Unlocking Startup Success: The Role of Advisors in Hiring
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Chapter 1: The Importance of Talent Over Titles
In the dynamic environment of a startup, prioritizing attributes such as talent, ambition, and dedication often outweighs the importance of prior job titles or years of experience. Consider a scenario where you have a highly capable Operations individual contributor at Stripe, eager for a role that allows her to expand her skillset. My advice? Hire her without dwelling on her lack of a senior title.
Once she’s on board, it’s crucial to create an environment that fosters her success. Simply signing the offer letter isn’t enough; you need to ensure she thrives within the team. One effective strategy is to incorporate mentorship into her onboarding process. This mentorship should not be limited to internal company guidance but also include external support. Encourage her to identify a senior figure in her career who has positively influenced her, and consider bringing that person in as an advisor compensated with equity. If she admires someone in the industry whom she hasn’t yet met, make that connection happen on her behalf. Additionally, tap into your network to find esteemed professionals who can contribute meaningfully.
Section 1.1: Establishing a Trusting Relationship
How should you, as a founder, engage with this advisor? It’s vital for both the mentor and mentee to feel comfortable in their discussions. Avoid creating a situation where the advisor feels pressured to provide constant performance feedback, as this could hinder open, honest conversations. However, it is beneficial to maintain open lines for periodic feedback on how you can assist the team member’s growth and communicate potential development opportunities to the mentor. Remember, the objective is collective success for the company and its employees.
Subsection 1.1.1: Signaling Trust Through Equity
During the hiring process, informing candidates that they can utilize an ‘advisor equity budget’ to enlist valuable external mentors signals trust and empowers them. This can even be framed as part of their compensation—a grant of equity that they can allocate, with your approval.
Section 1.2: Overcoming Doubts About Hiring Decisions
Some founders may hesitate, questioning if it’s a wise move to offer additional equity to an external advisor when considering a new hire. My perspective is as follows:
- You’re securing a high-potential individual before the broader market recognizes their value, akin to signing a promising athlete on an entry-level contract. Their success will not only yield immediate benefits but also attract further talent in the future.
- When you onboard someone more junior for the role, their initial equity grant may be lower than what would be required to hire a seasoned executive. View the advisor grant as a strategic way to utilize that difference, effectively conserving equity.
- The advisor’s value extends beyond assisting the new hire; they can also serve as an additional resource for recruitment and networking.
This is my rationale for this hiring approach and how to successfully implement it. Best of luck!
Chapter 2: Leveraging Video Resources for Deeper Insights
To further explore the concept of utilizing startup advisors, consider these insightful videos:
The four types of startup advisor you need (and who you don't) - This video outlines the essential types of advisors that can significantly impact your startup's trajectory.
What it means to be a Startup Advisor - Gain insights into the responsibilities and benefits of being an advisor in a startup context.