Despite recent layoffs across industries, startups still face a daunting challenge in attracting top talent. While one might assume that the increased availability of workers would benefit smaller companies, many of those candidates continue to be drawn to large corporations that offer stability, extensive benefits, and well-established employer brands. This puts startups in a difficult position: they need highly skilled employees to help lay the foundation of their product and company, but their resources and brand visibility are limited compared to the big players.

Moving Beyond Superficial Perks

Shira Sneg, a Gallup-certified career and team coach and verbal brand identity expert, highlights the misstep many startups make in their efforts to attract talent. “Surface-level activities like pizza parties and generic goal-setting won't propel your team to the next level,” Shira says. “What truly transforms a team into a high-performing collective is creating an authentic, values-driven culture that candidates can connect with.” She emphasizes that while startups may need to level-set on certain benefits, the biggest ROI is in fostering a work environment where employees feel a sense of purpose, belonging, and alignment with the company’s values and mission. When startups clearly communicate their unique  values through words and actions, current employees are more likely to recruit their friends. This attracts other high-caliber talent, creating momentum for the business.

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Competing on Culture, Not Salary

For startups, this approach is critical. Employer branding is not just about hiring people—it’s about building an organization that reflects your values. Startups need to compete not on salary, but on building culture and engaging people with their mission. Startups offer something that large corporations often cannot: a chance for employees to have a significant impact on the company’s success and direction from the ground up. This can be a strong selling point, but only if startups effectively communicate their story and the value of joining their team.

The Struggle to Build Employer Branding

Unfortunately, many startups struggle with this. Lack of resources, time, and experience often lead founders to make hasty hiring decisions or neglect employer branding altogether. Research shows that startups without a strong employer brand see fewer qualified applicants and higher turnover rates, which can stall growth and innovation.

Startups must invest in telling their story, not only to customers but to potential hires. By doing so, they can attract people who are aligned with their values and vision, which is especially crucial when every hire plays such a pivotal role in the company's trajectory.

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Developing High-Trust, High-Performing Teams

Shira Sneg also highlights the importance of personal coaching and team development, pointing out that high-performing teams aren’t built overnight. “Whether we’re talking one-on-one coaching or workshops, the goal is to create a foundation that builds trust from Day 1. This creates a ripple effect across the company, improving innovation, collaboration, and employee satisfaction, even when things get tough or pivots are required.” For startups operating in uncertain environments, creating this kind of high-trust, growth-oriented culture can make all the difference.

Founders as Culture Ambassadors

In conclusion, startups may not have the budget or name recognition of larger corporations, but they have a unique ability to shape and communicate their culture in ways that can deeply resonate with top talent. The magic lies in the authenticity of the founders themselves. As Shira Sneg reminds us, “It all starts from the top.” When founders live and breathe their mission and values, it naturally creates a compelling narrative that draws in candidates looking for purpose, impact, and growth. Shira reminds us that “the way culture is fostered is from everyone's contributions, from the newest to the oldest employee. And so the best way for founders to be cultural ambassadors is to listen to their people and have them as active members in co-creating the company culture.” Startups offer something large corporations cannot: the chance for employees to be part of something transformative from the ground up. By embodying their values and investing in a strong employer brand, startups can attract the right people—those who aren't just looking for a paycheck, but for the opportunity to help build something extraordinary. In this way, culture becomes not just a talking point but a competitive advantage.