By Omoruyi Edoigiawerie, Esq

Start-ups are growing phenomenally, everyday new emerging technologies and innovations are churned out becoming the norm. There is no gainsaying the fact that start-ups are at the very core of a developing economy like ours in Nigeria. With the prevalence of start-ups comes increased employment opportunities.

Start-ups are characterised by their dynamic work culture, often led by young people with versatile knowledge, a passion for innovation, and a penchant for technological disruption. Start-ups create new standards and are willing to embrace new methods and processes that scale their businesses.

A first-hand glance at the start-up culture will reveal that they are quite different from traditional companies. Most start-ups are smaller in size, have innovation at the centre of their culture, are fast-paced, and have an informal ambiance where employees at all levels freely exchange ideas.

•Dilemma of attrition

One of the main reasons behind start-ups faltering globally is the high attrition rates. Companies are struggling to address the challenges of attrition, it is not only affecting their growth patterns and sustainability, attrition is fast becoming one of the principal reasons for start-ups’ failure.

High employee turnover in any organization presents problems on multiple levels and start-ups are oftentimes the worst hit. It is also important to point out that most start-ups rely on a young workforce, and when you combine their low tenure length with the increased attrition rate, it is not difficult to see how damaging attrition can be to the growth and sustainability of start-ups.

*There are four common grounds for employees’ attrition:

1. Improved quality of life

2. Better remuneration

3. Long-term welfare benefits

4. Personal or professional growth projection

Additional reasons start-ups have high attrition include:

 Funding deficits- Start-ups have lower budgets than more established companies. This makes it more difficult for them to compete in terms of employee benefits and remuneration.

 Undefined work Culture- in the early stages of a new company, employees are often expected to work longer hours than in an established business, thus reducing the ability to maintain a work-life balance. Scarcer resources mean that start-up companies may not be able to afford the best, or most up-to-date, equipment to help employees do their job

 Disjointed communication occasioned by remote work – Start-ups often have their employees working remotely, while remote work has its advantages, there is also a high probability that communication and teamwork will get disjointed thereby hampering coordination and productivity.

 Job Security concerns – With start-ups having such high failure rates, job security can be a major issue for many employees. If they worry that the business will not survive, then looking at a more secure post is natural.

To prevent employee attrition, most start-ups offer flexible work schedules and remote working models while their employees demand that their employers offer work opportunities that are aligned with their priorities, growth projections, and welfare preferences.

They now prioritize wellness and health and want commitments from employers on this aspect. In today’s work culture, start-ups are at the forefront of mental health, stress management, and health maintenance mechanisms in the workplace.

The obvious implication is that any start-up unable to provide these will face a high attrition rate no matter how promising their business objective is, this is quite a challenge for start-ups as these demands have a high likelihood of increasing their financial burden and subsequently work culture-related instabilities.

*Tackling attrition rate in start-ups

1. Set the right expectations during recruitment

Vagueness has no place in employee recruitment and start-ups must avoid it. First things the first step to ensuring a sustainable employment relationship is to ensure the clarity of expectations on both sides. Start-ups should put in perspective that their recruitment process plays a pivotal role in preventing employee attrition and ensuring employee productivity.

NMA kicks as kidnappers demand N100m from abducted doctor’s families

2. Streamline your team communications

This is very important for start-ups that run a hybrid team, they must ensure that important messages do not fall through the cracks by ensuring that all members of the team are on the same page and understand their roles and contribution to the progress of the organization.

3. Create a solid balance between flexibility and stability.

The dynamic nature of start-ups often makes things challenging for employees. There can be a sense of instability all around. It can tire employees, and challenge their emotional quotient. Thus, there is a need to weave in elements of stability to keep their morale and confidence high and assure them of a sustainable path not just for the company but also for them.

4. Enabling work-life Integration

One fallout from the pandemic is the redefinition of various aspects of work. Many organisations have not only tilted favourably to flexible work cultures but have also systems in place that help employees balance their personal life alongside their work/professional life. This is very important to ensure that employees are afforded the opportunities to thrive both professionally and personally.

5. Create transparent systems

Every start-up as a matter of importance must create a transparent work culture. They must be open to sharing organizational vulnerabilities with employees, after all, it is often said that start-ups are on a learning curve and employees should be taken on this curve alongside the founders or management. This will help foster the spirit of solidarity and create a sense of belonging, unity, and clarity of purpose amongst employees and the management.

6. Promote an impactful reward system

Complementing and appreciating employees is crucial, not just for start-ups but for all organisations. Hence it is important to build a work culture that recognizes employees proactively. It strengthens the bond, keeping them more engaged with the workplace. It makes your employees feel more valued, building their happiness levels and emotional quotient.

*Conclusion

Creating a balance between innovation, high performance, and flexibility of start-ups and ensuring that the employee environment does not get caught in the web of burnouts, apathy, and the fear of the unknown, is key to preventing attrition and critical to the continued growth of any start-up.

Omoruyi Edoigiawerie is the Founder and Lead Partner at Edoigiawerie & Company LP, a full-service law firm offering bespoke legal services with a focus on start-ups, established businesses, and upscale private clients in Nigeria. The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. His firm can be reached by email at hello@uyilaw.com