How to Build a High-Performing Team with Limited Resources

Think building a high-performing team requires a hefty budget? Think again.

While more established companies offer high salaries and lavish perks, small businesses and startups have plenty of unique advantages that large corporations simply can’t compete with. Lean, engaged teams with strong leadership often outperform larger, well-funded teams that lack direction.

When small businesses focus on strategic hiring and foster a committed environment, they can build teams that excel beyond expectations.

Not convinced? This article explores how small businesses can leverage strategic hiring, clear communication and goal-setting to build high-performing teams without breaking the bank.

TL;DR

• Small businesses can attract talent by emphasising purpose and growth opportunities, compensating for limited financial resources
• Strategic hiring focused on cultural fit and versatile skills helps build effective teams cost-efficiently
• Clear communication, goal-setting and feedback systems are essential for keeping lean teams aligned and high-performing
• Flexible work arrangements and a strong culture can enhance retention, even against higher-paying competitors

The key to hiring smart on a budget

Here’s the thing about finding top talent with limited resources: it’s all about taking a strategic approach to ensure every hire delivers clear value and directly supports company growth. This means carefully evaluating what makes a hire truly essential and seeking out versatile candidates who can wear multiple hats, especially as the business evolves.

Multi-skilled employees who can handle diverse responsibilities are worth their weight in gold for small businesses. With this in mind, look for candidates who demonstrate adaptability, eagerness to learn and comfort with ambiguity. These qualities often matter more than specific technical skills that can be taught.

Then, of course, building and maintaining a robust professional network throughout your career plays a key role in cost-effective hiring. Consider things like:

• Leveraging personal connections, industry events and employee referrals to source quality candidates without expensive job board listings
• For specialised roles, contracting or freelance arrangements provide flexibility while controlling costs
• Implementing a referral bonus program—even modest incentives can motivate employees to tap their networks
• Seeking out candidates who can pivot between different roles and grow with the company provides exponentially more value than a specialist with a narrow focus

Plus, cultural fit deserves as much scrutiny as skills and experience during the hiring process. A candidate who aligns with your company’s values and work style is more likely to integrate smoothly, collaborate effectively and stick around long-term.

Look beyond surface-level qualifications and dig deeper into their motivations and passions—understanding what truly drives a candidate is even more crucial. Sometimes, the most qualified person on paper may underperform if the role doesn’t align with their core motivations once the initial excitement fades.

Finally, don’t underestimate the power of non-monetary benefits in attracting talent. Flexible work arrangements, professional development opportunities and equity compensation can be extremely appealing to the right candidates. But make sure it’s not all about the perks for candidates—without belief in the company mission, they could be half on the bus sooner than you think.

Retaining top talent when you can’t compete on salary

It goes without saying that while competitive compensation matters, employee retention depends on multiple factors. Career growth opportunities, workplace culture and flexibility often carry equal or greater weight in keeping top performers engaged. The good news? Small businesses can leverage these elements to create an environment where talented people want to stay and grow, even without matching the highest salaries in the market.

We recently caught up with Spacemade’s Head of People, José Rubio, who shared his insights on the importance of team culture within small teams:

“What’s working for us is over-indexing on culture.

Creating a psychologically safe workplace and gathering lots of feedback to improve things for our team so they feel they have more autonomy has seen us win out on solely financial incentives.

You won’t be able to deliver everything that everyone wants, all the time, so being honest and consistent, then letting people know why you can do some things and cannot do others, will go a long way.

People want to feel valued, and this can incorporate many different things (needs) for different people.”

But here’s what really moves the needle: investing in employee development. Doing so yields surprising returns in relation to retention and performance.

Consider things like:

• Structured mentorship programs
• Skill-building workshops
• Clear career progression paths demonstrate commitment to employee growth
• Partnering with online learning platforms or industry experts to provide cost-effective training options

The key, with all of this, is showing employees they have a future with real advancement potential. With this in mind, be sure to paint the picture in the hiring process so your candidates can start visualising their future at the company from both a professional and cultural lens.

