The Common Hiring Pitfalls That Startups Make (And How To Avoid Them)
How Startups Can Set Themselves Up For Success
There are many challenges facing startups when it comes to hiring and retaining talent—especially in today’s market.
The first 10 hires for a startup require careful thought and consideration, as they are truly business-critical. As an executive in the global healthcare industry, I have experienced it all, from Fortune 500s to startups. I have employed an approach to hiring that isn’t hampered by the obstacles many startups face but instead harnesses their unique ability and power to attract the best talent for where they are and where they are headed—all based on a few simple understandings.
The Power Of Discernment
Many startups out of the gate believe that hiring senior-level visionaries and innovators is the best way to bring a company’s vision to life quickly, but that is not always the case. Rather, having a well-rounded (and discerning) approach to the initial hiring will extend a company’s runway, create the diversity of talent and skills needed to foster rapid growth and innovation, and contribute to the long-term sustainability of the organization.
Why Bigger Isn’t Necessarily Better
There is a tendency for startups to go “full-suite ahead,” prioritizing the hiring of the C-suite execs who often expect large teams to support their vision when this places a burden on a new startup—and isn’t even necessary. Startups that take the time to step back and figure out where they want to go will be able to create a hiring strategy that makes them instead of breaks them.
That’s not to say that having one or two high-level hires isn’t a good idea in the beginning, as they bring their own network and legitimacy that can attract additional talent. From there, bringing in a mid-to senior-level person who can grow into a C-suite position in a few years can be a beneficial approach.
Looking For Depth Of Expertise
A top priority is hiring for depth of expertise—which is not the same as an extensive resume with a lot of big titles on it. It means that the candidate possesses a depth of experience in the needed area and niche. Often, these are the same people who have a passion for the work and are willing to roll up their sleeves to get things done.
Thriving In The Details
Another priority is tapping people who thrive in the details and have a long history of being operational. Since startups have limited resources, they need a small group of people who are willing to do the nitty-gritty because they are invested in the startup’s mission and are willing to go beyond a job title to get things done—even if this means going to FedEx or taking out the trash (and not waiting for someone to notice or tell them to do it).
Being a self-starter with a sense of urgency is a must for startups and shouldn’t be thrown aside because someone has a fancy corporate title or position.
The Gray Zone
Startups function in uncertainty, shifting landscapes and constantly changing priorities. Talent needs to be able to thrive in the unknown versus the cut-and-dried world of black and white. Being flexible, going with the flow and being willing (and able) to pivot quickly are essential qualities for new hires working in the startup environment.
Additionally, perfectionism can be death for startups where a “ship it” and “fail fast” mentality is the order of the day to beat the competition, get needed feedback and iterate quickly for further innovation.
Finding Your Unicorns
I’ll be the first to admit that the above suggestions are not always easy, but that doesn’t mean they’re not necessary or important. So, where can you find these startup unicorns? The best and first approach to finding these critical hires is tapping personal networks with an emphasis on firsthand experience with the hire (ideally). I’ve seen people who are great during the interview process fail to go the distance when needed.
Additionally, being clear about their key performance indicators (KPIs) from the get-go is critical. A corporate hire being new to startup culture is not a deficit per se, but they should understand the culture and expectations. Clarifying KPIs will ensure that everyone is on the same page, avoiding the trap of a hire taking a lesser title and expecting a promotion a couple of months later.
Clarifying KPIs will also empower startups to compete with larger companies that can offer a more robust salary or compensation package. Outlining a two- or three-year compensation plan that is directly related to KPIs can take the new hire where they want to go in terms of pay and benefits while ensuring that the startup’s needs are met as well.
Conclusion
What’s demanded of startups in talent acquisition is, ultimately, the same rigor required at Fortune 500s. Thinking through the strategy, relying on personal networks, utilizing a robust interview process and being clear on the goal and the skills and talents needed to get there will ensure that startups avoid the common pitfalls that squelch the innovation and success that are waiting to be unleashed.