When starting a business it is important to understand who and when to hire someone. The people you hire will play a very vital role in the success or failure of your company. You need to know whom you are hiring, and realize the relationship you have to this person. At the same time, you need to realize when to hire someone. Hiring someone can have financial impact on your payroll, but also the original role someone is hired for can change as the company changes. The original hire may not be able to adapt to changes to the company or the changes that will evolve with their position.
The relationship that a founder has with their employees can be very impactful on the business. Hiring family and friends that are close in your social network can cause a very pleasant work environment. Having this type of environment can cause more productivity and a more enjoyable workplace. Hiring someone simply based on their credentials qualifying them for the desired position may be a way to find someone to fit into that specific role, but may not fit into the culture of the company causing dilemmas in the work environment.
Hiring friends and family can also back fire on your personal relationships and business. The overall success of your business needs to come first, and this can create significant turmoil when friends and family are involved in the business. According to the article “Why You Shouldn’t Hire Family to Work at Your Startup,” running a startup is a very rewarding experience, and the business becomes like your second home. The article gives the below reasons for being cautious about hiring family.
- Family members may not always be the most qualified for the position. You may have the best intentions at heart, but when hiring a family member you may be over looking some of the qualifications really needed to help scale the business.
- With family involved it is inevitable to have favoritism involved in the work place. It is important to have a well-defined business where favoritism will not deter from this.
- In entrepreneurship, failure is common. To overcome adversity and continue on your entrepreneurial journey’s it may be beneficial to keep family separate. It is always important to have family’s support, but not necessarily their involvement.
- It is important to eliminate variables that could cloud your judgment or expertise. Often times with family, there can be side baggage that could prevent you from using your best judgment or expertise.
It is important to know the role you are hiring for and how that can change as the company changes. Noam Wasserman describes in his book “The Founder’s Dilemmas” how a certain role can go from being a “player to a coach.” For example, in the initial phases of a company, the sales director may be the one making all the phones calls, attempting to make all the sales themselves, this being the “player.” As the company grows, its sales “player” may start to have more and more people under him, whom he must manage and “coach.” The founder must understand the roles they’re hiring for, and what the role may become in the future. It is important the person hired for the job is the best fit for the initial position and will be the best fit for the position as the company evolves.
Once you find the best possible candidate, at the best possible time, it is important to keep them at the company to ensure the most growth possible. The best of the best want to work for the best, so it is important to make sure that as the founder, you are running the best possible business, only keeping the best on board with the company. It is important to keep a close eye on your organizational structure and be aware of any changes that can have an impact on the overall success of the business.
Herrenkohl, Eric. How to Hire A-Players. Hoboken. John Wiley & Sons, Inc. 2010. Print
Under30CEO. Why You Shouldn’t Hire Family to Work at Your Startup. 9 September 2013. http://under30ceo.com/why-you-shouldnt-hire-family-to-work-at- your-start-up/
Wasserman, Noam. The Founder’s Dilemmas. Princeton. Princeton University Press. 2012. Print