Hiring as a Startup
The process of hiring is challenging in itself. However, for startups, it can be overwhelming. As a young company with limited resources, hiring the wrong employee can potentially end your startup. First-time founders often have an arduous time hiring their core team as they are constantly waiting for the perfect blend of experience, background, and passion. Furthermore, it can get even more complicated if they begin to consider a few other questions. Should one hire a more experienced and older employee? If yes, how does one manage them? Or should one hire novices for a low cost and train them? How does one retain employees when it is becoming a routine for people to change jobs frequently?
Although it is daunting, hiring as a startup is absolutely huge. You are now in charge of someone else’s livelihood! From a business perspective, it is able to completely alter your company’s bandwidth, a new person dedicating all his or her time to focus on the company means you get to move a lot faster. The boost that another person gives in brainpower and sheer legwork is massive. The time taken to do certain matters will easily be halved. Many founders, who are reluctant to hire even when it is clear as day they are overworked, end up ruing when they realize the difference a new hire can make. Thus, as long as you can afford it, the sooner you hire the better.
Photo by Mimi Thian
Next point you are wondering could be the criteria of the new hire. As inconceivable as it may sound, you should always hire someone better than yourself in certain aspects. For many entrepreneurs, ego is one of the biggest obstacles that prevent them from reaching their full potential. They are often reluctant to seek help from people who are smarter or more talented. However, when that happens, they are limiting the organization to the level of their own ability. According to a research from the Harvard Business Journal, bad hiring decisions may account for up to 80% of employee turnover and that usually could have been mitigated by employing the smartest and most qualified candidate.
Let’s take a look at what happens if you do hire people you consider smarter than you. You certainly will be able to grow the capabilities of your company. As you tend to listen to their thoughts and ideas, expanding on your own and gradually accelerate the growth and strength of your business. Another benefit of hiring smarter people is that they do not require you to micromanage everything they do, you can save time from doing that and yet be less burdened. Besides, allowing employees to do their jobs without micromanaging is essential in maintaining their job satisfaction, especially in a world where 75% of employees change jobs due to friction with controlling managers.
Above-mentioned few points are just small fractions of hiring as a startup. Your first few hires represent a critical phase in the life of your company. Take the time to do things the right way and it will ensure that your employees will be there for the long haul which will be immense in the early days of your business.