As presented at The 1st Indonesia International Conference on Science Technology Park (IICSTP) on October 12-13th by Go1 CEO Andrew Barnes.

There are a growing number of accelerator programmes designed to start and support innovative startup businesses. Many accelerators are increasing the size of their intakes, with some programmes now launching over 200 new companies per year. On first inspection the large numbers and consistent approach taken to accelerating the participating companies appears to be in conflict with producing innovative and disruptive companies.

This paper uses Y Combinator as a single case study to investigate whether increasing the number of companies within a batch has resulted in longer or shorter timeframes for companies to achieve an exit (through acquisition or initial public offering). The paper finds that the timeframe for achieving an exit for Y Combinator companies is reducing, even while batch size has sharply increased. There is no statistically significant correlation between the cohort size and the initial money raised during the programme.

Disruptive new ventures are a hallmark of capitalism, where entrepreneurship revolutionizes existing economic structures (Schumpeter 1942). Creating new industry paradigms can be highly profitable. In the last four decades high-growth, venture capital backed startups have accounted for less than half of new US public companies, but have captured over 63% of the total market capitalization (Gornall and Strebulaev 2015). More recently, over the last ten years startup accelerators have emerged as a new method for incubating and investing in disruptive businesses (Miller and Bound 2011). Accelerators provide resources (generally in the form of seed funding, networks and mentorship) to groups of participating companies.The accelerator model was first pioneered by Y Combinator (YC), a programme that originated in Boston and now operates from Mountain View in California (Kim and Wagman 2014; Miller and Bound 2011; Dempwolf, Auer, and D’Ippolito 2014).

The first cohort of YC companies in 2005 (termed batches) featured less than ten businesses. YC has grown over the last decade and now launches over 200 companies each year. Intuitively there would seem to be a conflict between launching disruptive companies at scale. Indeed, existing research suggests that as companies grow larger, their ability to innovate may decrease (Ackermann 2012). The team behind YC are not unaware of the difficulty inherent in scaling the pursuit of innovation, and despite this have continued to steadily expand. YC’s mass production of high growth companies offers an opportunity for study: does the increasing size of cohorts have a negative effect on startup outcomes? This paper investigates whether there is a relationship between cohort size (in a given year) on seed investment round size and whether cohort size negatively impacts the average length of time for an acquisition.

There is reason to be both optimistic and pessimistic when considering whether innovation can scale. From a simplistic perspective there are certain types of advances that require sufficient size and scale to support the necessary research and development activities. The Large Hadron Collider offers unique insight into uncharted territory, and in turn may yield disruptive breakthrough findings. Without the support of countless scientists, many countries and many billions of dollars in investment it would not be possible. But this form of scale – concentrated on a single project – is not what YC and its peers are attempting. Instead YC’s programme supports a great diversity of startup businesses, all of which receive relatively few resources. As batch sizes increase, the time and attention from YC must be spread thinner still.

To support each company, YC must be able to systematize the elements required to support innovation. Isaac Asimov (2014, 2) suggests that “the process of creativity, whatever it is, is essentially the same in all its branches and varieties, so that the evolution of a new art form, a new gadget, a new scientific principle, all involve common factors.” If Asimov is correct, and if YC have been able to identify scalable means to deliver enough of the common factors, then there could be the opportunity to improve the outcomes for companies participating in YC, even while the size of cohorts increases.

In contrast to this, there are many examples where innovation has been negatively impacted as group size increases. In academia, research indicates there are decreasing returns as team size grow (Lee and Bozeman 2005). The productivity of corporate research and development teams decreases as staffing numbers increase, particularly for heterogeneous groups (Cummings et al. 2013). Venture capital firms seeking to increase the size of their portfolios also experience negative performance tradeoffs (Kim and Wagman 2014; Kanniainen and Keuschnigg 2004; Cumming 2006; Fulghieri and Sevilir 2009). Accelerators too may experience diseconomies of scale (Hallen, Bingham, and Cohen 2014).

Y Combinator differs to other accelerators in two important respects that may enable it to scale more successfully. First, by being renowned as the premier accelerator globally, YC is able to attract the top tier of potential startup applicants (Hochberg and Kamath 2012; Pauwels et al. 2016). Attracting the very top tier of applicants (ahead of other accelerators) is particularly important in an industry where outliers are essential (Kim and Wagman 2014). Second, YC strongly espouses independence and autonomy for the companies that participate in their programme. For example, unlike other accelerators which will often provide free or subsidized office space, Y Combinator does not (Radojevich-Kelley and Hoffman 2012). Paul Graham, one of the original co-founders of YC, cites the need for companies to develop their own culture (Stross 2012). Greater independence may certainly help YC companies innovate.

