Unmasking i-deal practices in start-ups to attract, motivate and retain STEM employees

Abstract

Purpose --This study examines the role of idiosyncratic deals (i-deals) in the understudied context of start-ups and explores their impact on attracting, motivating, and retaining high-value STEM employees, given start-ups’ significant economic and social contributions. Design/methodology/approach -- Using a qualitative approach, semi-structured interviews were conducted with 42 participants, comprising 21 C-level executives and 21 employees from Spanish health technology start-ups. Data was analysed using the template analysis framework. Findings -- The study reveals that location and schedule flexibility are the most common i-deals in start-ups. Development i-deals typically involve training from external advisors or events. Task i-deals are frequent in the early stages, although radical task changes appear non-negotiable. Phantom shares emerge as a novel financial i-deal with significant research and practical implications. Overall, i-deals are crucial for attracting, motivating, and retaining top talent, which is essential for start-up continuity and performance. Originality/value -- This study applies social and resource exchange theories to pioneer i-deal research in start-ups, revealing how resource constraints shape their dynamics and broadening the scope of this field of study beyond large organisations and public institutions.