It’s exciting to hire your first team. It’s the moment that you transition into running an actual business instead of a one-man show.
Do it right, and it’s the moment that you’ll start to make real money. You simply can do more with other talented people on your side than you can do on your own. Do it wrong, and you’ll cause yourself problems and headaches that put your business at risk.
Sadly, hiring mistakes are pretty common.
- Failing to understand exactly what this person was hired to do.
Some companies have ditched job titles, even highly regarded and well-known companies like Zappos. You might like the idea of adopting this structure, but it doesn’t mean that you don’t need to know exactly what you’re hiring for when you’re hiring for it.
This is as much for you as it is for the employee. Don’t hire someone to say, take over your accounting if you’re constantly going to try to take back the accounting. It’s counterproductive, and it’s a waste of money.
The Entrepreneur’s Organization Network suggests hiring specialists over generalists.
“Conventional wisdom among entrepreneurs says hire the generalist who can adapt to whatever situation you have. In fact, very few people are truly good at many things. Most people are only good at a few things. Hire for those things. Alec Gores, the billionaire founder of Gores Group, told us, “I look at our team almost like a football team. If I am hiring for a position, I ask myself, what is this person going to be doing? Are they a quarterback? A center? I don’t try to get the quarterback to operate like a center or a linebacker.”
You’re not hiring someone “just to help out.” You’re hiring them to fill a very specific role and need in your organization. When you do this, you’ll get more value out of them and they’ll be happier.
- Failing to consult your network.
Many entrepreneurs go straight to posting job ads simply because that is the way that they have seen other companies do their hiring. But you should start with your own network before you advertise. Crack open your LinkedIn account and start asking around. You’re more likely to get someone with proven competencies.
Don’t hire family and friends, however. You’re not going to be effective at managing them.
You can also use LinkedIn to simply go searching for the kind of person that you have in mind. If they’re not open to a conversation they may be able to point you in the direction of a similar colleague who is.
After that, use your social media channels and your own website. Look for people who fit the bill. Approaching them is a lot less of a time-waster than going through thousands of resumes and applications. It’s a lot less frustrating and it’s a lot more likely to net you an A-player. By flooding yourself with applications you risk opening yourself up to the temptation to hire someone just to get it over with.
- Moving too quickly.
You don’t want to spend six months on one position, but you don’t want to hire on impulse, either. It’s not easy to get rid of a bad hire once you’ve made the choice, and a bad hire can be expensive. It’s important to do your due diligence.
That means reaching beyond the interview and the resume. Dig into the potential hire’s online presence. Are they actively contributing to their industry or field? What do their social profiles look like? Is there anything in their online presence that contradicts anything that they’ve said during the hiring process? Is there information that shows a lack of judgment or professionalism?
Call references, and ask good, probing questions. For example, don’t ask, “Was he a good sales representative?” Ask, “What was his approach to finding new accounts? What stood out about the way that he handled customers over the phone?” The questions should be specific to the role that you are hiring for. Some references won’t want to answer, but others will. And you’ll learn a great deal about whether or not the candidate is really as strong as he or she appears to be.
Finally, you can always wrap up this due diligence with a 30 day probation period if everything seems to check out. Make your expectations clear, then see how they do with your culture, with your vision, and with your customers. If it doesn’t work out you haven’t lost anything, and you haven’t opened yourself to legal trouble. If it does, you can have the confidence that comes from having a great team member on your side.
Photo Credit: “Scrabble – Hiring” by flazingo_photos is marked with CC BY-SA 2.0
