’s Chief People Officer, Vanessa Stock

To wrap up our series of interviews, Menno de Graaf, our Director of Partnerships DACH, had an exciting chat with Vanessa Stock, co-founder and Chief People Officer at Pitch. Together they explored the complexity of the current talent landscape and gained valuable insights that shed light on the ever-changing dynamics of the industry.

Vanessa Stock: Co-founder and catalyst of growth at Pitch

Vanessa Stock, co-founder of Pitch, has been an integral part of the company's journey since its inception five and a half years ago. With a passion for building organisations, she played a pivotal role in shaping the company's early days by spearheading the recruitment of the core team. Overseeing the hiring process for the first 60 employees, Vanessa ensured that the foundation of Pitch was built on a strong and talented workforce. Prior to her involvement with Pitch, Vanessa also worked at Wunderlist alongside the founding members of the team. 

As Pitch grew, Vanessa transitioned into a more strategic role focused on organisational development. She took on challenges such as nurturing a remote culture, scaling the team across borders, and implementing effective compensation strategies. 

Leveraging her background in business and organisational psychology, she brought a wealth of knowledge to drive the company's growth and optimise its operations. Currently, Vanessa's main focus is optimising internal processes and establishing best practices for remote work. Vanessa is dedicated to scaling both the team and the company's culture in a manner that promotes clarity, alignment, and productivity for everyone involved. This means everything from designing efficient workflows to fostering effective communication.

Navigating the shifting landscape 

Vanessa Stock has gained first-hand experience of the German start-up and scale-up market's developments in her role at Pitch. As a venture-backed company, Pitch has been immersed in the ever-changing investment and talent acquisition landscape. In 2021, the venture market reached its peak. This coincided with Pitch's successful Series B funding round. During this time, an influx of capital poured into the market, leading to a surge in demand for skilled professionals and, subsequently, inflated salary expectations.

However, as previously mentioned, there’s recently been a shift in the investment landscape, with a decline in venture funding, combined with a normalisation of salary levels. 

Vanessa confirmed that the startup and scale-up ecosystem is indeed currently undergoing a self-regulating phase, particularly in terms of salaries, valuations, and funding. While this may not feel favourable for some companies, she thinks the shift is important. “I believe that high-quality talent remains expensive and will continue to be in high demand. However, I foresee challenges for individuals with average ideas or profiles in securing desirable positions, or founders with average ideas obtaining optimal funding.”

Vanessa highlights that there’s still immense potential for exceptional ideas, untapped talent, and promising opportunities. However, the landscape has become more competitive for ventures that don’t stand out from the crowd. This suggests that the market now demands the exceptional in order to thrive in the startup ecosystem, while average concepts and individuals face more significant obstacles than before.

The importance of adaptability and resilience

An important aspect to keep in mind is that as the startup and scale-up landscape has evolved, so has the required skill sets for talent to thrive. In Vanessa’s opinion, being adaptable to the current situation and resilient as things change are essential qualities now. People grew accustomed to an environment where everything went uphill and everything just seemed easy. However, for founders, leaders, and operators, it’s important to have the resilience to navigate through uncertain times. It has become less clear if ideas will survive and how certain they are to secure funding for the next stage.

She elaborates, “A couple of years ago, there was a mindset that starting a business would inevitably lead to success. It seemed like an effortless journey where money could be spent without much concern for returns. However, the landscape has changed significantly since then. Today, there’s a greater emphasis on accountability and tangible results. The pressure on numbers and outcomes has increased, demanding a heightened level of focus from entrepreneurs. It’s no longer a time for casual approaches, but rather a period that requires a more serious and concentrated mindset.”.

This expectation of adaptability extends not only to founders and leaders, but also to team members, according to Vanessa. Those who embrace change and are comfortable navigating through this period of transformation are more likely to thrive.

On the other hand, individuals who resist change, clinging to familiar ways of working and unable to adjust to the evolving needs of the ecosystem, may find it more challenging to succeed in the startup and scale-up space. In such cases, Vanessa recommends considering alternative industries or different career paths that align better with their preferences and strengths. Embracing change and exploring new opportunities may open doors to a more fulfilling professional journey.

Striking a balance for sustainable growth and team investment

Business priorities have moved away from growth at any expense towards focus on capital efficiency and even profitability. This change not only affects the financial aspects we’ve mentioned in previous interviews, but also has implications for people strategy, operations, and overall company culture. Companies are now tasked with finding the right balance between growth aspirations and sustainable business practices, aligning their strategies with the changing dynamics of the industry. Vanessa points out that investing in your existing workforce has become increasingly crucial. Striking a balance between investing in talent, nurturing ideas, and fostering innovation is key.

