Quick Answer
Hiring for startups in 2024 requires a focused approach on defining company values and critical skills, crafting detailed job descriptions, and utilizing network referrals. Recruiting from Scratch assists startups by sourcing top Engineering and AI/ML talent for seed through Series C companies, achieving an average time to fill of 29 days and placing engineers with an average salary of ~$252K. Our data from 0+ technical placements and work with 549+ active startup clients show that clear communication and effective onboarding are crucial for success.
Finding and hiring top talent for your startup can be a challenging task. It's not just about hiring employees, but rather about finding individuals who are passionate, skilled, and aligned with your company's values. Based on 0+ technical hires we've made since 2019 across 549+ active startup clients, we specialize in Engineering and AI/ML roles for seed through Series C companies. This guide outlines eight effective strategies for hiring for startups in 2024.
How to define company values when hiring for a startup
Clearly defining your company's values before hiring is crucial for attracting candidates who align with your startup's culture and operational pace. This foundational step helps filter for individuals whose work ethic, collaboration style, and problem-solving approach directly support your business objectives, whether that's speed, meticulous execution, or customer focus. By setting these expectations early, you ensure new hires contribute effectively from day one.
When you started your company, you probably had an idea in mind of what you value as a business. Maybe it’s speed, or delivering exceptional customer service to your clients. Or maybe you provide a very strategic service, and value providing exceptional work delivered by senior hires. Or perhaps you started your business out of a frustration with your industry – something you noticed that wasn’t working, and you pride yourself on NOT doing.
It may sound basic but write everything you value down before starting to hire for your startup. Even if this list is 10+ items, you can narrow it down as you go and start to define what your company will look for in candidates.
Why is this important in 2024? If you value speed – you likely don’t want to work with a hire who needs to be meticulous and is a perfectionist when it comes to shipping a product. Or if you value collaboration – you will want to look for candidates who can work with others just as well as they can work independently.
What skills and qualities to look for in startup candidates
Identify the specific skills and qualities required by starting with the core problems your new hire needs to solve and the KPIs they will impact. For startups, this often means looking for adaptability, a growth mindset, and the ability to take on evolving responsibilities, in addition to core technical competencies. This reverse-engineering approach helps determine the ideal seniority, experience level, and role title.
Before you start the hiring process, it's essential to clearly define the skills and qualities you're looking for in a candidate. If you’re a startup, your hires’ job responsibilities may often change - but still try to be as specific as you can.
For example – do you need someone to lead a function or a team? Or do they need to fill a specific role you’ve already hired for in the past? Once you know the problems you want this hire to solve, you can work backwards to determine the right seniority, years of experience, job title and salary.
Again - this may sound basic! But by starting backwards by listing your KPIs and goals for the next six months or year, you'll have a much better idea of what exactly you want a new hire to do.
How to write an attractive job description for a startup
An attractive job description goes beyond responsibilities and qualifications; it sells the opportunity and the startup vision. Highlight company funding, investor backing, exciting projects, and what makes the opportunity unique to draw in top technical talent. A well-crafted description effectively communicates the potential impact a candidate can have within your growth-stage company.
A well-written job description is crucial for grabbing the attention of top talent and encouraging them to apply.
Start by highlighting the key responsibilities and qualifications for the role. Be specific about what you're looking for and avoid generic language.
But these are just the basics. To attract the best talent in 2024, we also encourage our clients to include the following:
If they’re a first-time founder, what other successful companies have they been part of or invested in
If they’re a funded company, where they’ve raised money from
What series of company they’re in
Why someone should be excited about this opportunity
What exciting new projects the company is working on
How to use your network for startup hiring referrals
Utilizing your professional network for referrals and recommendations is one of the most effective ways to find high-quality candidates who may already be a cultural fit. Actively share your open roles on platforms like LinkedIn and directly with your connections, as many professionals are eager to join exciting startup environments. Our internal data shows that a significant portion of talent prefers working for smaller companies, indicating a strong appetite for startup roles.
Of course, one of the most effective ways to find top talent is through referrals and recommendations. Your network can be a valuable resource for identifying individuals who might be a good fit for your startup. Based on 0+ technical hires we've made since 2019, referrals consistently lead to strong hires.
Post your new role on LinkedIn, but don’t feel shy about sending it to your connections in your network too. Even if you have connections that you don’t think would be interested, many people are itching to join an exciting startup opportunity.
Recruiting from Scratch asked our followers last year what company size they wanted to work for, and 50% said a company with 100 people or less. So if you’re unsure if you can attract top talent, rest assured – we’ve helped our clients find hires for their startup from some pretty amazing companies. Our specialization in Engineering and AI/ML roles at seed through Series C startups has shown that top talent often seeks the growth opportunities unique to these environments.
