There is a lot to be considered besides the salary of the team or the skills you need to start building your product. There is people behind technology and the backbone of any team lies in the operations supporting its members.
I like to divide the work of building a founding team into 5 spheres: Talent Acquisition Strategy, Recruitment, Onboarding, Payroll & Benefits, and People Performance & Retention.
What I'm excited to share here is the process I follow to build a founding team —a method shaped by my experience working with early-stage startups and aimed to be a down-to-earth guide as you dive into creating the perfect environment to attract, hire, and retain A-players.
This is my approach for hiring founding teams and creating an HR structure. This is what I build for my clients; however, consider this a letter from me teaching you how to do everything by yourself.
A good, strategic, and honest call with all founders and advisors to pinpoint the essential first hires is the way to start. Kick off the conversation about people with a culture call, describing what you are doing, what you are building, and why. Think about the kind of person that has the skills you need to make this happen. Always have in mind “what we do not have right now?”. You do not need another version of you. Building a team is about bringing diversity of experiences and backgrounds to create something meaningful. Write it all out or use Otter to make the recording and transcribing for you so you can have it all documented.
Here's a piece of advice: Be honest about your expectations. In this early stage, your ideal candidates are those who bring expertise to the table or are ready to develop it rapidly. Look for individuals who show promise in swiftly adapting to new domains and show passion for building. This is way more relevant than having an Ivy League school on their resume. This is not about credentials; it's about looking for people's unique background and their potential contribution to bring results. Keep it genuine and focus on aligning skills and potential with your evolving startup needs.
It is time to craft a competitive compensation package that goes beyond salaries and equity. So much to consider here… Are they based in the vibrant tech scenes of San Francisco, the cultural hubs of São Paulo, or in the A-player talent pools of East Europe?
What we can do now is establish benchmarks tailored to various locations to ensure your offer aligns with local norms, making them appealing and competitive to where you are hiring and giving you clarity on the salary range for each region. Now beyond monetary considerations, a good offer also has a great benefits package. It is a huge risk to go for an early stage, but you can show how ready you are to make your product and team thrive. Think health insurance? Professional development opportunities? 401(k) for US-based employees, flexible work schedule, Unlimited PTO? Share the love.
Equity Transparency: When it comes to equity, transparency is key. Communicate the equity structure, emphasizing how it aligns with the long-term vision. You want to make sure your candidates understand not just the job but also their potential ownership and impact on your startup success. Also have in mind, this is a moment founding employees will negotiate so it's important to have clarity yourself and a plan in mind.
Full-time or contractors? Does it matter? Let’s say you are hiring full-time, a direct-hire but also hiring abroad. What does that mean? Visa sponsorship? Relocation help? Does it mean hiring contractors to be as much a part of the team anywhere in the world? In essence, the choice locals or global hires depends on your startup's goals, the nature of the work, and your commitment to fostering a diverse team. It's a strategic decision that goes beyond work arrangements and becomes an integral part of shaping your startup's identity.
Where to pay? Payroll management is NUMBER ONE. Payroll has no time to get it wrong, and it is always a priority. Platforms like Gusto, Deel, or ADP can be a game-changer. Checking them out individually to see which one would work best for your needs is key. I have my opinion about them all, and I will soon create another article to share this. For now remember: Getting payroll right is not just about timely payments—it's a testament to your commitment to your team's well-being.
This is the space to change from ‘Who do you need?’ to ‘What do we need?’. Now that we have the backend of hiring set and running, we are ready to find the people that will make everything you have in your mind come to life. How magical, right? Let's think: Evaluation Process, A Career’s Page when you don’t really know…, Interview, Technical Assessment, Reference, Candidate Experience, Hiring Manager Experience.
How many stages and why?
Well… It depends. I do believe the shorter the better. That means we know what we are doing, we know what to ask, we create the right environment for the candidates to give their best…But there is a lot that can be said here. If you are sourcing, someone (like me and you) will be the first point of contact and probably the first interaction. Kick off the conversation about people with a culture call, describing what you are doing, what you are building, and why. Think about the kind of person that has the skills you need to make this happen. Always have in mind “what we do not have right now?”. I talk more about Sourcing & Reach Out here. This is usually the first interaction for an Engineer that is being sourced. The perfect message makes perfect sense. Here in this first talk, you will check: Were they founding engineers before? Are they used to building from scratch using Next.js? This is a pre-screening conversation.
Now even if you are not sourcing and this will come from a Job Advert, ask Pre-Screening questions in the Job Application to make sure you will talk to the right people.
Now let's say the answer or conversation went great, so you can share with them how to prep for your first official call, and I have a template for you here: Sourcing & Reach Out.
In your first call, you told them about you, shared the values you want for the company you are building, shared what you need help with, narrated your history, and gave them space for the candidates to narrate their stories. You shared experiences, values, skills, and potential. You had a Culture Call and you checked their skills to keep on moving with you.