Don’t shy away from rewards and recognition

Even modest recognition and rewards can be deeply meaningful in small teams. Regular acknowledgment of achievements, whether through public praise, small bonuses, or extra time off, helps employees feel valued.

Create opportunities for team members to showcase their work and expertise internally. When people feel their contributions matter and are noticed, they’re more likely to remain committed to the organisation.

Employee wellbeing deserves priority attention, especially in lean teams where burnout risks run high. Implement wellness initiatives that fit your budget—this could include flexible scheduling, mental health resources, or wellness challenges with modest prizes. Show genuine care for team members’ work-life balance through policies and leadership behaviours that respect their personal time.

Remote and hybrid work has also created new opportunities for retention, so offering flexibility in where and when work happens can be a powerful differentiator, particularly for small businesses competing with larger employers. Consider providing stipends for home office equipment or coworking space memberships as cost-effective perks that improve quality of life.

LinkedIn’s take on retention strategies for startups

We recently posted on José’s LinkedIn, asking talent experts for their go-to retention strategies for startups and small businesses. We were blown away by some of the responses…

From constructive feedback to psychological safety and “progression for high potentials within quick timelines” (thanks, Kelly Davis), it’s clear that culture and personal development play huge roles in talent retention.

However, there was one comment that stood out above all—from Chris Robinson—who shared a simple yet effective idea from Octopus Electric Vehicles: “Brewsday.”:

The goal is clear: Every two weeks, colleagues are randomly paired up for a quick 15-minute coffee catch-up. It’s “short enough to fit into any schedule” but happens often enough to make a real difference.

Almost half the company takes part, proving that small, intentional actions can go a long way in keeping culture strong as teams scale.

Managing a lean team without burnout

Running a lean operation requires careful attention to team workload and wellbeing. But according to José, here’s what works: Clear communication about priorities and realistic expectations helps prevent overwhelm.

For example, regular check-ins allow leaders to spot potential burnout signs early and redistribute work as needed. However, that’s just the tip of the iceberg—building trust through consistent support and recognition creates an environment where team members actually feel comfortable raising concerns.

Smart delegation and empowerment are other essential components for sustainable performance. Let’s be honest—micromanagement wastes leaders’ time and demotivates perfectly capable team members from doing their best work. Give people ownership over their responsibilities, and trust them to deliver results their way. In other words, provide the resources and guidance needed for success, then step back to let them shine.

Then, there are flexible work arrangements. Flexible working can significantly boost team morale and productivity. Whether through remote options, flexible hours, or access to coworking spaces, giving people control over their work environment shows respect for their needs. And oftentimes this flexibility leads to better focus and efficiency, as people can work when and wherever they’re most effective.

With this in mind, creating a collaborative culture where team members support each other—whether in person or remotely—prevents individual overload. Encourage knowledge sharing via tools like Slack and Notion and cross-training so people can cover for each other during busy periods or time off (plus, you might never know when you’ll need someone to step in).

The cherry on top? Celebrate examples of team members helping colleagues and make mutual support part of your core values.

Leaders especially must model healthy work habits to prevent burnout. After all, culture cascades from the top down. As José noted, “Nobody wins the stay-late Olympics.” (PS, we think José deserves a gold medal for this quote).

He adds that there are two key components to this practice:

1. Set clear boundaries around work hours and respect them visibly
2. Be loud about leaving on time and taking breaks

When leaders demonstrate these behaviours consistently, it gives the team permission to maintain healthy boundaries, too.

Leveraging remote work and technology (you guessed it—on a budget)

Here’s some food for thought: remote work capabilities have become a powerful equaliser for small businesses competing for talent.

To access wider talent pools while reducing overhead costs, companies can embrace remote options. The key is creating an intentional remote culture that maintains strong connections and clear communication despite physical distance.

