REVIEW
RECRUITMENT
How do start-ups attract the talent? excited by the prospect of being part of something innovative. Pete Gwilliam director, Virtus Search
M
ost successful start-ups are founded on the big impact that talent brought in at the outset has on shaping the growth story. A great business will understand the blend of skills and attitudes that will ensure the whole is greater than the sum of its parts. The current recruitment market is incredibly competitive, with lots of lenders hunting for the same talent, and in many cases competing for the same individuals. ATTRACTING TALENT
Both established businesses and new entrants are finding attracting talent difficult, but for differing reasons. When you talk to candidates about moving to an established lender, the big debate about the merits of moving often comes down to what the new employer and role is going to offer that is suitably different to what they have now. Clearly, it is easier for a startup to offer a much more dynamic, flexible and entrepreneurial culture, and definitely in start-ups there’s an unrivalled opportunity to own a key area and be instrumental in shaping the future. However, as a start-up business isn’t yet a household name, it doesn’t offer the comfort of established brands. Of course, it should also be appreciated that it is a greater risk for candidates to join a company they’ve never heard of that is in the early stages of growth. Therefore, start-ups really need to consider what sets them apart from their competitors – new and prominent lenders alike. As a start-up, the mission, values and culture will be a big pull for candidates
18
MORTGAGE INTRODUCER MARCH 2022
EMPLOYEE VALUE
An employee value proposition (EVP) is the total of the benefits an employee gets in exchange for dedicating their time, skills and experience to a company. Being clear on this from the outset provides the foundations for employer brand perceptions. The EVP will be a guideline for company culture, how employees are treated, and what is expected from them, all of which is important when trying to differentiate and build an employer brand.
“Start-ups really need to consider what sets them apart from their competitors – new and prominent lenders alike. As a start-up, the mission, values and culture will be a big pull for candidates excited by the prospect of being part of something innovative” By articulating the vision and mission of the business, and what it stands for, this helps individuals to find a reason to connect with those values and feel invested in the culture and mission. This often ensures better quality hires and improved retention, because likeminded candidates will care about the value their work brings and how fulfilled they feel, rather than just being attracted by a financial offer RECRUITING RIGHT
As a start-up, the leadership team wears many hats, including finding funding, growing the proposition and creating brand awareness.
When scaling and building teams, hiring individuals based on references from personal networks is often a tactic, but this creates two issues that can have an ongoing impact into the future. Firstly, personal networks are useful but often flawed when it comes to appealing to a diverse range of experiences, which can be a threat to how inclusive the business will be, and how representative the employee mix is of the brand values. Moreover, however reliable the referral may be, a lot of the commentary about an individual surrounds how effective they have been in an entirely different business model, and thereby the need to test that individual’s aptitude for working in a growth-focused and agile world can be skirted over. In a rapidly growing business, recruiting the wrong person not just fails to optimise the role, but can cost time, money and reputation, which can get undermined by not having the right person in critical external facing roles. Hires that are respected in the industry can be a catalyst for what follows both in terms of the quality of work delivered and how others feel about working for that company. However, the reverse is also true, especially if the challenges of adapting to a start-up mindset are not assessed in the selection process, such that people hired do not adapt to change and the differences in shaping a role, rather than working within a more formulaic established role. The recurring theme in start-ups that I have seen flourish over the years has been how important these early hires are for the company. Just as there is a lack of talent, there is a huge increase in companies recruiting and searching for the same talent. This causes a problem for start-ups, as candidates may never have heard of the business and may be nervous about joining in its infancy. There is a tendency to concentrate on overcompensation for this in financial terms, and this balancing of risk and reward – and the very competitive recruitment market at the moment – mean that wages are ‘running hot’! M I www.mortgageintroducer.com