Lessons Learned: Hiring

1) HR is serious business. Don’t fall into the trap of thinking that people would be dying to work for you. The problem is twofold, firstly, startups are typically strapped for cash and offering competitive salaries is often not possible. Secondly, startups have a very high probability of failure making them risky bets for potential employees. Keep an eye for candidates with an entrepreneurial mindset, who thrive in a high risk-high return environment.

2) Paying market competitive salaries is not enough, because it simply means that your compensation is average. Given the choice between a stable company and a risky startup offering the same package, which one would you chose?

3) Assuming you have the cash, one option would be to pay higher than the market average. This is generally a futile (often disastrous) exercise. The reason: Loyalty. If the sole motivation of a candidate to work for you is because you offer 10% more than the market, do you really think he’s going to stay when someone offers him 15% more?

4) The trick is to show a bigger, long-term picture. Where will the company be 5-years from now? What does it mean for the candidate? Remember the bigger picture doesn’t have to be a monetary one. It could also be an articulation of the skills that the candidate will gain, and the exposure he will get.

5) Manage expectations. Don’t give false hopes to potential employees, just to get them onboard. Tell them the about chances of success, and the possibility of failure. Regardless of which way the venture goes, your reputation and integrity will come under serious doubt if you deliberately show a partial, rosy picture.