Not having the right team is the third most common cause of startup failure, according to a Statista report. It closely follows the lack of market need and lack of cash. However, building a perfect team is very hard and you will most likely make quite a few staff changes as your business progresses. You might also not be able to afford hiring more or better employees. If you want to build a perfect team for a startup, you’ll need to prioritize the skills you require from your employees, find help that will allow you to hire them, and take your gut feelings into account when making final decisions.
3 Tips on How to Build a Perfect Team for a Startup
1. Hire a good PEO
A PEO, or a Professional Employer Organization, is a type of company that can help you solve the problem of not being able to afford hiring more people or attracting better professionals due to budget restrictions. Unlike when you are outsourcing some professionals, these people will be your team and work for you. However, officially they will be employed with a PEO.
This kind of deal will allow you to cut down on employment taxes and even get some great benefits that will help you make prospective employees interested. However, as there are many PEOs today and the types and quality of services they offer aren’t equal, be sure to contact a professional company to get a detailed PEO report. As a PEO will play a major part in your business’ success, you need to make sure that you are putting your trust into the best company available.
2. Outline exactly what you need first
You might want to have a team of 20+ people each with a set of highly-prized skills, but as a startup your budget is limited. Therefore, you must hire professionals who will be few but able to get your company to the next level.
Business As Mission provides a list of five key positions for a startup. They are a finance expert, IT professional, operations manager, business development specialist and an HR professional. However, depending on the type of business you run, you might need to have a greater team, for example with more people involved in production, delivery, etc. In this case, you will need to find ways to compromise. Outsourcing certain services might be exactly what you need to get a great team without actually hiring it directly. This will allow you to have a core team of the highest-qualified professionals you can find.
3. Hire people you like to communicate with
Conflicts within the team do not only lead to a decrease in productivity. They also make employees feel the lack of psychological safety in the workplace. Harvard Business Review warns that this is one of the most damaging factors for team performance. This kind of ‘atmosphere’ literally decreases the cognitive ability and strategic thinking of the team. The effects are so debilitating that they can significantly lower the performance of even the best-educated and skilled professionals.
And how do you minimize the conflicts within a team?
You lay down the foundation for this while still hiring by choosing people who will be psychologically compatible. When conducting an interview, be sure to ask yourself two essential questions:
- Will I enjoy working with this person?
- Will the other employees like working together with them?
Prioritize the answers to those when evaluating candidates so you can build a perfect team for a startup.