Identifying Dimensions of Employer Attractiveness in Startups : The Case of Swedish Tech Startups
Abstract: Human capital is recognized as the foundation of a firm's competitive advantage (Messenböck et al., 2015; Berthon et al., 2005). However, startups are put in a competitive disadvantage in comparison to established companies, as they have limited resources, legitimacy issues and operate under higher levels ofuncertainty (Aldrich and Auster, 1986; Moser et al.,2015). Since startups are important from a labor dynamic perspective for long-term employment growth (Haltiwanger et al., 2008) it is vital to understand what makes them attractive as employers, as such knowledge would help them develop strong and competitive Employer Brands. Through a combination of exploratory and descriptive research, this study aims to answer the research question: "What are the dimensions of employer attractiveness in startups and their perceived levels of importance among startup employees?". Based on the literature review, a framework model has been conceptualized, containing 29 employer attractiveness attributes. Through an Exploratory Factor Analysis (EF A), the model has been tested on a sample of 169 employees in Swedish startups, who ranked each attribute on a 7-point Likert scale. The results of the study suggest that some of the most important employer attractiveness attributes are "interesting and challenging work", "the company both values and makes use of your creativity" and "a high level of flexibility". And the least attractive ones were the "opportunity to teach others what you have leamed" and the "opportunity to apply what was leamed at a tertiary institution". The EF A revealed that the model has seven underlying dimension of attractiveness. Five were discovered in previous studies as well: Social, Interest, Economic, Application, and Development. And the presence of startup specific attractiveness attributes lead to the creation of two new dimensions of attractiveness: Entrepreneurial and Challenge.
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