Hiring is one of the trickiest things you’ll do as a founder, and it’s also one of the most critical. My journey as the founder and CEO of SiMa.ai has taught me some hard-won lessons about hiring. After plenty of trial and error, I've figured out what really works when it comes to building a team.Let's dive into the key principles for hiring that can set your startup on the path to success.
Hire for long-term potential when choosing the core teamAs you scale up your hiring, it's tempting to focus on immediate needs and just fill gaps in your current organization. However, at SiMa.ai, we've found that this approach rarely works well in the long run — especially for core business and technology roles.Instead, we focus on hiring individuals who either:
Can stay with us for the long term and bring valuable experience and stability, or;
Have the potential to grow into their roles and evolve with the company's needs.
This strategy ensures that we're not just solving today's problems, but also investing in our future success. It's about finding people who can adapt as our company grows and changes.There are some exceptions to this rule, primarily in support functions like finance or people management. In these areas, it's sometimes possible to hire for a specific stage of growth. For example, you might hire a finance professional suited for a 30-person company, knowing you'll need someone with different skills when you reach 300 employees.However, for roles central to our core business and technology teams, we've found it's crucial to think long term.This approach requires more upfront effort in the hiring process, but it pays dividends — you can build a team that's equipped to tackle current challenges as well as future opportunities.Streamline your interview process with the “rule of six”At SiMa.ai, we've come up with a streamlined way to interview people that gives us a good all-round picture of who they are and what they can do, without dragging things out too long. The review process always includes six people:
Four team members from the core function: These are individuals who work directly in the area where the candidate would be placed. They can assess the candidate's technical skills and how well they'd fit into the day-to-day operations of the team.
Two team members from related functions: We include two people from adjacent areas to provide a broader perspective. For example, if we're hiring a silicon engineer, we might include a software engineer and a business team member in the process.
Additionally, one of these interviewers is typically the key internal person who initially referred or identified the candidate. Their input is valuable as they may have insights into the candidate's background or potential fit.The hiring manager conducts reference checks and has the final say in the decision. While they could theoretically override the team's input, this rarely happens in practice. Instead, the manager typically considers all the feedback before making a decision.
Test potential hires by starting with contract rolesOur team has found value in a "try before you buy" approach for certain roles. We often start potential team members as contractors or consultants. This lets us see how they work and fit in before we commit to bringing them on full time.This strategy allows both parties to assess the fit without the pressure of immediate permanent employment. It's particularly useful for specialized roles or when we're expanding into new areas where we might not be entirely sure of our long-term needs.If the contractor proves to be a great fit, we can transition them to a full-time employee role. This approach has helped us make more informed hiring decisions and reduce the risk of mismatches.
Know when to step away from hiringAt a certain point as a founder, you’ll need to step back from the day-to-day hiring process. But what’s the right moment to let your team take the reins as you grow?Here's how we've structured our hiring:
Founder involvement: I remain actively involved in hiring until a function reaches about 20 people. At this point, I've built out the next level of management chain for teams that don’t report directly to me.
Direct report involvement: For teams that do report directly to me, I step away from the hiring process when they reach around 40 people.
Letting the system work: Once we hit these numbers, I step back and let my teams handle the hiring. It helps them become more self-reliant and keeps things moving smoothly.
This isn't a one-size-fits-all approach, though. For example, I'm currently more involved in building our business function, but I'm conscious of the need to step back once we hit that 20-person tipping point.The key is to recognize when your continued involvement might be more of a hindrance than a help. If you overstay in the hiring process, it can slow things down and prevent your teams from learning critical skills and developing their own processes.
Establish a probationary periodIn many cases, the real work begins after a new hire accepts the offer. SiMa.ai has implemented an intensive onboarding process that includes an informal three-month probationary period to ensure mutual fit.We kick off every new hire with a rigorous 30-day onboarding program. This isn't just paperwork and introductions — it's a comprehensive process designed to immerse the new team member in our culture, systems and expectations.The hiring manager plays a crucial role in the onboarding process. Their active involvement is mission-critical to the new hire's trajectory and how quickly they become effective in their role.We also assign each new hire a "buddy" — someone they can turn to for questions, complaints or even simple things like where to find the restrooms or how to order lunch. This informal support system helps new hires navigate the unwritten rules of our workplace.By the two to three-month mark, it usually becomes clear whether the new hire is a good fit for the role and company. We're getting better at making this assessment and having honest conversations about fit at this stage.The key to this approach to onboarding is transparency. We're upfront about our expectations and the assessment process, which helps set the stage for open communication and mutual evaluation.Bend over backward on due diligence for your first 10 hiresThe first 10 hires you make can significantly shape your company's future. These early team members set the tone for your culture, work ethic and overall trajectory — so it's crucial to approach these initial hires with care.I’ll confess that I learned this lesson the hard way. I made more hiring mistakes with my first 10 SiMa.ai team members than at any other point in my career. Over the course of our first year and a half, I had to painfully let go of almost every one of them.This experience taught me a valuable — albeit difficult — lesson about the importance of rigorous due diligence in early hiring.Here's what I've learned:
Be meticulous in your hiring process: Take your time and thoroughly vet each candidate. Don't rush to fill positions just because you're eager to grow.
Trust your instincts: If you have any serious concerns about a candidate, it's best to continue your search. The cost of a bad hire at this stage is simply too high.
Look beyond skills: While technical skills are important, also consider how each hire will contribute to your company culture. You can teach skills, but you can’t teach cultural fit.
Consider the long-term impact: Remember that your earliest team members will likely influence your next 20-30 hires. Make choices carefully.
If I were to start another company, I would approach my early hires with even more caution and diligence. The lessons I've learned about hiring have been some of the most valuable in my entrepreneurial journey.Take the time to get it right, especially with those crucial first 10 team members.
The six pillars of successful startup hiring
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The six pillars of successful startup hiring