Hiring your first employees: a guide for startups

Your first employees shape the culture, pace and quality of the startup. A good hire at this stage moves the company forward; a bad one can cost months of time and cash.

When to hire

• When a recurring task consumes most of the founders' time
• When a missing skill is clearly slowing growth
• When you have cash to fund the role for at least 12 months; see our cash flow guide

Which roles first?

Roles closest to the product and customer usually come first: software developer, product designer, first sales or customer success hire. Leadership roles built for scale (such as a marketing director) are often premature.

Who are you looking for?

• Ownership: finishes work without being told
• Comfort with ambiguity: productive before processes exist
• Breadth: can take on more than one job
• Values fit: suits how the company works

Job ad

Go beyond a task list: explain what the company solves, what you expect the role to achieve in the first six months and what you offer. Mention flexibility, learning and stock options.

Interview process

1. Short intro call: motivation and basic fit
2. Skills assessment: a short task resembling real work, or a working session together
3. Team interviews: meet future colleagues
4. References: talk to people who worked with them

Finish within two or three weeks; good candidates do not wait long.

Offer package

Competing on salary is hard early on. The offer combines salary, stock options, scope and learning. See our ESOP guide. Include IP and confidentiality clauses in employment contracts; they are checked in due diligence.

Common mistakes

• Settling for "good enough" because the need is urgent
• Hiring only from your own circle
• Not planning onboarding
• Acting late on performance problems

Conclusion

"Hire slow, fire fast" is especially true early on. Looking for a co-founder instead? See our co-founder guide.