HR Challenges of Jordanian Startups

In a recent survey conducted among over 80 Jordanian startups to assess HR challenges, several key insights emerged. Chief among these challenges is the recruitment and retention of talent, which entrepreneurs identify as crucial for company growth, with a strong emphasis on the importance of both the product and the team. While employee referrals and social media are favored channels for recruitment, over 80% of companies still conduct reference checks during hiring. Pre-employment assessments are increasingly utilized to ensure long-term fit. However, more than 90% of companies find it difficult to hire qualified staff, especially for senior roles like business development and sales.

Lack of motivation, attitude, and soft skills are cited as primary obstacles to finding suitable candidates. Retaining talent is equally challenging due to high salary expectations and a lack of clear career development plans. Despite these hurdles, the majority of entrepreneurs express a preference for hiring locally. However, they face difficulties in maintaining an effective HR function, with only a minority considering their HR systems very effective. Challenges in this regard include limited clarity on career paths and the need to maintain company culture while scaling. Moreover, the labor regulatory environment, particularly social security payments, presents significant obstacles to startups operating and scaling effectively in Jordan.