1.2 Pros and cons for YC’s increasing cohort size

There are potentially many negative impacts associated with increasing the size of an accelerator cohort. If the common factors for innovation described by Asimov are not systematized and designed to scale, then there will be less optimal outcomes on average for the participating companies. One obvious effect of larger cohort sizes is the increased competition for investment funding. If the available capital for seed investment is fixed, then increasing the average number of YC companies should result in a lower average seed round for each company. The increased competition for each investor dollar may be compounded by the perception of lower average quality as cohort size increases.

With increasing numbers of heterogeneous companies there will also be limits on the quality of advice and mentorship that can be provided. The homogeneity of advice given to an increasingly large cohort is more likely to be poorly suited to the unique needs of individual companies (Hallen, Bingham, and Cohen 2014). Unsuitable advice can negatively impact the chances of success.

3.1 H1: Does cohort size have an impact on the amount of seed funding raised by each company?

The 95% confidence interval for  has a lower bound of  and an upper bound of 2456.95.

3.2 H2: Is there an effect on the time it takes for a company to exit based on the cohort size?

The second hypothesis investigated is whether there is a relationship between the cohort size and the average time taken for a liquidity event (either an IPO or acquisition). As no Y Combinator company has been publically listed I only consider acquisitions. There were 127 acquisitions in the dataset and the results are summarized in Table 3 below. The 95% confidence interval for  in Table 3 has a lower bound of and an upper bound of 0.004.

There is a natural ceiling on the maximum number of days for an exit event based on the year that a company participated in YC: the average time taken for companies to be acquired from the 2015 YC cohort is likely much less than average time taken for participants of the 2010 cohorts. To control for this ceiling, I have included a variable for the total number of days that the company has been operating in Table 4. The 95% confidence interval for  in Table 4 has an upper value of  and a lower value of  -0.04.

The results in Table 3 and Table 4 do not provide support for any positive or negative impact with increasing cohort sizes. In both regressions there is no statistically significant relationship at  between cohort size and the average number of days for an acquisition. The effect size is also small and negative: the largest change recorded to cohort size (from around ten participants to 210) would only reduce the average number of days for an acquisition by four.

This paper began with the question of whether the success of Y Combinator’s portfolio companies can continue as YC scales the size of its programme. YC’s programme is now twenty-times larger than when it began. The investigation of 991 YC companies suggests that the increasing cohort sizes have not had a noticeable impact on the time taken for acquisitions or for the amount of seed funding raised. I hasten to note that a statistically insignificant finding does not itself suggest that the tested hypothesis is false (Ellenberg 2014). However, the narrow confidence interval for the effect size of cohort size does indicate that any potential positive or negative effect is minimal.

The minimal impact that increasing cohort sizes has had on the average amount of seed funding is unexpected. Intuitively one might expect that the greater the number of companies, the greater the competition and lower average investment each would receive. The results in Table 2 suggest that there is a statistically insignificant positive correlation between the size of cohort and the average seed round. Table 5 provides an overview per year of the average seed round and the number of YC companies in that year. The results suggest that YC’s brand as the world’s top accelerator may have meant its companies have been protected from the increased competition amongst peers. As Y Combinator’s brand has grown, so too has the number of applicants for its programmes. This has meant YC has been able to maintain an acceptance rate ‘below 3%’ (Yin and Luo 2015, 23). The negative impact of increasing cohort size is probably more acutely felt by accelerators that lower the entry bar.

The second finding was that YC’s increasing cohort size has had a negligible impact on the average time for an acquisition. There is already research showing that participation in an accelerator like YC has demonstrated reductions in the average time before acquisition (Smith and Hannigan 2015). What is unexpected is that cohort size has had no to minimal impact on the average time until acquisition.

The findings suggest certain implications for accelerators. It does appear that there may indeed be scalable “common factors” when it comes to producing innovative companies (Asimov 2014, 2). Y Combinator’s success in scaling the size of its cohorts suggests that it has systematized some of them. The literature review identified some of the unique strategies that YC uses to support innovation. The first is its focus on individual autonomy. Practices such as not offering office space are in contrast to ‘virtually all accelerator companies’ (Radojevich-Kelley and Hoffman 2012, 60). By strongly encouraging participating companies to develop their own cultures and environments, YC is attempting to encourage heterogeneity between their portfolio companies.

Second, YC has been able to keep acceptance rates low, despite the increase in cohort size. Increasing cohort size at the expense of quality would likely have a negative impact on both seed funding size and acquisition prospects. As Y Combinator has been able to maintain and even grow its brand, it has been able to attract an increasing number of applicant companies. With acceptance rates below 3% (which is better than industry averages), selection to YC continues to be a strong quality signal for participating companies (Yin and Luo 2015, 23).

Replicating the success of YC in is not trivial. However, a focus on the elements that will support innovation at scale appears to be an essential ingredient.

As with all studies, there are limitations which must be considered with this investigation. A primary limitation are the variables available for investigation. When considering whether cohort size has an impact on firm outcomes, the ideal outcome variable would be firm market capitalization. The amount of time taken for acquisition is an imperfect proxy for success. Unfortunately, data on valuation or market capitalization was not available. Further research in the area would benefit from access to such data.

