How can startups retain talent?

Startups are businesses that are still in the early stages of development. They must be fostered and given the appropriate resources at the appropriate times to flourish and grow.

With all of the talk about tech and innovation, it may come as a surprise that we mention hiring as a problem. However, we are in a very unusual environment – we are a manufacturing facility.

Our reality doesn’t necessarily match those of someone trying to join the startup ecosystem, and that’s where our problem begins. We’ve learned through our encounters with many founders that this isn’t just a problem for us – it’s a problem that many non-tech, early-stage start-ups experiences.

To solve this problem, we’ve tried a variety of hiring tactics over the years. We don’t yet have a foolproof formula for what works, but we do have some general guidelines that appear to be working.

So, how do you hire for a startup in its early stages?

Painting a bright picture won’t help if the reality is different.

The first step is for us to recognise our situation and be open and honest about it as entrepreneurs. We don’t need to be afraid of the challenges that come with starting a business.

Someone willing to work hard, get their hands filthy, wear numerous hats, and juggle a lot of balls is the appropriate fit for us. In a world where there are a plethora of solutions that are far more convenient, few people want to take this on.

Let us not be ashamed of or weighed down by this reality as entrepreneurs and recruiters. More importantly, let us remember not to construct a rosy picture to lure someone in merely because we need to fill a position or appease an investor. We’ve burned enough fingers to realise that it’s better to hire for the right reasons than to hire for the wrong ones. A lousy hire or an ill-informed hire is usually a much bigger problem than a vacant post.

Having said that, there is a slew of people eager to take on the startup challenge. Employees and close stakeholders, such as investors, vendors and suppliers, and consumers, are the best people to ask for references. These stakeholders not only understand the organisation’s culture, but they can also determine a good fit, thus their recommendations almost always work.

Early-stage companies are extremely dynamic, and their circumstances are continuously shifting. It is quite difficult to precisely identify jobs and responsibilities in such circumstances. It is critical to bring this up in all interactions with potential candidates and to hire only those who are comfortable with this reality.

Candidates who are highly specialised in certain tasks or who have developed their careers with huge, well-established companies find this concept to be extremely scary. Such candidates raise a red flag that must be addressed. It’s safer to wait until you find the next applicant who sees the uncertainty as an opportunity to grow and broaden their skill set.

A bird in the hand is worth two in the bush, and this is especially true for a startup in its early stages. Given the difficulties in attracting and retaining strong personnel, it’s critical to avoid disturbing internal balances and dynamics while hiring for new jobs or applicants.

While most recruiters look for cultural fit, especially small businesses and early-stage startups, it’s critical to have prospective prospects connect with current employees to measure their acceptability. It’s a well-known truth that having internal buy-in aids a new hire’s integration. It aids early-stage startups in a variety of ways.

Talent frequently outgrows an organisation and vice versa. This occurs far more frequently in early-stage businesses than it does in bigger, established businesses.

As a result, in early-stage start-ups, retention and attrition must be regarded differently and contextually, and ongoing efforts to upskill and retrain current staff must be made. This not only ensures that existing talent remains relevant to changing demands, but also helps businesses better manage unexpected exits.

Final Thoughts

Recruiting and retaining outstanding employees is difficult in any industry. As the rules of the game are different at start-ups, thus Beyond Human Resource regards being open to playing the game differently as the best strategy.