2025 feels like a tale of two talent markets. There’s a surplus of candidates, but the ones you really want? They’re on the bench and staying there unless properly motivated. Top talent has grown cautious. They’re watching founders, cap tables, burn rates, and personal runway more closely than ever.
To win them over in 2025’s turbulent economic environment, you can’t just pitch your climate tech startup — you have to sell certainty, or at least a plan for it. Welcome to the Talent Trade War; where market complexity, psychological shifts, and capital volatility are reshaping how great teams get built.
What Candidates REALLY Think About Your Startup
Layoffs are still making waves. On the surface, it should be easy to hire right now. Why is recruiting top-tier talent still so hard?
Here’s the uncomfortable truth: top candidates are no longer just looking for a mission. They want clarity on how long your runway is, how the board operates, and whether your leadership style is sustainable under pressure. They backchannel their networks before they talk to you, and the climate ecosystem is surprisingly small.
Navigating Talent Acquisition in a Complex Capital Market
Hiring in a constrained capital environment isn’t just about making lean decisions; it’s about making smart bets. Founders can’t afford not to have a strong recruiting strategy. Every mis-hire burns precious months of runway and erodes team morale.
So if you’re asking, “Do I really need a recruiter in this market?” The answer is: only if you care about getting it right the first time.
“I Guess I Need a Recruiter… Now What?”
Here’s what to look for in a partner:
- Deep market insight — Not just connections, but context. The right talent partner will be able to advise on and craft a savvy recruitment strategy.
- Precision over noise — Can they help you sort through a flood of applicants?
- Candidate psychology fluency for your sector — The ability to sell, not just screen. Deep climate tech relationships are necessary to hold court with premier candidates. Dozens of newer “climate-focused” recruiting firms have flooded the space over the past 5 years, making inexperience and transactional mindsets commonplace.
- Alignment with your stage — One-size-fits-all doesn’t work in recruiting. Your ideal partner will have options available to meet you where you’re at, offering flexible services ranging from inbound support to fully retained search.
- Business Model – There are many models ranging from contingency to fully retained. Like anything else in business, you get what you pay for. Increased use of contingency has ultimately hurt founders who took the bait of seemingly low cost, low risk services to build teams. When deciding what’s right for your startup, you need to consider the internal resources and experience available for your recruiting process.
Retainer or Contingency: What’s Worth It?
It’s tempting to go with contingency firms in a market full of candidates — but be cautious. Large global firms entering the market lack the experience in nascent technologies and early-stage business needs; while the overabundant European-based firms have an insufficient bench of experienced recruiters and a scant understanding of crucial U.S. recruiting context.
Retained or semi-retained search forces both sides to commit resources and time. That level of partnership matters when you’re trying to convince someone who isn’t actively job-hunting to take a risk on your vision.
FACT: Contingency firms (on average) only fill 30% of the searches they take on — it’s a flawed business model.
Remember, with a true talent partner on your side, you’re not just buying access to candidates — you’re buying process, positioning, and momentum and their personal and professional brand.
What About the Inbound Flood?
A hot brand, a fresh funding announcement, or a viral job post can trigger a tsunami of inbound applicants. But most startups don’t have the infrastructure or time to parse it effectively. The result? Missed gems and wasted hours.
If you don’t have a scalable way to triage inbound, you’re not really hiring; you’re just reacting.
Talent is the Last Real Advantage
The companies that win in 2025 will be the ones that recognize that recruiting isn’t a back-office function: it’s a core competency.
This isn’t just about hiring faster. It’s about hiring smarter, and building trust with talent before you ever make an offer. Because in this talent market, the best candidates aren’t unavailable — they’re just unconvinced.
Partnering for Success
At Sea Change, we leverage deep Climate domain expertise to attract top talent and create skilled, passionate, mission driven teams. Our experience lies in talent acquisition, candidate engagement, navigating stakeholder relationships, and utilizing data-driven market insights to help companies make the best hiring decisions. We optimize the hiring process, helping organizations make more cost-effective decisions from Board to bench.
