Start-up culture has received a lot of attention in recent years. These think tanks—however small—play a large roll in economic development and growth. They create jobs, and—with the right idea—can create valuable products and services for patrons who are looking for the next it product.
You don’t have to look further than Silicon Valley to see the massive success that early start-ups like Facebook have become.
In the early stages of start-ups, there is nothing more valuable than human capital! In fact, to be successful in the marketplace, you must first win over your employees.
This is no easy feat; however, with the appropriate attention to detail start-up hiring can be an integral component to your companies success.
Takes notes because in this guide we will cover a multitude of hiring topics. To elaborate, you will learn:
- How to Hire Without Breaking the Bank
- Find Specialized Talent
- Hire at the Appropriate Time
Build a Reliable Team: Start-Up Hiring
Hire Without Breaking the Bank
Hiring a new employee can be a valuable experience! If you’ve done your due diligence then you’ve found an employee that can progress the start-up to the next level. Nevertheless, if you hire a questionable employee, you may have a financial drain on your hands. Before we take a deep dive into start-up hiring tips and trick, we will discuss why it is important to hire the appropriate individuals.
The Cost of Hiring
The old saying goes, “You have to spend money to make money.” This is especially true for business owners and hiring manager who onboard new employees. In fact, SHRM estimated in its Human Capital Benchmarking Report that the average cost-per-hire is $4,129.
How is this possible?
All in all, Hundred5 estimates that there are several costs that contribute to the overall cost of hiring. These costs include:
- External hiring or internal HR team
- Career Events
- Job Board Fees
- Background Checks
- Onboarding and training
- Salary and taxes
Overall, the cost of start-up hiring is far-reaching. For this reason, it is important to do your due diligence and hire the best individual.
The cost of hiring a bad employee
The cost of hiring a bad hire is insurmountable! In this case, we’re not just addressing the financial cost, but also the effect on company culture.
Company culture is a huge buzzword in the human resources industry, and for good reason! Company culture is the personality of the company. The company culture involves a variety of factors including work environment, company mission, value, ethics and more. All in all, company culture is the common ratio amongst all company workers.
With this in mind, it is important to screen candidates for culture fit. Otherwise, the ramifications are harsh and widespread. One less-than-desirable employee can affect the overall mood, attitude, and atmosphere of the office.
To enumerate, turnover at companies with a poor culture is 48% according to TruPath Search. This high turnover can surmount to thousands of lost revenue. About $11 billion is lost each year due to employee turnover. In comparison, turnover at companies with a satisfactory culture is 14%.
One bad hire can affect the overall company culture and lead to great turnover. Thus, affecting the companies bottom line. Take a moment to review the importance of employee retention, and learn how to hire a talented individual that fits your company culture.
Find Specialized Talent
All in all, hiring the wrong person is a dealbreaker.
How do you hire the right employee?
To hire the right employee, you must determine what your company needs are. Is your start-up in need of massive funding for a start-up application? A CFO may fit your needs. We’ll elaborate on specific executive titles for start-ups later, but for now, brainstorm what your start-up’s needs are.
All in all, at the end of your brainstorming session, you should:
- Define clear criteria. Write a concise job description that details skill requirements, everyday duties, and personal qualities that will fit well in your start-up culture.
- Create hiring workflow. Outline the interview process—as well as, interview questions—to create a smooth and seamless process.
- Ask the right questions. You can only tell so much from a resume! Research the appropriate interview question to gauge cultural fit and questions to determine adaptability in the fastpaced start-up industry. In addition, be prepared with more questions for second-round interviews.
- Build an interview scorecard. Compare and contrast candidates on a similar scale with values that are important to the position and company.
Start-up hiring can be difficult; nevertheless, with the correct processes, you can hire specialized talent. In all, specialized talent can increase the productivity and efficiency of your company.
Still unsure of who you should hire? Check out the following common executive titles for start-ups.
Executive titles to consider for start-ups
In the early days of your start-up, it’s pretty common to be responsible for a multitude of tasks. However, if the workload has become too heavy or you’re in need of a second opinion, consider hiring a “C-Suite” for your business. A C-Suite refers to a level of chief executive positions.
Here are the most common executive titles for start-ups:
CEO (Chief Executive Officer)
Although most founders of start-ups will typically take this role, a CEO is responsible for the overall strategy of the business and usually oversees over executive job appointments. In addition, they should be able to make long-term strategies and help oversee general operations alongside the COO. A great CEO is directly responsible for the success of any company, so choose wisely!
CFO (Chief Financial Officer)
The CFO will oversee all tasks related to financing and budgeting activities. They typically will manage financial forecasts and planning, and may also be responsible for developing relationships with external stakeholders. In addition, the CFO is in charge of financial reports for the business.
COO (Chief Operations Officer)
The COO is second in command to the CEO. They are in charge of overseeing all operations for the business and will strategize with the CEO to make the best possible decisions. In addition, they may be in charge of people management and hiring. The COO helps provide opinions and guidance on key decisions.
CMO (Chief Marketing Officer)
A CMO is responsible for all marketing related efforts for a business. They may direct advertising and marketing campaigns, oversee market research, and brand management. They will typically collaborate with other departments and executives when launching new marketing initiatives.
CTO (Chief Technology Officer)
CTOs are the highest possible technology-related position. They will typically lead any technology and engineering divisions and staff and have been traditionally more prominent in tech and IT start-ups. However, CTOs have become increasingly popular roles due to the integration of technology in many industries and start-ups.
These executive titles for start-ups are not all-inclusive or applicable to every single start-up. Use your best judgment before you start the recruitment process for the C-Suite positions.
Hire at the Appropriate Time
There is a multitude of professionals seeking employment. However, to find the best, you must search for them at the appropriate time. According to Career Sidekick, the best time to start hiring is towards in January and February.
Why?
This is when many professionals begin to consider career transitions—New Year’s resolutions, anyone?
Additionally, this is the time period where soon-to-be-graduates start looking for jobs. In fact, Paul Feeney, an international executive auto-recruiter, states: “[Spring] is when recruiters tend to snatch up soon-to-be college graduates. Companies will start recruiting in the spring to have everyone in place by June 1.”
Does this mean you won’t find a qualified individual outside of the optimal hiring period? No.
There are special exceptions to this rule considering seasonal positions and industry. Nevertheless, start your hiring endeavors at the appropriate time to attract the most talented candidate pool.
Partner with an executive search firm
Start-up hiring is a tricky venture! There are several risks associated with hiring incompetent individuals including financial drains and culture impairment. However, with the right guidance on how to hire employees for a start-up, the hiring and onboarding process can be smooth and unhindered.
TruPath Search has facilitated many hiring processes like this using their search process TruProcess. TruProcess is a five-step technique in which a TruPath recruiter takes a hands-on approach to learn your start-up to best serve your needs. In addition, the associate collaborates and strategizes with you in order to recruit professionals that align with your goals and values.
With over 15,000 direct hires placed since inception, TruPath is the recruiting firm that you can trust. Contact TruPath Search today to start your executive search for qualified start-up leaders.