Hiring is one of the most difficult aspects of starting a new business.
But as a founder, it’s easy to get carried away with recruitment and make it more complicated than it needs to be. You end up with too many candidates, too many interviews, and too many assessments.
You might start offering excessive salaries to get new starters over the line. And that’s before we’ve mentioned the expensive recruitment agencies who promise to solve all of your problems.
All this can be very costly, and not only in a literal sense: it also takes up time and energy that could be better used elsewhere.
When it comes to hiring less is more.
So, what exactly do I mean?
1/ Do it yourself
Take a hands-on approach to hiring and trust your gut. Never try to outsource your recruitment to amorphous agencies who don’t know your business as well as you.
It will only leave you with a large bill.
Instead, identify three high-quality candidates via your personal network and LinkedIn. Then, interview them yourself.
Don’t fall into the ‘perfect candidate pipe dream’ trap.
On salaries, founders should look to offer less than what is typically expected in the market.
As a start-up, you’re never going to find the top technical candidates: they’re all applying to the biggest corporates, and that’s fine. Instead, find a candidate who can do a good job. Don’t fixate on finding someone who is perfect.
There’s also a benefit to hiring people who want to work at start-ups that are only just getting off the ground. They often work harder and stay loyal to companies willing to give them a chance and support them on their first step into the industry.
Look for candidates who are entrepreneurial, willing to learn, and are good team players. While technical skills are important, it’s personality that tells you more about whether a team member will succeed over the long run in your business.
2/ Take it slow
Never rush to hire. If you’re an AI startup, you probably need programmers and data engineers. But do you need a HR manager, in-house lawyer, or dedicated finance team? Probably not.
Some founders might dislike this but you can take on a lot of these roles yourself. It can be exciting to learn new things. If necessary, existing team members can be trained up to support you with extra workload – at least until you become more profitable.
As someone who has bootstrapped a tech business from scratch, trust me: You don’t want team members on your books who are not actively contributing to productivity.
There’s a reason the three-month probation exists.
You’ll be haemorrhaging money by the tens of thousands – if not more – and you’ll either find yourself struggling to persuade staff to pack their bags or have them resign out of boredom.
That’s never good for team morale.
You also have a better chance of bolstering your management skills with small teams before introducing multiple layers of management. That means you can focus more time on monitoring staff performance, as well as providing them with the motivation, support, and rewards required to encourage them to stick around.
3/ Don’t take it too slow
Too many companies are obsessed with unnecessarily long candidate shortlists, as well as rigorous interviews and assessments.
It’s no surprise then that the average response time after an interview is 24 days, according to Indeed.
So once you have found your person, don’t delay. Get that offer out.
4/ Don’t be afraid to fire
This is the flip side of hiring fast. While it might seem harsh to develop a ‘mean streak’ when you’re attempting to build a positive culture within your company, there’s a reason the three-month probation exists.
You need to have a transparent conversation as soon as you realise things aren’t working. It’ll make life easier for you and the employee.
Knowing when to make the correct calls and having a strong set of values that you abide by as a founder is important. How can you ever expect to set expectations for your team to follow or know what recruits to look out for in the future?
5/ Don't pay too much
When it comes to contracts, founders should look to offer less than what is typically expected in the market – and then supplement that salary with equity. As a start-up, you need to recognise that you’re operating on a budget, and you shouldn’t pretend otherwise.
Plus, this enables you to filter out employees who might leave at the drop of a hat for a higher salary elsewhere. And if they accept the offer, they’ll likely give 110% for the foreseeable future, playing a pivotal role in the company’s growth.
As your staff increasingly gain your trust, you can start to reward them with better salaries and bonuses, instilling a culture of loyalty and shared success.
After your startup has scaled, you’ll thank yourself for taking this approach to hiring. I still work with many of my first team members 20 years later – and all my businesses have been better off.
