The CEO had been in conversation with several potential senior hires for his startup. At least three recruitment firms were on the job for him. Somehow the ?right? candidate hadn?t yet crossed his radar. He was getting frustrated. If a candidate had the right experience, he didn?t have the right attitude. If another had the right attitude, then the competency was deemed inadequate. If both attitude and competency seemed right, compensation became a stumbling block!
Most companies, and especially startups, have an immensely challenging time finding the right talent. India has a large number of people, but a small number of appropriately qualified people. ?Qualified? not by way of being able to brandish a degree, but in terms of having the right mix of experience, competencies, skills and attitude. Given that the India growth story is just unfolding across multiple sectors of the economy, it is natural that a critical mass of trained and experienced manpower has yet to emerge. The pitiable state of the education system no doubt significantly contributes to this issue. So what?s a startup to do?
First, one must recognise that finding the right candidate is going to be tough. So what are the compromises to be made? What are the absolutely non-negotiable characteristics, e.g. integrity, and character, a proven record of leading teams, a minimum number of years of experience and so on.
Second, look outside the narrow boundaries of your industry. Are there more mature industries with qualified candidates? For example, a transaction intensive credit card business could throw up very good operations executives while the hospitality sector could present good candidates for the customer service functions. It is important therefore not get straitjacketed into thinking only in terms of the ?ideal? candidate, since that is a mythical creature.
Third, invest in training and skill development. It is far cheaper to continuously invest in upgrading the capabilities of the team through regular in-house training programmes and customised programmes.
It is not for nothing that the old adage ?hire for attitude, train for skills? holds true. Attitude in this context means being adaptable, open to learning, able to handle ambiguity, diligent, honest, team player and so on. These attributes take a long time to inculcate as they?re a function of one?s genes. Very few companies can spend the time, effort and money to effect changes in an individual?s attitude. It is far more effective to hire a person with the desired attitude and then train for skills and competencies.
Fourth, compensation can be sticky. Should one pay very high salaries for the rare talent? The unfortunate answer is that it depends. Paying one individual a disproportionately high compensation can negatively impact the startup?s hitherto low- cost culture and the mindset of the other team members. On the other hand, without the right talent, the startup could take a longer time to grow. In my view, paying high compensation to retain top talent in a startup isn?t appropriate. People start or join a startup not to retire on their salary incomes. The thrill, freedom and joy of company creation to address a market opportunity with a bunch of like-minded team members is a major reason for the startup?s existence. The money making occurs when the company fulfils its dreams when value is created. If the startup fails, the journey would?ve been the reward and the experience invaluable. Great entrepreneurs never do it for money, that?s just a very attractive by-product of the fulfillment of their aspiration to make a difference.
The most iconic entrepreneur behind the most iconic company today, Apple?s Steve Jobs put it best when he said ?I was worth over $1m when I was 23, over $10m when I was 24 and over $100m when I was 25 and it wasn?t that important because I never did it for the money? ??. Being the richest man in the cemetery doesn?t matter to me ? Going to bed at night saying we?ve done something wonderful? that?s what matters to me.?
So, what will you hire and pay for?
?Sanjay Anandaram is a passionate advocate of entrepreneurship in India. He is involved with Nasscom, TiE, IIM-B and Insead Business School.
Email: sanjay@jumpstartup.net