Navigating Employee Engagement Beyond Happy Hours: Insights with Melanie Naranjo
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Chapter 1: Understanding Employee Engagement
The phrase "culture and employee engagement" often gets misinterpreted as merely organizing "Happy Hours" or "Pizza Parties." However, it's much deeper than that. In a discussion with Melanie Naranjo, the Head of People at Ethena, a SaaS startup specializing in compliance training, we explored the true essence of engagement in the workplace.
On August 21, 2021, an email from one of Ethena's founders set the stage for my conversation with Melanie. At that time, she was contemplating joining the startup as VP of People, even though she was comfortably employed at a larger firm and seeking new challenges. As a long-time investor in Ethena, I provided her with insight into the company's trajectory. Thankfully, she made the leap, and both her role and the organization have expanded significantly since then. Here are some insights from my conversation with Melanie.
"You both have context for this introduction, so I'll let you two take it from here! I know you'll really enjoy chatting."
Section 1.1: The Decision to Join Ethena
Hunter Walk: One of my favorite activities is connecting founders with potential new hires, which I had the privilege of doing with you in August 2021. What final considerations did you have before joining Ethena, and how soon did you feel your choice was validated?
Melanie Naranjo: Two key factors excite me about a new position: First, I want to ensure I'm part of a team where everyone shares a genuine passion for driving success. Second, I need to feel that the value of the People function is recognized and appreciated.
When Ethena first reached out, my excitement stemmed from their focus on HR tech. Working for a company dedicated to empowering HR professionals felt refreshing, especially given that many organizations still view People functions as secondary at best, or a burden at worst.
At Ethena, which aims to foster more inclusive and ethical workplaces, I felt optimistic about the potential impact of my role. My main concern was ensuring I joined a company that valued the People function as much as I did, where my contributions would be recognized, and where leadership was genuinely invested in people strategies. I can confidently say that this became evident almost immediately after I joined.
The leadership team had already developed a list of initiatives to support, engaged me with thoughtful questions, and demonstrated their commitment to effective People strategies. They had established a robust infrastructure, including executive coaching, company-wide learning sessions, and regular feedback opportunities, which are often hard to come by in many organizations.
Section 1.2: Maintaining Culture During Market Challenges
HW: Your role as VP of People encompasses various responsibilities, some more externally focused than traditionally expected. However, I want to discuss how you maintain internal culture and engagement during challenging economic times. Many believe that during downturns, focusing on culture and engagement is a luxury rather than a necessity. How do you navigate these changes?
MN: A common mistake during tough times is to shield employees from harsh realities. There's a prevalent fear that they won't handle difficult news well, leading to panic or resignation. However, I believe employees are more capable than we often give them credit for. When treated as adults and communicated with honesty and clarity, they usually understand the situation.
Take pay transparency as an example. Many employers feared that introducing transparency would deter candidates. However, with recent regulations mandating it in several states, we've seen that candidates simply desire enough information to feel assured about their compensation.
Returning to your question, the same principle applies during tough times. If you try to shield employees from the truth—through toxic positivity or ignoring pressing issues—they'll trust you less over time. Conversely, being transparent fosters trust and empowers employees to engage with solutions.
And let's emphasize: "Culture and employee engagement" isn't synonymous with "Happy Hours" and "Pizza Parties." While these events can enhance workplace culture, true engagement means fostering an environment where employees are excited to contribute to the company's success.
Chapter 2: Hiring for Growth
HW: I'm often surprised when candidates focus on industry rather than the company's stage. How do you assess whether a candidate is appropriate for Ethena's current stage?
MN: This is an essential yet often overlooked aspect. Fast-growing startups evolve rapidly, meaning you shouldn't just hire for immediate needs but also for future growth within the role.
At Ethena, we evaluate candidates for skills and qualities that will help them adapt and grow alongside the company. We seek individuals who are flexible, eager to tackle unexpected challenges, and willing to collaborate closely with the team.
Transparency about our current structure and the day-to-day realities of the job—including challenges—is vital. Too many companies highlight only the appealing aspects of a role, risking mismatches down the line. An impressive resume doesn't guarantee a fit for a startup environment, especially if the candidate is used to a more corporate setting where they had extensive support.
HW: Ethena's modern compliance training stands out from traditional models. How do you adapt to changing norms in topics like harassment prevention, especially in remote/hybrid work environments?
MN: This topic excites me, as our customers are incredibly engaged. When people think of harassment prevention training, they often imagine disengaged learners. However, Ethena’s approach has transformed that perception.
Our training boasts a remarkable 93% positivity rating from nearly 1 million participants. Employees actively provide feedback about the modules, helping us continuously enhance our content. This engagement is crucial for our ongoing success, as it allows us to adapt our training to the evolving landscape of workplace norms, laws, and cultural expectations.
We've even expanded into new compliance areas, such as Anonymous Reporting and Case Management, directly influenced by customer feedback.
HW: Any advice from mentors that you'd like to pass on?
MN: Embrace experimentation over perfection. Take calculated risks and try new things. This mindset not only accelerates learning but also makes work feel like an exciting adventure.
Thank you, Melanie, for sharing your insights! Follow her for updates on free online trainings and discussions on leadership, culture, and more.