In the lean world in which startups now operate, making good hires is more important than ever. In simple terms, startups can’t afford to make mistakes because the hiring process eats up a lot of valuable resources, particularly time.
For fast-moving startups that need people to drive growth, the ability to find and hire the right people is a strategic and tactical priority. This urgency, however, can be dangerous because it tempts a startup to hire for the sake of hiring. The need to move quickly means startups could hire the wrong person.
So how do startups hire smarter and better so they can avoid mistakes?
The most important consideration is making sure they have a clear idea of what job needs to be filled and the responsibilities of the position. If you’re going to be hiring a marketing person, be clear on why is it a priority and what exactly will they be doing to support growth.
As crucial is ensuring an employee is the right fit for the corporate culture. You want people who understand what it’s like to work for a startup, and who are excited about the opportunity to be part of a team building a new product. They need to get the idea startups are flexible, fast-moving and can be an all-consuming activity.
As much as startups want to hire quickly, they also need to be pragmatic about getting the right person. If a new potential hire doesn’t feel right, it probably isn’t. It’s better to wait than pulling the trigger on a new employee, only to discover they’re not it.
To find the right talent, startups should explore multiple avenues. This includes friends, their networks, investors, employees, job boards and headhunters. The more sources, the better chance of discovering the right person.
Note: Be careful about hiring friends. While they’re a convenient option, mixing the personal and professional can be a perilous combination unless they’re the right fit.
Then, there’s the interview process, which be challenging given most startups have likely not done much hiring. Rather than have someon come in for an interview, look at it as a discussion in which you’re trying to get a better handle on someone’s experience, attitude an experience.
In most cases, you should get a good idea fairly quickly about whether someone has potential to become an employee. For a small startup, potential hires should meet with several members of the senior team so there is collective sign off before an offer is made.
The bottom line is hiring is as much art than science but by approaching the process in the right way, it reduces your chance of making a mistake.
More: A couple of posts from Jeff Richards about hiring: “Always be Recruiting” and “Eight tips from founder turned VC”, which encourages people to hire the best, even if it means paying them more.
