Ep179 – Ben Thompson (Co-founder & CEO – Employment Hero) on growth, PMF & principles
Apr 18, 2024
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Ben Thompson, Co-founder & CEO of Employment Hero, shares insights on building a $2B business, a public dispute with HostPlus, and navigating funding challenges. Discussions cover professional background, founding Employment Hero, international expansion during COVID-19, and ethical advertising in the superannuation industry.
During COVID, Employment Hero focused on enhancing its platform with tools to assist users, leading to unexpected success.
Accelerating international expansion without physical travel allowed the company to learn valuable lessons and achieve product-market fit ahead of competitors.
Sending a senior team member or co-founder to lead international expansion efforts is crucial for gaining insights into local market dynamics and increasing chances of success.
Deep dives
Expanding Platform Features During COVID
When faced with uncertainty during COVID, the company prioritized helping others by enhancing its platform with features to assist users in navigating the crisis. By focusing on developing tools to claim government funding, report remotely, and engage teams virtually, the team worked together to support users through challenging times, leading to exceeding their targets and achieving unexpected success.
International Expansion Strategy During Travel Restrictions
Due to travel restrictions during COVID, the company decided to accelerate its international expansion without physical travel. By remotely recruiting teams and launching in the UK, Singapore, Malaysia, and New Zealand, the company took proactive steps to enter new markets and establish a presence without the need for physical presence. This bold move allowed them to learn valuable lessons and achieve product-market fit in multiple regions ahead of their competitors.
Advice for International Expansion
Reflecting on the experience of expanding internationally, the podcast guest emphasized the importance of sending a senior team member or co-founder to lead the expansion efforts. By having a dedicated and knowledgeable representative on the ground, companies can gain invaluable insights into the local market dynamics, culture, and customer preferences, facilitating a smoother entry and increasing the chances of success.
Challenges of Achieving Product Market Fit in Multiple Countries
Adapting Employment Hero's product to different international markets requires understanding unique local employment customs. While principles of employment are universal, details like leave management, pension systems, and naming conventions vary across countries. Achieving product market fit involves customizing the product to suit each market's specific needs, overcoming the 'uncanny valley' in user experience to make the platform feel local.
Strategic Evolution and Growth in Employment Hero's Journey
Employment Hero's CEO emphasizes the importance of strategic planning and hiring key personnel at various growth stages. The company's master plans have guided its scaling strategies and response to challenges like COVID-19. Key hires like the CFO and CRO have played critical roles in driving growth and ensuring alignment with the company's overarching goals.
My guest for Ep179 of The Startup Playbook Podcast was Ben Thompson, the Co-founder & CEO of Employment Hero. Employment hero is one of Australia’s great startup success stories. The business launched in November 2014 and fast forward almost a decade later, they have 2.5M users and 300,000 SME customers globally and in 2023 they […]