Author, Akanksha Sharma
Startups were a taboo some decades ago because stability was key to previous generations. Then a little over a decade ago, startups begin to form within the country, and today we are the third in the world behind the US and China. The startup industry raised about $3.9 Bn from venture capitalists in the first half of 2019 itself. With the tech-savvy millennial generation joining the workforce, it is more evident than ever that the startup industry is here to stay.
According to a recent report by KPMG, it states that there are two reasons for the boom in the industry-consumerism and the digital revolution. With this boom and the growth in the industry, hiring for startups should ideally be a cakewalk. However, the scenario is quite the opposite with startups finding it challenging to hire the right talent, which can be a significant cause of concern and loss. However, a report by Innoven Capital states that hiring statistics are to see a change by witnessing a rise in the number of hires in 2019 as compared to last year.
What then are the challenges that most startups undergo and solutions for the same resulting in a better hire?
Lack of resources. In most cases, startups are short of resources that are not only limited to funds but also manpower. This limitation acts as a challenge for hiring. With a tight budget in hand and with the help of their existing employees, they cannot go beyond their standard methods of hiring and instead have to settle for less. Excellent and qualified candidates, too, ask for a considerable pay that can be difficult to get accepted because of lack of funds. Not having a designated HR person can result in not selecting the right candidate for the company resulting in losses in future.
Low brand value. Startups in their budding stage are yet to make a brand name for themselves. This brand name brings with it value for the company and recognition amongst the masses or the target audience. This also attracts the right kind of talent to the company. This is one of the critical challenges that are faced by startups since it proves to be a roadblock to getting the best talent. A brand with no recognition builds suspicion in the minds of the candidates, making them wary of applying there. Most candidates want to apply at risk-free places since startups tend to fail.
Lack of time. As a startup, the owner may have multiple tasks on their to-do lists every day, leaving little to no room for checking out hiring prospects. Without adding this as a task to their existing list, they are already running out of time to finish the tasks. If a candidate is hired in a rush without paying much attention to the skills and passion they bring to the table, it can eventually create a bigger mess for the future. Allocating time to the process of hiring will only prove beneficial in the long run.
Solutions for a good hire
HR Tech Tools. Every startup founder has a plate full of tasks demanding his attention. The lists never seem to end, and the tasks only keep adding to it. In such a case, what you can do is look out for Hiring tech tools that are cost-effective. There are a few tech tools that are powered by AI, Automation that can reduce the time to hire. But look out for those that are fully equipped, user friendly & end to end recruitment management system. Like they should have huge database to choose from, AI based screening , automation powered candidates reachout, interview scheduler enabled by automation, candidate engagement with customised content after offering the offer letter till onboarding, and also provide real-time reporting and analytics. There are companies and recruitment management systems that help bring the best talent pool to you without the stress of going through the drill of hiring yourself.
Hire for attitude & aptitude! As the business dynamics in startups are extremely dynamic and demanding, getting the talent having the right mindset and right fit for the Job becomes imperative. But how do you know whether the candidate has the right mindset? Here come HR tech platforms again to rescue. An AI powered recruiting solution and a platform that can provide the analysis of mindset of the candidate and the MindMatch to identify his/her fitment to the job, to the team and to the organisation. Such a platform gives the holistic match of the candidate to the job with aptitude and attitude match.
Creating a presence. As a startup, the name of which is unknown to many takes time to build its reputation. But meanwhile, you can develop your presence online. Unlike the earlier times, you don’t need to only rely on word of mouth recommendations or low budget marketing tactics. Create a website and link it to your LinkedIn profile since candidates now want to see what you are offering before they apply to your company. This will help attract like-minded individuals to your company. Alongside this, be sure to build your brand on LinkedIn since you are the face of the business.
As a startup, for the initial few years, the owner and the ones involved in this business will have a lot of tasks and goals to achieve to breakeven and to create a brand name for themselves. In such a scenario it is always better to delegate your hiring tasks to a professional agency or sign up with companies providing recruiting solutions to procure the best talent in the industry for your company. 9 out of 10 startups fail as soon as they begin with the business. In a report by CBS Insights, it is said that a bad hire can cost you at least 7% of the loss apart from a million other reasons that cause the startup to fail.