How Tech Startups Can Attract Top Talent and Avoid Costly Hiring Mistakes
When founders scale and begin hiring their first employees, it’s a make-it-or-break-it moment. The right candidates can springboard your business. Hiring the wrong ones can cost you time, money, customers, and maybe even the success of your company.
Below, we’ll examine six of the top hiring mistakes startups make, and how you can avoid them. We’ll consider writing attractive job descriptions, using ATS systems to filter resumes, conducting interviews, and more.
Top 6 Hiring Mistakes to Avoid
Don’t make the same missteps that other founders have! Learn about the following six hiring mistakes so you can sidestep them.
1. Unclear Job Descriptions
Startups commonly make the mistake of writing vague or even inflated job descriptions, often because they lack a cohesive HR strategy that aligns hiring with business objectives. The former is often the result of ignorance (not understanding a role very different from one’s own or knowing just how much work the hire will need to take on); the latter is in hopes of luring candidates with exaggerated claims of prestige or perks.
Another common mistake is that of creating a “catch-all” position that combines multiple roles, such as marketing, customer support, and sales. While the flexibility to wear many hats can be of value to a startup, such confusing job descriptions may deter qualified candidates or attract the wrong ones.
To avoid this mistake, focus on what’s essential to the role. Write a clear description of the responsibilities, expectations, and growth opportunities. Be upfront about the work environment; you’ll need a candidate who can thrive in a fast-paced, sometimes ambiguous situation.
2. Relying on ATS Software—Or Not
Applicant tracking systems (ATS) can be a double-edged sword for startups. On the one hand, they can help filter resumes efficiently, saving founders valuable time. On the other hand, overreliance on such software can cause founders to overlook highly qualified candidates that weren’t a perfect match for the keyword filters.
When using an ATS, make sure to optimize your job postings with the same keywords you’re filtering for. Include variations of skills and phrases. Consider manually reviewing some resumes to make sure the ATS is filtering results as you wish.
3. Rushing Interviews or Trusting First Impressions
You’re short on time and eager to fill roles quickly—it makes sense that you might rely on your “gut feelings” and first impressions to speed your hiring process. This, however, can lead to similar problems as the above—hiring candidates that aren’t a good fit, and overlooking those that are.
Instead, consider streamlining your hiring through recruitment process outsourcing. This approach ensures structured interview questions focused on the individual’s skills, problem-solving ability, and cultural fit, while also allowing you to test work-ready skills with practice tests or small project assignments.
4. Overvaluing Degrees or Years of Experience
University degrees and years of experience have long been the markers of ability. But the rapid pace of technological change has largely made these outdated, especially in the tech industry. Someone with promising credentials might not have kept up with the latest developments.
Instead, look for certifications and recent projects, even freelance and personal projects. Someone who is motivated to learn a new technology on their own time will likely have a similar drive to keep pace with future developments.
5. Not Seeking Diversity
According to the United States Equal Employment Opportunity Commission, tech companies are often homogeneous. For example, 57 percent of tech executives are white, with less than 2 percent Hispanic and less than 1 percent Black representation. Women make up only 30 percent of the Silicon Valley tech workforce, considerably lower than the 49 percent female population of non-tech employees in the same area.
Fight the unconscious practice of replicating the founding team. Diverse teams bring new perspectives, challenge assumptions, and drive better problem-solving. If necessary, expand your hiring pipeline, perhaps partnering with organizations that support underrepresented groups.
6. Ignoring Company Culture
If you ignore cultural fit, even the most skilled candidate can be a source of friction. Define your startup culture early on, even if your team is small. Then, look for candidates who share your company’s vision and will inspire others. Collaboration and adaptability are often key cultural components for tech startups.
How to Apply These Tips
Since a bad hire can cost your company 30 percent of that individual’s yearly salary, according to the U.S. Department of Labor, making good hiring decisions is paramount to moving your company in the right direction.
Suppose you want to hire an app developer. Let’s see how you could apply these principles to this specific role.
- Write a clear job description outlining the app developer role. Include keywords the ATS will filter for.
- Look for recent coding or development certifications and projects.
- Use ATS software to highlight top applicants. If in doubt, review a few manually.
- If your talent pool is homogeneous, expand it to include diverse candidates.
- Have your applicants complete a coding challenge following the interview.
- Introduce the candidate to your company culture and look for shared values.
By taking these steps, you are more likely to hire a candidate who will stick with your company and help it grow.
