Experience has shown time and time again that, great start-ups thrive from having a solid team. To have a solid team, means knowing what you need and which role you fill.
Bad hiring is one of the most risky and costly mistakes you can make in a startup because:
1. Great people attract great people
Nothing is more attractive for talented job seeker than a team full of really skilled co-workers. Despite all the potential problems of a bad hire, the huge upside if you do it right is tremendous. With every great person that you can convince to join your team, your team gets better and it will also get easier to attract the next person. Hiring is a self-fulfilling prophecy and therefore gets simpler over time. The hard part obviously is to get everything started. How to hire the first employee if you don’t have an amazing team that everybody is talking about?
Solving this chicken-egg problem is crucial for getting your company off the ground. The good news is that you already have a team, even before your first hire. You and your co-founder(s) are already a team (which is one of a countless long list of reasons why you shouldn’t found a company alone). You found your first follower, you did the hard first step already. Maybe, you even managed to get a small investment or you convinced somebody to be your advisor. You will have a team long before you have hired for first employee, although it might not feel like that.
2. Culture is more than the sum of every team member
Even if you hire only smart individuals, despite their respective skill sets you won’t automatically create a high-performing team. Great teams are generally a group of amazing individuals mixed together in the right way. The glue between the outstanding senior engineer and the young up and coming designer, the magic that makes sales work well with product is having the right culture.
Culture is not about free food, nice Christmas parties or other perks. It’s about shared values and beliefs, the common ground of every discussion and the bigger reason why you are all working on the same idea. Great culture makes you win, great culture will help tremendously to survive tough times. Having a great culture will simply make you feel that it’s easy to build a successful company.
The importance of culture heavily impacts your hiring. Every single person you bring on in the early days changes your culture, in a good or bad way. Figuring out if somebody is a culture fit, if somebody is the right person for your team instead of finding the best person is crucial. Although culture is defined by your team, by every single individual, you still have to work hard on it and you won’t get it automatically by hiring right.
Your job as a leader is to facilitate discussions, offer a vision and set the guard rails. Nothing defines culture more than actions and your team can’t take any actions if you don’t provide the guidance they need.
Cultural fit is really important for every new hire but it’s only working if your culture is great. That won’t be the case all the time. You will face times where your culture starts getting sideways, where you can’t be as proud of your company as you wish you could be. Especially in those moments it’s important that you critically challenge the status quo. What’s great, what’s broken? If your culture is broken and you’re blindly hiring with an emphasis of culture fit, your culture will actually get worse. You can’t use your culture as a safeguard if it’s broken.
As much as great people, a great culture attract more great people and can result in a better culture, as much as it can go into the opposite direction. Be aware of your own bias.
3. Hiring should be your most important skill
Hiring is not magic, it’s not luck, it’s a skill. Some people are better with it from their first job on, others not. Maybe you are but if not, you can learn it and even if you do great right now you should still work hard every day to improve. The faster you figure out if somebody fits into your team, the faster you can evaluate the skills of an applicant, the better it’s for you and your company. Even more important in today’s hiring market, the better you are in convincing people to join your team, in selling your vision, the better people will eventually work for you. Again, it gets easier over time to more great people are working for you.
It’s important to understand that it’s not just about you interviewing a candidate. You have to design a hiring process that involves your team, that gives the candidate a lot of opportunity to evaluate you as well. Every growing company faced the same challenge and you can learn a lot from the best practices of the industry, from companies that did a great job with hiring and also from companies who failed. Luckily, now more than ever, startups are willing to share their journey starting with small insights and some tactical advice as far as being completely transparent. Take the opportunity and learn from those companies and their failures and successes.
Don’t forget that you are always hiring. It doesn’t matter if you are doing a job interview in your office or if you are at a friends party. You are always leaving an impression, if you want or not. Maybe you aren’t looking for anybody right now but you surely will in the future. Or at your next job or company.
Making sure that you always have a big pool of great people to work with will set you up for success — and since it’s all about the people, it will make the difference between being successful or not. Always be hiring.
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