recruiting staff for start-ups - recruitment genius
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Creating a business from scratch is hard work, even when you’re guided by long-term goals and ambitions. In the early days, all of the excitement can make it difficult to think objectively and make decisions about the future of your company and where you can take it. And practically none of these decisions are more important than whether to go solo or recruit staff to help you along the way.
Recruiting staff for start-ups
RECRUITING STAFF FOR START-UPS
Optimism and commitment can blinker you to
harsh realities, such as scarcity of quality staff
or unrealistic recruitment timelines. Worse still,
many founders operate solely by gut and intuition
rather than by carefully and rationally assessing
every candidate. So how can you make the right
decision about whether or not to hire, and
how should you approach the process?
We put together this guide to help you make
coherent decisions and align hiring processes
with your firm’s resources, stage of development,
culture and — most importantly — your very own
entrepreneurial style. After all, you probably
started your business because you wanted to
do things on your own terms. We want to help
you to make the right choices for you, which will
ultimately lead to a better and brighter future for
your company. Before taking any action, sit down
and read this guide and then consider carefully
what we’ve presented here. We’re sure that it will
make recruiting one less thing that you need to
worry about!
The recruitment paradox The trouble with recruiting is that the whole
notion often goes against the very reason why you
wanted to set up a business in the first place. You
wanted to be your own boss, but when that
means you’re in charge of everything, including
other people, it creates a whole new pressure
similar to the one that you wanted to escape.
If you are a control-orientated founder, the
tension of trying to do everything whilst
maintaining control (often to protect choices
and decision-making power) becomes increasingly
difficult. Worrying signs you are control
orientated include recruiting staff who are either
inexperienced or don’t question your authority,
or who don’t go beyond the second phase of
recruiting that we’ll describe later.
In contrast, if you are a wealth-orientated founder,
you realise that you can get ‘rich’ more easily
though other people’s efforts, but that you might
not be able to control everything. True wealth-
orientated founders create value by recruiting
people that plug knowledge and skill gaps,
or recruiting people that could do an even
better job than they could. In our experience,
we recognise these successful business owners
often jump to the third phase of recruitment.
Of course, control-orientated founders can be
successful if they create businesses where the
concept is relatively simple, easy to implement
and not time-sensitive; however, we often find
they stay solo or have companies with impeded
growth opportunities.
Quick guide
RECRUITING STAFF FOR START-UPS 3
So first identify the type of founder you are.
If you’re control-orientated, either accept it or
accept that you can’t do everything (and would
not want to) and will only realise your business’s
full potential with people. It’s probably already
obvious to you which one you are, and it doesn’t
take a rocket scientist to work out how this could
impact on your business.
Are you recruiting for the right reasons?
When you first recruit, remember that the ONLY
reason you are employing staff is to generate
more value that your customers will pay for.
Learn from other people’s mistakes: many
companies during the recent recession made
redundancies and their profits shot up because
they had poorly performing jobs. Ask yourself
why it is that you want to bring more people into
your business. Do you genuinely have a plan for
how their roles would add value?
Or are you just doing it because it’s what you
think you should do? Recruiting staff can be one
of the best things that you could do in certain
circumstances, but it certainly isn’t your only
option. If you’re too busy, you could prioritise,
streamline or outsource the work so you are
focused on your core competency.
If it’s just a seasonal issue, you could bring in
temporary staff or contractors. Before rushing into
anything, know that recruiting staff isn’t always
the right option and it isn’t always best for your
business. Have you really considered whether it’s
the route that you should be taking?
Recruiting for the long-term — what steps do I need to follow?
Once you’ve decided that recruiting is the right
route for your business, it is vitally important
that you do not jump into anything but take a
considered approach. Based on our considerable
experience, we have observed three distinct
recruitment transitions in business.
First, when entrepreneurs decide to build a
start-up team, they often draw from their close
friends and family. Though this has its obvious
benefits, sometimes recruiting outsiders with more
balanced expertise and abilities is a better idea.
