As most startuppers here aren't really in the same game as Google, it's hard to "lose" an employee to them. People who want great perks, a decent-sized, steady paycheck, and free food at all hours at a pretty sizable company will choose Google every time. Those looking for more adventure, potentially less pay, and real equity at a small company will always pick the start up.
Your real competition when it comes to recruitment is all right here, reading this site...
One easy way is to have a better (read: shorter, friendlier) interviewing process. From what I read, Google is a 12-step program with a bunch of logic puzzles.
why does everyone compare themselves to google? with everything company, something'll happen eventually and it'll turn into the present-day microsoft. the thing that i'm focusing on is to become a leader like google w/o replicating it step-for-step. google found it's wave and surfed it... now it's our turn to do the same in our own niche/product.
Your real competition when it comes to recruitment is all right here, reading this site...