Dear Founder,
You need great people! Unfortunately, most executives and companies stink at recruiting, which is incredibly unfortunate because it’s so crucial.
Think about it: What makes great companies great? People. It’s all about people, yet we often don’t know how to put our best foot forward when recruiting.
When you start out, you’re probably only looking to hire a few people—not an army. With a small team, it’s critical to get only the very best players. However, too many founders often see this as limiting and intimidating. This fearful thinking needs to be changed: Founders need to play offense instead of defense.
Don’t ever think that you are working from a disadvantage—that what you are working on isn’t great enough to attract top talent. Instead, understand that you are working from a position of strength. It’s all about attitude. Operate from a mind-set that demonstrates that what you are building is very rare and special. Think about how you are offering a once-in-a-lifetime ground-floor opportunity to those who are qualified to participate. It’s like having front row seats at the Super Bowl or Hamilton: You only have two open seats—which of your friends will be lucky enough to be invited?
A few rules to help you rethink about recruiting:
• Always be recruiting—even when you don’t have openings. At eBay, I was always looking for talent and generally had one or two “ready-now” recruits I could woo for any critical position that worked for me. I learned this from Meg Whitman, who knew the company was growing quickly and therefore would hire people whom she had no jobs for, knowing that she’d have a job for them in the future. Full disclosure: Sometimes this created tension because they wanted to do something, but there wasn’t a well-defined role for them when they joined and they had to focus on “special projects.” But more often than not, they soon landed big operating roles.
• Own the process. Recruiting is not just someone else’s job. You need to invest your own focus and time. When I was at LiveOps, an exec at one of our biggest customers suggested I meet with Mike Bergelson, a talented entrepreneur who had recently sold his company to Cisco. I sent Mike several emails inviting him to get together to speak. When he finally responded, I made a pitch for him to join us, but he gave me the Heisman. Nevertheless, we agreed to stay in touch. When I founded WIN, Mike expressed that he wanted to join as an affiliate—something against the “house rules” as we had never worked together—but he agreed to do some consulting for one of our portfolio companies and we agreed to make an exception and let him join WIN. Not long after, I started talking with him about my idea for a mentoring service and within a few months he became the co-founder of Everwise. The lesson to that long story: You always have to be on the lookout for talent you resonate with—you can’t just wait for what HR or someone on your team might bring you.
• Treat people well throughout the process and make sure they have an experience they enjoy. Being superior or arrogant will hurt you. Yes, you get to make the decision on whether someone will be asked to join or not, but there’s no reason to have them be embarrassed or insulted by the process. One of our Founders-in-Residence told us that she had a bad recruiting experience at a company, which she then told her friend about. When that friend later got called for the same job, she wouldn’t even interview. That company didn’t even get a chance with her because of the way they treated someone else! Treat everyone with dignity and respect, and give them helpful feedback. You want everyone to leave feeling good and wishing they get the chance to come back sometime later. (We practice what we preach at WIN, too, where we have to say “no” often, but we aim to do so in a very friendly way. Because of that, we’ve often had other deals referred to us by the same folks we’ve said no to.)
• Do the reference checks yourself, and personally say no to people. Don’t hide behind the people or the process. Maybe outsourcing these pieces of the process is more efficient and it gets you out of giving bad news, but it’s not thoughtful. Gain credibility by treating prospective hires like human beings.
• Don’t look for people who are just like you. Look for people with the skills you need and the types of people who bring diverse perspectives and will contribute to your culture.
Don’t be swayed by big names. Just because somebody works for a great company, it doesn’t mean that they are great or will be right for your startup. There’s a big difference between being on the bus at a great company and actually driving the bus. There are also great talents out there who don’t always work for brand-name companies.
Pay extra attention to those with a “chip on their shoulder.” The best hires often have something to prove, and are motivated by a profound desire to excel in their jobs.
Rule out people motivated mostly by money. If your candidate is focused on a high salary, you should be questioning whether or not they are the right fit. (Being motivated by equity is a different story as that’s tied to performance and demonstrates a belief in the company.)
• Make your company attractive to potential hires by being the best place to work. Be the place people are clamoring to join. There’s no entitlement for employees anymore, and there’s no entitlement for companies. Being the best place to work is not about massages and gourmet food; it’s about what was accomplished, what was learned, and how well people are treated.
Have huge aspirations. Be inspirational with what you are trying to accomplish.
Be humble. Never stop trying to get better.
Be fun to hang with. Care about your people. You want to think that yours was the best and most fulfilling job that they ever had. That’s never about money; it’s about being a part of something meaningful.
Foster a culture of inclusion. Make sure you are building a place where each member of your diverse and talented team can feel like they belong.
Congratulations on your growth and your need to hire. You are in a good place. And soon, you will be in a better place. Recruit always!
All the best,
Maynard