Relationships: Who Should Be Your First Hire?
What type of previous relationship is best?
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You’ve built a strong founding team, and your startup is beginning to gain traction. Now, the next big challenge lies in expanding your team with your first or second hire. This decision can be just as critical as choosing your co-founder, as these early hires will play a pivotal role in shaping your company’s culture, values, and trajectory. The question is: Who should you bring on board, and what kind of relationships will lead to the most success?
This article explores the challenges, potential pitfalls, and best practices for selecting your first or second hire, drawing on insights from research, personal experiences, and interviews with founders and venture capitalists.
Avoid the Familiar Trap: Hiring Friends and Family
Why It’s Tempting:
When recruiting your first hire, the most convenient and comfortable option might be to turn to friends or family. These are people you trust, understand you, and share your enthusiasm for the venture. It feels like a natural choice, especially in the chaotic early stages of a startup when familiarity is comforting.
Why It’s Risky:
While hiring friends or family might seem like a good idea initially, the data shows it’s often a recipe for disaster. According to research by Professor Noam Wasserman and Matt Marx, each additional social relationship (e.g., a pre-existing friendship or family connection) within a team increases the likelihood of co-founder or early hire departure by 28.6%. This is because pre-existing relationships can create emotional complications, blurred boundaries, and a lack of accountability that can hinder business growth.
The Potential Downfalls:
1. Difficulty in Maintaining Professionalism: When you hire friends or family, it’s challenging to separate personal relationships from professional responsibilities. This can lead to unproductive conflicts, misunderstandings, or even resentment if things don’t go as planned.
2. Hesitation in Addressing Performance Issues: If your friend or family member isn’t performing well, you might be reluctant to confront them or take necessary action, fearing the impact on your personal relationship. This hesitation can lead to decreased productivity and even jeopardize your business’s success.
3. Impact on Personal Relationships: The emotional toll of mixing personal and professional lives can be immense. If the venture fails or if you’re forced to let your friend or family member go, it can strain or even permanently damage your relationship.
Key Takeaway:
Hiring friends or family might be the easiest option, but the risks outweigh the benefits. The potential for emotional complications and conflicts can hinder your startup’s growth and strain personal relationships, making it a path best avoided.
Finding the Right Fit: Leveraging Professional Relationships
1. Previous Co-Workers: The Ideal Early Hires
Hiring someone you’ve worked with before can be one of the most effective ways to bring in your first or second employee. Former colleagues offer several advantages, including a proven track record, a shared work ethic, and an understanding of your working style.
Why They’re the Best Option:
• Proven Professionalism: You’ve seen firsthand how they perform under pressure, how they handle challenges, and how they collaborate with others.
• Clear Understanding of Their Skills: You’re already familiar with their strengths, weaknesses, and how they can contribute to the startup’s success.
• Established Communication: You’ve already developed a working relationship, which means you can skip the awkward “getting to know each other” phase and jump straight into productivity.
Example Scenario:
Imagine you need someone to manage your startup’s marketing efforts. If you’ve worked with a marketing specialist at a previous job who you know is skilled, reliable, and passionate about their work, they could be the perfect candidate. This familiarity ensures they can hit the ground running, bringing immediate value to the company.
Key Takeaway:
Your first hire should ideally be someone with whom you’ve already established a professional rapport. Former colleagues provide a sense of reliability and efficiency that’s invaluable in the early stages of scaling your business.
2. Acquaintances: A Middle Ground Between Comfort and Caution
Acquaintances fall into an interesting category—neither strangers nor close friends. These are individuals with whom you have some level of familiarity but lack a deep personal relationship. Hiring from this pool can offer a balance between trust and professionalism.
Why It Works:
• Shared Connections: Acquaintances often come recommended by mutual contacts, which means there’s an element of trust and validation already in place.
• Less Emotional Baggage: Unlike hiring friends or family, working with acquaintances allows you to maintain professional boundaries, making it easier to address performance issues or disagreements.
Example Scenario:
If you’re looking for someone to manage your startup’s finances, an acquaintance introduced to you by a trusted contact could be an ideal candidate. They come with a degree of credibility but without the complications that can arise from personal relationships.
Potential Pitfalls:
Hiring acquaintances isn’t without its challenges. Since you don’t know them as well as former colleagues, there may still be an adjustment period as you learn to work together. However, this approach offers a healthy balance of familiarity and professionalism.
Key Takeaway:
Hiring acquaintances allows you to tap into a trusted network while maintaining the necessary professional distance, making establishing a working relationship based on mutual respect and accountability easier.
3. Leveraging Your Extended Network: 2nd & 3rd Connections
Why This Approach Works:
The best way to find someone who has the skills and mindset you need is often through your extended network—friends of friends or professional connections from LinkedIn, industry events, or mutual contacts. These candidates offer the advantage of being vetted by someone you trust, providing a sense of credibility and assurance.
How to Approach This:
• Ask for Referrals: Reach out to your network and ask if they know anyone with the skills and experience you’re looking for. You might be surprised at how willing people are to help.
• Utilize Online Platforms: Leverage platforms like LinkedIn to identify potential candidates who share connections with your network. A warm introduction can make all the difference when approaching top talent.
Example Scenario:
If you’re seeking a talented engineer, reaching out to your extended network can connect you with someone with a proven track record, relevant experience, and a shared connection that vouches for their abilities.
Key Takeaway:
Don’t be afraid to lean on your extended network when recruiting your first hire. By tapping into these connections, you increase your chances of finding a candidate who is not only qualified but also has a level of credibility that accelerates the hiring process.
Values, Vision, and Soft Factors: Ensuring Alignment
Why Soft Factors Matter:
Hiring your first or second employee is not just about finding someone with the right skills—it’s about finding someone who aligns with your startup’s values, vision, and culture. These soft factors can be the difference between a hire who thrives and one who doesn’t.
Key Questions to Consider:
• Do they share your vision for the company? Your early hires should be passionate about your mission and excited about the journey ahead.
• Are they adaptable and willing to wear multiple hats? Startups require a level of flexibility that not everyone is comfortable with. Make sure your hires are prepared for the dynamic and often unpredictable nature of startup life.
• Do they embody your company’s values? Your first hires will set the tone for future employees, so it’s essential to bring in people who reflect the culture you want to build.
The Importance of Cultural Fit:
These early hires will play a significant role in shaping your company culture. A great cultural fit fosters collaboration, reduces friction, and creates a sense of shared purpose that drives the company forward.
Key Takeaway:
Ensure that your first hires align with your company’s vision, values, and culture. Hiring someone who shares your passion and commitment will help build a strong foundation for future growth.
Final Thoughts: Building a Team That Complements Your Founders
Hiring your first or second employee is a significant step in the evolution of your startup. These early hires will help you scale, bring in new expertise, and contribute to building a culture that attracts future talent. By avoiding the temptation of hiring friends or family, leveraging your professional network, and prioritizing values and cultural fit, you’ll set your startup toward sustainable growth.
Key Takeaways:
• Avoid hiring friends or family: The potential for emotional complications and conflicts makes this path risky.
• Prioritize professional relationships: Previous co-workers and acquaintances offer a balance of trust and professionalism.
• Leverage your extended network: Tap into your 2nd and 3rd connections to find candidates who bring credibility and expertise.
• Focus on soft factors: Ensure that your hires align with your startup’s values, vision, and culture.
By being strategic, intentional, and disciplined in your hiring process, you’ll find the right individuals to join your journey and help propel your startup toward success. Your first hires aren’t just employees—they’re partners in building your vision and shaping your company's future.
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