9 questions you MUST ASK before hiring your next employee
Businesses are started by a founder who is desperate to take off one of the many hats they're wearing and give it to a willing, lovable nut who has jumped on board the crazy train. Allowing you (the entrepreneur) to do what sits in your zone of genius and have a team of incredible people doing all the things you shouldn't be.
Unfortunately, startups turn into scale-ups, and a common mistake of scale-ups is taking on unnecessary fixed costs under the assumption life will continue on a hockey stick trajectory. One of the most significant problems causing layoffs or uncomfortable firings is founders solving a temporary problem with a permanent solution. A permanent solution...like a full-time employee.
I advocate for Vinod Khosla's "People build companies, not plans." However, practically speaking, people are fixed costs to the company and cost, on average, 130% of their salary to the business with the inclusion of benefits.
So to avoid overhiring and burdening your company (and soul) with the obligation not just of compensation but of their families, here are a set of questions you need to ask before you bring on any new team members:
What are the responsibilities of the role we believe we need to hire for, and what results would they generate for the company?
Are the responsibilities based on a project that could be temporary, or is it an ongoing demand that I need someone to own?
Who would manage the person in this role at our company?
Are we hiring to pursue an opportunity with an unknown outcome? (Example: sales, or a new project)
Is there a gap in a process causing this problem to exist, which, once remedied, would eliminate the need to hire?
Is there a piece of technology or tool we could implement to address the problem the person would be responsible for owning?
Can any current team members add the responsibility of this role onto their plate without abusing their time or focus?
Can we train a current team member to do the role in a necessary amount of time and reward them through increased learning or a raise?
Can we outsource these responsibilities to an agency or independent contractor and achieve the desired outcome of the role?
Don't do this process in a silo. Who should you involve?
The person who would be responsible for managing this role.
The team members this person would work closely with.
The other department's team members who would share projects with this person.
To reiterate my post last week, this is not a "profit at the expense of people" way of thinking. It is a responsible way to run your business so you can care ruthlessly for the people you do hire without fear of setting yourself up to let them down later.
Bonus Tip: Beware of hiring recommendations from your team. It's common for employees to recommend hiring someone if they are overwhelmed at the moment, or there is a part of their job they don't want to do, or it sits in their zone of competence. Before rushing to hire, sit with the employee, listen to them, and get to the root of what the issues are.
