How promising tech start-ups can plan financially to recruit

POSTED: 4th September 2015
IN: Guides

Technology start-ups are set to create 20,000 new jobs in the UK this year according to Future Fifty, an accelerator programme designed to grow digital businesses.

Findings from a study by the organisation revealed that crowdfunding and seed investment are providing young companies with capital, which is often being used for recruitment. 

However, while funding may give businesses the impetus to employ new workers, it’s essential that owners ensure their growth plans are sustainable before recruiting staff.

Finding the right people

When faced with an increase in funding, it’s understandable that some companies may look to hire new people in a bid to encourage future business growth. However, start-ups should only recruit permanent staff members if there is a genuine - and ongoing - need for their services.

If employees are feeling overstretched or the team is missing some core skills, it could be time for the company to recruit more employees.  However, the UK has a shortfall in digital skills and according to a study carried out on behalf of O2, Britain will need an additional 750,000 skilled digital workers by 2017. In such a competitive market, and in order to attract the most talented applicants, technology start-ups can focus on what benefits they offer employees. These may include flexible working hours, free healthcare, and providing allowances to spend on computer equipment.

However, hiring those with extensive tech-experience isn’t always necessary to aid business growth. Businesses could consider employing people who may not have the skills already but are able to demonstrate the potential to learn. By catching the attention of university graduates, companies could benefit from intelligent and ambitious employees with a desire to succeed.

An increasingly competitive market

Attracting talented employees is only half the challenge for technology businesses. Due to the high demand for skilled and passionate workers, there’s a constant risk that another company could offer them a better deal. Money is of course an important factor, but many talented employees are looking for more. They may want to be part of a company offering an innovative product or work in a business with a strong social conscious.

Short-term hires and temporary staff

An increase in business may seem like the right time to employ new staff, particularly if finances are available to pay recruitment costs. However, it’s important to address whether this demand will last. Seasonal fluctuations, for example, are often best managed with temporary staff. In this way, start-ups can make the most of busy periods without overspending during quieter months. With the technology market changing at a rapid pace, it’s vital that such businesses are as agile as possible. By utilising freelancers, promising start-ups are free to adapt and change accordingly due to market trends or developments.

Achieving long term goals

By thinking about how a team may be structured in the future, businesses can develop a long-term staffing strategy which could enable them to make more informed hiring choices. Planning ahead and taking the company’s future targets into account could help employers decide which skills are required in order to fulfil these goals. Start-ups could consider improving the skills and abilities of current employees to fill any gaps in their workforce’s abilities.

Receiving the support of a government initiative, specialist funding or new opportunity can inspire businesses to seek new ways to grow their team and thrive in the technology industry.

Aldermore is a British bank that provides promising SMEs with a variety of business savings accounts and alternative finance solutions to help them achieve their goals. To learn more about how Aldermore can help technology start-ups, please get in touch with the team.

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