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Why is Hiring a Big Challenge for Ecommerce Startups?
Ecommerce startups may have visions and aspirations but they need the right people to help put them into practice. Attracting the right talent can help them to achieve desirable online growth. The selection of the right employees can be a challenge for e-commerce startups not only because of their limited resources but because they need experts in areas like digital and multi-channel marketing.
Timing is crucial
When building a business from the ground up, founders usually have a long to-do list. They are so busy, and they may not have time to write job descriptions, let alone have job interviews with prospective hires.
At the start, they often wear many hats but as the business grows, they cannot continue to do so. Hiring the right people but doing so at the wrong time can be a big mistake. The growth of the business needs to dictate who and when to recruit.
Startups can avoid the overheads of establishing an expensive in-house marketing team with fractional VP Marketing by Keo marketing. This award-winning B2B marketing agency will function as a marketing team with a Chief Marketing Officer to offer ecommerce startups the best results.
Lack of hiring experience
Startups do not have a fully-fledged HR department and instead of using tried-and-true hiring processes, founders may end up making the wrong hiring decisions due to their lack of experience in hiring. They may not fully test the skills and aptitudes of candidates and only realize they are not a good fit when problems arise.
There is a growing need for employees in e-commerce startups to fulfill technical roles in data analytics, marketing intelligence, and in creating intuitive applications and services. The founders may not have the type of experience they need to help them assess whether candidates are suitable for these types of posts.
Intense competition with other companies
Many startups may find it difficult to pay the lucrative salaries demanded by top talent. Top talent can be hard to come by and this can result in intense competition between companies. Even with external funding, startups may lack the resources to compete with large established companies that have deep pockets.
Some candidates will use an offer to get a higher offer elsewhere. This can lead to a low probability of a candidate actually joining a team after receiving an offer. In such a situation, it becomes difficult for a startup to use up resources by pursuing multiple candidates for the same position. It can help to understand the compensation expectations of candidates early on in the hiring process and root out those with unrealistic demands.
Brand reputation
Startups obviously do not have the recognisability of established brands. Employees may consider it a risk to work for an unknown brand, especially as many startups fail within the first couple of years. Most employees would rather work for a company that they know or have heard about than one they’ve never heard about before.
E-commerce businesses need to use all available tools and resources if they want to recruit successfully when they haven’t yet built up a brand reputation.
Cultural fit
The long-term success of a startup depends upon having a team that believes in the vision of the founder. When hiring new team members, it is important to consider their cultural fit.
For example, hiring vegetarians to work for a startup selling meats would be a mistake. This is why it’s important to have a mission statement, define company values and the culture of the working environment so as to articulate these when hiring. The e-commerce industry is very dynamic and requires employees well suited to this type of environment.
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