Hiring for Potential vs. Hiring for Experience
In a large organization, hiring is often about filling a specific role with someone who has done the job before. The focus is on experience, credentials, and a track record of success in similar environments. In a startup, it’s the opposite—hiring is about potential. Startups need people who can wear multiple hats, figure things out on the fly, and grow with the company. A candidate might not check every box on the job description, but if they have adaptability, problem-solving skills, and a bias for action, they’re a far better fit than someone with a perfect résumé but a rigid mindset.
Process vs. Speed
Hiring at a big company often involves multiple interview rounds, panel discussions, and extensive HR processes. There are predefined job descriptions, structured salary bands, and sometimes weeks of deliberation before an offer is made. Startups don’t have that luxury. If a founder finds someone great, they need to move quickly—often hiring in a matter of days, not months. The downside? Less time for thorough vetting. The upside? Startups can scoop up incredible talent before corporate recruiters even schedule a second interview.
Culture Fit vs. Culture Creation
In a large company, new hires are expected to integrate into an existing company culture. There’s an onboarding process, established norms, and a playbook for how things are done. In a startup, hiring isn’t just about fitting into a culture—it’s about creating it. Every new employee shapes the startup’s DNA, setting the tone for how work gets done, how decisions are made, and what the company ultimately becomes. That’s why hiring mistakes in startups are especially costly; a single bad hire in a 10-person company can completely shift the culture in the wrong direction.
Stability vs. Risk Appetite
A corporate job offers stability—a clear career path, benefits, and predictable pay. Startups, on the other hand, require employees who are comfortable with risk and ambiguity. The company might pivot, funding could be uncertain, and roles might change dramatically in a short period. A great startup hire isn’t just looking for a paycheck; they’re betting on the company’s future and excited about the ride. That means startups need to hire people who thrive in uncertainty rather than those who need a structured environment to perform well.
Hiring for Generalists vs. Specialists
Corporations can afford to hire specialists—people who focus on a very specific function, like “SEO Content Strategist for the Midwest Region” or “Senior Manager for Digital.” Startups, especially early on, need generalists—people who can handle marketing in the morning, product testing in the afternoon, and customer support in the evening. The challenge is finding people who can handle this breadth of responsibility without burning out. As the startup grows, it can bring in specialists, but in the beginning, flexibility is key.
The Cost of a Bad Hire
In a big company, a bad hire might slow down a project or require some extra management, but the organization will keep moving. In a startup, a bad hire can be catastrophic. If a key early employee underperforms or clashes with the team, it can set the company back months—or worse, cause internal dysfunction that tanks the culture. That’s why startup hiring isn’t just about filling roles—it’s about finding people who will make the company better every single day.
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Timely! One of my earliest hires that took me from being a solopreneur to a real company was someone who had mentored me in a previous role. I'd liked his approach and felt it would benefit my company. What I never imagined was his outsized impact on generations of employees who came after and were mentored by him. The right person can make all the different and the wrong person can be downright toxic. As teams come together at this month's Startup Weekend, I hope they look for fit beyond skill when exploring their idea and its future.
I believe you'll find parallels for investors in startup as well.