Written by Cindy Gamal.
As a founder, one of the most important questions you’ll face is how to attract and motivate the critical early employees who will help build your company. It’s a challenge that every startup faces, and there are countless articles and advice columns out there that will tell you what to do. But what really motivates employees to join a startup and stick with it for the long haul?
I’ve been fortunate enough to work with some incredible startups and watch them grow from just a few people in a cramped office to thriving, successful businesses. Along the way, I’ve seen firsthand what works in attracting and retaining the best talent. Here are some of the key factors:
1. Autonomy and Empowerment
One of the biggest draws for early employees at a startup is the chance to make a real impact. They want to feel like they have a say in the company’s direction and that their work is meaningful. Giving employees autonomy and empowering them to make decisions is a great way to keep them engaged and motivated.
Hot tip: Keep all your team members engaged in discussions of your company strategy and goals and how their work helps move the needle forward.
2. Recognition and Rewards
Everyone wants to feel appreciated and valued for their contributions. Building a startup can be a grueling and arduous process and waiting for your win might feel exhausting for your employees. It’s critical that you celebrate small milestones along the way. While resources can be tight and salaries may not be as high as in larger companies, recognition, and rewards can go a long way. This doesn’t have to always be in the form of bonuses or stock options (although those certainly help!). Even a simple thank you or public recognition for a job well done can be incredibly motivating.
Hot tip: Personalize your thank you by emphasizing the impact of the specific work they’ve done. Double points if you highlighted a skill that they’re proud of and you appreciate them.
3. Flexibility in Work Arrangements
The pandemic has shown us that remote work is not only possible but can be highly effective. For many employees, the ability to work from home or have flexible hours is a huge perk. It allows them to balance their work and personal lives and can lead to increased productivity and job satisfaction.
Hot tip: Have a meeting where you’re all outside or in the sun. Nothing boosts everyone’s energy levels like some Vitamin D!
4. Learning and Development
Early startup employees often take on multiple roles and learn new skills on the fly. Providing opportunities for formal training and development, such as classes or mentorship programs, can help employees feel you are invested in their growth and development. It also shows that the company is committed to helping them succeed.
Hot tip: Join tech events with your team to learn how other startups are solving similar problems. Find local events such as StartupFest, TechTO, Startup Grind, and more.
5. Upside Potential from Equity Ownership
Equity ownership can be a powerful motivator for early employees at a startup. It gives them a stake in the company’s success and the potential for a significant financial reward down the line. Even if salaries are lower than at larger companies, granting meaningful equity can be a huge draw for top talent.
Hot tip: Equity ownership may be the starting point, but the real deal is empowering your team to step up, take charge of their roles, and rock it like true owners.
But how do you ensure that these cultural values are maintained as your company grows? It starts with setting the tone from the top. Founders and leaders need to model the behavior they want to see in their employees. They need to communicate the company’s values and make sure that everyone understands the importance of autonomy, recognition, flexibility, learning, and equity ownership. They also need to create systems and processes that support these values, such as regular check-ins and performance reviews that allow for open and honest feedback.
At the end of the day, the best way to attract and motivate early employees is to create a company culture that values and supports them. If you can do that, you’ll be well on your way to building a team that is committed, engaged, and invested in your company’s success.