With that said, the limited information on acquisition values seems to suggest that YC’s performance is continuing to strengthen. One of the most recent YC exits (and also its largest to date) is Cruise, an autonomous vehicle company, that reportedly sold to General Motors for $1bn (Crunchbase 2016). Cruise was part of YC’s 2014 cohort, which was the largest cohort year for YC to date.

Another potential limitation relates the incentives of accelerators at scale. For accelerators that are able to develop focused, larger portfolios there are strategic benefits from exiting underperforming companies quickly (Fulghieri and Sevilir 2009). This dynamic doesn’t seem to apply as much to YC as it does not have a focused portfolio (the diversity of participating companies appear to be increasing with time) and does not have control over exiting firms (either through acquisition or by shutting them down).

Finally, while not a limitation, it is worth noting that portfolio size is a function of an accelerator’s business model. The typical accelerator business model ‘is to invest in a set of ventures with a relatively small amount of money rather than continue to support the ventures in multiple rounds’ (Kim and Wagman 2014, 5). Accordingly, accelerators are able to invest in a large number of potential firms. More recently Y Combinator has opted to adopt a different model, guaranteeing follow on investment in all its portfolio companies up until a valuation of $300 million (Altman 2015). Given the unique nature of YC’s future strategy, there is an opportunity for further and deeper research.

I would like to acknowledge and thank Assoc. Professor Dr Damian Hine at the University of Queensland Business School for reading an early draft of this paper.

Ackermann, Stephen J. 2012. Are Small Firms Important? Their Role and Impact. Springer Science & Business Media.

Altman, Sam. 2015. “YC Continuity.” Y Combinator Posthaven. October 16. https://blog.ycombinator.com/yc-continuity-fund.

Asimov, Isaac. 2014. “Published for the First Time: A 1959 Essay by Isaac Asimov on Creativity.” MIT Technology Review. October 20. http://www.technologyreview.com/view/531911/isaac-asimov-asks-how-do-people-get-new-ideas/.

Cohen, Jacob. 1994. “The Earth Is Round (P<. 05).” American Psychologist 49 (12): 997.

Cohen, Susan, and Yael V. Hochberg. 2014. “Accelerating Startups: The Seed Accelerator Phenomenon.” Available at SSRN 2418000. http://papers.ssrn.com/sol3/Papers.cfm?abstract_id=2418000.

Cottrell, A, and R Lucchetti. 2016. “Gretl User’s Guide.” http://ricardo.ecn.wfu.edu/pub//gretl/manual/en/gretl-guide.pdf.

Crunchbase. 2016. “Mar 11, 2016: General Motors / Cruise | Crunchbase - General Motors Acquires Cruise for $1B in Cash & Stock.” March 11. https://www.crunchbase.com/acquisition/d7ca7de8846a22a446e474e388617673.

Cumming, Douglas J. 2006. “The Determinants of Venture Capital Portfolio Size: Empirical Evidence.” Journal of Business 79: 1083–1126.

Cummings, Jonathon N., Sara Kiesler, Reza Bosagh Zadeh, and Aruna D. Balakrishnan. 2013. “Group Heterogeneity Increases the Risks of Large Group Size a Longitudinal Study of Productivity in Research Groups.” Psychological Science 24 (6): 880–890.

Dempwolf, C. Scott, Jennifer Auer, and Michelle D’Ippolito. 2014. “Innovation Accelerators: Defining Characteristics Among Startup Assistance Organizations.” SBAHQ-13-M-0197. US Small Business Administration. https://www.sba.gov/sites/default/files/rs425-Innovation-Accelerators-Report-FINAL.pdf.

Ellenberg, Jordan. 2014. How Not to Be Wrong: The Power of Mathematical Thinking. Penguin Publishing Group.

Fulghieri, Paolo, and Merih Sevilir. 2009. “Size and Focus of a Venture Capitalist’s Portfolio.” Review of Financial Studies 22 (11): 4643–4680.

Gornall, Will, and Ilya A. Strebulaev. 2015. “The Economic Impact of Venture Capital: Evidence from Public Companies.” Available at SSRN 2681841. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2681841.

Graham, Paul. 2013. “YC W13 Will Be Smaller.” http://old.ycombinator.com/w13smaller.html.

Hallen, Benjamin L., Christopher B. Bingham, and Susan L. Cohen. 2014. “Do Accelerators Accelerate? A Study of Venture Accelerators as a Path to Success.” Academy of Management Annual Meeting Proceedings, January, 747–52. doi:10.5465/AMBPP.2014.185.

Hochberg, Yael V. 2016. “Accelerating Entrepreneurs and Ecosystems: The Seed Accelerator Model.” Innovation Policy and the Economy 16 (1): 25–51.

