Facing the Common Problems of Tech Startup Hiring

Successful startup founders don’t simply do things on their own. Usually, they have a competent team that they can rely on. As such, startups–specifically, tech startups–must give more importance to an efficient hiring process.

However, tech startups today face multiple hiring problems. Because success is driven by a group’s journey together, you should hire the right people first. 

A startup’s success can be increased by hiring people who fit its culture and technical requirements. These individuals contribute to the formation of a corporation whose sum is greater than its parts. Every startup wants to attain a flawless hiring process, but it is difficult. 

Read on as we delve deeper into the common problems of a tech startup’s hiring process.

The Harsh Reality of Startup Hiring Processes

Today, there are top challenges for hiring managers, especially for startups.

Managers have the greatest hiring challenge when it comes to competencies. When it comes to hiring new staff, 53% of hiring managers list “availability to people with relevant abilities,” which may indicate tech skills scarcity. At the same time, 31% of hiring managers reported limited hiring resources as a barrier. This demonstrates the need for improved and more creative hiring options.

One hiring difficulty in IT is the scarcity of qualified employees. According to a DigitalOcean research conducted in 2018, IT recruiters face comparable challenges when hiring developers and IT engineers due to a scarcity of qualified candidates.

Many hiring managers regard a lack of soft skills/workplace competencies to be a serious issue, underlining the lack of interpersonal and communication abilities among many engineers. In fact, high compensation expectations are placed fourth, followed by losing top prospects to rival offers.

Top 5 Hiring Challenges in the Tech Industry

1. Standing Out Against Competitors

Every company desires great talent. Organizations compete hard due to the paucity of excellent talent. When you include digital behemoths that are strategically geographically located, it becomes difficult for smaller enterprises to hire excellent employees.

2. Talent Mismatch and Incompetency

Hiring a software developer comes with no promises. When it comes to hiring, there will be a slew of untrustworthy prospects who may decline your offer. Many people try to get many offers and keep you waiting.

Some take advantage of your offer in order to gain a better one elsewhere. Regardless of your values, you cannot immediately prohibit such behavior.

This reduces the likelihood that offered applicants will accept. For entrepreneurs, pursuing many leads for the same opportunity is a waste of resources.

3. Lack of Technical Skills and Knowledge

A significant but sometimes underestimated hiring hurdle is a lack of technical knowledge among existing team members, especially when it comes to evaluation standards.

Even major firms’ HR departments may lack the technical skills to evaluate candidates, relying instead on keyword matching. Such an ineffective hiring practice results in lost opportunities.

Moreover, other developers on staff may be asked to analyze applications in order to overcome technical hiring obstacles, such as a lack of technical competence. This causes product development to be delayed. Given the significance of a developer’s time to the success of a startup, this is a difficult problem to solve.

4. Higher Salary Negotiations

Applicants anticipate a pay boost when joining a new employer. However, some startups struggle to pay higher salaries. This can be said for small businesses that cannot compete with larger corporations. Some even offer bonuses to attract and retain top talent, but not every startup is at capacity to do this.

5. Brand and Company Reputation

Many tech startups are concerned with reputation. This is because prospects will choose a tech behemoth even if you offer better terms and more interesting work.


If you’re running a tech startup, you must’ve already encountered some or all of these common problems in your hiring process. We can safely say that it would be best to start slow and start right by hiring key people, batch by batch. As you start with the initial team of top-skilled individuals, you can slowly grow and expand and reach your goals.

Is your company in need of IT staffing solutions? Technical Paradigm is here to help you find and retain top talent in the industry. Contact us today to learn more about our services!

Your Success is Our Success

Building a company primed for growth means staffing it with skilled and reliable team members. Time is crucial in the highly competitive IT talent market, which is why it’s a good idea to leave the task of searching, testing, vetting, and interviewing candidates to us. In doing so, you’ll get to focus on what genuinely matters—running your business to the best of your ability.
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