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It’s become a habit. Year to year we consider the best ways to recruit and retain top tech talent as a precursor for a company’s success. A review of the European and Israeli tech scenes, from the employee perspective, underscores several key elements defining employee motivation and longevity.
Across roles, from data scientists to marketing professionals, a glaring discrepancy can be viewed between European and Israeli employees. As the dust settles on the holiday season, it’s worthwhile assessing two research reports, one by Eight Roads, a global venture capital firm & HiBob, a leading HR software company, and another by Startup Snapshot, a data sharing platform for startups.
Europeans: Young in Age, Old in Character?
The Eight Roads/HiBob “Young Generation in Tech” report collected data from tech professionals in Europe between the ages of 20-30 years old. A clear insight from the data shows market volatility swaying opinion. Reminiscent of earlier decades, young employees of tech companies across Europe today seek stability and cite job security as paramount. Most respondents stated that they expect to be fired in this economic downturn or are unsure about their job security; only 31% declared “their position is secure”.
As an investor, Davor Hebel of Eight Roads Ventures Europe believes that the aspirations of the younger generation entering the tech sector are no longer being fully addressed. He maintains that for companies to compete effectively, they need to provide the sense of community and mission that attracted talent to the sector in the past. “In this respect, Israeli tech has an advantage with its continuous positive attitude towards entrepreneurs changing the world, willingness to focus on long-term upside of start-ups and a tight-knit community, which helps hugely in times like today”
Do country dynamics and culture play more of a role in employee motivation than previously considered? Our review highlights stark differences motivating European and Israelis. Culturally, today’s young European’s personal wellness appears to stem from stability. By contrast, the Israeli entrepreneur thrives on risk.
Israelis: A country’s DNA rooted in entrepreneurship
Israel became known as the Start-up Nation because startups adopt the same mantra the country was built on – grit and innovation. Failing to try has never been an option.
Much of the Israeli entrepreneurial spirit stems from mandatory army service. 18 and 19-year-olds serving in intelligence units are empowered to solve problems never solved before, implementing repeated trial and error. Combat soldiers learn to ‘pivot’ quickly to adapt to new dynamics and designate authority in times of crisis. When you can do that in life and death scenarios, you carry those traits into civilian life.
In Israel, startup employees are connected to a supportive work environment that empowers employees to take risks and make mistakes. This creates a desire for experimentation leading to innovative products. Entrepreneurs embrace risk, invest in out-of-the box thinking and democratize leadership to yield a greater exchange of ideas – faster. That sense of ownership and engagement adds to professional fulfillment.
In Israel, risk taking is so embedded in its culture, people are opting to work at small (riskier) startups vs larger companies. With depreciation in the public markets and a reset on private company valuations, most employees believe risk is widespread. 62% of employees don’t think working at a startup is riskier today than before the global economy’s descent.
Unlike their counterparts in Europe who value security, 45% cited a belief in their company’s vision as paramount to staying put, indicating they are willing to hang in there if they feel connected to the greater goal.
Forecast for 2023:
The trends observed in Europe and Israel over the past few months continue to hold true today. A focus on the employee experience is critical to recruiting and retaining talent. Empowering employees and encouraging risk taking adds immeasurable value to startups, companies, and countries. Especially in a bear market, founders need to clearly communicate the company vision, the roadmap to execute, and connect employees to the company’s strategy.
Entrepreneur and investor, Esther Loewy, contributed to this article. She has worked with Israeli entrepreneurs for the past 17 years and is Vectr Ventures first Venture Partner in Israel. Previously, Esther led global corporate partnerships for Nielsen Innovate Fund, founded three companies and secured GTM and global investment opportunities for Israeli startups in Asia Pacific, Europe, and the U.S.
Yael Benjamin is the founder of Y. Benjamin Strategic Marketing, a boutique advisory firm that gets innovators from conception to market, having startups raise over $1B in funding. She’s also the founder of Startup Snapshot, a data-sharing platform working to increase transparency in the venture ecosystem.
Forbes Israel Contributors are independent writers that were individually picked by Forbes staff. The writers are experts in their field and they provide professional commentary and analysis of current events. The content is unsponsored
