5 Challenges startups face in hiring

Startups go through unique growth trajectory. While they struggle to grab a decent market share they see growth quickly. A generous funding or a successful product launch gives them the required push to scale teams and resources. 

While hiring is a global problem for businesses of all sizes. Startups see a few different challenges in comparison to established business. Here are five challenges that startups go through:

Lack of local talent

Most startups start small, and when they raise investment rounds, they move to more connected technology hubs. Startups based in technology hubs see a good number of applications; however, when your startup is outside the technology hub, you usually face a shortage of individuals applying for the job. While local in-office employees might be your first choice, you can try hiring remote employees.  

Hiring remote employees open up the world for you. 

Less money to offer

Startups seek top talent to grow their company. But unlike established businesses, they are unable to provide large paychecks and thus lure the candidates with perks like free lunches. 

Flexible working works, remote working are unique perks that they can offer. Focusing more on getting the job done and letting them chose their terms will help you hire millennials. You always have an option to offer equity for exceptional teammates and give them a stronger reason to stay.

Poor cultural fit

Startups sometimes focus on skillset and bring people who do not match the culture, work ethic, behaviour and core values of the organization. Startups find it difficult to absorb such individuals and feel stuck dealing with them later. 

It would help if you spent enough time interviewing a candidate before you commit an offer. Having a good culture fit is a must for startups. Individuals with a good culture fit should always be preferred regardless of the skill. Individuals who are in sync with values and are motivated to work end up learning and upskilling over time.

Lack of hiring experience

Many startup founders are first-time founders and have no or little experience with hiring. They spend a lot of time with the applications of unqualified individuals, and when they find a qualified one, they lack the expertise to decide on the potential of the candidate.  

Short on time

While an established business can leave some positions open for months, startups hustling to get off the ground does not have that luxury. When getting work done is the focus you can experiment with outsourcing the job until you find the right in-house talent. You can also keep automated test for different roles to save time and rapidly evaluate candidates and make quick decisions.

Lack of HR Department

Startup founders are high on energy and have a multitude of tasks to complete day-by-day. They hustle with multiple roles and rarely approach dedicated hiring. Spending time writing the job description and what is expected in the role brings a lot of clarity. Adding humour and personality is secondary; you should focus on clearly and succinctly explaining job details. Getting an HR staffing agency can be of help here.

It takes time and energy to find perfect hires. Be patient and build processes to look out for right-fit individuals through employee referrals, social media and keep experimenting with above tips. Happy hiring!