What Startups Need to Know Before Hiring More Employees

Growing a startup company is exciting, but it can also be challenging. The most challenging aspect of growing a startup is expanding your workforce. Hiring new people is a process that must be done with caution. Like a piece of real estate, machinery, and technology, employees affect the productivity of a company. It is important to know what to look for when interviewing candidates to weed out those that would be liabilities.

Lacking Passion

Not every candidate you interview is going to be passionate about your company. They will not have the same interest as you do. In fact, some of them want to start their own companies and believe working at a startup is the fastest way to reach this goal. Keep this in mind before hiring someone who truly lacks passion, since they won’t be as dedicated to helping your business grow.

Wanting a Stake in the Company

Candidates that hope to be part owners of an existing company are also attracted to startups. They believe the journey to the top at a startup company is easier than at a corporate company. Because of this, they will seek executive positions after three years working for a company.

Related Article: The First 5: How to Hire Those Critical Early Employees

Clashing Personalities

Hiring outside employees is challenging. One priority of a business owner is to find people that will fit perfectly in an existing work environment. People that come into a company with their own way of doing things are not always open to new ideas or people different from themselves.

Unrealistic Salary Expectations

Many candidates you will be interviewing will have corporate backgrounds. They are used to earning six-figure salaries, and will use their education, skills, and experience to try to negotiate a salary close to what they used to make. If you can’t make them happy with your best offer, they may not stay at the company too long.

Overvaluing Qualifications

The job market is competitive. Candidates with little to no work experience will embellish their qualifications. They will also use references they have more of a friend relationship than business relationship with. Be sure to talk to previous employers instead of just personal references.

Managing a Larger Workforce

Another thing to consider when growing a startup is management. Managing 10 employees is not the same as managing three friends. There is more delegation of responsibilities, overseeing and overhead. It’s also important that you are following all laws and regulations regarding employees.

The right employees have one agenda, and that is seeing your company grow. They have a passion for the work you do. Growing your startup company can be a challenge that is manageable if you have realistic expectations. Being realistic about the market your company caters to will help you take your company from a startup to an international corporation.

Author: Anita Ginsburg is a freelance writer from Denver, CO. She enjoys writing about business, education, home and family. Informational credit to Sattiraju Law Firm.