Series A is an exciting time for any fast growing startup. Your concept is validated, there is demand for your product or service, and now you have the capital to scale.
However with great opportunity comes great risk, and one way to mitigate risk is to minimise the number of mistakes made. And, with recruitment being one of the most important areas of the business, minimising mistakes on the hiring front is paramount.
So in this blog we are going to explore the four most common, and costly, mistakes that Series A founders make when it comes to hiring talent. Hiring the right people is essential to the success of any startup, and it becomes even more critical after a Series A round, when headcount growth targets are big, and revenue targets are even is bigger. However, many founders make mistakes that can hinder their ability to build a strong team. Let’s dive into these mistakes and explore how to avoid them.
1) Rushing the Hiring Process
After raising a Series A round, founders often feel pressure to hire quickly to keep up with the company’s growth. However, rushing the hiring process can lead to hiring the wrong people for the job. A 2017 report from HR platform Lever found that rushed hiring led to 38% of respondents making a bad hire.
To avoid this mistake, take the time to define the role, write a clear job description, and conduct a thorough hiring process. This process should include multiple interviews and assessments to ensure that the candidate is a good fit for the role and the company culture. According to a 2017 study by Glassdoor, on average, it takes 23.8 days to hire a new employee. While it may feel like a long time, taking the time to find the right person is worth it in the long run.
2) Focusing Too Much on Skills and Experience
Skills and experience are essential, but they’re not the only factors to consider when hiring. Cultural fit and potential for growth are just as important. A 2019 survey by LinkedIn found that 70% of professionals would not work at a leading company if it meant tolerating a bad workplace culture.
To avoid this mistake, consider candidates who have the potential to learn and grow with the company, rather than just those who have the most impressive resumes. Look for candidates who share your company values and have a passion for your mission. Cultural fit is crucial for building a strong team that can work together and support each other.
3) Ignoring Diversity and Inclusion
Diversity and inclusion are essential for building a strong and innovative team. A 2020 report by McKinsey & Company found that diverse companies are more likely to outperform their peers. However, many founders overlook the importance of diversity and inclusion in their hiring process.
To avoid this mistake, make a conscious effort to attract candidates from different backgrounds and perspectives. Ensure that your hiring process is inclusive and free from bias. Consider implementing blind resume reviews or using structured interviews to reduce the impact of bias on the hiring process. According to a 2019 report by Hired, 71% of tech workers say that diversity and inclusion are important factors when considering a new job.
4) Neglecting Onboarding and Training
Once a new hire starts, it’s essential to provide proper onboarding and training to ensure that they can be productive and successful in their role. Neglecting this step can lead to frustration and dissatisfaction for both the new hire and the company. A 2017 study by Gallup found that only 12% of employees strongly agree that their company does a great job onboarding new employees.
To avoid this mistake, create a comprehensive onboarding process that includes training on company culture, values, and expectations. Provide the new hire with a clear roadmap for their first few weeks and assign a mentor or buddy to help them get up to speed. According to a 2019 report by HR platform Talmundo, companies with a structured onboarding program have a 50% higher retention rate than those without one.
To conclude: Building a strong team is critical to the success of any startup, especially after a Series A round. By avoiding these four common mistakes, founders can increase their chances of building a team that can help drive their company’s success.