Michael Fey
A company’s most valuable asset is its people, especially for organizations still in their infancy. A startup’s founding team can be the difference between an industry-changing unicorn and just another failed venture, making early recruitment one of the most critical processes in a company’s first year.
But the war for tech talent has rarely been so brutal. Large technology companies are growing at amazing rates and startup funding is at an all-time high. Great candidates have more choices than ever, and hiring them is harder than ever before.
By taking a unique approach, we achieved a near 100% acceptance rate with almost 100 employees while we were in stealth mode. With the right strategy, founders can find and hire people whose passion aligns with their vision.
Recruiting while in stealth mode
Working in stealth mode for over a year required me and co-founder Dan Amiga to take a highly personalized approach to recruitment. Similar to a football draft, we listed everyone in our network that we thought were absolute rock stars. Some of these people had startup experience, but we didn’t let that limit our search.
We were looking for nothing short of the best — people who we personally knew or who came with referrals from trusted parties. Our targets included people who we either couldn’t wait to work with again or who we couldn’t believe we hadn’t worked with already. We knew that a list based on our own network would always outperform individuals found through a blind recruitment process.
We also considered each candidate’s personal journey. Would our company be a good fit for them? Did the timing, lifestyle requirements and the early stage of the organization make sense? Based on this pool, we identified the skills that we felt were critical for making our company a success. Next, we cross-referenced these two lists. This final headcount gave us a good “draft prospect” list with which to start our recruitment process.
In our company’s early stages, we had to find a way to turn interviewees into believers without actually divulging the details of what we were working on until the very last minute, meaning most of the interview process happened without sharing a glimpse or description of the product. Yet we achieved a near 100% acceptance rate.
Instead of relying on a demo to attract recruits, we sold them on the leadership team we were creating, the investors we had already engaged and the opportunity to build a new category of software. We emphasized the goal: to change the industry and make a real impression, not just another version of an existing solution.
Our product demo was usually the last part of the process. This approach certainly wasn’t easy. Landing the right candidate took a massive amount of time, as we invested an average of 40 hours in each person. But we were able to scale this process to recruit all 100 employees this way.
The people-first, roles-second approach
Once we shared the actual idea behind our company, we had frank discussions with every candidate about how they would fit into the company, what they would want to do and how their unique skills could be utilized.
By the end of the interview process, we had developed a clear statement of what they would be working on in the short and medium terms. This ensured each individual who received an offer knew exactly how they would contribute. This approach not only ensured we built the best team possible, but that our employees would feel satisfied and challenged in their roles.
Every person we interviewed was hand-picked. Their passion aligned with our own, and they truly shared our vision. To ensure this alignment remained strong throughout the onboarding process, Dan created an internal academy to help new employees from a wide variety of backgrounds gain a solid understanding of startup operations and feel comfortable within the company culture.
Humility is non-negotiable in a founding team
Humility is an invaluable trait when you’re hiring a founding team or fostering the company’s culture. To succeed, a startup must be flexible and ready to pivot on a moment’s notice, meaning plans and products that have been months or even years in the making may have to be scrapped for the greater good. There’s no room for pride in those conversations.
One of the best things a founder can do is seek out employees who can put their pride aside and listen. This proved to be especially critical for us, as we were in stealth mode for over a year. The waiting game is hard, and it was tempting to launch early simply for the grandeur. But our founding team understood that we had more to gain by taking our time to deliver a refined product.
By hiring early, we were able to identify humble, selfless individuals who wanted a challenge and were excited to help build a company from nothing. Working at a startup will never be a 9-to-5 job. There will undoubtedly be long hours that creep into weekends. It takes a particular type of person who will not just be willing to put in the extra work, but will welcome it, and will thrive in a fast-paced environment. It’s not for everyone, but if you can find people who are excited for an opportunity to work hard and build something that matters, your company will reap the rewards.
A founding team can be a startup’s greatest differentiator. In fact, during the funding process for Island, some investors spent more time understanding our team than they did our product. Ideas and markets can change, but a solid, skilled and experienced founding team can weather any storm.
By taking a personalized and collaborative approach, founders can identify humble individuals who share their vision and will lead their company to success.
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