The Startup Team Blueprint: Five Points To Keep In Mind While Hiring Dive into tips from experts in entrepreneurship, team building, diversity and inclusion, workplace equality, and start-up management on how to build a resilient, high-performing team that's ready to conquer today's challenges and drive your success.
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Calling all entrepreneurs in the UK! In a shifting economy, the key isn't just assembling a skilled team- it's about creating a dynamic powerhouse that propels your startup forward.
In Gallup's State of the Global Workplace 2023 report, the annual survey that provides a comprehensive overview of global workforce trends, focusing on employee engagement, well-being, productivity, and the workplace environment, a striking revelation emerged: a whopping 90% of UK employees are disengaged, placing the nation at a lacklustre 33rd position in the European employee engagement rankings. With strong evidence showing that engaged teams are more productive, UK business leaders face an urgent need to step up their game.
Startups must thus prioritise correct hiring, address skill gaps and meet employee expectations, as a bad hire can incur significant costs. Here are five key tips to help you navigate challenges and build a successful team.
1. Ensure culture fit: When you're starting out, your team is your lifeline, and according to the former investor on BBC's Dragons Den, James Caan CBE and founder of Recruitment Entrepreneur, a private equity investors in recruitment businesses, it's not just about finding people with the right skills- they must fit in with your company's culture too.
Putting his money where his mouth is at his private equity firm, Hamilton Bradshaw, Caan looked beyond qualifications to find individuals who shared his entrepreneurial spirit and could mesh with team dynamics.
"In the early days of a startup, you'll face numerous hurdles - be it market competition, financial constraints, or product development issues," he says. "A cohesive team can navigate the inevitable setbacks. When your team is united, these challenges become manageable."
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Caan also emphasises the importance of hiring individuals who not only fit the company culture but also possess complementary skills. "It's like assembling a football team – you need a mix of defenders, midfielders, and strikers to cover all areas of the pitch," he says.
He goes on to say that founders need to ensure that their mission and goals are crystal clear to everyone from day one. "This collective effort transforms a fledgling idea into a thriving business. It's like rowing a boat – if everyone rows in sync, you move forward quickly and efficiently; if not, you end up going around in circles" he warns.
He cites Revolut, a financial technology company, as a prime example of effective team building strategies, highlighting their implementation of cross-functional teams capable of independently managing various projects while fostering a culture of autonomy and accountability.
"Regular hackathons and innovation days allowed employees to pitch and develop their ideas, fostering a sense of ownership and creativity within the team," Caan continues. "This approach has been instrumental in their rapid growth and ability to adapt in the fast-paced fintech industry."
2. Embrace diversity and inclusion: Diversity and inclusion aren't just modern-day buzzwords for hiring teams—they really impact your bottom line.
McKinsey's 'Diversity wins: How inclusion matters' report, published in May 2020, found that teams with more diverse backgrounds (ethnicity, age, gender) have 35% improved creativity and performance. Step out of your comfort zone, employ diverse teammates, and watch your company performance soar.
Alexandra Smith, co-founder and partner at FuturePlus, a platform that helps companies, investors, and asset managers measure, improve, and report on their sustainability and ESG impact and goals, underscores the significance of championing diverse perspectives in your team to drive innovation and creativity. "Success hinges on embracing diversity, promoting inclusion, and rallying around ambitious, shared goals," she adds.
According to Smith, establishing an environment where everyone feels heard, valued, and empowered is crucial. "A collective vision supports cohesion and commitment among team members and propels them toward shared objectives," she says.
3. Promote transparent communication channels: Cultivate a team culture of open and transparent communication, where ideas flow freely, and feedback is embraced as a catalyst for continuous improvement.
Ashanti Bentil-Dhue, founder at Competence Centre for Workplace Equality, a competency-based approach to workplace Diversity, Equity & Inclusion, helping businesses make genuine progress towards a more inclusive professional future, says it's important to consistently "over communicate" why you exist as a team, what the mission is, and what the outcome or the vision is.
"The reason why this is really helpful is it keeps everybody aligned all the time," she says. "It also enables people to contribute their own creativity, their own innovative ideas, and it gives them some autonomy."
However, she warns that it's not about telling people exactly how to do their job.
"It's communicating consistently the mission and the desired outcome," Bentil-Dhue adds. "And that enables the team, especially when you've got great people to come up with ideas, to feel some level of autonomy and ownership. This is vital for every start up in building a robust team."
4. Leverage the skills and talents of others: Senior leaders can't afford to work in silos in today's complex, dynamic environment.
Arsh Ellahi, founder of Property Investor App Limited, a company that provides a digital platform for property investors, emphasises delegation within teams, urging that entrepreneurs don't have to tackle every task alone. After learning this the hard way, Ellahi reveals it must be less about ego and more about harbouring talent.
"I've been the busy fool who feels they need to do everything by themselves, but intimately it slows down productivity and what your actual talent is," he warns.
The secret lies in building a team with individuals who excel in areas where you may not, and then trusting and empowering them. This creates an environment where great ideas thrive and tasks are completed more efficiently. "To adopt this tip, start-ups should focus on skills stacking," Ellahi continues. "This is where you build a team on what unique set of skills and qualities they bring to the table. Hiring people with complementary skills ranging from people good at networking to the person who is an analytical thinker is essential."
5. Get out of the office: Keith Donovan, founder of Startup Stumbles, a platform that provides insights, advice, and resources to help startups navigate common challenges and avoid pitfalls, has over 10 years of experience working with startups and sharing insights to help founders avoid common pitfalls.
He advocates for teams to engage in activities outside of work to boost morale. "Strong personal bonds make professional partnerships stronger too", he says.
Getting out of the office provides a relaxed setting where people in the team can interact as friends, breaking down any walls that may exist at the office.
"Activities like group hikes, fun parties with a theme, or volunteering help everyone see new sides to each other," Donovan explains. "This builds a feeling of friendship and respect among each other. It can also help relieve stress, giving folks a much-needed break from their daily routines. This break can renew their energy and creativity when they return to work.".
By prioritising cultural fit, embracing diversity, fostering communication, leveraging individual talents, and building personal connections outside of work, startups can forge strong and innovative teams poised for success in today's competitive landscape.
In short, the phrases 'Many hands make light work,' 'There's no 'I' in 'team,'' and 'Teamwork makes the dream work,' emphasise the essential value of collaboration in building strong teams, ultimately leading to success.
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