Hochberg, Yael V., and Kristen Kamath. 2012. “US Seed Accelerator Rankings.” Kellogg School of Management, Northwestern University. http://tech.co/wp-content/uploads/2012/08/Accelerator-Companion-FINAL.pdf.

Kanniainen, Vesa, and Christian Keuschnigg. 2004. “Start-up Investment with Scarce Venture Capital Support.” Journal of Banking & Finance 28 (8): 1935–1959.

Kim, Jin-Hyuk, and Liad Wagman. 2014. “Portfolio Size and Information Disclosure: An Analysis of Startup Accelerators.” Journal of Corporate Finance 29: 520–534.

Lee, Sooho, and Barry Bozeman. 2005. “The Impact of Research Collaboration on Scientific Productivity.” Social Studies of Science 35 (5): 673–702.

Miller, Paul, and Kirsten Bound. 2011. “The Startup Factories.” In NESTA. http://businessincubation.com.au/wp-content/uploads/StartupFactories-Accelerators-Evaluation-NESTA-June-2011.pdf.

Morrill, Danielle. 2015. “Why Is the Number of Seed Rounds Raised in 2014 Down 30%? Exploring the Connection Between Startup Funding Activity and U.S. Interest Rates.” Mattermark. January 16. https://mattermark.com/exploring-the-connection-between-startup-funding-activity-and-u-s-interest-rates/.

Pauwels, Charlotte, Bart Clarysse, Mike Wright, and Jonas Van Hove. 2016. “Understanding a New Generation Incubation Model: The Accelerator.” Technovation 50: 13–24.

Radojevich-Kelley, Nina, and David Lynn Hoffman. 2012. “Analysis of Accelerator Companies: An Exploratory Case Study of Their Programs, Processes, and Early Results.” Small Business Institute® Journal 8 (2): 54–70.

Schumpeter, Joseph Alois. 1942. Capitalism, Socialism And Democracy. Kessinger Publishing, LLC.

Smith, Sheryl Winston, and Thomas J. Hannigan. 2015. “Swinging for the Fences: How Do Top Accelerators Impact the Trajectories of New Ventures?” In DRUID15. Rome. http://druid8.sit.aau.dk/druid/acc_papers/5ntuo6s1r5dvrpf032x24x5on5lq.pdf.

Starbuck, William H. 2006. The Production of Knowledge : The Challenges of Social Science Research. Oxford: Oxford University Press.

Stross, Randall. 2012. The Launch Pad: Inside Y Combinator, Silicon Valley’s Most Exclusive School for Startups. Penguin UK. https://books.google.com.au/books?hl=en&lr=&id=231A_MFcmzkC&oi=fnd&pg=PT6&dq=startup+accelerators+y+combinator&ots=ltuTHXLSFD&sig=l4Qvn5LsvZxZScBI2OZkpqDuYYY.

Yin, Bangqi, and Jianxi Luo. 2015. “Critical Factors in the Selection of Start-up Incubator Residents.” Available at SSRN 2735465. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2735465.

Yuxian Eugene Liang, and Soe-Tsyr Daphne Yuan. 2016. “Predicting Investor Funding Behavior Using Crunchbase Social Network Features.” Internet Research 26 (1): 74–100. doi:10.1108/IntR-09-2014-0231.

False

Mass producing innovation: why accelerators are not a paradox

What’s the secret to sales success? Your people!

If a sales manager is not being supported by his/her team then the company is almost guaranteed to experience revenue problems, to say the least.

So how do you motivate your sales staff? Providing incentives and positive reinforcement are two great places to start.

Understanding the Way Motivation Works Within the Workplace

Take a moment to consider what a customer appreciates more: a well-planned business structure or outstanding customer service?

If you’re having trouble hitting the goals that you’ve set for your company, it may be time to reevaluate the ways that you’re approaching your business.

It is too easy to get lost in the numbers and forget about the HUMAN elements that drive sales and result in returning customers.

Determining what customers respond to is more about personality than logistics. Countless studies have proven that clientele good customer relationships drive business growth.

Customers will pay a premium if they’re guaranteed a positive experience.

Ensuring customers are receiving top-quality service lies on the shoulders of a company’s employees. When an employee feels good about their job and the work they are doing it will be evident in their attitude and treatment of others.

Working to motivate your sales staff is a sure fire way to increase their performance about the jobs they’re doing. Consistent motivation will also help promote a greater sense of accomplishment and work ethic.

When developing a motivation strategy for your business, there are several different techniques you can experiment with. Some common approaches are things like:

Goal-driven competitions are a great way to provide incentive and assist the company in reaching targeted sales quotas.

When quarterly bonuses are on the line, sales staff will be more ambitious about their work. It’s that simple.

Offering bonuses that are based on an individual’s work over a longer span of time will encourage them to consistently try harder. Everyone could use a little extra money and many sales staff members will be less willing to risk the total bonus amount because of a poor quarterly performance.

