From Concept to Wall Street: A Complete Guide to Entrepreneurship and Venture Capital

Chapter 4. Employee Recruitment and Compensation

INTRODUCTION

The most important resource available to an emerging company is its human capital. Consequently, many managerial resources are dedicated to the recruitment of manpower. In startups that are constantly growing, the process of finding and recruiting employees is often performed under the pressures of tight schedules and uncertainty with respect to the company's future needs. In many cases, the company's organizational structure is still unclear and recruitment decisions are made on the basis of assumptions about manpower needs that are likely to change later on. Many managers assume that an excellent worker could have a role in the company even if his or her actual functions will be different ...