Is it just me or has everyone in Hong Kong gone a little start-up crazy? At almost every meeting, dinner party or drinks session with friends, I hear someone pitch an idea. Or talk about start-up events such as “elevator pitch” competitions, “hackathons”, “innovation days” and start-up boot camps. These are events run by a mix of incubators, university innovation hubs, co-working spaces and private equity firms.
Don’t misunderstand me; I am not complaining. I love the start-up community here in Hong Kong. Earlier this year, I was lucky enough to attend RISE 2017, one of the world’s leading start-up conferences – where thousands of attendees from around the world converged on Hong Kong to share all things “start-up”. After a few days of talking to a diverse range of start-ups, it really hit home the amazing community that has quickly developed here. It also became apparent that while start-ups can be very different from each other, all face similar challenges to succeed.
When launching a business, many challenges often crop up, such as cash flow, hiring, funding, valuations, communicating vision, fostering innovation, retaining talent, scaling and marketing. These have no simple solutions, but from being immersed in the start-up community, we know that if founders and investors were to point to a single critical success factor in their start-up, it would be their people.
Failing to hire and retain the right staff is a business risk. Most start-ups, however, have an almost non-existent “quest for top talent”, with no hiring strategy in place. Often, new hires are brought on board on a whim and the hiring process can consist of nothing more than asking around among friends or posting the job on Facebook, followed by an interview at the local coffee shop. As with any employer, to attract the best talent to a start-up, it is essential to put in place processes and strategies to ensure hiring success.
Firstly, it does not matter how amazing your business idea is if you are not truly passionate about it, and cannot articulate your passion to future employees. The American entrepreneur Gary Vaynerchuk was right when he said, “Skills are cheap. Passion is priceless”.
As a founder or employer, the most important talent attraction strategy is to be able to articulate your vision with a passion. People want to hear your story. They want to join the “journey” of your start-up business. It is often this versus a “nine-to-five” job that has inspired them to want to work for you in the first place.
You also need to relate your vision to the career progression of would-be employees. Yes, they might not be able to transfer departments, as they might at a larger corporate. But as your start-up continues to grow, you can offer career progression through recognition and assignment of more and diverse responsibilities.
Have job descriptions and an idea of salary levels to ensure structured hiring, with employee contract templates as well as an on-boarding process. Take a cue from most start-ups by relying on your own networks, people you meet at events or on referrals.
Advertise online through job boards and social media. Search databases. Or work with professional recruiters – while this incurs cost, it can save time and give you access to talent not available in the public market. They can also provide advice on all aspects of the hiring process.
Include tests for technical aptitude but also consider for cultural fit. For start-ups, cultural fit is incredibly important, not only to gain buy-in from your internal team but also to build a high-performing culture. The bottom line is, you cannot afford to have any passengers.
Skills that employees at start-ups need are not the same as those required at a corporate. A key skill at start-ups is the ability to thrive in a slightly chaotic environment. You also do everything yourself and make decisions in areas you do not know much about.
Potential staff need to have these skills too, and your ability to assess people on such skills will be based on your own experience as a hiring manager. You can also utilise behavioural-based interviewing techniques to assess if they are going to be comfortable in a start-up environment.
Another option is to look for a start-up mentor to help you in the interview or screening process. The great thing about the start-up community is that everyone in it wants to help.
Keep in mind you should never hire someone just because they say they want to work for a start-up. Although the average jobseeker in Hong Kong still prefers working for established businesses, we are seeing a noticeable increase in professionals who are curious about the type of career opportunities and career paths start-ups can offer.
This is great news for start-up businesses. However, just because someone has been hugely successful in a large corporation it does not mean that they are the best fit for your business. So it is important to get the process right and be realistic about the job you are offering and its expectations.
Make quick hiring decisions. Hong Kong is a competitive employment market. The longer you drag the interview process out than is necessary, the more likely it is your preferred candidate will receive another offer.
Finally, once you have completed your quest and have on-boarded your next star employee, the key to retaining talent is to keep your employees highly motivated. Set clear, realistic goals and make sure expectations are constantly aligned. Provide real benefits such as salary, annual leave, and, if you can, medical benefits.
Include performance-based pay such as bonuses, share schemes, or equity where relevant (get help from external professional consultants to draft these). On top of traditional benefits, a high-performing culture, constant team motivation, and an enjoyable work environment will ensure you gain the buy-in you need to build a successful business.
No matter what stage you are at, always remember that the “quest for talent” is never complete. For any employer, I recommend that you always put in place a pipeline for future talent, and ensure you make the time to attend industry events to network. You never know when you might meet your next critical hire.