When a business owner makes their team a part of the overall plan, there is a higher chance of success.

Letting your sales staff know what the goals for the company are and how the results can benefit everyone is a great way to provide an incentive for hard work. The big picture does indeed matter.

Not only will your staff feel like they’re part of something bigger, they will have a better understanding of where the business is going and how they can improve their commissions over time.

Sometimes authority figures forget to reward good behavior. This goes for parents, teachers, and yes, bosses.

When an individual is only recognized for poor actions and effort, it lessens their self-esteem and does very little to foster motivation.

Human nature is a fragile thing and people are easily beat down when they are only receiving negative attention. Positive recognition, however, can boost someone’s confidence and provide them with the drive necessary to become a success.

Even if it’s a simple action, sales managers should take the time to thank their team for the hard work they do each day. Showing gratitude really does have a positive effect on your people. .

These types of positive encouragements will benefit the company overall and help you to achieve the goals you’ve set for your team by promoting a culture of positive action.

Reevaluating the working conditions of your sales team and making sure they’re provided with the things they need for a positive environment is vital to your company’s success.

Author Frederick Herzberg discusses a variety of different factors that can promote either satisfaction or dissatisfaction in the workplace in his book, The Motivation to Work. Some of these are:

Taking the time to think about these factors is imperative to a good business environment. If sales teams feel fulfilled by their working conditions they will have more motivation to do their jobs well.

When a boss notices that certain areas of the job or workplace are lacking, they should do something about it asap. This might include investing in better office furniture or even taking the hard-liner approach of eliminating low performing or negative individuals.

Motivation is a Driving Force Behind Company Success

Implementing a greater sense of purpose amongst your team will have a positive effect on your company’s success and reputation.

Whether you’re offering incentives or showcasing gratitude and respect, your sales team will become more focused and determined to succeed—and this will give them the necessary push to start hitting their numbers more consistently.

How to motivate your sales staff and hit your sales goals

Sexual harassment is a serious crime that is sometimes “brushed under the rug.”

In other cases, individuals don’t realize the effect of their actions and don’t consider their so-called “innocent behavior” as true harassment. Despite their lack of understanding, however, the legal ramifications that can occur are quite real indeed.

In order to truly understand the consequences faced by offenders, it’s important to recognize how sexual harassment is defined in the United States.

By definition, sexual harassment is most commonly identified by one or more specific actions, such as:

Verbal and/or physical actions of a sexual nature

Sexual actions are not the only type of harassment that occurs, however. It can also include derogatory remarks about a person based on their gender. The law focuses on when the act is taking place in an aggressive way that is detrimental in a mental or physical capacity.

Understanding the legal penalties of sexual harassment

Offensive actions against another person can be considered sexual harassment no matter whom they occur between. While the legal consequences can differ based on an individual’s role in the company, it should be understood that the ramifications of proven harassment are severe.

Where businesses are concerned, the employer can be found legally responsible for workplace harassment if they knew it was occurring and did nothing to correct the situation. This concept holds true whether the responsible party was a supervisor or employee.

There are two different types of sexual harassment claims that can be filed:

Quid pro quo sexual harassmentThis type of claim refers primarily to incidents where a supervisor has negatively approached an employee. Often times these cases revolve around the request for sexual favors in exchange for things like promotions, or for an individual to keep their job.

Hostile work environment claims
When harassment has created an environment that feels threatening and offensive, a hostile work environment claim should be filed. These claims are analyzed based on different factors, such as the frequency of occurrence, the type of action taking place, and the person responsible for the harassment.

Once an employee has issued their complaint, the Equal Employment Opportunity Council (EEOC) will open an investigation into the company.

These investigations are performed in order to backup harassment claims and determine how the victim has been affected.

Once the investigation has been completed, the EEOC will usually attempt to work with the employer and employee to reach a settlement. Employers are often requested to offer the employee repayment compensation for things like:

Repayment of any lost wages due to the harassment

If an agreement cannot be reached through mediation, one of two things will usually occur:

The EEOC will file a lawsuit with the Federal court system

The claim will be dropped and the victim may, or may not, receive a “right-to-sue” letter that allows them to hire their own attorneys and bring the case to court.

The victim may also be entitled to ask for this letter before the EEOC has concluded their involvement in the case, depending on the circumstances.

How is sexual harassment typically penalized?

One of the first steps to take following a sexual harassment claim is to conduct a review between the offending party and the victim.

In addition to reviewing their actions, the responsible party may be subjected to repercussions, such as monitoring, counseling, and probation.

As the company is often held responsible for sexual harassment claims, along with the offender, many businesses have zero-tolerance policies in place. Depending on the severity and frequency of the events in question, many employers will mandate automatic termination in order to avoid lawsuits themselves.

Once the EEOC is involved in harassment suits, there is a very good chance the employer will have to pay a variety of different penalties.

