Early-stage startup hiring: Hiring is always challenging. In this article, we talk about strategies for early-stage startup hiring for an entrepreneur. If you have received your first/second round of funding, this article is relevant to you. The discussion here suits an entrepreneur who may have just achieved their product-market fit and looking to expand. (What is product-market fit?)
Early-stage startup hiring
Hiring at any stage is hard. It is particularly difficult as an early stage startup since you either don’t have enough funds or clear job descriptions. By nature, the type of job in a startup keeps changing. Hence it is important to ensure that you hire people who aren’t rattled by change easily. Most people are afraid to work in a startup because of its changing nature.
But this might also be your biggest asset. The nature of the job is such that an employee can contribute in multiple ways. While interviewing for an early-stage startup, make sure that you try to understand the candidate. The most important thing to identify in this interview is their motivation. Ultimately, the startup hiring process should result in a partnership that will work out for you both. In this section below, we will talk about the various strategies you’ll need to think before employing someone to join your early-stage startup.
Be clear what you’re hiring for
No doubt that you’ll need a great team to help you grow. But this starts with a clarity. You might not be able to provide a job description that details all work a new employee would do. But, you must be able to answer a few questions such as:
Are you hiring for a Founding Team?
Maybe you’re well beyond this stage. However, this category represents a senior team and behave as a major stakeholder in your business. You’re looking for their transferrable skills aside from their specialisation. Any person joining the senior team in a startup must ensure that their role evolves into a generalist. Most important factor to remember here is that this person must chime with the values of your startup
Short Term or Long Term
Clearly define what you’re hiring for. Sometimes you’ll be able to get specific work done by consultants or outsourced resources. However, if you’re looking to hire for the long term, think about how this person can grow with your organisation. A core requirement of being in a startup is that they must be able to wear multiple hats.
Sell the vision – not where you currently are
When you’re performing early-stage startup hiring – most people join you for the journey. You don’t always have a huge list of accolades to attract the most popular people. The best thing you can do is ensure that you articulate your vision clearly.
This by turn translates into what the job can become of person joining your startup journey. A part of selling your startup vision is the ability to grow and expand into a startup. The biggest fear someone might have into joining a startup is when it starts thinking like a small business. (Read: Difference between startup and small business)
Compensate – fair and equitable options
People don’t join you for the compensation, but they will leave you for one! Compensation alone will not be sufficient to attract the right kind of people for your early-stage startup. The best people often join you for the quality of work and how it can let them grow. The best resource I can guide you towards is the beautiful work elucidated by Daniel Pink in Drive about intrinsic motivation.
However, when you hire people for a startup, you can’t offer them something worse than what they’re worth. This clearly conflicts with the value of fairness and taking advantage of someone. In joining an early stage startup, someone is actually taking a risk with you. And if it is not rewarded in proportion, they’ll easily lose out the motivation. You can’t afford to lose good people in any organisation, let alone startups. Think about stock options and giving them a part of ownership in the company. This helps gather a sense of connection to the consolidated effort.
Ultimately, in a startup, you’re creating a journey. Anyone who joins you in the early stages will become a creator of this journey for the future. Make sure that you’re hiring for people who can grow into this persona.
