The war for Agri-FoodTech talent has begun.
The sector is hot, evolving rapidly and fiercely competitive. Global investment in Agri-FoodTech reached $22.3 billion in 2020 and is expected to be even higher in 2021, according to Finistere Ventures. Now all these recently-funded companies are searching for the talent to take their vision to the next level.
As startups secure funding rounds and grow their businesses from an idea to a marketable product, successfully hiring key positions like chief technology (or science) officer, chief financial officer and chief business officer are crucial to the company’s success.
In this competitive environment, Agri-FoodTech companies cannot afford to muck up the hiring process. Yet time and again, I see founding teams making the same basic mistakes when executing an effective talent strategy.
#1 —The Startup Ego
CEOs and founding teams live and breathe the mission-driven vision of their concept. Because they are so bought into their mission, they tend to forget not everybody else is.
Remember, from the talent’s perspective, there are many inspiring and impactful Agri-FoodTech companies in the space. Your company is just one of many.
When it comes to hiring, many early-stage companies make the mistake of believing there is a “talent surplus,” with potential new teammates lurking around every corner, breathlessly waiting on their job listings. As a result, they assume that as they grow they can easily bootstrap together the right talent by reaching out to their network of friends and associates, as they likely did when the company was initially founded.
In reality, it’s just the opposite. Growing Agri-FoodTech companies need to embrace a “talent scarcity” mentality. It takes a well-thought-out and executed hiring strategy to find the right hires in this market. Companies must be prepared to act fast and decisively in making hiring decisions.
#2 – Not Treating the Hiring Process Seriously
Most startup CEOs and founding teams are juggling many responsibilities when it comes time to hire for crucial growth positions. It’s an intense transition time, and, in many cases, startup CEOs don’t give the hiring process the thought and diligence they should have because they are distracted by so many other needs. That’s a mistake.
Don’t underestimate how expensive it is to get hiring wrong. The time wasted in onboarding and the delay in reaching landmark milestones cost can easily be ten times the cost of the salary spent on the wrong hire.
Time should be invested upfront in shaping and executing a talent strategy. Delegating ownership of the process without clear leadership leads to confusion and disappointing outcomes. Consider how and where will talent be engaged? Once a conversation has been initiated, what is the process for assessment?
Many startups pride themselves on being highly creative and quick to pivot as needed. However, as companies mature, this lack of structure can pervade the hiring and interviewing process. Busy CEOs may delegate interviewing shortlist candidates to their employees but with no guidelines for the interview subject matter or information to obtain. The result? There is no way to evaluate shortlist candidates against each other for the best fit and they may very well end up missing the best potential hire.
#3 – Failing to Define Success
Early-stage companies frequently make the mistake of not clearly defining their hiring goals. It’s easy to understand why. They don’t know what success looks like because they haven’t had the position until now.
CEOs often create an aspirational (and unrealistic) “wish list” of skills and experiences they want their new talent to have but forget to consider a performance goal framework for measuring success. That significantly limits the ability to evaluate candidates. For example, without defining success, the hiring process may focus on skill-based competencies without considering a prospect’s growth potential and leadership abilities. Or, they choose to hire a person who embraces the company’s mission but without the skills and leadership ability to help the company reach landmark goals.
Remember, if you don’t know what success looks like for the position, how will you find the right talent to achieve it? And, when you do make a hire, how will your new team member know what is expected of them if they don’t have a clear performance metric they’ve been asked to achieve?
#4 – Forgetting to Put Your Best Foot Forward
It’s an “employee’s market” in Agri-FoodTech. Companies that forget this key point lose out on the best talent.
With many positions to choose from, your company must enter the hiring process with a “business case” mentality and remember your company is being evaluated by potential hires just as much as you are considering them.
You have to be quick and effective in building relationships. If you have put into play the strategies from points one through three, you’ll already have in place an effective and organized process that will go a long way toward “selling” your company’s strength through the hiring process.
Then, as you move into the final stretch, make sure you have a transparent compensation package. Make your first offer your best offer. In this competitive marketplace, Agri-FoodTech companies can’t afford to play the negotiation game. Putting up your best offer to start shows your ideal candidate that you value their potential contribution.
To get into the nitty-gritty of setting up your Agri-FoodTech executive talent search, reach out to our CS Partners at S.Leich@cs-partners.net. Or, download our guide – “Common Pitfalls Startups Make and How to Avoid Them.”
