I am convinced that nothing we do is more important than hiring and developing people. At the end of the day you bet on people, not on strategies.
~ Lawrence Bossidy (Former COO of GE and author)
I wish I could’ve mailed the above quote in 70 font size, Arial Bold Face to all the Digital Marketing companies ( especially Agencies & Publishers ). Needless to say that building your startup hiring strategy is a never ending Everest climb for all organisations ( digital or non digital ).
Though bigger digital brands find it slightly easy to attract the right talent, retaining the talent becomes a bigger pain for them as well.
Ask any HR specialist or recruiter, they would say the trend is nothing different from other industries. People are looking to match the pace of their career growth with the rising costs. An average salary increase of 12% is completely disconnected with rising inflationary conditions. This will build a spiral effect, people who are not satisfied with their financial conditions will always be the first ones to look out for better jobs & opportunities.
In an interview (watch the video) given by Mark Zuckerberg, he made a profound statement, I quote:
The best people I’ve hired in my life were those who didn’t have much of engineering experience ~ Mark Zuckerberg
Startup Hiring Strategy isn’t just about hiring the best people with skills or for that matter who are stable in their careers, it is also about getting those who have a strong & relevant point of view about what you believe in, even if they do not have the experience or qualification from reputed engineering colleges.
I also believe, that in every industry, people have their own set of challenges due to which they show unstable tendency at work places. Of course, there will always be few individuals who do not fall in line despite a lot of effort by the management, but in general, people hate updating their resumes every year.
Also Read : Why Job Hopping is no longer a stigma globally?
As a business owner ( especially a start up owner ), attrition is something I should always keep at the back of my mind as one of the challenges which could hamper my growth story. Often start ups do not factor attrition while giving projections to their investors, which I believe is a massive error. The sooner they’ll accept the lack of permanence in the employee-employer relationship, the better it will be for their future enterprise. Once the degree of attrition is understood & acknowledged in any industry, you can then plan your resources a lot better.
The question is, as a business owner, how can you deal with this kind of situation?
First, make hiring a continuous process and not just restricted till the desired roles are filled. Managers should always be on a lookout for quality resources with value added skills for the team. For instance, do not hire resources of same nature & type, hire people with differentiated skill sets which will add value in long term. People love to be in a team where they can learn from each other. Collaborative learning is possible when you have people with different skill-sets.
Long term hiring
Second, do not hire people for solving your short term problems. For instance, if your key Account Manager decides to leave, it is bound to hit your operations & would also create uncertainty at client’s end, but your new hiring should not be to fill the immediate gap, instead it should attract people who are looking for a challenge in their careers to put their skill to test. Employees who join start ups from big companies usually carry a lot of baggage of their esteemed employer. At times it can be fatal for team dynamics.
Performance linked remuneration
Third, hiring people on performance linked remuneration, incentives & contracts could be another option. If you build your digital company’s team dynamics this way, employees would be exactly aware of what they are chasing, what team is chasing & how they can work towards it in a logical yet innovative way, Managers KRA would be to maximise potential of each individual who is working as a part of this contract.The best part, build substantial amount of incentives ( both monetary & non monetary ) which would drive morale among the senior & junior level employees.
The last point needs an Industry buy-in, but we are witnessing this trend already in few small to mid size digital-IT & digital-Infra companies where other than the sales force, revenue support functions like account management/ client servicing & customer support have been connected to measurable performance linked metrics.
The contracts are time bound but readily renewable subject to agreement by both parties (employee & employer). It offers a very flexible working relationship to individuals where everything remains constant except that employees are free to move out after the contract period is over.
One of the main challenges any digital startup company will face is poaching from upcoming start ups. Actually the poor demand-supply ratio of quality resources has made it absolutely imperative for any company to desperately hold on to their trained resources.
Today recruiters are under severe pressures to find quality talent for their clients. No start up has any time to waste on training semi skilled employees. They have a running train of profitability & projections to catch up without which they would not get their next round of funding from the investor.
So think of it, time bound, performance linked contracts isn’t a bad option in digital business, it may also prove to be a win-win for the individual & start up clients & agencies in the long term.