How startups find the right employees
In the beginning, startups usually consist of two to three founders, and each of them takes on every task. Once the hoped-for success materialises, the team can grow and the search for suitable employees begins. Here we give you tips on what to consider when successfully hunting for talent.
Arguments against startups and how they can be refuted
The shortage of skilled labour is a problem that now affects almost all industries and types of companies. Startups are therefore not exempt from this, although a number of other specific factors also play a role in whether or not a position can be adequately filled. There are two main arguments against the decision to work for a startup: a lack of security and low pay. However, both can be refuted.
It is a fact that many startups struggle to assert themselves on the market. The rule of thumb that nine out of ten fail sooner or later may be exaggerated and certainly does not apply to all sectors and business models. However, the risk of losing your job is undeniably greater with a startup than if you embark on a career as a civil servant. For younger job seekers in particular, however, a lifelong permanent position with one employer is not the goal anyway. They are looking for variety and can gain experience at a startup that will be helpful for their future career.
At least at the beginning of their development, startups generally not only do not make any turnover or even profits, they also have high expenses to develop their products and raise their profile on the market. As a result, the expected annual salaries are initially comparatively low. However, this can be compensated for by employee profit-sharing schemes for example. These ensure stronger identification with the company, additional motivation at work and, if the startup is successful, high income. This can really pay off in the event of an exit or IPO, in some cases even in the millions. In Germany, however, tax regulations make uncomplicated employee participation difficult despite a legal reform that came into force at the beginning of 2024. Another way to keep labour costs somewhat lower is to hire qualified talent with expertise on a part-time basis, with the prospect of good promotion opportunities.
What makes startups unique as employers
But startups do not necessarily have to offer financial incentives to attract talent. Their corporate structure and culture offer a number of advantages that larger companies cannot match. Small teams have flat hierarchies and tasks are not strictly allocated. This makes it easier for newcomers to contribute their ideas, take on responsibility quickly and early on and play an active role in shaping the company. Startups are known for their high degree of flexibility and short reaction times to changes. This is also reflected in the organisation of working hours or the option to work from home. Many teams are spread across several locations anyway, even across national borders. Employees can therefore expect a diverse, international team with different cultural backgrounds. A good address in Hamburg for the professional integration of people with a history of migration is the Welcome Center as a point of contact for both employees and employers.
A strong motive for working in a startup is the company's goals. Startups often also have social or societal goals or want to contribute to solving larger problems. The desire to make a positive change is particularly strong among young people. Startups should therefore focus on these arguments when looking for employees.
The right self-presentation online
This brings us to an important factor, namely external communication. Naturally, startups do not have the name recognition to be the first choice when looking for a job. You can find detailed information about corporations from a wide variety of sources, whereas startups often only have a website as an introduction. That's why it should be professionally designed and convey what it's all about quickly and clearly. Especially with high-tech concepts, this is often difficult to see, which could put off applicants who are not deeply familiar with the subject matter. Team photos that express a sense of community and quotes from the founders about their goals and motives are helpful here. This creates a positive impression of the corporate culture.
Even more important than a successful website is a successful social media presence. For the professional sector, LinkedIn should be mentioned first and foremost, although in some cases Instagram and now even TikTok can contribute to image enhancement. However, LinkedIn remains the first choice for serious information about employers. It is therefore advisable to post regularly about new developments and successes. Many founders have also made it a habit to write about their experiences and communicate their values. This creates transparency and trust.
Well known from job portals and events
Transparency can also turn supposed disadvantages into advantages. For example, if a startup is looking for part-time employees, the communication should emphasise a good work-life balance. The content and form of self-presentation are therefore important to make startups appear attractive as employers, but first you have to make people aware of them. Word of mouth can be very effective here and, of course, targeted advertising campaigns in social media, but there are also more traditional ways. These include the many job portals such as Monster, Stepstone or indeed. stellenwerk is a tried and tested address for the search for working students and university graduates. Some Hamburg startups have also dedicated themselves to this topic and are breaking new ground. At Skillbased, for example, the CV does not play a role, but rather personal skills. This is ideal for career changers, who should feel particularly comfortable at startups. The Startup City Hamburg job portal is also worth a visit. Other helpful contact points are Nordic Minds, Randstad, Academic Work and, last but not least, the Federal Employment Agency.
Job fairs such as the Online-Karrieretag offer another opportunity to raise your profile. However, startups are in direct competition with large companies there and it is important to weigh up whether the costs of a stand are worthwhile. A better alternative could be events where startups present themselves to an interested audience, such as pitch competitions. There, founders can not only present their company in the best possible light, but also address specific vacancies. Perhaps a first job interview will then take place on the spot.
We also recommend the ‘Future of Work: Careers Open Evening’ series of events. It offers companies the opportunity to present themselves as potential employers at an early stage. The series supports these companies in their search for talent, offers customised advice on talent recruitment in Hamburg and focuses on contemporary working environments. The aim is to secure the best skilled labour for Hamburg and actively shape the future of work.
From working student to manager
Working students are a favourable personnel alternative for freshly launched startups. That's why it's important to be present at the universities, for example with posts on the notice board. In addition to a brief job description, it is also advisable to include a QR code that leads to further details or to the website or LinkedIn account. Working students can also be an important investment in the future. A smart strategy is to offer them promotion opportunities that can lead to management. Finding C-level candidates is often the biggest challenge for startups, all the better if they come from within the company and know the company structures from the ground up.
At the end of the day, the qualities that help startups in their search for new employees are those that apply to the entire business sector: the targeted development and skilful use of a network, a high degree of flexibility and creativity and a clear goal. If you can offer all this and a pleasant working environment, you should be able to attract the right talent.
About Talent Services Hamburg
Talent Services Hamburg is an initiative of Hamburg Invest. It offers free and confidential advice on all matters relating to securing and recruiting talent in Hamburg. The offerings include talent acquisition, immigration services as well as personnel and image marketing.
Talent Recruiting Service
Provision of comprehensive information on the availability of skilled labour, salary levels, qualifications, language skills and more in and around Hamburg.
Arranging contacts with cooperation partners in the fields of personnel services and recruitment (e.g. headhunters, personnel agencies, transfer companies, employer services of the employment agency).
Organising joint recruiting campaigns and events to approach and attract new talent.
Access to the career services of Hamburg's universities.
Support in developing and implementing your own recruiting strategies.
Advice on the creation and placement of job adverts.
Immigration Service
Support in applying for residence and work permits for employees from non-EU countries.
Provision of official statements in cooperation with embassies, consulates, authorities, chambers and the employment agency.
Close cooperation with the Hamburg Welcome Center.
Personnel and image marketing
Increasing your visibility as an employer through the Young Talents Hamburg Club (YOTA).
Access to Hamburg media packages with images and videos for your talent communication in Hamburg.
Promotion of joint recruiting events.
Contact the Talent Service directly
The Talent Services team offers you free and confidential advice on all matters relating to securing and recruiting talent in Hamburg.