Hiring is no easy task at a startup; in fact, it is a crucial part of the puzzle. If not done well, the results can be catastrophic.
In an effort to better educate hiring managers on best practices for attracting top talent, thought leaders from around Cincinnati (and Columbus and New York) gathered Feb. 12 at Rhinegeist Brewery for “The ABCs of Your First 5 Hires.”
Taking the stage was a panel comprised of airCFO founder Justin McLoughlin, Venture for America CEO Amy Nelson, Rhinegeist Brewery Marketing Director Tracey Ireland and The Brandery General Manager Tony Alexander. It was moderated by VFA alumnus Max Kilb.
First topic? Getting the right fit.
Alexander noted that since startup teams are often small, everyone must pull a lot of weight to make the machine run. When one person on a team of, say, five, slacks, that means the team loses up to 20 percent of its potential output. Thus, “you have to find someone that wants to work at a startup," he said.
Of course, that's not the only important hiring factor. Nelson added that hiring managers must determine whether a candidate will work well within the company's values and culture. It's one of the ways they can add value to the organization (an ability that Nelson said was also on her and the VFA team's hiring checklist). Additionally, grit and determination, as well as optimism and integrity, also made the list.
Don't interview well? That's not always a problem. Nelson said good references are crucial for applications, and that VFA in particular takes great consideration of the candidate's "product" — their portfolio.
Fit is also bigger than just one position. Nelson also stressed the importance of establishing diversity as a chief value for startups and other entities beginning their hiring process.
“If you don’t have a diverse team within the first 10 hires, you won’t have a diverse team,” she said.
Alexander added that hiring managers should also consider hiring not solely because of a person, but also because of the right skillset necessary for the role. For example: A boss will like a candidate, but will realize they can’t do something, or can’t adapt to learn upon hiring them. While startup teams often have to make quick decisions — and this particular misstep is frequently a consequence of this — McLoughlin encouraged startup bosses to look at a candidate's experience and not just degrees or personality.
The discussion transitioned into making sure employees are onboarded well and kept feeling supported. McLoughlin stressed the importance of periodically assess talent, while Ireland spoke to the positives of managers sitting down often to hear from employees.
But what about the invetible — good employees finding and moving towards new opportunities? While it's important to help team members grow, startups must be prepared to lose some of their staff.
Alexander said that a tip to make transition easier for hiring managers is to look at talented employees as their “on a tour of duty, not [working at a startup for their] career.” During that time, leaders should prepare these employees to add value for around two or three years. It's important to have a process in place to replace that person once an exit becomes apparent.
Nelson added that a manger's job doesn't end once an employee gives their notice — or even once they sense it coming. In fact, if workers are hitting a ceiling, it's important for their leaders to ask them how they can help. Does that mean a promotion? More challenge work? A new job? A founder or CEO can help with that.
And who knows? Perhaps a few years down the road, that person might boomerang back to the startup where it all began, with new vision and skills.
