Employee engagement

#TalentBuzz Episode Recap: An Insightful Conversation with Johannes Midtbö from Populum

In this #TalentBuzz episode, host Samuli Salonen from TalentBee sits down with Johannes Midtbö, founder of the HR tech company Populum, to discuss the company's origins, their approach to talent management, the importance of clarity within organizations, and their recent acquisition by Catalyst One. Johannes shares his experiences and offers actionable insights for companies looking to improve employee retention, recruitment, and engagement.

How Populum Was Founded

• Johannes shares that the idea behind Populum was born from two key experiences:
  • Working with talent and HR data at Swedbank, where he saw the untapped potential of structuring HR data for analytical purposes.
  • His time at Accenture, where he realized the need for organizations to continuously track employee engagement, well-being, and stress levels.
• These insights led him to found Populum in 2015/2016, focusing on large organizations (500-5,000 employees) and helping them measure engagement and employee well-being through data and small, continuous surveys.

Importance of Employee Well-being in Talent Management

• Samuli and Johannes highlight how companies invest significant resources into talent acquisition but often overlook retention and employee well-being.
• Johannes notes that organizations frequently forget about nurturing and developing employees after the initial recruitment phase. The cost of replacing a key employee can range between €50,000 to €100,000.
• Actionable Tip: Focus on retaining employees through continuous engagement and well-being initiatives to avoid high turnover costs.

Populum's Approach to Recruitment and Onboarding

• As a smaller company (now 25 employees), Populum initially did not have a dedicated HR department. Johannes explains that this is typical for companies of their size, and that the first HR representative often shouldn’t be hired until the company has around 20 employees.
• For recruitment, Populum largely handled hiring internally, with managers taking the lead. They occasionally used external agencies for specialized roles and have recently leveraged Catalyst One’s HR team for certain hires, such as customer success roles.
• Johannes emphasizes the importance of seniority in sales, as Populum’s complex product requires senior sales executives to engage with sophisticated clients.
• Actionable Tip: When hiring for complex sales roles, ensure that the candidates are experienced enough to handle high-level discussions with potential customers.

Retention and Recruitment: Lessons Learned

• Johannes shares that most of their recruitment efforts have been successful, with only a few missteps related to hiring too junior employees for roles that required more experience.
• In development roles, Populum has maintained a mix of junior and senior talent, allowing them to foster a diverse range of skills and experiences.
• Johannes discusses the importance of long-term employee retention, especially in roles like sales, where it may take 12 months or more for a salesperson to become profitable.
• Actionable Tip: Consider the long-term cultural and role fit during the hiring process, asking candidates about what would motivate them to stay for several years.

The Importance of Clarity in Employee Engagement

• One of the key metrics Populum tracks is clarity—how clearly employees understand their roles, the company’s vision, and strategy. Johannes explains that clarity is crucial for reducing employee stress and increasing engagement.
• Interestingly, he mentions that when a company scores low on clarity, it’s an opportunity rather than a setback. Lack of clarity is often the easiest problem to fix and can lead to quick improvements in employee engagement.
• Actionable Tip: Regularly assess clarity within your organization. If clarity scores are low, prioritize this area as it can improve overall employee well-being without significant financial investment.

Populum’s Acquisition by Catalyst One

• Johannes explains that the acquisition process was a gradual one, with Populum and Catalyst One developing a strong strategic partnership over two years.
• This partnership included integrating their technologies, sharing customers, and eventually merging operations.
• Throughout the acquisition, Populum maintained open communication with its employees, clearly communicating what was known and unknown to avoid confusion.
• Johannes believes this transparent approach contributed to Populum’s recent record-high Employee Net Promoter Score (ENPS) of 100, a testament to the team's strong morale and motivation.
• Actionable Tip: During periods of significant change, such as an acquisition, be transparent with your employees. Even when you don’t have all the answers, share what you do know to maintain trust and engagement.

Reflections on Founding a Company and Selling It

• When asked if he feels successful, Johannes modestly responds that while he acknowledges the achievement of selling the company, he doesn’t feel “successful” in a personal sense. Rather, he sees it as closing a chapter and is excited about the future with Catalyst One.
• Johannes views the acquisition as a natural progression of their strong relationship and is eager to see where this new chapter leads.
• Actionable Tip: As a founder, success is often about continuous learning and evolving. Celebrate milestones, but always keep an eye on the next step in your journey.

Top 5 Key Learnings from the Episode:

1. Employee well-being is critical for retention – Companies spend heavily on recruitment but can avoid high turnover costs by focusing on engagement and well-being.
2. Seniority matters in complex sales – Ensure your sales team has the experience needed to handle sophisticated client conversations, especially in SaaS.
3. Clarity reduces stress and boosts engagement – Clear communication about roles and company strategy can improve employee well-being without costly initiatives.
4. Retention starts at recruitment – Ask candidates about what will keep them motivated and committed long-term during the hiring process.
5. Transparency during change is key – Open communication, even when you don’t have all the answers, helps maintain trust during times of organizational change.

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