Hiring adventures, for a startup, can be filled with headaches. Yes, they are adventures because the startup is prone to making critical mistakes in the hiring process. The problem here is that a wrong hiring decision impact greatly on a startup than on a larger organization. Take a look at the math:
A startup of two staff hires a wrong third person; the effect of the wrong hiring decision is one out of three, which is a 33% negative impact.
A large company of 99 staff hires a wrong 100th person; the effect of the wrong hiring decision is one out of hundred, which is a 1% negative impact.
Consider that the larger company has a financial cushion, has operating systems and experienced professionals to negate the effect of the 1% wrong hire while the startup is left to deal with a lethal 33% negative impact from just one wrong hiring decision. That is a glimpse of the cost of committing a hiring blunder. Now imagine a one out of two hiring error…50% impact is as good gambling the survival of the startup. That is why the hiring blunder must be avoided at all cost. And where one is made, be quick to fire just as you were quick to hire wrongly. Refusal to take this critical step can lead to consequences that can take a long time to crawl out of.
I made this mistake at the very beginning of my business but thankfully, I was able to realize it before the effects became really grave. The very first hiring decision was really bad. The second was worse. This one misrepresented what the brand I was building stood for. At some point, he would come to my home office and just doze for hours on the couch while I was loaded down with the laborious work of thinking about what strategies to deploy and how to organize the resources needed for execution. I found myself working for the young man that was supposed to be helping me build the business. I didn’t have to be told; it was time for him to go. Don’t be told too; fire! That lesson was learnt in my third year in the University when a business man counseled me on my entertainment startup business where I was having issues with my General Manager (my friend) who was getting too influential for control getting near taking over leadership without an actual succession initiative. He said, “Never hire whom you cannot fire!”
Watch out for the full eBook shortly…7 Startup Blunders.
To your startup success,
You are an Icon!