Launching a startup is a test of endurance. There’s almost never enough time to get everything done. From designing your product to presenting financial reports to investors to planning your marketing strategy, it can feel like a constant juggling act.
In my experience launching startups, having the right staff can be a godsend for your business. You want people who can plug in, persevere in crunch time, and grow with the company as things (hopefully) settle down.
Putting together the right team takes time, but it’s your biggest asset for future success. Once you have them, you want to keep them around. Here are some employee retention strategies that can help you nurture the team you want for the long haul.
Common Challenges for Startup Hiring
Hiring new employees is a challenging process, no matter the industry. Here are some challenges that are unique to startups when it comes to hiring the right team:
Little Brand Recognition
With so many job scams, credibility is an important factor in attracting the right talent. It can be difficult to find desirable candidates who are willing to take a chance on your startup, especially if they can’t be sure it’s a real company or job offer. The application process is also exhausting, so candidates are going to put that effort into established companies that can offer attractive compensation packages, career development, and more.
Limited Resources
The hiring process is long, expensive, and labor-intensive. It can be difficult to manage the other aspects of your startup while you’re focused on reviewing resumes, scheduling interviews, and onboarding new employees. Recruiters can help, but that’s just another expense that you could be using for other mission-critical tasks.
Candidate Fit
Working in a startup isn’t a good fit for everyone. You need adaptable employees who are comfortable working in the sometimes chaotic startup environment and perform duties outside their job roles as needed. This can be a great opportunity for the right candidate to grow their career and start from the ground up — reaping the rewards once the company is established, but not all candidates are comfortable with this level of uncertainty.
The Power of Employee Retention
Startups have a lot at stake. If you don’t have the right team, small setbacks can be a detriment to your business. However, as a startup owner, you’re probably busy managing other aspects of your business and don’t have time to hold hands and nurture your employees.
Your team is an investment, so naturally, you expect some value from them in return. However, your business can’t fulfill its potential if your employees aren’t connected to the company, its goals, and its future. They joined a startup instead of an established company because they want to be part of the experience. If you allow them to stagnate, you may be looking at a revolving door of staff turnover that wastes time and resources — along with harming your reputation as an employer.
High turnover can have a negative impact on your current employees as well. There’s a level of uncertainty that comes from seeing other employees abandon ship and meeting new employees all the time. Morale will drop.
That’s why it’s crucial to be accountable for how you structure your teams and the people you choose to fill those roles, while also working toward a company culture that keeps employees engaged, empowered, and invested.
Effective Strategies for Improving Employee Retention
Want to maximize your employee retention? Here are some strategies that can be effective for keeping your staff invested:
Improve Your Hiring Processes
One of the most important factors in employee retention is hiring the right people at the start. It’s important to attract and select the right candidates when you build your team, making it much more likely that your employees will feel like they’re a good fit from onboarding forward.
Finding the ideal candidates can be easier said than done, however. You need an effective job description that offers transparency into the job role and its duties. Don’t use a standard job description with buzzwords. Outline what the job entails and what candidates you believe to be perfect for it. Candidates are screening potential employers as much as you’re screening them to find the right fit, and misleading or unpleasant hiring processes only waste time and add stress.
Interviews are another opportunity to vet candidates thoroughly. Instead of focusing on their hard skills and experience solely, talk to them about how they feel about startup environments, creative problem-solving they’ve done in the past, and how adaptable they are. Hard skills can be taught, but soft skills are worth their weight in gold.
Offer Competitive Compensation and Benefits
In the battle for top talent, you could be up against massive brands with bottomless resources. It’s important to offer competitive salary and benefits packages that are aligned with modern expectations from top candidates.
Fortunately, as a startup, you have more flexibility to offer perks that employees may not get at other companies. These shouldn’t come at the expense of a strong salary and benefits offer, but stock options, flexible work arrangements, and extra paid leave can go a long way toward attracting the best candidates.
Focus on Company Culture
Starting a company from the ground up gives you a unique opportunity to build the company culture you want from the start. Make it a priority to create a positive, inclusive company culture that empowers employees to learn and experiment.
Compensation is a big part of what keeps employees at their current companies — and a reason they seek employment elsewhere — but it’s not the only one. A high salary doesn’t go as far if they work in a toxic work environment. Create an atmosphere that makes every employee feel like they’re part of something bigger and contributing to a larger goal. Celebrate achievements and give employees opportunities to better themselves. If you invest in them, they’ll invest in you.
Reduce Employee Turnover and Nurture Loyal Employees
Your team is one of your startup’s most valuable assets. You have to protect them. Employee retention should be a top priority from the early stages of your startup onward to establish a motivated, empowered, and loyal team that will be there for you through the trials and tribulations.
Author Bio Below:
Michael Bollinger, a Lexington, Kentucky-based entrepreneur, has left a lasting mark on the tech and software landscape. As the founder of LegFi and File990, Michael launched PayHOA.com in 2018 after Togetherwork acquired his first two ventures.
PayHOA is an affordable community management software for homeowner associations that streamlines payments, communication, and vendor management. Beyond his entrepreneurial pursuits, Michael finds fulfillment as a devoted husband and a loving father to his three children.