If the victim is forced to take time off of work, or even quit, the employer will be required to provide them with back pay and/or rehire them. Given the mental and physical harm that the victim may have experienced, there is also a good chance the employer will need to take care of medical bills and compensatory damages towards the emotional support of the employee.

Most of the penalty fees are distributed in cases where the employer knew what was occurring and did nothing to stop it. That being said, they are often also required to pay punitive damage fees as a means of retribution.

Potential jail time is determined based on whether or not the victim elects to press charges against their harasser. The type of punishment assigned, be it probation or jail time, is chosen based on the gravity of the claims and whether they’ve been classified as a misdemeanor or felony.

The state in which the crime occurred will also govern the potential sentence.

Legal ramifications aren’t the only effects of harassment

While most individuals are primarily concerned with the legal consequences of sexual harassment suits, the negative effects don’t end within the courtroom.

Harassment situations can be detrimental to a company’s reputation and work environment, for one. Fellow employees may lose interest in their jobs and the workplace can become a negative space as well.

Harassment can also cause permanent anxiety for the men and women who are victimized. Despite receiving monetary compensation, their ability to successfully complete their job may be affected, not to mention their overall mental well being.

The EEOC is currently working on various training processes and instruction guidelines that will help to avoid confusion and lower the chances of harassment taking place within the workplace.

Supervisors and employees must work together to prevent harassment, because a safe workplace is essential to any successful business.

What are the legal ramifications of sexual harassment in the workplace?

More and more companies are embracing eLearning as a path to improving employee training and boosting customer experience. It makes perfect sense, because these are two critical aspects of business. Here is how online learning impacts your bottom line.

Employee education is directly correlated with lower rates of turnover within companies and ongoing education has been proven to dramatically improve productivity (and profits) over time. The data is in and the message is loud and clear: Businesses that take the time to educate workers through eLearning have a higher percentage of becoming industry leaders than those that don’t. Not convinced yet? Check out these 4 ways in which eLearning impacts your bottom line:

eLearning is one of the fastest and easiest ways to educate your sales reps about your products or services and it’s one of the most effective ways you can help them improve their overall sales skills. It’s no secret that a more informed sales team equals a more effective one. When your sales team is more educated about what it is you are offering then they’ll be better equipped to convey your value to customers and close the deal.

eLearning can lead to improved sales conversions and lower costs per customer acquisition – two key metrics that are vitally important to the overall health of your company. Ultimately, when your customers understand what sets you apart from the competition then they’ll be more likely to choose you over someone else and this is what eLearning can do for your sales force.

In the beginning organizations were skeptical, but over time the statistics became too clear to ignore. Now more and more companies are discovering that eLearning is significantly more cost effective than traditional employee training programs. With traditional training, for example, not only are you forced to cover the cost of the course creation and the implementation of training but you will also be facing periods of reduced productivity while groups of employees are packed into conference rooms to complete the course.

eLearning, on the other hand, provides you with a more manageable and affordable solution. Workers can go at their own pace rather than completing the training in groups and this means productivity will not take such a dramatic hit. Not only will you save money, but your staff will be able to maintain output and keep profits streaming in.

According to this study conducted by the Journal of Online Learning and Teaching, eLearning gives companies a more efficient solution for delivering training when compared to traditional training methods. The primary reason? In-person training is slow and very one-dimensional when it comes to the eLearner’s experience.

eLearning, on the other hand, offers a wide variety of dynamic instruction possibilities that are more engaging and motivating to employees. Popular eLearning training delivery methods can include video demonstrations, interactive quizzes, surveys, Q&As, and webcasts – all of which keep the learner more involved in the process.

Another reason why eLearning is more efficient than traditional methods is due to the accessibility of the material. While live training is a “one time only” experience, eLearning allows you to provide access to the essential material on an ongoing basis. This in turn improves retention and –more importantly– application of the material. When your learners can implement their training faster, than all of your processes run smoother and this directly translates to bigger profits over time.

eLearning Is More Flexible And Convenient

Mobility is a 21st century concept that has revolutionized the modern workforce and this is no more obvious than with eLearning. Now your employees can have access to training material from anywhere in the world – all you need is a laptop and an internet connection and they can participate. This means that employees can undergo training from home or on a remote location – and at a time that works best for their work schedule.

Convenience and flexibility are two factors that employees are looking for when they choose a company these days, and happy employees mean less turnover and more productivity. Plus, employees that are happy with their training options will be more likely to pay attention and retain the information itself, which translates to dramatically improved performance over time. Obviously, your balance sheet will reflect it if your employees are more committed to their performance.

eLearning gives you more and better options for training your employees, hands down. It’s also a surprisingly easy way to increase productivity, improve your sales processes, and invest in the happiness of your team at the same time. If you’re looking for a way to “take things up a notch” at your organization, then an online learning program might be exactly what you’re looking for.

