Is your startup hiring?

If it is, you are likely asking yourself who it is you truly need to hire.

You often have many needs, but you also have a limited payroll budget. The temptation is always to hire the most technically skilled person for the job, for the least amount of payroll. Getting the biggest bang for your buck sounds logical, but is it?

If you have started your hiring search by developing job descriptions that incorporate both hard skills and soft skills, you’re off to a good start. When those resumes start coming in for review, there are other things to consider. For example, are you looking for generalists or specialists? Do you want individuals with a small company background or big company background? How about experienced versus inexperienced? It depends in part on your business needs.

If your business operation has formalized processes and procedures, you will likely want to hire a specialist because they are likely to be focused on maintaining efficiency in their areas of expertise. If your business is more flexible than formalized, you might find that a generalist is a better hire because they can tackle almost any task with some degree of efficiency and effectiveness (Wasserman, 2012). Generalists bring a broader skill set that may help you get your business off the ground, but as your business grows the job requirements will likely become more specific, and you may find the need more specialists to support your day-to-day operations.

Related to the consideration of a generalist versus a specialist is the place at which the applicant’s prior experience has occurred. While some argue that those with a lot of experience in a small company are a better fit for a startup because they have been in the trenches and likely understand the challenges (Wasserman, 2012). Conversely, those who have a big company background can bring a wealth of knowledge about operational processes that might be beneficial to a startup (Wasserman). The experience that comes from each background can add value to a startup founder, but the big company versus small company experience...

Thinking Hard and Soft

Skills are both quantitative and qualitative.

Quantitative, or hard skills, are measurable and can be, for the most part, expressed with numbers. These are skills that can be taught, defined and measured. Accounting, architecture, computer programming, and auto mechanics are among many hard skills. Hard skills are acquired in on-the-job training, formal education, and apprenticeships. And when you complete your training you are thought possess the skills for which you have been trained. You have a certificate or diploma that asserts in an objective manner that you have attained a certain level of proficiency with consistent results.

Qualitative, or soft skills, are also measurable, but not necessarily by quantifiable means. Most soft skills are considered personal attributes such as patience, tolerance for ambiguity, empathy, courtesy, flexibility, decision-making, reliability, or language proficiency (Ramsoomair & Howey, 2004). Of course, these skills can be taught, too. You might have learned them at home, on the playing field, or in a classroom. However, defining and measuring the impact of these skills is much more difficult. You might be able to take a course in soft skill, for example, but assessing your proficiency in that skill defies most testing. Because, whether you possess a soft skill and use it well is often subjective.

In the broadest sense, some might argue you can learn hard skills but have a more natural tendency toward certain soft skills based in part on your personality. For example, you might be well-educated and have a lot of experience in our field, but if you don’t work and play well with others finding and keeping a job might be a challenge.

You might worry less about finding and keeping a job as an entrepreneur, so you probably think less about soft skills. Yet soft skills are an essential component of your ability to launch a business.  Soft skills, for example, are necessary to both build and maintain social and business networks. Such skills also support your decision-making in day-to-day operations and guide your strategy development. It’s difficult to recognize your own soft skills, let alone those such skills in partners and prospective employees. But,...

Hiring People Like You

You will have the desire to hire people like you when you're an entrepreneur.

Leveraging social capital to build your founding team makes it easy to hire people like you. People with your values, your background, and a substantially similar knowledge base can be advantageous for you, the founder. You’ll have a common language, communication may be more comfortable, it will take less time to get those new hires up to speed, and you will have greater confidence in their ability to achieve your goals and objectives (Wasserman, 2012). Hiring people like you might seem to be a smart business choice.

When you hire, people like you are probably hiring them because you have had a good working relationship in the past. You hire people you like and people with whom you enjoy working. You hire them because your experience tells you they are good at what they do. You hire them because although they have different areas of expertise—sales, marketing, or finance—they are likely to have similar backgrounds, networks, and possibly industry knowledge. Arguably, this may give you an advantage at first. Surrounding yourself with people like you when you’re risking everything else to get your business off the ground will provide some comfort. On the surface this seems rational; homogeneous teams may make things a little easier in the beginning but are likely to be the cause of stress as your business grows.

Hiring people like you means you may be hiring people who have not just similar strengths, but also similar weaknesses. Hiring people like you may also mean few will challenge your view of market opportunities, customer targets, or product features and benefits. People like you will tend to see the world in much the same way as you. And this might mean you miss business opportunities because hiring people like you limit your ability to see much of anything different than you may see it. Hiring people too much like you may well restrict your long-term success in business.

Hire people who...