Working with family and friends can be tricky
because people naturally tend to avoid situations
or decisions that may negatively affect their social
relationships. In addition, the stresses involved in
launching a start-up put tremendous pressure
on personal bonds.
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4RECRUITING STAFF FOR START-UPS
Next, if friends and family are not suitable,
the founder will often hire less-experienced
generalists who will work for lower salaries. If a
company fails to grow beyond this stage it is often
because the employees do not have appropriate
and complementary skills, or the business
owner is happy with the status quo.
During the third and final transition, another layer
of management is formed. It is often at this point
founders must re-evaluate initial hires to make
sure they are adapting to the firm’s evolving
needs. Slowly, an organisational hierarchy is
put in place, salaries become more competitive
and staff are recruited based on competency.
We have observed that the fastest growing and
most robust organisations skip straight to the
third and final phase and immediately recruit the
most competent staff, and we would strongly
recommend that you take that course of action.
In the long term it will save you cash, prevent
headaches, and put your business on the quickest
path to success.
quickly as possible are as follows:
• Avoid generalist all-rounders when you’re
selecting staff
• Identify specific roles and tasks that you need
your staff to carry out
• Create your job description based on analysis
rather than assumption
Of course we recognise that start-ups aren’t
smooth operations. You’ll need someone who’s
flexible, someone who’ll adapt to change, and
someone who’s willing to muck in and get their
hands dirty. In our guide Realistic Recruitment,
we set forth a way to estimate if your ‘perfect’
person actually exists. You must answer the
question, ‘If I am your perfect applicant, why
should I leave a company I am happily employed
at and join you rather than your competitor?’ It
is worth acknowledging a subtle nuance: that
candidates feel a greater level of psychological
anxiety about joining a new start-up and
particularly about being the first employee.
For this reason, you have to be even more
realistic about recruiting staff.
Specific considerations forstart-ups
Start-ups are very different creatures from
established businesses, so it makes sense that
you have your very own set of considerations to
make. Let’s take a look at what you need to do
to recognise the nature of your business in the
recruitment process.
• How will you accurately portray your company
in the interview stages?
One of your greatest strengths will be how
passionate you are about your business. However,
you should resist the temptation at interview
stage to try and make your company sound more
established and ‘fully functional’ than it really is.
Be very honest and open with the candidate about
what stage the company is at and what they can
expect, and that way you’ll be more likely to find
someone who will thrive on the real-life challenges
and opportunities presented by your business,
rather than being frustrated by them.
• Have you recognised the time that needs to go
into your decision?
Because you need to invest in some solid
professional expertise, never rush a decision.
Use a validated and reliable competence-based
psychometric selection tool, such as a quick and
Quick guide 1
RECRUITING STAFF FOR START-UPS 5
simple GIA test that will predict their capacity and
ability to learn — ultimately ensuring you are
not wasting your valuable cash. Recruitment
Genius can run a validated GIA test on your
behalf, and if you would like to know more, we
have a guide to psychometrics, accompanied by
a webinar available online. Or, of course, don’t
hesitate to contact your account manager, who
will be happy to explain everything.
• How will you manage the financial aspect?
Start-ups are often in a vulnerable financial
position. Whilst the costs need to be balanced
with the time and distraction of managing a
recruitment process, we would always recommend
cost-effective solutions.Because start-ups
usually face significant financial restraints, think
imaginatively about the reward package and the
nature of the contract to ensure you get the best
fit whilst also maximising your scarce funds. For
example, if the role is important and you recognise
someone could contribute a lot of value to your
business, consider offering equity as an incentive.
Ensuring you have the basicsin place
Unfortunately there is a certain level of
bureaucracy involved when it comes to recruiting.
The good news is that some basic considerations
in this respect will help to ensure that you’re
compliant with legislation and don’t face any
problems further down the line.
