Silicon Valley Business School
Management Maneuvers—Recruit Staff
Steps in the Staff Recruitment Process and Human Resource Activities

The primary asset of a high technology startup is the team and the intellectual property the team is able to create. Again, recruitment and human resource challenges in a startup environment are somewhat different from those of a large, establised organization.  Startups are usually formed in situations where they are cash strapped and unable to attract employees or team members with competitive salaries or benefits packages.

Hiring employees is an expensive activity, incurring costs and potential liabilities for the employer, Startups often recruit team members as indepdenent contractors, advisors, consultants and find ways to avoid engaging employees.

Remuneration for team members is often provided in the form of stock options, or some form of equity incentive.  The founders and early employees earn equity positions in the company (usually in the form of common stock or options to buy common stock), and forego salaries and traditional corporate benefits until the Company is established and has sufficient funds to finance the ongoing costs of employees.

The company’s ability to grow will be partly determined by its ability to recruit and retain good staff. The recruitment and management of team members is one of the most critical factors in building a successful technology startup.

Today there are several specialist employment and recruitment services providing useful services to startup companies in Silicon Valley and elsewhere. Some of these services are featured in the Assembling a Winning Team section of the Entrepreneurship course.