How to Hire Your First Team Members as a Startup Founder
Why Your First Hires Matter
As a new founder, expanding your team is a significant milestone. It’s a crucial step that can propel your startup forward or, if not done carefully, become a major setback. The timing and approach to hiring your first team members vary depending on your circumstances, whether you need co-founders, can manage solo until you have the funds to hire, or find yourself in a position where bringing on new team members becomes essential.
When the time comes to make your first hires, the decision-making process can be daunting. The stakes are high, and choosing the right people can significantly impact your startup’s culture and success. Here are some essential tips to guide you through hiring your first team members effectively.
Tip 1: Prioritize Character Over Competency
"Character over competency" is a powerful hiring philosophy that suggests you should prioritize a candidate’s character traits over their immediate skills. While competency is crucial, especially in a startup where every team member needs to contribute effectively, character is what drives long-term success.
Why Character Matters: A candidate with strong character traits such as self-motivation, resilience, and a willingness to learn can quickly pick up new skills and adapt to challenges. They’re more likely to persevere through the ups and downs of startup life, making them invaluable team members.
How to Assess Character: During the interview process, focus on understanding the candidate’s values, work ethic, and approach to challenges. Ask behavioral questions that reveal how they’ve handled difficult situations in the past. Pay attention to how they fit with your company culture and whether they demonstrate a genuine interest in your startup’s mission.
Trust Your Gut: Sometimes, you may meet a candidate who doesn’t tick all the competency boxes but feels like a great fit. If their character aligns with your values and they show potential for growth, consider giving them a chance. A team that works well together will often outperform a group of highly skilled individuals who lack cohesion.
Tip 2: Do Thorough Research
While character is critical, it’s essential not to overlook the importance of due diligence. Even if a candidate seems like a perfect fit, you need to verify their background and ensure they have the skills and experience they claim.
Check Online Profiles: Start by reviewing their LinkedIn and other professional profiles. Look for consistency in their career history, endorsements, and connections that validate their experience.
Contact References: Don’t skip reference checks. Speak with former employers or colleagues to get insights into the candidate’s work ethic, reliability, and how they performed in their previous roles. This step can help you avoid potential pitfalls and ensure that you’re making an informed decision.
Be Cautious but Fair: While it’s essential to be thorough, avoid becoming overly suspicious. Trust is a two-way street, and you don’t want to create an atmosphere of distrust before the candidate even joins your team.
Tip 3: Prepare for the Possibility of Letting Someone Go
Now, there's the other side of the coin…
Because of course, you don't want to get to the point where you need to let someone go either. Making the wrong choices early on can easily lead to a road of dissatisfaction with your hires, and ultimately you may need to fire someone too.
*Cue dramatic music*
I know, it's a difficult word for many of us to hear. That understandable.
I speak with and work with a lot of founders. They are often as anxious (if not more anxious) about letting someone go than the employee themself is about being let go!
However, it's something you'll need to be able to face. Your foundational steps are some of the most difficult in terms of getting a breakthrough, but once you have, your next real challenge becomes growth and maintenance of that energy that came from the breakthrough.
Hiring isn’t just about bringing people on board; it’s also about knowing when to part ways. Unfortunately, not every hire will work out, and as a founder, you must be prepared to handle this situation with empathy and professionalism.
In other words, you'll constantly be on your toes with challenges. So at this stage, if you've got the challenge of needing to let go of a staff member, try to keep the following things in mind:
Firing Can Be Tough: Letting someone go is often harder on the founder than on the employee. The anxiety and emotional weight of the decision can be overwhelming, but it’s a necessary part of leadership. If a team member isn’t contributing as expected, it can affect the morale and productivity of the entire team.
Handle Terminations with Care: How you manage the process of letting someone go reflects your leadership style and impacts the remaining team. Be transparent about the reasons, give fair notice, and provide support to help them transition smoothly. Remember, your actions during this time will influence how your team views you and how you feel about yourself as a leader.
Have a System in Place: Just as you have systems for your business operations, you need a structured process for handling disciplinary actions and terminations. Develop a section in your Operations Manual that outlines the steps to take when an employee’s performance isn’t meeting expectations, including clear criteria for when and how to take action. This system ensures that you handle these situations consistently and fairly.
Final Thoughts: Your First Hires Set the Tone for Your Startup’s Future
Hiring your first team members is a pivotal moment in your startup’s journey. The people you bring on board will help shape your company’s culture, drive its growth, and determine its success. By prioritizing character, conducting thorough research, and being prepared to make tough decisions, you can build a strong foundation for your startup.
So, do diligent research where possible. You can do this by searching their online profiles, like LinkedIn, as well as any other social media you can find. You can also ask for character references from past employers, who you can contact using those reference details.
To end off, here’s an infographic I found with some interesting stats for you to consider. It illustrates just why getting all of this right is so important - so beware! (But also, have fun with it!)
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About Seven
Hey friends! I’m Seven - I write about challenges and opportunities affecting leaders across business. I release a weekly newsletter and a podcast, helping folks understand the leadership journeys and challenges out there, so we can better understand our purpose, place, and potential. The goal: to learn about what it means to be a leader, to support leaders, to find leaders, and to discover the leader within.
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