We constantly hear common complaints across all companies regarding hiring: “It’s hard to hire people” and “It’s impossible to hire engineers.” Sound familiar?
The Work From Home (WFH) phenomenon, due to covid, has made hiring even more difficult and expensive. Before WFH, labor was largely local, and tech companies didn’t have to compete with the insane salaries of Silicon Valley Big Tech companies. Now, talent can reside anywhere globally, which has caused increased competition and wages. So how do you compete against the Big Tech companies? It’s not as hard as you might think. Here are your six advantages:
Critical Role. Who wants to be a very, very small cog in a massive wheel? Well, some people will want the security of a large, stable company - precisely the kind of people you don’t want for your startup. Don’t try to persuade these non-risk takers; you will not win if you convince them to join your company, where they will fail and churn quickly. Tell the prospect how they can help solve tough problems that nobody else has solved - be specific.
Ownership. Every employee should be an owner of your company. Your goal is to build a great company that delivers tremendous value to your customers. Big and important companies create massive value, especially for early employees that take the most risk. As an owner, you’ll play an essential part in strategic decisions. Compensation isn’t just salary; it also includes equity, and equity is a valuable asset.
Rapid Growth = Greater Opportunity. Most people think of linear career advancement: “I spend two years doing X, and I get a promotion with slightly more responsibility.” You want to find people that crave non-linear careers: “I’m going to crush X and then move on to crushing Y.” I always told prospective employees that they could have my job as CEO if they were better than me.
Entrepreneurship. People most often join startups because they dream of doing a startup of their own one day. The “mafia” from successful startups build their own companies. I promise prospective employees that I, and the investors, will be transparent and educate them on the startup process. For example, when we raised a round of financing, I carefully explained the process and term sheet meanings and how it impacts not only the company but also their ownership.
Creating Value. Companies too often brag about how “we are changing the world,” but that is cliche and false too often. Most of us focus on creating essential products that produce real value (you help customers make or save money). Big Tech is under fire, and I see signs on campuses urging students to boycott working for these companies. No passionate person wants to work for a company when they don’t believe in their products. Find people who share your passion for your market.
Talent Priority. Treat hiring as you would any other top priority and take responsibility for its success. To hire effectively, obsess over and directly take part in the recruitment process since most early employees say yes to joining the founder as they are to the company itself. Early hires often become culture setters and leaders, so you need to get it right. You’ve successfully sold customers and investors on your vision and now sell prospective employees.
Yes, we live in a highly competitive labor market. Let me channel Sun Tzu: Don’t fight on Big Tech’s battlefield of high salaries, cushy jobs, and security because you will lose. Startups have six advantages over Big Tech when hiring - use them.