What’s a start-up? And why are they kicking corporate butt by acquiring top talent?
Depending on who you ask, a start-up is anything from a fledgling new business venture to a company with an independent business model. But really, start-ups are sustainable, scaleable new companies.
They are usually founded by someone who really wants to challenge the traditional thinking of business, talent management, workplace norms, red tape, rigidness, slow administrative processes…oh you get it right? They also use creative ways to fund their companies, like Kickstarter or crowdsourcing (crowdfunding) activities. Usually, they are developed by brilliant young people who would prefer to gain valuable experience immediately than waiting around.
Did you know that start-up companies are kicking the butts of my major corporations when it comes to winning the war for talent?
Fact: More and more new talent/employees (and by new I mean, straight outta college – bright young stars), would rather forgo cash, and join a start-up then an old school giant corporate clog.
Why do you think that is? Don’t be dismissive and say “stupidity” because that’s not it at all.
Another Fact: Working for a start-up is more exciting, you get to do more, you gain valuable experience, you get to fail which results in learning and when there is success, it’s sweeter because it’s more personal. (all that experience looks amazing on your resume).
If you work for a Top Fortune company odds are you are not going to implement any of your own ideas. You’re going to be pushing the agenda of someone else with little input.
It’s harder to get anything done for various reasons, LIKE…no one listens until something bad happens, like when turnover is too high, stock prices fall, earnings dip or the competition takes a big ole bite of profits or a fat lawsuit – then it’s all hands on deck meetings to see what’s gone wrong. (Amirite?)
If you’ve read any of my other writings on PIC, you may have noticed that I talk about the talent gap being a myth and the truth is there is a “Great Company Gap”. There are not enough great companies to work for. The emergence of the start-up is proof of that. Since the great companies are rare, people are starting their own.
One of my other gigs is resume writing, and I’ve worked with a few people who are extremely experienced and skilled and they prefer to work for Start-ups versus major corporations. “Too stuffy” they claim, “Can’t get anything done.”
Start-ups are also more attractive to financial backers. Here’s an article about a 10 month old start-up company that purchased a 93 year old company. So after nearly 100 years of hard work, a start-up generates enough money in less than a year to buy you out??? That’s like a kid buying their parents house and then putting them out.
I guess it’s not too surprising though. We all want to do things that matter. We want to feel like our time and energy means something. In small companies and start-ups you get more opportunities to do just that. You don’t have to fight to contribute, start-up owners want to empower and encourage their employees to submit ideas and – and, THEY actually use those ideas!
So if you are losing your top performers and can’t seem to find replacements, maybe it’s because you are style is outdated. You should consider operating more a like a start-up.
And here’s how to get started.
- Analyze your organization. Are you too old school (traditional)? Are you losing out on top candidates? Do you need to change? Are you the champion for THIS kind of change?
- Perform a job analysis across the board. Are you working efficiently? Do you have the best technology and equipment? Do you have the right people doing the right jobs?
- Is your brand message and culture carried throughout the company and to your customer base? Is your brand message incorporated into your recruitment process? How about the onboarding?
- Think about the future. Are focused on your customer needs today AND tomorrow? Are you optimized for mobile and ready for increase ecommerce business? Are you diversifying your product creation and delivery operations?
You know your business better than anyone HOWEVER sometimes you can be too close to it be objective. Times are changing and you have to change with them.
I’ve been thinking about this for a while now. Check out this discussion in the eSkill HR LinkedIn Group page.