CAPITAL P
While doing my research for this
article, I was amazed! When you type ‘resources for start-ups’ the most common
and top of the line entries focus on financial resourcing, idea resourcing,
design resourcing and so on. So little has been said about ‘people resourcing’.
Getting the right people is half the battle won, for after all, they are the
ones who will take the company forward.
Here are some important things to
keep in mind while hiring for your organization.
Sharing the vision:
In this day and age of LinkedIn,
Facebook, Twitter, Job sites etc. it is easy enough to get applicants to see
and apply for a job at your company. However, irrespective of which level you
are looking to hire for, an important criteria in the process should be to ensure
that the candidate shares your company’s vision and truly believes in your
proposition. The candidate should understand the values on which you have
established your start-up, the path you chose to expand the business and be
able to identify and contribute to these through his or her own skills. Fantastic
growth and hence immediate increase in pay, on-the-job perks etc. are things
that many candidates look for when they join start-ups. While growth in
Start-ups is definitely faster, the expectation of immediate rewards can lead
to disillusionment and disappointment in newly hired candidates. So while
recruiting for your start up, remember to give a balanced picture and focus on
the vision rather than on the compensation.
The Law of Averages:
When recruiting for your start-up
you will find a lot of young talent applying for the positions. While it is
tempting to hire fresh young candidates to keep the enthusiasm and energy
going, it is equally important to have a few seasoned employees on board. Senior
team members tend to bring in a practical angle and are great at handling
relationships given their years of experience. They discern the possible and
the probable and add tremendous value with their insights. The cost of such
resources may be higher but well worth the investment. The ultimate goal is to
have a good mix of young talent that is enthusiastic and buzzing with ideas and
having experienced hands giving direction and shape to the organizations
development. Once the balance is achieved, you have a winning workforce!
Equity- A start-up’s best tool!
What happens when you start a
company with minimal capital and are keen on hiring talent? Today, the trends
are shifting towards offering a part salary and a part equity stake. Many
start-ups are extremely successful in attracting the right talent by offering
compensation through equity- wholly or partly. The advantage of this set up is
that often you will end up attracting those who are genuinely interested in the
company’s business model and want to be part of it. “The people you want to attract to your business are the people who
want equity”- Bill Harris, founder of Paypal (See what else Harris says here). People come on board for the challenges that the start-up
offers and are happy to be compensated for their work through equity. As an
owner, you are also sure that your liability is limited to the performance of
the business and are not taking on the burden of fully salaried employees. The flipside to this though, maybe that your
relinquish decision making to some extent. However, if you can find a perfect
trade-off, this approach may serve you very well in the long run. You can read
up on how to calculate equity here.
Keep looking- even if you are not hiring right away
Almost every guide on hiring for
start-ups has this point. And yet I believe it is not emphasized enough! From
personal experience, I have seen that keeping your mind and doors open can land
you resources you would have missed out on had you believed otherwise. So many
hires happen without it being part of the plan. If you meet a like-minded
person who you think will fit into your business scheme (maybe not today but
sometime in the future), express your desire to have them on board. Even if
they do not consider it immediately, they know that there is an opportunity
open to them to consider. And even if they will never consider it, they may
know others who will form a good fit for your organization. So stay open to
networking, not just for business but also to procure the right talent for your
organization.
People contribute directly to the
organizations performance, and hence getting the right people and offering them
adequate reason to stay will put your company’s growth on the right trajectory!
If you’d like to read up some
more on hiring for your start-up, here are some reference links:
For more interesting perspectives
on People and Talent for start ups and young organisations, join us for
Inception Day on 1st June 2013. Our People Panel promises to be a
great forum for talking about this. To confirm your participation at the event,
click here: http://event.ayojak.com/event/inception-day-2013
About the Author:
Madhumita is a brand marketer known for her exuberance and zeal for getting things done. An MBA grad, Madhu started her marketing career at ITC and has been with IBS since mid-2012. She has contributed immensely to shaping some of our young client brands. She now supports us in her new role as Associate Consultant based in Connecticut, USA. Apart from her passion for brands & marketing, Madhu loves classical Indian dance, travel and writing.
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Connect with her via email at madhumita@inception.net.in
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