06 June, 2022

How To Hire Employees for A Startup Company

by Adam
How To Hire Employees for A Startup Company

Startup hiring is a demanding process. 

On one hand the HR team needs to focus on finding the right talent and on the other, a strict need to watch budgets needs to be emphasized. 

By having just the right hiring plan it would be possible to take on employees that could grow with the startup as it upscales itself. The foundations of how people are hired as the company grows is determined by the initial steps that are taken when the business is in the startup mode. 

Points That Need to Be Stressed While Making a Hiring Plan

Over time some of the most established businesses have worked out hiring plans on how to hire employees for startup environments. Often the larger corporations have managed to reach the size that they have attained after having passed the startup stage and thus are in a good position to lay out the ground rules for the same. 

1. Hiring Just Right

It is important for a startup company to hire just right. People that are onboarded while in the early stages of a company would go on to take on much heightened responsibilities as the firm grows. Having just a narrow view of the hiring process would thus simply not do. 

Another factor that needs to be stressed is the need to impress potential venture capitalists. This is to ensure that the team gets to be funded just right and at the right time as well. Often a factor that plays an important role in valuation of a startup is the quality of manpower that it possesses. 

2. Budgeting For Difficult Times

A startup company or venture would be always hard pressed for capital. This would mean that the budget for personnel is limited when compared to a company that has a steady cash inflow. 

So, the hiring team must not spend most part of the budget on someone really good and not achieve a balance in the human resources. 

The term ‘hiring for hard times’ has another meaning. That is, it is not always the case that startup ventures get to break even and generate a surplus cash flow right from day one. 

Most companies go through years of pain and toil before they get to see a surplus being generated. Thus, it is important when hiring people for the startup that they would stick with the company through trying times as well. 

Another aspect of budgeting for a startup company is that the money spent on acquiring talented personnel must not be exhausted so that regular operations of the venture are affected. 

3. Offering Competitive Enumeration

A handful of elements must be kept in mind when setting the hiring plan. 

1. The first lot of employees are going to drive the growth at the company. 

2. Some new joiners would often be intimidated by the volatility of a startup venture.  

3. Initially executives need to take on a larger role and responsibilities than what they are paid to do. 

4. There must be some manner of incentivizing loyalty to the company so as to keep the employees on the roles. 

The HR departments should aim at finding a middle ground when it comes to remuneration. Often it would not be possible for the startup venture to outbid larger organizations when it comes to compensation paid out. At the same time, it must be understood that unless a competitive salary is offered at the venture, it would not attract good workers either. 

4. Allaying the Fears of Employees of a Startup Venture

As is often the case, most workers are intimidated by the volatility that startup ventures undergo. They would often need to be compensated more but sadly; the company would not be in a position to offer higher pay. 

A successful hiring policy would make it a point to stress that the startup company would be a good paymaster along with its growth. 

One of the ways a business can win over employees is to pitch the venture to the potential workers. This would help build confidence in the venture as well as ensure that people that do join do it for a long-term benefit. Having to search for a new worker soon after another has taken his position is not something that most HR managers would want to do. 

5. Creating A Hiring Infrastructure

Systems must be in place at a place of work to function without a break. This applies to the hiring of employees as well. Without just the right hiring infrastructure, it is possible that the company would find attracting good talent hard to do and more often the right candidate would slip out of the hands of the HR. 

It is important for a startup firm to hire as per the current requirements. Projecting human resources needs into the future would only complicate and bring on a long-drawn-out process. At the same time, it is important to offer a competitive salary to the joiners. 

Most of the successful startup ventures have taken to a referral system to bring in the desired candidates. This ensures loyalty of the employee as well as assures the company of a loyal workforce as it scales up. 

6. The Role of Hiring Software

Often one of the most disregarded aspects of hiring for startup ventures is the role that a hiring software plays in the scheme of things. With just the right type of software it would be possible to better integrate the hiring action across platforms and this includes social media as well. 

Thus, there can never be stressing enough to invest in a good hiring software so as to smoothen the whole process of hiring for the startup company. 


As has been discussed in the above, hiring for startup ventures is not an easy thing to do. It requires a certain tenaciousness to carry forward the hiring process. Often there are budget concerns that prevent the team from getting hold of just the right candidate. But the success of any long-term venture depends on the quality of manpower that is onboarded at the startup stage of the company. 

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