For Start-Ups Seeking Talent, a Lofty Purpose Can Backfire

The guidance for established companies is clear and backed by research: Having and communicating a social vision will help you attract employees. Erasmus University’s Murat Tarakci and a colleague—Timo van Balen of Utrecht University—wondered if young firms should follow the same advice. So they tracked responses to the job postings of 795 new U.S. and Canadian ventures. Those highlighting a social mission received 46% fewer applications than others. The conclusion: For start-ups seeking talent, a lofty purpose can backfire.