How online learning impacts your bottom line

In a recent survey by Emomulent, employees were asked just one simple question – do you love your job?

The answers revealed that HR professionals enjoy their job substantially more than workers in other industries, with 55% of respondents answering ‘yes’ to the question and placing HR at the very top of the list.

So what makes the Human Resources sector so rewarding? Here are 5 reasons why individuals working in HR are happier in their jobs than other employees.

For HR professionals, each day is a chance to help other staff grow and develop in their careers, which can prove to be a very rewarding experience. The work you do in HR plays a key role in the professional development of other employees – through activities such as performance reviews, exit interviews and professional development programs, HR staff can collate valuable information which can be used to improve staff performance and engagement. 

While other teams may tend to stick more to themselves, HR professionals will work closely with individuals from many different teams across the business, whether it’s IT, Marketing or Finance. With this, HR professionals have the opportunity to not just improve each individual they work with, but the organization as a whole. 

In HR, you need to genuinely care about the wellbeing and professional development of your colleagues, with employee welfare and happiness a matter of professional responsibility. With organizational culture such an important part of any company, HR professionals play a large role in how happy and engaged other staff are.

As a HR professional, you’ll also be championing policies that encourage equality, diversity and the protection of workers’ rights, which can be incredibly rewarding for individuals who value compassion and social justice in their career.

Another attractive aspect of working in HR is the chance to make a direct impact on the organization you work for. As a HR professional, you’ll have the opportunity to make positive change for your company, enabling individuals to reach objectives and company goals.

You’ll have a big picture view of your organization, with a strong understanding of its priorities and challenges. This allows HR professionals to make continuous improvements to company processes and efficiencies. With a direct say in new hires and recruiting talent, you’ll also play a very important role in the future of the company.

HR is different from many other branches of a company in that it doesn’t make direct profits or close sales calls, making it a non-revenue driven environment.

While HR certainly delivers outcomes and adds benefits to organizations, with the happiness of employees having a direct impact on a company’s bottom line, there isn’t the constant pressure to make money or hit production targets. And although all work environments can be stressful, removing that profit-driven stress could be a significant part of the reason why many people who work in HR feel happier in their jobs.

All organizations, no matter what size, need HR staff to manage the recruitment, onboarding and professional development of their employees. And with such extensive knowledge of the organization and working relationships right across the business, it’s quite difficult for companies to dismiss HR staff. 

This makes HR quite a secure career choice, with high job security and strong demand for HR professionals, which could also play a part in overall job satisfaction.

Choosing a career in HR will allow you to work with a broad range of people, personality types, systems and processes, with each workday different from the day before.

You may be working with staff on professional development programs, creating an anti-bullying policy, preparing compliance legislation  or expanding the company into new locations – there are many different facets to Human Resources, just as there are many different facets to human beings.

Being continually challenged and excited in your job keeps the work engaging, which leads to greater fulfilment for employees.

Learn More About a Career in Human Resources

With organizations aware of the need to attract the best people for their workforce, employers are constantly seeking skilled additions to their HR team.

To find out more about whether a career in HR could be rewarding for you, you might like to explore a short online course as an Introduction to Human Resource Management. This 3-5 hour course will give you an overview of various HR tasks, such as recruiting, interviewing, training, appraising, rewarding, and developing employees. 

You can also read more articles about HR policies and professional development on the Go1 blog.

Find out why HR professionals love their jobs

The tech industry is a major driving force in the American economy, accounting for 7.1 percent of overall GDP and 11.6 percent of total private sector payroll.

With more than 6.7 million Americans working in the tech industry, and close to 200,000 tech jobs created in the United States last year, the industry is certainly booming. 

Choosing a career in technology is sure to be exciting, innovative and also very rewarding – particularly financially. Did you know that working in the tech industry can bring you more than double that of the average private sector wage?

So how can you get started in the tech industry, or ensure you stay ahead of the competition? Online courses are a great way to learn the fundamental skills you need to get started in technology, or to expand upon your existing skill set – at your own pace, in your own home.

We’ve found 5 of the best online courses to help you develop some of the most in-demand tech skills, valued by today’s employers. 

If you’re looking at getting started in the IT industry, or have moved into a role that requires you to have a greater understanding of tech solutions, troubleshooting is a good place to start.

As one of the most popular and fundamental tech skills, troubleshooting is required for many customer support and system management roles in the tech industry. Knowing what a tool is, what it looks like, and how to use it properly is critical when systems are not functioning, or down because of some wiring issue.

With the online course Becoming an IT Pro: Network Basics you’ll gain valuable troubleshooting skills, putting you ahead of others just starting in the field.

Coding is an incredibly useful skill to have, even for those working outside of the tech industry, such as in marketing, communication or media roles. Being able to build a website from scratch or enhance an existing site is something that many employers will appreciate!

