Secrets to Retaining Talent for Startups

Low salaries and bonuses, non-standardized work processes, and even an uncertain future for the company… these obstacles are real barriers for startups. How to retain talent? Let’s explore ways to retain talented employees with 1Office!

1. Be an Inspirer to Retain Talent

“In small and medium-sized startups, I believe the most important factor determining whether an employee stays or leaves is their boss,” shares Ms. Vu Ha – HR Director of Harvey Nash Vietnam. According to Ms. Ha, a startup owner will succeed in stabilizing their workforce if they know how to use internal communication to help employees understand the challenges the company must overcome and show them how important their contributions are. “Material incentives are indeed difficult for small startups to use as ‘bait’ to keep employees, but boosting morale is entirely within reach.”

From failures in retaining talent, Mr. Vu Anh Duc – co-founder of Abbycard, a mobile membership card management application, also concluded that: if a startup wants employees to stay long-term, the boss must first ignite the spirit of “building a company together, not just getting paid to work.” According to Mr. Duc, this spirit helps employees understand that they are a part of the company and its development. Even though the startup is small and faces many difficulties, if you can inspire enthusiasm in your employees, they will always be ready to share the hardships with the company.

To achieve this goal, startup leaders should not hesitate to share their vision for the company with their employees. When both sides are looking in the same direction, the employee’s commitment to the company becomes stronger. Equally important is building employees’ belief in the startup’s future, because if they think the company will not achieve the expected results, their departure is understandable. “If a team is building a startup together, it is crucial that they share the same vision and belief in the product and the business model designed by the founder,” Dinh Viet Hung, CEO of DesignBold, shared with DOANH NHAN. Material incentives are indeed difficult for small startups to use as ‘bait’ to keep employees, but boosting morale is entirely within the reach of any “captain.”

2. Build a Positive Work Environment

It’s not the invested money that binds a startup team together; the glue is a positive work environment. If every employee comes to work in a comfortable mood, surrounded by laughter, the thought of leaving will gradually fade. But comfort alone is not enough. According to Vu Anh Duc, to retain talent, a startup also needs to build a clear and fair work environment, where all company rules are public and apply to both employees and leaders.

Rewards also need to be handled skillfully to boost morale and show employees that their contributions are recognized by the company. After each small success or creative idea, when employees receive a reward knowing the company is not financially abundant, they will appreciate it even more. The bond between talent and the company thus becomes stronger. On the other hand, if a startup owner only focuses on product development or revenue fluctuations and neglects to cultivate the work environment, it will be difficult to prevent employees from “looking at” other companies, given the low compensation.

3. Commit to Compensation to Retain Talent

Even if they are “pumped” with enthusiasm and belief in the company’s future by their boss, and work in a comfortable environment, will talented individuals try to stick with a startup in the face of “meager” compensation? In this situation, the leader needs to weigh the employee’s contributions to the company against their demands. If the position is truly important and the company’s financial capacity can meet the demand, then agreeing is reasonable.

If the company currently cannot “shoulder” the employee’s demands, Vu Anh Duc suggests that the startup can still use future incentives to retain talent, such as offering shares and a new job position. Of course, the condition is that they continue to work and the product achieves a certain level of success. This is a practical policy for attracting and retaining talent, as it ties their interests to the company’s development and is suitable for the startup business model.
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