The primary asset of a high technology startup is the team and the intellectual property the team is able to create.
Again, recruitment and human resource challenges in a startup environment are
different from those of a large, establised organization. Startups are
usually formed in situations where they are cash strapped and unable to attract
employees or team members with competitive salaries or benefits packages.
Hiring employees is an expensive activity, incurring costs and potential
liabilities for the employer, Startups often recruit team members as indepdenent
contractors, advisors, consultants and find ways to avoid engaging employees.
Remuneration for team members is often provided in the form of stock options, or
some form of equity incentive. The founders and early employees earn
equity positions in the company (usually in the form of common stock or options
to buy common stock), and forego salaries and traditional corporate benefits
until the Company is established and has sufficient funds to finance the ongoing
costs of employees.
company’s ability to grow will be partly determined by its
ability to recruit and retain good staff. The recruitment and management of
team members is one of the most critical factors in building a
successful technology startup.
Today there are several specialist employment and recruitment services providing
useful services to startup companies in Silicon Valley and elsewhere. Some of these services are featured in the Assembling a Winning Team section of the Entrepreneurship course.