Through the e-learning course HTML5 & CSS3 Site Design, you’ll learn how to master basic skills in web design, HTML, and CSS, as well as handy tips and tricks to help make sites more attractive and user-friendly.

Many companies are looking for employees who are skilled and proficient in Java, an extremely popular language for web development.

Through e-learning course Java Programming: Principles of Software Design you will learn how to write programs in Java and design programs to solve problems that require solutions. This 4-week online course focuses on showing that programming is more than just coding, involving strategic thinking and design as well.

Proficiency in SQL is one of the highest tech skills in demand, with the knowledge of database management and development valued and sought by many employers.

With the online course Mastering Oracle Database 12c SQL by Example, you’ll learn how to use SQL's best practices to query and manipulate data. Unlike other SQL courses, the course provides a media-rich learning experience, with a virtual class module that plugs you into a class environment where you can learn by example.

If you’re new to SQL, this course will be a fast and effective way for you to learn this language and become a skilled SQL developer. For those already familiar with SQL, the advanced parts of this course will provide you with new implementation approaches to improve your skills, including the newest SQL 12c features.

You might be surprised to see this included in our list, but taking the time to improve your leadership skills is very worthwhile. In fact, in a study of the most frequently desired skills for IT roles, approximately 30 percent of positions listed management as a necessary expertise. Showing strong leadership skills is clearly a highly valued skill for potential staff, regardless of industry.

Get a head start on your next supervisor or team leader role with Leadership Fundamentals – an online course that will help you improve your leadership style, successfully manage change and conflict, inspire your team and better serve the needs of your organization. 

There are many more e-learning resources available on the Go1 platform, including hundreds of courses for free! You can simply enrol and complete training modules online, improving your tech skills at your own convenience.

5 online courses to improve your tech skills

Most of us have come across our fair share of bullies throughout our lives. Whether we see it happening in the school yard, in political campaigns on TV, or experienced it in our own personal relationships, bullying is always a form of abuse – a way of intimidating and dominating others, through physical, emotional or psychological control.

Unfortunately, many of us run into bullying behaviour in our place of work, as adults. Have you ever been made to feel uncomfortable while trying to carry out your everyday work tasks? It’s very hard to keep performing well in your job when a manager or colleague sets out to make life difficult for you.

Workplace bullying can be particularly difficult to deal with, as many bullies tend to know how to operate within social boundaries, often using nonverbal tactics or subtle humiliation to make a targeted individual feel continually excluded, uncomfortable and anxious. In this way, they aren’t seen to be crossing any organisational lines, or throwing any actual punches, while still managing to wear down their victim’s sense of self-worth and resilience. 

In many cases, the person being bullied will eventually resign from their jobs. Sadly, even at this point, there are managers who are aware of what’s happening in their teams yet choose to ignore it, allowing the bully to simply move onto their next target. 

This is why it’s so important for employers to take a strong stance on workplace bullying.

As an employer, it’s important to show your commitment to providing a safe and positive work environment for your employees, through strong anti-bullying and harassment policies.

 If you’ve read our previous article on the importance of having a good bullying and harassment policy, you’ll know that when bullying becomes a problem in the workplace, it doesn’t just affect the person or people being harassed and targeted – it can very quickly become a problem for the whole organisation.

Workplace bullying has significant negative impacts for both individuals and the companies they work for.

In an organisation where bullying is not being managed – or worse, is tolerated – you can expect to see:

high levels of absenteeism and sick leave

For employers, this leads to a loss in reputation and brand name for their business, as well as financial losses from lower profits and the cost of hiring and training new staff. Bullying can also result in significant fines for your company, as in the recent case of an Australian employer.

Employee Awarded $1 Million After Workplace Bullying

This recent case has seen a NSW worker awarded more than $1 million in damages after suffering intense workplace bullying by her bosses.

Lucinda Gunning, of Carroll & O’Dea Lawyers, said her client’s $1 million payout was the largest amount she had witnessed for workplace bullying. The payout is made up of a payment for total and permanent disablement, as well as worker’s compensation.

The former NSW government employee, a middle-level manager herself, experienced constant bullying from two of her managers, to the point where she was “doubled over sobbing” and would sit in the bathroom for six hours without anyone noticing. 

Make Sure You Have an Anti-Bullying Policy in Place 

Want to avoid this situation from occurring in your workplace? Make sure your business has a strong policy in place around bullying and harassment.

As an employer, you’re responsible for preventing bullying in the workplace, and a strong policy in this area will ensure your organisation is compliant and reflecting its legal obligations. While bullies will continue to exist in every workplace, school and social circle, you can make a difference by promoting a safe and positive work environment for the people in your own organisation.

For more advice on how to handle bullying, you may like to look at this free online course – Bullying in the Workplace. It covers useful information about the most common forms of bullying in the workplace and the costs this has for both victims and organisations. You’ll also learn practical strategies for dealing with workplace bullies.

Blog