Reading Time: 4 minutes
In general, it is becoming increasingly difficult to retain staff across all industries as the impact of the “Great Resignation” continues to reverberate around the world. And scaleups are not immune to this turnover problem, particularly in the tech sector. But why is this? A recent ISL Retention report shed some light on the issue. Based on 200 interviews with workers that had recently quit their roles, the survey found:
- 80 percent left due to a hostile work culture.
- 79 percent said their line manager played a significant role in the decision.
- 77 percent said lack of career progression also impacted their choice to leave.
Compounding this issue is the difficulty in filling open staff positions while trying to scale. Gartner has forecast employee turnover to be 50-75 percent higher than in previous years, while it is taking 18 percent longer to fill roles since the pandemic.
Moreover, losing talent is expensive. Between recruiting, onboarding, and training, replacing an employee can cost up to two times the employee’s annual salary. Likewise, it can take one to two years for the new employee to reach a level of performance similar to their predecessor.
Naturally, all this can damage a company’s attempt to scale. Time and energy have to be spent on finding talented employees while simultaneously trying to initiate performance and growth. Therefore, recruiting and retaining talented workers needs to be a key priority for scaleups.
With that in mind, what hacks are essential for companies when devising a robust recruitment strategy for a scaleup?
1. Boost internal decision-making with digital tools.
Having the correct number of top employees on a team is essential for ensuring expansion goes smoothly, but recruiting and retaining the right people is one of the biggest challenges companies face when scaling up. So it is essential to get your recruitment strategy right from day one.
While you may be under pressure to complete your hiring process quickly, aim to make it as efficient as possible rather than rushing it. This is where digital technology can play a significant role. For instance, tools like Greenhouse allow companies to document their interview process and track a candidate’s journey from beginning to end.
Both hiring managers and talent acquisition partners can use Greenhouse to work through each relevant role and screen candidates before the interview phase. Once an interview is conducted, feedback is processed in Greenhouse, which will be visible to all appropriate internal parties connected to the hiring process for the open position. This increased transparency and communication enables more intelligent and strategic hiring decisions.
2. Amplify your employer brand.
Employer branding will be especially important to successfully attract and retain global employees in 2023. An employer brand tells the story of a company and helps potential candidates envision what it would be like to work at your organization.
In 2023, it is predicted that companies will reframe their employee value proposition (EVP) to include an ecosystem of values, support, and recognition — not just a set of benefits.
3. Build a culture that will attract and retain top talent.
Hostile work culture is one of the key reasons people leave a scaleup. Therefore, building out your company culture through new hires is critical. Remember that every new hire is a building block that will shape your company’s future culture. Therefore, only hire people who are in tune with the values and morals of your company.
By hiring people with these attributes, your company will naturally improve employee engagement with each position. Building an employee-focused culture will ultimately enhance your company’s reputation, and attract and retain top talent.
4. Enhance team creativity and problem-solving with diverse hires.
While you want your employees to share specific values, you need to hire candidates from diverse backgrounds to truly scale a company.
Naturally, companies built upon varying backgrounds can benefit from a more diverse set of skills and experiences. The more diverse your employees, the broader their viewpoints, insights, and perspectives. Ultimately, this will deliver a more comprehensive range of thoughts, ideas, and solutions.
This combined knowledge can bring fresh ideas to the table and help solve problems faster, a crucial asset when a company is attempting to scale up. In fact, according to research done by McKinsey & Company, companies with diverse leadership teams outperformed companies without by 36 percent in the fourth quarter of 2019.
Additionally, a significant advantage is employee retention. According to research by Deloitte, companies with a diverse workforce have 22 percent less staff turnover.
5. Save costs and increase productivity with global remote teams.
Companies can tap into talent from around the globe by embracing remote work positions. Naturally, this means businesses will have access to skill sets they may not find within a constrained radius of their office building. Aside from adding world-class talent to their team’s ranks, there is also a cost-saving benefit for scaleups that opt to hire teams of global remote workers rather than strictly in-office professionals.
By creating a global workforce of remote employees, companies can benefit from lower-cost jurisdictions and save on office space and utilities. Crucially, productivity levels are not affected by establishing international teams through the adoption of the remote work model. Some 89 percent of workers state that their productivity has remained the same or increased after switching to a remote work model.
Building global teams with benefits like flexible working options can also give companies an edge over office-based competitors, thanks to the popularity of remote work among employees. For example, a survey by the International Workplace Group found that 83 percent of workers consider flexible work models to be a decisive factor when choosing between two similar jobs.
How G-P can help
Managing compliance can become more complicated as your company grows. As scaleups expand across countries, regions, and continents, so does the list of regulations and laws that their hiring policies must include. This is where a global employment platform can save resources and allow scaleups to focus on building a profitable international company.
At G-P, we are your partner in global expansion, handling the stress of compliance so you can focus on building successful global teams. Our #1 SaaS-based Global Growth Platform™ is backed by the industry’s largest legal team, so you never have to spend time or resources on navigating evolving labor laws and avoiding fines and penalties as a result of noncompliance.
Contact us to discover more about making the best decisions for your company.