Operating a business is no longer about haphazardly throwing money into every corner and hoping for success. Instead, intentional decision-making is essential. Understanding why you are making investments and taking calculated risks is paramount. This shift underscores the importance of strategic intention and thoughtful resource allocation in order to maximise the potential for growth and success. “A lot of companies are cutting down on benefits, which are vital for keeping the team engaged and passionate about their work. It’s crucial to make the right decisions in this regard to ensure that the team remains invested in the company and enthusiastic about their day-to-day responsibilities.”

In the past, organisations tended to offer industry-standard benefits. However, Vanessa believes that there’s been a shift towards a more thoughtful approach. Companies are now taking a step back and considering their cultural pillars when designing their benefit offerings. The emphasis is on finding ways to truly elevate the team through education, investing in their growth, and ensuring that everyone is in the right roles. This includes promoting individuals who deserve career advancement and providing them with the necessary exposure to excel in their respective paths. By aligning benefit offerings with cultural values and individual development, companies can create a more meaningful and impactful employee experience.

“There are always companies that can offer higher salaries; it’s crucial for employees to stay motivated for the right reasons. As an employer, you need to provide the right reasons. Ideally, these reasons go beyond monetary compensation and are rooted in the value of your product, the mission your company is aiming to achieve, the strength of your leadership team, or other unique aspects of your company. While compensation is essential, it should be seen as a foundational aspect rather than the sole driving factor for employee retention.”

The role of transparency, communication, and vision

Last year, Vanessa published an article highlighting the importance of ensuring employee engagement and loyalty within an organisation. In this article, she emphasised key factors such as transparency, effective communication, prioritising perks, and fostering motivation. She states that these elements play a vital role in ensuring that employees remain committed and invested in the company's mission, reducing the likelihood of them seeking opportunities elsewhere.

Most of the findings are still applicable today. “I still believe effective communication is paramount, and it's important to go above and beyond in sharing your vision. Take a moment to reflect on whether you're still on the right track given the current circumstances and the pressures impacting your business. Then, think about how you can effectively communicate and get everyone on board with your vision internally. It's important to ensure that the right people are still enthusiastic and supportive of the direction you're heading in.” That phase is really critical for Vanessa. 

Everyone’s talking about the ‘great resignation’ and ‘silent quitting’ these days, but you can’t just sit around, waiting to see what happens next. Some people are just going through the motions, are content with their job, but not truly passionate about it any more.

It's important to help these individuals rediscover their motivation or ensure they find the right reasons to move on. It's crucial for people to remember why they do what they do and assess if they're still excited about it. No one should be stuck in a job where they don't feel they're making a meaningful contribution. Vanessa adds, “So, in my opinion, having a clear vision, effective communication, transparency, and a strong company strategy are all essential. As a leader, it's important to continuously evaluate if this is truly what we want and then consistently communicate that message.”

Piece of advice

As our conversation with Vanessa comes to a close, it's clear that her insights and advice are valuable. While we have only scratched the surface of our discussion, let's take a moment to highlight some valuable advice that Vanessa would like to share with founders, people leaders  and talent. 

1. Focus on hiring people with the right mindset 

The demand for and nature of roles within a company vary greatly depending on the industry and stage of the business. However, what truly matters is the mindset that individuals bring to their work. “If someone enters a company with the expectation of unlimited budgets and the ability to define their role solely based on personal preferences, it may not align with the current ecosystem. The reality is that everyone’s now required to be more resourceful and adaptable in their roles.”

Employees will face the task of achieving more with fewer resources than they may be accustomed to. It’s crucial to embrace a mindset that finds excitement in this challenge. “We often encounter individuals who still expect to hire large teams and have ample budgets at their disposal. However, the true art lies in what can be accomplished with limited resources. This is what I find interesting and what I want people to be enthusiastic about. Ultimately, it’s not so much about the specific role one desires to fill, but rather the ability to thrive in an environment where doing more with less is the norm.”, Vanessa adds.

2. Nurture unity and transparency by over-communicating 

Over-communication is key if you want your organisation to move in the same direction. Many companies have a tendency to turn silent when faced with challenges. For example, they withhold outcomes and discussions from board meetings, leaving employees in the dark.

However, Vanessa says, “I firmly believe that in difficult times, it’s even more crucial to maintain open lines of communication. By sharing information and being transparent about decisions and discussions, you can foster unity, understanding, and collective action within your organisation.”

It’s not just about sharing information; it's about ensuring that the information is presented in a way that is easily understandable and actionable for your team. Simply dropping numbers or data without context can lead to confusion and speculation. To avoid this, it’s essential to provide transparency in a digestible format. By doing so, you can prevent misunderstandings and minimise the need for filling in gaps with assumptions.