COVID Is Having a Profound Impact on U.S. Businesses

Michael Mendenhall: It really is my great pleasure. We have seen such tremendous change in the last 18 months. We've seen companies go through massive amounts of change and innovation and it is happening at just a rapid pace. Some people say we're seven to 10 years ahead in technology as to where we were. We've all leaped. We're all adapting and it's a new way of work. And so it is my pleasure, and I think we're going on 14 years as the president and CEO of TriNet who has led us through this but has also helped lead the 17,000 companies through this; and we're going to talk about the status, sort of the state of the union for where we are with small and medium-sized businesses and where it's going. So please welcome Burton Goldfield.

Burton Goldfield: Hey, Michael. It's so nice to be here.

Michael: Yes, yes.

Burton: Thank you. Look at this amazing crowd out here today. Thank you all for joining us at CES. It's just so wonderful to see the entrepreneurs, all the people and the innovation in this hall of innovation here at CES 2022. I am absolutely thrilled to be here, Michael.

**Michael: **Yeah, it's awesome. We're seeing great innovation and that's really something because we know that through COVID, there's a lot that's happened. Where are we with small to medium size businesses and entrepreneurs? I mean, we hear are they doing well? Are they progressing? Where do you see the state is of small to medium size businesses and where do you think that goes?

Burton: So, Michael, I am happy to report to you and everybody in the room today that small businesses are thriving. Innovation is taking place every day around the world and is changing the way we work and the products that are being delivered to the market. As you said a few minutes ago, it is changing healthcare. It is changing service industries. It is changing the technology industries. And what we are seeing is a new generation of entrepreneurs that are out there with no boundaries and frankly, very little fear. I am so excited.

Michael: And I think you had mentioned something earlier about the type of investment that happened during COVID. A lot of people went remote. People shifted products and services very rapidly saying, "There's a new opportunity. Let's capitalize on it." What did we see in the VC world, the investment world, through COVID?

Burton: So we are seeing multiples of investments that we've never seen in the past. It is up 500% over three years ago in the VC community. Now, let's talk about that for a minute. They are investing because they expect a return. They are investing because the people in this room who are listening to this conference are coming up with great sustainable businesses. And of course, they need the capital to make those businesses thrive. But it's not only about the capital. It is about the people, which is what we at TriNet are passionate about.

Michael: Well, let's talk about that because some people say it's a great resignation. I think we say it is the great redefinition, right? We're seeing that people now are really rapidly trying to acquire talent in certain areas; huge competition. So you have this retention issue and finding new talent with this redefinition of the workplace. Talk to us about that.

Burton: So let's talk about finding talent. First of all, let's clear up a misnomer. It has always been hard to find amazing people to build enduring companies. It was never easy. It's even harder today because the opportunities are there. As we talked about earlier, most industries have redefined themselves. We talked about the music industry. Great music is being created and produced in people's homes. Fifteen years ago you never would've seen that. What that does is give creative license to the people that are actually changing the world. The same thing is happening in the technology industry, in building great software, cleaning the waters, building technology to address cancer and other medical issues, which we will continue to eradicate around the world.

Michael: That's terrific. Now, you mentioned a little bit about remote just with the music industry. So we knew that almost 80% quickly went remote. We're all talking about telepresence, whether it's Microsoft Teams, et cetera, Zoom. And there was a concern that in doing that and knowing that 60% will be hybrid or remain remote, we know that there could be cultural issues. People have now said, "How do we keep the culture if we're going to remain remote?" How do you see the industry addressing that?

Burton: So, there has to be a profound recognition to the creativity and power of each individual within your organization. Whatever your company does, the ability for people to create and innovate and do it both individually and as teams relates to the idea of this collaboration. So the question you ask, there's two, will people remain remote? Of course, they will. It is never going to go back to the way it was. But there's a big advantage. I do not have to hire every person in Silicon Valley. I can get great people in Chicago and Detroit and Des Moines and Birmingham and other places. So the pool of talent is now accelerated and the ability of people to have an impact from where they choose to live their lifestyle, whether it's based on the family or it's based on the environment around them, they can still contribute to a great company.

But then you get to the point that you mentioned, which is around how do you feel part of a team? I believe feeling part of a team is more about being heard than it is being in the same room. It is more about feeling a common mission and vision and reason that you're working for the organization, than having lunch served where they shuck oysters. I think that at the end of the day, you're going to form more enduring companies with more commonality of mission and vision, and an ability to create something much more impactful because it's going to be created by people with poetic license.

Michael: Do you think through the change of behavior with consumers as well as in B2B? So how you go to market? How you sell? Or how you consume? Do you think that will remain more digital or do you think there is a place? Because some of these people are still going to retail, right? Will it be a place for retail?

