Copyright Forbes
Years ago, I came up with a four-sticky-note business plan that has helped me launch and scale multiple companies. The first sticky note is “Story”—having clarity around your purpose, the problem you solve, and who you’re solving it for. But the second sticky note is essential to carrying out your Story: People. Here’s what every founder needs to understand: Resumés don’t build companies—people do. In the case of startups, you significantly increase your chances of success when you hire people who thrive in uncertainty. They may not have the “perfect” résumé, but it’s far better that they can bring unique perspectives, resourcefulness, and entrepreneurial mindsets to the table. The truth is, atypical employees—those with nonlinear backgrounds and varied experiences—often outperform traditional hires in the fast-changing startup environment. So how do you attract—and retain—atypical employees who don’t fit the corporate mold? Tip 1: Create transparency from the beginning. Create transparency with recruits right from the beginning. Lay out your company’s growth vision, and don’t sugarcoat the current state of the business. This sets the stage for trust and long-term loyalty. The reason this works so well is because you’ll repel the people who are the wrong fit. The people who want the supposed “safety” of a regular 9-to-5, who want to clock in and clock out with no surprises or pivots. They might be great workers, but they’ll never be a fit for you. So radical transparency will keep them out. Startups can fall into the trap of thinking that the best way to attract top talent is to present themselves in the best possible light. However, what often happens is that they commit self-sabotage and break trust with people when the mask falls off. Meanwhile, that same transparency will attract the DIY daredevils you need. The risk-takers and out-of-the-box thinkers are drawn to radical transparency like moths to a flame. Tip 2: Pay your people with love. Compensation is never just about money. And let’s face it, most founders are short on cash, unlike big companies. Therefore, we have to go one step further. Recognition, opportunities for growth, and a culture of respect are just as important as the number on a paycheck. Sometimes more. Atypical employees are more willing to take a pay cut when they love the mission and vision of the startup. And as a founder, you must constantly show people that they matter. Give praise freely. Shine the spotlight on people for even the small wins. Know their names, their birthdays, their talents, and their hobbies. When you pay people with love, they’ll stick with you when things get hard. And I know, as a Type A person, that this does not come naturally, so you might start by devoting one hour per week to focusing on recognizing individuals in your startup. Tip 3: Pay your people with ownership. Ownership creates alignment. Giving employees real stakes in the company’s outcome builds buy-in and energy that no salary alone can produce. This is true in the corporate world just as much as it is in startups. Recent research from CSG Partners showed that the tenure of an employee at an ESOP company is 46 percent longer than even non-employee owners of the same company. This is doubly true for startups, where having skin in the game can truly be the difference maker. As a result of giving employees ownership, I’ve seen assistants become millionaires and sales representatives become investors. Believe me, there’s no greater feeling as a founder than watching your people win alongside you. It’s just not as fun to get rich all alone. Scale Differently Mold the job description to the person, not the person to the job description. Words on paper matter far less than actions in the real world. When you want a company to be different from your competitors, then you’re going to need to hire differently. People drive your story forward. And if you want a startup story that stands out, then you’ll never get there with the typical hires. In the book Start. Scale. Exit. Repeat., we detail how you can hire employees to help you start your business, scale it, and then ultimately exit it, creating wealth for you and your team. Consider asking, “Which of these three tips are we already doing? Which ones do we need to start doing? And which ‘typical’ hiring practices do we need to stop?”
