Business Resources

Start-Up: A Huge Concern For The Big Boys

Talent acquisition has always been a pressing issue for large corporations and startups alike. Technological changes, evolving workplace needs and change in jobs have created recruiting challenges for organisations. At the same time, this shift in workplace mindset, coupled with the type of employers in the market today, also has an impact on recruitment.

Based on Universum’s annual employer brand study, which surveyed more than 16,000 human resources and talent leaders on their branding practices and future concerns, it found that large organisations consider startups as a serious recruiting threat. Over a quarter of the surveyed organisations (38%) of the world’s most attractive employers are “very concerned” about competing against startups for talent. Concurrently, more than half (55%) are “somewhat concerned” by the development.

Why are startups a huge concern for “the big boys” aka large corporations?

The reason is largely attributed to the hypergrowth nature of startups as well as the demographic makeup of the workforce today – Millennials.

Millennials today have different expectations as compared to the other generations such as the Baby Boomers and Gen Xs. Besides competitive pay, Millennials today also highly value career advancement and learning and development opportunities, and there is no better way to do so than to join a company that is expecting rapid growth as compared to a large corporation whereby processes and policies are already rooted in place.

At the same time, technological advancements play a key role in drawing key talent towards startups as well. Similarly to the earlier point whereby processes and policies are largely ingrained within large corporations, startups are likely to be able to adopt and adapt to the rapidly evolving technological changes due to the agile setup that their company has. This then draws key talent towards startups as opposed to large corporations, whereby technological changes tend to take longer to adopt and implement.

However, that does not necessarily mean that large corporations have much to worry. There are no doubt certain “tricks” that companies – startup or not – can implement within their organisation in order to drive key talent. That is employer branding and developing a robust employee value proposition.

Given that Millennials today highly value a strong employee value proposition, this is no doubt an aspect in which startups and large corporations can make themselves more desirable in terms of attracting and retaining key talent.

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