Remote work tools make effective remote collaboration possible without massive investment. Free or low-cost options exist for video conferencing, instant messaging, project management and document sharing. Here are some of our favourite tools for remote work:

1. Video conferencing: Zoom, Google Meets, Microsoft Teams
2. Async communication: Loom (for videos), Slack (for quick instant messaging)
3. Project management: Notion, Trello, Asana, Monday

The focus should ultimately be on selecting tools that integrate well and solve your specific team needs (remember, these aren’t always the same for every team) rather than chasing the latest trending platforms. If you ask us, we say a minimalist life is a happy life!

Supporting remote workers requires thoughtful resource allocation. If you’re going full-remote, consider providing stipends for home office equipment or coworking space memberships. These investments often pay off through improved productivity and satisfaction. Just make sure your remote team members have reliable tech support and clear channels for getting help when needed.

For hybrid setups (part-time in office, part-time WFH), you could lower the home stipend slightly, cover your team member’s transport from their home to the office, or consider finding a flexible workspace, which you can find directly with Spacemade. Our entire ethos is grounded on finding you flexible offices that power your work—helping your team work better, build meaningful connections and improve team culture.

Overall, virtual team building deserves regular attention to maintain strong relationships. Schedule informal video chat sessions, virtual coffee breaks, or online game sessions to help people connect personally. Then, when the budget allows, occasional in-person gatherings can powerfully reinforce team bonds built through remote interaction.

And don’t forget to document and share best practices for remote work success—create clear guidelines around communication expectations, meeting protocols and work hours to maintain structure around your WFH setup.

Creating a strong team culture

Want to know what really sets successful teams apart? A positive, distinctive culture that acts as a powerful magnet for attracting and retaining talent.

Small businesses have an advantage here—their size allows for more authentic, personal connections and shared values to emerge naturally. Leaders should actively nurture these cultural elements while keeping them genuine to the organisation.

Regular team gatherings create lasting bonds beyond daily work interactions. As one of our leaders noted, quarterly social events have become eagerly anticipated rituals that help new team members integrate with the wider organisation. These moments of shared experience and celebration work wonders on strengthening relationships that support better collaboration.

Recognition and appreciation must be woven into daily operations and extend beyond special occasions. Create regular opportunities to highlight team and individual achievements. This could be through brief celebrations in team meetings, internal newsletters, or simple thank-you messages.

When recognition becomes part of the culture, it cultivates pride, belonging, and, for the long-term, company loyalty.

When it comes to trust and psychological safety, aim to foster an environment where people feel safe taking calculated risks and learning from mistakes. Mistakes happen, and it’s all part of the learning process. When team members trust each other and their leaders and feel comfortable making mistakes, they’re more likely to bring their best ideas, effort and creative energy to work.

“Building culture in hybrid and remote settings requires extra intentionality. Use technology thoughtfully to create inclusive experiences for all team members, regardless of location. Regular virtual social activities and clear communication norms help maintain cultural cohesion across physical distance” – José Rubio, Head of People at Spacemade

All in all, building a strong team culture requires intentional leadership, regular social gatherings, consistent recognition, psychological safety and adaptability to remote work settings.

Embrace resourcefulness for team success

Success in building high-performing teams isn’t about having unlimited resources—it’s more about using available resources creatively and strategically. Small businesses and startups can effectively compete for talent by leveraging their unique advantages and fostering environments where people thrive.

Building a high-performing team requires sustained effort and attention, but the rewards are worth it. Why? Because teams that feel supported and connected to a larger purpose will consistently outperform those with deeper pockets but weaker cultures.

We’ll leave you with one last takeaway: Your most valuable resource is your people. When you invest thoughtfully in their success and wellbeing, you build a foundation for sustainable growth and achievement that transcends financial constraints.

Together with Jose we created a practical roadmap for building a successful team. Download it now and get support through every stage of the hiring process.

Looking to provide your team with an inspiring workspace without the overhead of a traditional office? Explore Spacemade’s flexible office solutions designed to help growing businesses create environments where teams can collaborate, innovate, and succeed together.

For more insights on creating thriving workplace communities and optimising team performance, visit the Spacemade blog.