There are many factors that contribute to a start-up’s success, or failure, but finding the right team is up there among the most important.
That’s according to new research conducted by CB Insights, which found that almost one-quarter of businesses (23 per cent) fail because they don’t have the right team in place, HR Director reported.
Poor talent management is also cited as the third most common reason for companies going under, with only lack of demand and cash flow problems more likely to cause a business to fail.
It’s therefore important that you don’t rush your hiring decisions, even if you need new people to help spread the workload out. Steve Lorde, managing partner of Consult Inhouse, told the news provider that it’s important to make sure that recruitment is strategic rather than reactionary.
He cautioned against expecting recruitment agencies to help you expand your workforce. He noted that while this might give you the headcount you need, it’s no guarantee you’ll have the right people for the job.
“It is unlikely to deliver the calibre of skills, workforce diversity and level of staff engagement that drive the most successful organisations,” Mr Lorde stated.
If your business is expanding, make sure you take your time to find the right people to fill roles, and make use of a reference check company to ensure your prospective hires truly are the right fit.
A recent article for Global Recruiter noted that SMEs face different recruiting challenges to larger organisations. For example, SMEs find that they experience more competition from other desirable companies in their region and struggle to offer as many unique perks or benefits as their competition.
By contrast, the biggest challenge for recruitment in large companies is the time the process takes, which means they lose good candidates along the way.