How to Attract and Keep Talent in Small Tech Teams

Books every startup founder should read — from team culture to product thinking

Hiring for a small tech team is tough. There’s no room for dead weight, every role matters, and you’re often competing with bigger names who can throw more money at the same candidates. If you’re a founder, hiring manager, or part of a startup’s leadership team, chances are you’ve had a few sleepless nights over this.

So how do you attract great people—and keep them—when you don’t have the salary budget of a scale-up or the perks of a corporate? Here’s what’s working for Melbourne startups right now.

1. Stop chasing unicorns. Get real about what you need.

It’s tempting to write a wish list when hiring. “We want a full-stack engineer with 5+ years experience, AI/ML knowledge, startup hustle, and strong business acumen.” The problem is, that person either doesn’t exist, or they already have three offers on the table.

Instead, focus on the 80/20. What 20% of skills will drive 80% of value for your business over the next 12–18 months? Be brutally clear about what’s a must-have versus nice-to-have. Then write your job ad like a human, not a tech spec. You'll get better-fit applicants and avoid losing strong candidates who self-select out.

2. Sell the journey, not just the job

You may not be able to match salaries with Atlassian or Canva, but what you can offer is impact, autonomy, and growth. Candidates joining a 15-person startup aren’t expecting beanbags and bonuses. They want to build things that matter and to be part of something early.

Show them what they’ll get to own. Talk about where your product is going. Introduce the founding team early in the process. Be transparent about the runway and honest about the grind. That kind of clarity builds trust, and trust wins candidates.

3. Counter-offers will happen. Be prepared

The closer you get to making an offer, the higher the chances their current employer will swoop in with a counter. It’s emotional, flattering, and hard to walk away from—especially if the candidate wasn’t actively looking.

You can’t prevent it, but you can reduce the risk by staying close to their motivation. Why are they taking your call in the first place? What are they running from, or toward? Keep checking in throughout the process. If you know their 'why', you’ll have a better shot at helping them push through the noise.

4. Interviews are a two-way street

If you’re a team of 20, every hire shifts the dynamic. You need to protect your culture—but don’t confuse that with hiring people who are all the same. Culture fit isn’t about personality or shared hobbies. It’s about values, communication style, and resilience in a startup environment.

Use working sessions or paid trials when possible. Get them solving real problems with your team. You’ll see how they think, and they’ll see how you work. That’s far more powerful than any “tell me about a time” interview question.

5. Stay human. Especially when things go quiet

Startups are fast-paced, and hiring often falls to someone juggling ten other roles. It’s easy to forget to reply to a candidate or leave them hanging after an interview. But in a market where good people have options, silence sends the wrong message.

Even a quick message to say “We’re still thinking—thanks for your patience” can set you apart. And if they’re not right for now, close the loop properly. You never know when you’ll cross paths again.

Final thought: Hiring well in a small tech team is more about clarity and consistency than fancy perks or clever sourcing tricks. Be clear on what you offer. Be honest about what you need. And treat people like humans from start to finish. That’s how you build a team that sticks around.