Finding the right fit
Raising capital is a huge achievement and can be a mammoth undertaking so it’s worth taking a moment to celebrate.
As we always say, fundraising is just the fuel, it is not the destination for startups. The future success of a startup will therefore be largely determined by the next steps you take as a founder. So the onus is now on you to use the opportunity well.
Initially, your post-fundraise hiring will constantly be the focus area of investors. They would want you to hire the best fit and induce a hustle culture in the organization if not already done. But finding the right candidate and ensuring he/ she is retained can be tough.
Working with your investors
If a venture capital fund or a private equity fund is involved in your fundraising, you must take all the help needed in making key hires. You can utilize their network of investors and investee companies to find the people needed to deliver results.
After leveraging networks and online platforms, you would have a pool of leads to shortlist from. For top positions, it is vital to check references. Your investors can also help you evaluate a candidate and help you find the right people.
The balancing act
Startups require employees to don multiple hats and put in longer hours. This can lead to poor work-life balance and push employees to look for jobs that are less demanding. Moreover, if your startup has not invested in tools and means to streamline communication and collaboration, you can risk frustrating and losing employees. This problem is not new to the world of startups. One of the biggest challenges in the ecosystem is high employee attrition rates. According to Moneycontrol, attrition rates among new employees are as high as 50% for some startups.
Giving a stake
To begin with, your employees may not invest in your business with a shareholding. However, as they spend more time in your company, you need to align their interests with the organization's interests. At no stage should your employees deviate from your short-term and long-term goals. For that purpose, they need to see your leadership. There are instances when employees have to see founders getting their hands dirty. You need to demonstrate things that are possible to boost the business. At the same time, you can keep an open door policy for ideas to thrive. Let them suggest efficient ways to do the same thing. When you hire an employee, it is your job to ensure that all processes are created to get the employee to share the vision of the business.
Your organization's culture will determine the direction your business takes. If you hire young people, you must imbibe a hustle culture to boost revenue. Your employees are stakeholders in the business too. Their well-being depends on the growth of the business. As a founder, the onus is on you to let them know about the stake.
Forewarned is forearmed
Lastly, build relationships and compensate your hires well for the effort and reward their results. An adequate compensation policy and induction to outline the business vision is critical at the start. You want the money you raise from investors to be utilized well. All new hires should be aware of the need to use resources efficiently. While the hustle culture can lead to productivity and motivation in the short term, it can also lead to burnout, stress, and a lack of work-life balance in the long term. It can also be exclusionary, as it assumes that those unwilling or able to work long hours or prioritize work above all else are not worthy of success.
Suppose you are considering imbuing hustle culture in your organization. In that case, it's essential to be mindful of the potential drawbacks and ensure that you are creating a culture that supports your employees' well-being and work-life balance. It is a two-way streak between you and your people.