Startup HR: What’s Important?

Where and how to find the first employee?

Let's start with how, as this will determine the where. First, you need to define the role. This is key to establishing what kind of skill set you require. The second important question from an HR perspective would be the relationship with your organization. Do you need this person full-time, part-time, on an ad hoc basis, or permanently? These types of questions are essential to protect the liability of your small company. I have worked with many small blockchain organizations, and many of them do not realize that this first hire will set up many functions in the organization. Statistically speaking, your first hires will become senior directors once your company becomes successful. In other words, they may stay in your life for a very long time. I support a lot of internationally distributed companies, so the third and most important question would be to analyze the jurisdiction where your employee resides and what kind of revenue they could produce. You may be responsible for paying some taxes there, even if your organization is not formally registered. Now, where to find them is crucial, but the answer depends on the level of employees and the job description. Hence, my first suggestion was to create the job description. Since each group has different candidate pools (LinkedIn, GitHub), I can suggest a few points universal to all. Never use recruitment agencies for your first hire. It doesn't matter how many years they have been in the market. The first hire will shape the culture and progress of your organization. It is critical for you to interview, assess, and know this person. Some of my clients repeatedly say they are too busy, and my reply is to put it into context: If you are too busy for them now, will you find the time for them later? How will you monitor their work and how they interact with your clients? The second important aspect is always to do a background check, like checking references (even over the phone) and verifying university degrees. Just one email takes 10 minutes and can save you a lot of stress and energy later on. ~ Andy Skulimowski

Man, getting that first hire is like trying to solve a Rubik's Cube blindfolded. You're juggling so many things—budget constraints, technical requirements, the sky-high expectations that come with the IT industry. Trust me, this isn't a walk in the park. Your network is your goldmine here. Friends, past colleagues—these are the people who know you and believe in you, and that's vital when you're just a scrappy startup with not much more than a vision. Money can't be your only selling point, especially if you're bootstrapped. Your first hire needs to juggle tasks and responsibilities that wouldn't even be on the table in a more established company. So, it's like a special ops mission; you want someone versatile and ready to adapt to whatever gets thrown their way. ~ Szymon Paluch

When finding your first employee for a startup, Andy emphasizes role definition, employee relationship, and legal considerations, advising against recruitment agencies. Szymon highlights the importance of personal networks and finding versatile candidates who believe in your vision, emphasizing that offering more than just a competitive salary is crucial. In summary, the first hire should align with your vision, adapt to diverse responsibilities, and fit your company's needs and culture.

What should we look for in early employees?

The commonalities, I know it sounds cliché, but as the owner of the organization, you have the vision and plans. You will set the cultural perspective in the company. The first person you hire should resonate with your values and mission. Based on those first few hires, the organizational culture will develop. Employees will adhere to this culture to build corporate citizenship. Spend time assessing not only the skills and achievements of the potential employee but also their personality. I always suggest a simple test: after the interview with the candidate, sit down in a chair and ask yourself a question, "Do you feel that this person has enough of a sense of humor to brighten your day?" Yes, some may say it's not about competency, and you would be partially correct. The first hire is not only about competency but also about the mindset. It is about a simple truth: Can this person support you in jumping over the fence of success? ~ Andy Skulimowski

Skills are teachable; culture fit isn't. Let's face it, you're probably going to have to rewrite a bunch of code as you grow and pivot. So I'm less concerned about someone knowing the latest programming languages and more concerned about whether they're ready to ride the startup rollercoaster with me. And let me tell you, a resume full of corporate gigs can be a red flag. These guys are used to a certain structure that just doesn't exist here in startup-land. I try to gauge a person's real character and mindset. Beyond the technical interviews, which are necessary evils, casual chats can tell you a lot about someone. Heck, if you can work together for a few days before making it official, that's golden. One thing that caught me by surprise? How important it is for techies to play well with the marketing team. You wouldn’t think it’s crucial, but believe me, if your first hire can bridge that gap, you're onto something special. ~ Szymon Paluch

When it comes to selecting early employees for a startup, both Andy and Szymon emphasize the significance of cultural alignment. Andy highlights the importance of hiring individuals who resonate with the founder's values and mission, as they play a pivotal role in shaping the organizational culture. He suggests assessing not only their skills but also their personality, using a simple litmus test of whether they can brighten your day. Szymon underscores the teachability of skills and places greater emphasis on evaluating a candidate's readiness to embrace the unpredictable startup journey and adapt to its dynamic environment. Both experts agree on the value of assessing a candidate's character and their ability to collaborate across different functions, with Szymon emphasizing the surprising importance of tech employees working well with marketing teams for startup success.

How to convince those early employees to join my startup?

