At a recent startup roundtable I hosted, one question stood out above the rest: “How do you hire great talent when you’re competing with the Googles and Amazons of the world—and more importantly, how do you keep them motivated when things get tough?”
The room was filled with startup founders nodding in unison. It’s one thing to find the right people, but in the volatile world of startups, keeping them loyal and engaged during challenging times is an entirely different ballgame.
Here’s what we uncovered, along with some tried-and-tested strategies to help you build a resilient, motivated team.
Step 1: Snatching Talent from the Big Guys
Hiring is often seen as David vs. Goliath when startups compete with tech giants. But startups have their own secret weapons.
Be Proactive
Leverage Your Network: Tap into your professional and personal connections. Ask your current team for referrals—great people often know other great people.
Scout Everywhere: Keep an eye out at tradeshows, networking events, and even casual social gatherings. That person with the spark, passion, and curiosity? They might just be your next hire.
Build a University Pipeline: Partner with universities, run competitions, or offer mentorship programs. Professors can be your allies, recommending standout students who are eager to make an impact.
Offer What Big Tech Can’t
Startups have unique advantages that appeal to certain talent pools. According to The Atlantic, a growing number of employees (70%) prioritize purpose and fulfillment over paychecks. Use this to your advantage.
Impact and Autonomy: Highlight how every team member has a direct role in shaping your company’s success.
Flexibility and Growth: Offer roles where they can grow quickly, learn new skills, and experiment in ways a corporate environment wouldn’t allow.
Culture and Mission: Younger generations, especially Gen Z, value purpose-driven work. Make your mission front and center to attract talent aligned with your vision.
Behavioral Interviewing Matters
Use behavioral and scenario-based questions to assess how candidates think and act under pressure. For example:
“Tell me about a time you had to solve a problem with limited resources.”
“How do you handle ambiguity when there are no clear instructions?”
Step 2: Keeping Talent on Board Through Tough Times
Even the best hires can falter if they’re not engaged. Gallup research shows that highly engaged teams experience 21% higher profitability and 41% lower absenteeism.
Engagement isn’t just a feel-good factor—it’s essential for your business’s bottom line.
Communicate Transparently
Be Honest: Don’t sugarcoat the situation. Your team can sense when something’s wrong, and withholding information erodes trust.
Involve Them in Problem-Solving: Share the challenges you’re facing and ask for their input. People are more invested in outcomes they’ve had a hand in shaping.
Reward Beyond Money
When financial rewards aren’t possible, tap into intrinsic motivators:
Recognition: Celebrate their wins, big and small. A heartfelt thank-you or public acknowledgment goes a long way.
Growth Opportunities: Offer mentorship, new responsibilities, or learning opportunities.
Flexibility: Give them the autonomy to work in ways that suit their needs and schedules.
Keep Expectations High
Flexibility and kindness are key components of any modern workplace, but they must be balanced with high expectations and mutual accountability. Employees need to understand that flexibility is a two-way street.
For example, if you’re on a crunch before a product launch or a major sales event, long hours might be required—it’s part of the sprint. It’s important to set the tone upfront, calibrating against expectations rather than entitlements. A founder at the roundtable shared their frustration about granting perks and flexibility, only to see employees take them for granted. Clear communication can help ensure this balance.
Step 3: Building a Culture That Retains Talent
Culture is the glue that holds your team together, especially when times are tough. Employees who feel connected to your mission are far more likely to stay, even when the going gets tough.
The Core Ingredients of a Sticky Culture
Psychological Safety: Create an environment where people can take risks and voice ideas without fear of judgment.
Continuous Feedback: Regularly check in with your team—not just on their performance, but on how they’re feeling.
Purpose and Belonging: Help your team see how their work connects to the company’s larger mission.
Gallup research reinforces this: when employees feel engaged and have a sense of purpose, retention and performance soar.
A Client Story: Adrian’s Journey
Adrian, a founder of a fast-growing SaaS startup, came to me feeling stuck. His company was hitting revenue milestones, but his team was disengaged. The long hours and constant pressure were taking their toll. He worried he couldn’t retain his top talent, especially with larger competitors courting them.
In our coaching sessions, we worked on a few key strategies. Adrian implemented transparent team meetings, where he openly shared challenges and involved his team in brainstorming solutions. He introduced a weekly “kudos” ritual, where team members celebrated each other’s contributions.
One defining moment came during a product delay. Instead of making excuses, Adrian brought the team together and acknowledged their hard work. He asked for their input on how to navigate the delay and thanked them for sticking with it.
The results were immediate. Engagement scores improved, and two team members who were on the brink of leaving decided to stay, citing the newfound sense of purpose and trust they felt in the team. Adrian’s startup not only retained its talent but also strengthened its culture during one of its toughest periods.
A Final Word from the Roundtable
One founder shared this nugget of wisdom: “Loyalty is built in the little moments—not grand gestures. It’s how you show up when things are hard, how you acknowledge the team’s efforts, and how you rally them around a shared vision.”
Ready to Build a Resilient, Motivated Team?
Hiring and retaining talent isn’t just about filling roles—it’s about creating an ecosystem where people can thrive, even in uncertainty. If you’re ready to take your team to the next level, let’s talk. Coaching can help you refine your hiring process, craft a culture of engagement, and navigate the tough times with clarity and confidence.
Hi! I'm Merve. 👋 I help leaders build high performing teams, amplify their business impact, and advance their careers.
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