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It's always hard to get started, especially when assembling a team for an early-stage startup. Founders often lack the resources to attract and retain top talent, but a strong team is critical to the success of the product.
From the perspective of the applicant, joining a startup in the early stages could look like this: an unknown company; it could be a great success, but also a flop. The tasks are certainly interesting, but the degree of uncertainty is high, the remuneration is modest and there are no guarantees.
From the founders’ perspective, the situation is no better: There is no big budget, no established HR brand, no market position and the competition with the big players in the industry is challenging.
How can these two realities be brought together? Here are some tips that I have developed and tested through personal experience, so let's dig deeper.
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1. HR isn’t just about compensation – start with your culture
Building a strong company culture is fundamental and should be a priority from day one. You've probably heard the famous phrase “culture eats strategy for breakfast.” Before you create and implement a company strategy, it's essential to know who you are, where you currently are, where you want to go, and the big vision behind your company. Understand your core values and what values you want to share with the world.
Founders need to answer all these questions before they start recruiting and hiring employees. This forms the startup's mission, vision and strategy. From these insights, you can develop an EVP.
2. Identify competencies and behavioral indicators
Next, consider what type of people you want on your team or who will be successful with you. This includes understanding competencies and behavioral indicators.
In a startup, for example, employees must have developed flexibility and adaptability as we work in a rapidly changing environment. We also value openness to new ideas, healthy ambition, a willingness to take risks to innovate and the ability to remain calm and determined in times of uncertainty and pressure.
If these qualities are lacking, it will be challenging for everyone involved and job performance will be compromised. That employee is unlikely to stay with the company for long.
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3. Formulate your EVP and communicate it clearly
Startup-ready people tend to be passionate enthusiasts and risk-takers. They value freedom, space for creativity, a sense of belonging to something significant, and opportunities for career advancement. Make sure you offer these opportunities. If compensation is below market levels, consider offering additional perks like stock options.
On the other hand, you have to understand that startups are not for everyone. A candidate can be an excellent specialist, but he will not be happy if his mindset does not fit the startup culture. No matter how many perks you offer, such as corporate psychologists, fitness trainers, family insurance or interest clubs, if the person values stability and status, he will not join a startup.
It is important for the founder of a startup to talk about the growth and future potential of the product, instill a culture of excitement and development, and highlight the benefits and values it offers to the world. These triggers are effective in attracting like-minded people, and this should be part of your EVP (Employee Value Proposition). Choosing a job is not always about pay. You need to know exactly who you are looking for and understand the needs and expectations of potential candidates to attract the right talent.
4. Start building HR processes
Creating HR processes for an early-stage startup requires a balance of structure and flexibility. Essential tasks like hiring employees and defining roles are set up immediately, while other processes evolve over time as the startup grows.
The most important HR areas include:
- recruitment
- Training and development
- Performance management
- Compensation and bonuses
- Corporate culture and internal communication
- performance evaluation
- Offboarding etc.
Yes, you have to deal with all of this and it will be a challenging journey.
Related topics: How HR professionals can effectively align the needs of employees and the business
5. Consider outsourcing your HR back office
For early-stage startups, the biggest difficulty is determining where, how and when to look for the right talent. The workload is extensive and experience is often limited, especially when there are only 24 hours in a day. In addition, the founder must keep his strategic focus on the product. If you try to handle everything on your own, the chances of developing a successful and scalable business model decrease dramatically.
Consider outsourcing HR back-office processes. A team of specialists can manage all aspects, including recruiting, hiring, culture building, HR branding, and creating retention and development programs.
Outsourcing HR tasks can help you speed up hiring and reduce the cost of acquiring and retaining talent, but most importantly, it allows you to focus on product development and achieve your goals faster.
Building a team is a bottleneck for early-stage startups. This is mainly due to limited resources, high uncertainty and difficulties in attracting and retaining talent. An early-stage startup is not a classic company, so the HR processes for such projects have their own complexity.
Today's top companies were once founded and developed by enthusiasts who believed in the big idea and took risks. Your job is to find such dreamers, innovators and visionaries for your project – those who are willing to share the risks with you and work together towards a big goal. The key to assembling your dream team is to know exactly your mission, goals and values. With this clarity, it will be much easier to find people who share your mindset, worldview and culture.
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