In short, if you hire me, I can analyze what you offer. But being serious, it goes back to the first question when I was talking about the reason for hiring someone, whether full-time or part-time. Salary is not always a deciding factor. Sometimes, the project itself can be attractive enough to convince people to join you. Unfortunately, to answer this question, I would need at least thirty minutes, so I will focus on three principles: 1. Research the market and offer a fair-value salary. 2. If you offer a share of the organization (check where the employee resides – in some countries, you can create more problems for the employees than you imagine, and instead of offering them a fantastic opportunity, they can end up being investigated by tax authorities! :D ) 3. Ask the candidates how they want to be remunerated for the work. The answer may surprise you, and this is an excellent way to assess the candidate as a person. ~ Andy Skulimowski

Okay, so you've found someone you think will be a good fit. Now, how do you get them on board? It's all about selling the dream—the vision. And not just any vision, but a vision that they can influence. We're talking about an environment where every choice could be a game-changer, and that's exhilarating. I've seen startups offer equity like it's candy on Halloween, but I'm wary of that. It can get messy, setting expectations that might not be met down the road. I only go there if I think someone has real co-founder potential. Money isn’t everything; knowing what motivates a person can help tailor an offer that gets a resounding “Yes!” ~ Szymon Paluch

To effectively convince early employees to join a startup, experts Andy and Szymon emphasize several key principles. Andy highlights the importance of thorough market research to offer a fair-value salary, taking care when offering equity shares, and engaging candidates in discussions about their preferred remuneration methods. Szymon advises startups to focus on selling a compelling and influential vision to potential employees, creating an environment where their contributions matter significantly. He suggests that while equity can be a valuable incentive, it should be approached cautiously and reserved for individuals with genuine co-founder potential. Both experts agree that understanding the motivations of potential employees is crucial in tailoring an attractive offer beyond just monetary considerations.

Onboarding Process in Startup

Again, it depends on how formal the structure would be. If you envision having five? employees in the first year, there is no need for an elaborate onboarding process. Once you've checked the equipment and they are ready to go, first, check the documents like contracts and NDAs. Second, the most powerful step is to organize an introduction meeting with the entire team (if you work on-site or in a hybrid setting) or a video call if you have a distributed organization. Invite the entire team to a pub when you have the time and opportunity. Yes, an old-fashioned pub is a way better onboarding process than an HR professional telling employees what they can or cannot do in the organization.?~ Andy Skulimowski

Onboarding? Look, in the early stages, that's a fancy word for "Hey, this is where we keep the coffee." But jokes aside, it's less about formalities and more about aligning your new hire with the vibe and pace of your company. The onboarding process in startups needs to be as agile and adaptive as the business itself. Andy talks about introductory meetings, and I couldn't agree more. But these aren't stuffy corporate onboarding sessions; they're more like heart-to-hearts where you lay out what you're all about—your mission, your values, and your dreams. It’s crucial for bonding. You're not just hiring an employee; you're gaining a team member who will live and breathe your startup’s ethos. ~ Szymon Paluch

In the context of startup HR and the onboarding process, both Andy and Szymon emphasize the importance of flexibility and alignment with the startup's culture. Andy acknowledges that in a small startup with a minimal formal structure, a simple onboarding process suffices, involving document checks and a team introduction meeting, perhaps over a casual pub gathering. On the other hand, Szymon highlights that startup onboarding should focus on fostering a sense of connection and aligning new hires with the company's mission and values. For both experts, it's about creating a personal and meaningful experience that integrates new team members into the startup's unique ethos and pace.

In Conclusion

In the world of startup HR, the journey from finding the first employee to successfully onboarding them is a complex and dynamic process. Through the insights of experts Andy and Szymon, it becomes clear that the early stages of building a startup team are defined by more than just technical skills; they hinge on cultural alignment, adaptability, and a shared vision. Convincing early employees to join your startup involves crafting an enticing narrative and tailoring incentives to match individual motivations. Lastly, the onboarding process in startups is about fostering a personal connection and integrating new team members into the unique ethos and pace of the company. In essence, startup HR is not a one-size-fits-all approach; it's a strategic blend of culture, vision, and adaptability that lays the foundation for success in the ever-evolving startup landscape.

Our appreciation to the two experts for graciously sharing their expertise and insights:

Andy Skulimowski CFCIPD, MA IHR LL.M. - An expert in the field of international HR and labor law, boasting an illustrious career spanning more than 17 years. Extensive expertise has been instrumental in providing invaluable guidance and counsel to a wide array of multinational enterprises across diverse industry sectors worldwide.

Founder of Global Healthy HR, a pioneering multilingual HR and Legal consultancy firm playing a pivotal role in shaping and executing strategic initiatives. Global Healthy HR has expanded its global footprint, currently serving clients in 85 countries. He contributes in the realms of IT, Cryptocurrency, and blockchain technology.

Szymon Paluch - For over 8 years, have been creating IT businesses. Among other roles, used to be the CTO of the uPacjenta.pl platform. Co-created the Diagnostyka Digital HUB, a center for digital innovation. On a daily basis, engage in providing strategic support for IT technology management and engineering teams. Guiding clients in gaining a competitive edge in the market through the utilization of IT technologies.

Micha? W. - I’m a Business Development Manager at Degen House, leveraging my visionary leadership and expertise in business strategy to drive the company's growth. With a keen eye for innovation and a team of experts, shape Degen House's trajectory as a premier full-lifecycle software development house, delivering cutting-edge solutions and exceptional digital experiences.