• Payroll
You need to pay people and comply with taxation
governed by HMRC regulations. If you don’t have
the financial expertise, the easiest way to achieve
this is to use an outsourced payroll solution.
Quick guide 1
• Employment contracts
Be aware that it is a legal requirement to issue
new employees with a written statement of
employment particulars within eight weeks.
Ideally, this should be in the form of a contract
of employment.
• Insurance & pensions
You will need to take out Employers’ Liability
insurance and, when you employ over five people,
make a stakeholder pension available.
• Health & safety
There are certain steps you need to take to ensure
that you’re providing a safe working environment
for your staff. Make sure that you have these in
order before your recruit starts work.
• HR policies & procedures
Introducing key HR policies and procedures (such
as attendance, disciplinary and grievance), can
feel like a huge headache for small businesses.
Whilst it is not essential when taking on your first
employee, it is worth investing in these as they
clearly articulate a company’s expectations
and explain how any issues will be dealt with.
When your first hire starts
Unfortunately there is a certain level of “Once
you’ve found the right person, you need to get
off to the best possible start”. Recognise that
it’s a milestone for both of you, so prepare a
good induction and clear your diary for their first
day. Discuss priorities, expectations and agree
measurable objectives and service levels. Setting
these standards from day one not only ensures
they get up to speed quicker, but it’s a lot easier
to get things right from the start than trying to
change behaviour later on.
6RECRUITING STAFF FOR START-UPS
Throughout their induction it is especially
important you make sure your door is open for
questions, as many procedures and policies may
not have been created at this stage. Introduce
regular reviews and provide balanced feedback.
A particularly useful question for a founder of a
start-up to ask is, ‘What have you noticed that we
could improve?’
An outsider’s point of view is something that you
rarely have the chance to get, so make the most of
the opportunity and, most importantly, act on any
valid points and suggestions.
If you’ve been working on your own, you need to
understand how to delegate and take constructive
feedback. Particularly if you are control-
orientated, you must not be too precious.
Build some team spirit and have some fun
while you work, even if it’s just the two of you!
Remember that as an entrepreneur, you have a
huge personal stake in the success of
your business.
An employee, no matter how enthusiastic, will
never have the same level of commitment as
you. This means that you cannot and should not
expect them to devote as much of their life to
the business as you do. Recognise that everyone
makes mistakes — even you! If your new team
member does not immediately meet your high
expectations, don’t automatically treat it as an
opportunity to get rid of them.
You’ve invested a lot of time and money recruiting
them, so unless the mistake threatens the
business’s survival or reputation, review what you
can both learn from it.
Quick guide 1
A final note…
We hope that this guide has helped you to think
more objectively about the recruitment process,
and given you plenty of practical tips for what you
need to consider. Recruiting for your start-up isn’t
easy, but it’s sometimes the absolute best decision
when it comes to building your business — and
sometimes, saving your sanity!
Recruitment Genius has worked with multiple
start-ups to help them make the right decisions
and attract the talent they need to really make a
difference. We have lots more advice available.
Please get in touch to find out how we could
help you.
© Recruitment Genius 2013-2017. These guides are not intended to be, and should not be relied on as,
professional or legal advice, and clients should verify independently any statements made in them
and rely on their own judgement when adopting any suggestions or ideas in them. Recruitment Genius
does not assume any liability in relation to such guides.
Please call: 01732 617 460 [email protected]
Have some questions?
A list of other guides thatmay be of interest:• Ten tips to improve the success of your online recruitment advertising
• Create effective job description and person specification for better hiring
• Why and how to respond to applicants
• Screening CVs and shortlist candidates for interview
• Conducting telephone interviews
• Legal requirements of shortlisting
• Effective interview techniques
• Illegal interview questions
• Making a job offer
• Effective reference checking
• Inducting employees
• Secrets to online recruitment success
• Selecting the best flat fee recruitment company