Founder vs. CEO: 3 Small Business HR Scenarios Where Your Approach Should Change

In Episode 10 of The HR Connection Podcast, we explored a critical nuance in small employer HR: how to approach your CEO differently depending on whether they’re the founder of the business or a hired leader.

Why does this matter? These two types of CEOs often have wildly different motivations, priorities, and perspectives. And if you don’t adapt your message, even great HR ideas can fall flat.

We already talked about HR tech and all-hands meetings in the episode, but let’s explore 3 more real-world scenarios where tailoring your approach can make all the difference.

Remember, founders are likely to come from an emotional state, looking at the business as one of their children.

Hired CEO’s, those that come in after the founder has exited or taken a different role, are more likely to come from a metric driven/ROI state. In each of the scenarios below, I have bolded the words that speak to their state.  If you want the full context of this difference, catch the podcast episode. 

Scenario 1: Proposing a Formal Performance Review Process

Founder CEO Approach: “Your team loves how approachable and connected you are as a leader. To keep that spirit alive as we grow, I’d like to introduce a lightweight performance conversation process. It’s not about bureaucracy—it’s about giving employees more of the feedback they already value from you, even as you get busier.”

Hired CEO Approach: “High-performing teams need clear goals and regular feedback. A formal review process will help us identify top talent, address issues proactively, and improve retention—especially as we grow. It’s also a best practice for reducing compliance risk and aligning individual performance with business objectives.”

Scenario 2: Advocating for Mental Health Support or Wellness Benefits

Founder CEO Approach: “This company has always been about more than work—you’ve built a place where people feel cared for. Offering even a small mental health benefit reinforces that value. It’s a natural extension of the culture you’ve created and shows employees we’re serious about supporting them as whole people.”

Hired CEO Approach: “Stress and burnout are major factors in turnover. A mental health benefit or wellness program is a relatively low-cost way to improve productivity, reduce absenteeism, and strengthen our employer brand in a competitive hiring market.”

Scenario 3: Suggesting a Leadership Development Program for Managers

Founder CEO Approach: “You’ve personally mentored so many of our leaders to get us where we are today. As we continue growing, a structured leadership development program could help them carry forward your vision and approach, ensuring consistency and protecting the culture you’ve built.”

Hired CEO Approach: “Our managers are a key driver of engagement and retention. Studies show organizations with strong middle management outperform competitors. Investing in leadership training now will help us scale without losing efficiency and will prepare us for future growth.”

As Sabrina talks about in the episode, the same HR initiative can sound completely different depending on who you’re speaking to.

• With Founders, lead with values, culture, and legacy.

• With Hired CEOs, lead with data, ROI, and alignment to business goals.

This isn’t manipulation—it’s strategy. Knowing your audience is a core leadership skill, and for someone managing HR in a small environment, it can be one of your most powerful tools.