COO MasterClass Part II: The #1 Startup Failure Is Closing Top Talent

By Collin West

A conversation with Mark Williamson, COO of MasterClass

In our last article with Mark, we discussed Building High Output Teams. Now we are back to discuss practical advice on closing top tech talent...

Building a startup is unique. There is a certain level of commitment required to scale a startup that isn’t present in larger, more mature organizations.

In our discussions, Mark shared the three traits to look for when building a team that can scale exponentially. “I look for energy, intelligence, and integrity,” said Mark Williamson.

Energy, Intelligence, and Integrity

Energy is pretty clear: it requires a tremendous amount of time, motivation, and perseverance to build any startup. If people have worked in startups before – and want to do it again – it’s a good sign that they know what they’re getting into.

Intelligence is more nuanced. “I look for lateral thinkers, someone who can take a concept from one field and apply it to another. Startups always have new challenges, so you need someone who is intellectually curious and eager to learn.”

Lastly, there is integrity. Everyone has integrity in the abstract so you should avoid asking hypothetical questions. “Instead, ask about specific experiences,” said Mark. “Tell me about the biggest mistake you’ve made at work. Tell me what really happened when your back was pushed up against the wall.”

These skills are vital as you look to delegate key parts of your business to your early hires.

How to Close Top Talent

“The #1 thing people do wrong at a startup is closing top talent,” shared Mark Williamson.

The interview process should be a two-way discussion. The startup should learn about the candidate’s background, experience, and ambitions. Meanwhile, the candidate should learn about the startup, the role, and the future prospects.

Startups need to remember that talent has the upper hand, particularly people who are world-class at what they do. Yes, the salary has to be in line with expectations but that hardly is the deciding factor. There are bigger, more established companies that can always pay more.

As a result, startups need to be more creative.

“During the interview process, you need to find out what matters most to the candidate. The process should not be about the offer,” said Mark. “It should involve you showing a candidate how their skills will grow and their career will progress with your help.”

Your progression in a new job often follows an S-curve. At first, there is a steep learning curve as you get used to your new company, team, and assignments. Sometimes you’re stepping into a role for the first time and it can feel like a trial by fire.

But, whether it takes a few months or a few years, that growth will slow and you will be at the top of the S curve. Instead of having employees get bored and look for other jobs, Mark proposed that you show candidates a series of S curves that they can climb.

“Here is how you become a radically different executive in 6 years after completing these 3 S curves,” said Mark. For example, you could map out how you will support a new director of marketing to become a regional marketing lead, a global marketing lead, and eventually, into an executive officer of the company.

Conclusion

Talent makes all the difference, whether you’re at the early stage or looking to scale after a large round of venture capital. The model that Mark outlines requires you to treat hiring as seriously as you treat the sales process.

Startups should strive to provide competitive compensation packages and respond to candidates quickly. Moreover, startup executives should clearly articulate how someone’s career will progress by joining your company. Sell them on the mission, yes, but also sell them on how they can grow into the leader that they want to be.

This model allows you to retain and develop key personnel, which is crucial because top performers often bring with them other incredible potential hires in their networks.