The challenges in recruiting top tech talent for Startups and SMEs

Starting a business requires big expenses in terms of infrastructure, machines and equipment and procurement of the basic business essentials. The huge outflow of the money increases pressure to start operation as early as possible. This pressure of starting the business consequently, to recover the early expenses, startups make rush decisions in recruiting the employees. They avoid long-term losses over short-term recoveries and that puts the organisation in jeopardy.

In most startup, they do not have enough funds to invest in an Human Resources department. As such the company will not possess adequate hiring experience. Hence the lack of experience in a particular startup result in the hiring of people mainly on a reference basis. Such quick decisions do not allow them to test and assess the skills of the candidates. With time, problems arise and this can affect the day-to-day running of the startup.

Another challenge that startups encounter while recruiting top tech talent is that tech professionals know they are in high demand and therefore they tend to ask for competitive salary and selecting the right role for them. Therefore, since the startup will be in its early stages of operations, they might not possess the adequate funds to recruit the top tech talent. Also in the absence of an HR team with strong negotiating skills, people with the right skills are kept away while recruiting candidates with low skill set.

Sometimes, there is shortage of local tech talent which means the startup has to expand their geographical search. This brings opportunities to find top tech talent not just regionally but also regionally. However, remote working also has its own setback and this could be challenge when recruiting top tech talent.

During the recruitment stage, the startup may face challenges such as inefficient assessment tools in order to come up with the top tech talent. Also, if the startup is not clear about its targets on the monthly, quarterly and yearly basis, it cannot set rational targets to employees. These targets help assess the performance of employees to give accurate results. Therefore poor assessment tools not only affect the recruitment of top tech talent  but also affect the growth of the startup.

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