I meet with startups on a daily basis and am amazed how they all describe the same symptoms as major challenges for growth: they can’t get the talent they are looking for on time to deliver promised deadlines! And when they recruit them, it is too late to start training and bringing them up to speed.

The reasons stated are always the same: lack of talent in the market, tough competition, multinationals and heavily funded startups are bumping salaries up…

These stated reasons are not the true problem. The core problem is that startups are making over and over the same mistake: wasting money on transactional HR rather than engaging in strategic HR planning.Transactional HR, especially in startups, does not support growth!

To grow your startup, you need a proper workforce planning for each of the planned milestones:

  • What skills will you need in order to achieve the company goals and by when?
  • How should the startup structure look like to ensure best efficiencies?
  • When should you start looking for these skills and how you will attract them?
  • How are you going to support your new employees to become productive on time?

Without such a workforce planning, well in advance, no transactional recruitment will deliver the right people with the right skills at the right time. You can continue paying for transactional HR and recruitment, but is this really where your money needs to go? Start thinking about your people performance as part of your strategic planning and you will get the results you really need!