Navigating challenging times: Essential Skillsets Startups Seek In Employees

A startup’s journey has its highs and lows – there are times when all winds seem to be in a startup’s favor – well stacked war chest of funds, a product that customers have fallen in love with & a market with limited competition. More often than not, and definitely a few times during the lifecycle of a startup, startups are fighting wars on all fronts – no funds, delayed projects & many me-too competing products that confuse customers. We would want to call the first situation as peace time and the second situation as war time, borrowing from Ben Horowitz’s often-quoted article “Peacetime CEO/Wartime CEO”.

A typical question that startup founders’ debate in recruitment discussions is on the skillsets of the employees. It is relatively easier to identify the technical skills that the candidate needs to possess for succeeding in a job; when it comes to soft skills and certain personality traits, we cannot copy and paste the requirements from a different company’s job descriptions. At Astravise, we work with the startup to figure out the key traits needed for the startup (to what extent it is in peacetime for the startup and in which areas it is wartime for the startup). This will largely determine the skillsets/prior experiences as well as personality traits desired in a candidate.

Startups in “peacetime” mode are focused on growth and expansion, optimizing opportunities and taking calculated risks. Employees in such situations get freedom to experiment, solve problems creatively while keeping the larger organization goals as the guideline. In a “wartime” startup, the organization and its employees are battling every day for survival with limited resources. Past experiences of succeeding within constraints become crucial. Accountability is extreme – there is no space for blaming the market, investor or any other external circumstances. To survive and grow, startups need employees with specific skill sets to help steer the company through such challenging periods. These skill sets are over and beyond the candidate’s core technical/domain skills.

For example, say you are an experienced finance manager. If you have negotiated large vendor deals and have been able to secure cost optimization by promising and delivering to vendors large volumes of order, your skill will be seen as “Peacetime”. On the other hand, if you have done a deep cost dive in a factory or a multi-functional organization and derived cost reduction for your employer in a difficult market situation, your skill is more of ” Wartime”.

Global startup businesses have been going through a difficult patch at the moment; abundant risk capital is not a luxury many startups enjoy; recession in many parts of the world economy has cooled down many startup’s markets. In this situation, we work with startups to identify specific skillsets that are needed in key employees to ensure the startups successfully navigate this difficult period. If you are looking for jobs in startups or wanting to take up a different assignment with a different startup, the following can be a useful checklist.

Startups operating in a warzone, need employees who can quickly adapt to changing circumstances and navigate uncertainty. War-time employees accept the constraints, embrace new roles, take on additional responsibilities, and explore innovative solutions. They constantly leave their comfort zones, learn new skills, and tackle unforeseen challenges.

At present, a large number of startups face limited financial resources, and every penny counts. Employees who understand this are invaluable, making cost-effective decisions that meet customer expectations. They optimize spend based on a finance perspective, evaluating cost-efficiency alongside technology considerations.

Finance managers also need to evaluate cost-value equations at a strategic level; this can render whole departments redundant at times. Many corporates have dissolved internal recruitment teams and have outsourced their limited recruitment requirements during difficult times. Some Parts of call centre activities also get downsized after evaluating value vs cost of these activities. Employers will look for these kinds of experiences and ability to see the bigger picture while recruiting.

Generally, startups face increased competition, which becomes even tougher during limited investment periods. They require employees who can double as sales and business development executives to sustain. The key here is having the mindset to take up any role as needed by the organization, going beyond their defined “role” or core competency. This versatility helps them understand customer pain points clearly, delivering solutions that address them. Startups value employees who can showcase the startup’s unique selling points and generate revenue during challenging times.

This is particularly important for startups outside the IT/Technology sector. During funding winters, startups must optimize their operations to maximize efficiency and minimize costs. Tech-savvy employees play a vital role in realizing these objectives. They identify areas of improvement and leverage technology to streamline processes, automate tasks, and improve productivity. They stay updated on technology trends and utilize them for the organization’s benefit, even without mastering the skills.

Periods of recession, economic uncertainty, and funding winters can be emotionally and mentally challenging for employees. Startups seek employees who exhibit resilience and possess exceptional problem-solving skills. These individuals stay motivated, focused, and result-oriented, inspiring other team members. They navigate through uncertainty, make data-driven decisions, and contribute to the company’s overall resilience.

Many startups look for leaders, who have specific people skills apart from technical capabilities. Manager wearing a part HR hat is an increasing trend in many of the evolving organizations. A manager who has the past record of building and retaining teams from scratch while operating frugally and delivering stellar results for the organization is a good catch for many employers.

Accepting new missions for survival without getting stressed

• 100% focus on survival of the company – often giving own needs secondary importance
• Extremely sensitive to competition and environment – & is willing to change course abruptly
• Delivering commitments & avoiding surprises over and above risk taking by oneself
• Listens more and decides fast
• Minimizes conflicts & builds consensus within the team

In theory, it is possible for a large number of managers to change gears when the employer moves from peacetime to wartime; however, the market experience is that many managers fail to transform. Most managers are shaped by their past experiences. Many startups have faced similar situations of new employees hired during wartime not adjusting to the new realities as compared to their previous experiences in well established companies.

As an employee, it is important for you to self-assess and build the necessary skills in order to excel in any situation. As an employer, it is important to critically evaluate the candidate for the right experiences and clear signs that the candidate has the appropriate mindset that will enable him to take up new challenges successfully.

Startups at all times carefully consider the skillsets of potential employees – their success depends on the right-skilled teams, whether it is peacetime or wartime.  As challenges mount, financial acumen, sales and business development expertise, agility, tech-savviness, resilience, and problem-solving skills are crucial attributes that startups seek. By hiring individuals with these skill sets, startups increase their chances of survival and can emerge stronger from the funding winter. Job seekers looking to join startups during these times should emphasize these skillsets to position themselves as valuable assets to the company’s success.