Burton: Let's start with everything has changed. Absolutely clear in my mind. Whatever industry you're in, things have changed. That's okay. Things have changed since I've been in business over 30 years. Accepting the change, understanding where your market is going and what the products and services that that market needs, is about building enduring companies. No company can stand still and succeed over the long term. So ultimately, get a great group of people, define a market and a need, and build something fantastic for that market.

But at the end of the day, has retail changed? Of course, it's changed. Has music changed? It's changed. Technology... Change is not something to be feared. It's something to be embraced. And the way you embrace it is by getting people with the common ideas and the common vision of what you're trying to do. Once you understand what you're trying to do, the collaboration and the ability to address a very specific market is at your fingertips. Every company that I see that flounders either flounders because they take on too big a market and try to satisfy too many people, or ultimately, they don't get the opportunity and the funding to address the need they want to address.

So there's funding issues; that's absolutely true. And my hope is that everybody in this Innovation Hall gets the funding they need because over the last day, I've seen phenomenal products, and I hope those phenomenal products get to market. And they need the funding to get to market. But the second part of that is, how clear are you in articulating very quickly to the funders who are walking around here exactly who your market is, what your value proposition is, and what is the ultimate financial model that will keep you successful for years and years to come?

Michael: So we're here. We talked a lot about, with some of our customers, technology and technology is in everything. There are people that say every company is a tech company. Do you believe that?

Burton: I believe that almost every company needs to utilize good technology in service of the market they're after. I don't believe the way to define a company is by what technology they use. The way to define a company is by what market they're after. Who is the customer? I've had the pleasure of almost 14 years being the CEO of TriNet and watching us grow from very small to a mid-size company because of our customers. Our company has grown because these small businesses are flourishing, even in the face of COVID. And why is that? Because they have the right mission and vision because they've embraced the right technology. Because they've gotten the right funding and generally because they have leaders and visionaries that are bringing together brilliant people to get the product to market. None of that is easy and it certainly hasn't been easy for TriNet over those 14 years. But I am humbled because we have 3,000 people that I am in awe of every day. And I wake up every morning and say, "Can I help them be successful in service of our mission of TriNet's mission and TriNet's vision?"

Michael: That's awesome. Do you see any industries accelerating more than others, so a life sciences, a technology, financial services, or is it all boats are being lifted at this point?

Burton: There's innovation in every industry today. Personally, I am in awe of what they've done in biotech and in awe of the companies that have come up with the messenger RNA technology so that we can be here today and be relatively safe at CES. I am in awe of the focus and dedication that nine months produced a vaccination that normally takes three years. But is that the only industry that's innovating? Absolutely not. Everything from the home test kits, everything from the new software that's being developed, and the virtual reality that I see here today, the learning systems that are helping people with disabilities to get out into the world and experience things that they've never experienced before... We can go on and on. And frankly, all the fun games that are here and the toys... I love toys and there's a lot of great toys here to see yet.

Michael: How about the video games?

Burton: Well, the video games, absolutely.

**Michael: **A lot of innovation there. So you seem very optimistic going into 2022 for small to medium-sized businesses.

Burton: I am optimistic because I believe in people, and I believe that people rise to challenges, and I believe that the generation of folks that are addressing today's challenges are fearless, smart, determined, and driven in a way that we have never been before. And what I mean by that is, they're not looking for hierarchical structures. They're not looking to be told what to do. They're looking to be part of a vision where they can contribute, and their contribution is important to the company and to them.

So it gets back to the issue of the culture. The Great Resignation is going to turn out to be one of the most important and impactful things that's happened in business in the last 50 years. Why? Because people now choose their companies because those opportunities are out there. Why? Because people choose their lifestyles. There's nothing right or wrong. It's where do you fit in? Where can you contribute? Where can you be self-actualized and ultimately feel really good about your contribution? Everybody wants to contribute. Everybody wants to contribute and to be able to contribute is an important part of being human.

Michael: That is a great way to end this, Burton. We're so pleased that you've spent time here at the exhibit with us. I just wanted to mention one thing. And we're happy because we will all be there as well, if you want to come to our social hour and join us with DJ Greko. We want to thank DJ Greko. He's one of the top DJs in New York City. If you go to some of those exclusive clubs, you'll hear him perform. He will be there performing. And I think that's January 7th, Friday from 4 to 7 p.m. to drop by. We have cards. We look forward to seeing you. And thank you for being here. And thank you, Burton, for being here.

Burton: Thank you, Michael, for setting this up. And for everybody standing here, drive your dreams and make sure that you feel good about what you're doing because there's so many areas in the world that need to be solved. The problems aren't solved. They weren't solved by my generation and they probably won't be by yours. But if we can make the world a little bit better, if we can feel part of a team that is doing good in the world and we can support our families and friends, I don't think there's much more you can ask for. And I have been lucky to spend the last 14 years associating with the most amazing small businesses in the world. So thank you very much for all being here.

Michael: Thank you.