Should startups use technical assessments and structured interviews?
Technical assessments and pre-prepared interview questions are critical for accurately evaluating a candidate's practical skills and problem-solving abilities. These structured evaluations provide candidates an opportunity to showcase their work and demonstrate commitment to the role, while giving your team objective insights into their capabilities. This approach minimizes hiring bias and improves the quality of technical hires.
Interviews and assessments are key components of the hiring process when it comes to hiring for a startup. They provide an opportunity to evaluate a candidate's skills and whether they can perform the tasks at hand.
We often see our clients give our candidates anywhere from 48 hours to a week to complete take-home assignments.
While it may take more time on your end to design and review these take home tests, nearly all our candidates are excited to complete these. Why? Reason 1: it shows the startup is serious about hiring them, and Reason 2: they get a chance to showcase their skills and how they work.
How much to communicate with candidates when hiring for a startup
Over-communicating expectations, timelines, and interview processes with candidates is essential for maintaining engagement and setting clear boundaries. Early and transparent discussions about salary, equity, and the number of interview stages help manage candidate expectations and quickly identify any misalignments. This transparency fosters a positive candidate experience, even if they don't get the role.
During your initial interview or screen with a candidate for a startup, over communicate your expectations and the process. This can include things like:
Your timeline: when you expect to make an offer, and when you want someone to start in the role
The number of interviews they can expect: do they need to meet with others on your team, or a panel?
Salary and equity expectations: this may come up as early as the first interview, but if expectations aren’t aligned when it comes to salary and equity, you should uncover this as soon as possible.
How to conduct behavioral interviews for startups
Mastering behavioral interviews involves asking questions that prompt candidates to share specific examples of past experiences, providing insight into their problem-solving and collaboration styles. Focus on assessing a candidate's adaptability, growth mindset, and ability to thrive in an ambiguous, fast-paced startup environment. This method helps identify individuals who can not only perform tasks but also contribute strategically to your company's evolution.
Before the interview, create a list of relevant questions that will help you assess the candidate's qualifications and suitability for your startup role. Use behavioral-based interview questions that require candidates to provide specific examples of their past experiences and accomplishments.
During the interview, pay attention to the candidate's communication skills, body language, and overall demeanor. Take notes and compare each candidate against the predefined criteria you established earlier. Do they seem energized and excited about the role? Are they engaged in the interview process, asking YOU questions back?
Check out our favorite interview questions and recommendations in these posts:
Top 10 interview questions and how to answer them
6 questions to ask if you're hiring for a startup
4 tips for conducting a phone screen and 9 suggested interview questions
Additionally, evaluate candidates' potential for growth. Startups often require employees who can handle ambiguity, take on new responsibilities, and contribute to multiple areas of the business. Look for candidates who have a track record of continuous learning, adaptability, and a growth mindset.
How to onboard new hires at a startup
Even for early-stage companies, establishing a clear onboarding process is vital for integrating new hires and setting them up for success. This process should include introductions to key team members, essential tool training, and explicit expectations for performance and growth. A structured onboarding plan, even if simple, significantly improves a new employee's productivity and overall experience at your startup.
If you’re a startup, you probably don’t have an onboarding process in place yet – and that’s okay! But once you start making your first, second or third hires, onboarding sets the stage for a positive employee experience and helps new hires integrate into your startup.
Create a detailed onboarding plan that includes introductions to key team members, training on tools and processes, and clear expectations for performance and growth.
This doesn’t need to be a designed PDF, or anything fancy – the content is what matters more here than the format. At Recruiting from Scratch, we build onboarding using tools like Coda. Everyone can access these, and we’re constantly able to add to them as we refine our process.
Investing time and effort in finding and hiring the right talent will pay off in the long run. Your startup will benefit from the skills, passion, and dedication of top performers who will contribute to your growth and success.
FAQ
What is the average time to hire an engineer for a startup?
The average time to hire an engineer for a startup varies, but with a focused approach and expert support, it can be efficient. Recruiting from Scratch achieves an average time to fill of 29 days for technical roles, from req open to offer accepted. This speed helps startups acquire critical talent quickly.
How much does a contingency recruiting firm charge for startup hiring?
Contingency recruiting firms typically charge a percentage of the placed candidate's first-year base salary. Recruiting from Scratch's contingency fee ranges from 25-30% for our specialized Engineering and AI/ML placements. This fee structure means you only pay upon a successful hire.
What is a good average salary for a startup engineer in 2024?
The average salary for a startup engineer in 2024 is competitive and varies by experience, location, and specialization. In our data from 0+ technical placements, the average salary for engineers placed by Recruiting from Scratch is approximately ~$252K. This reflects the market rate for high-caliber talent at seed through Series C startups.
What types of roles does Recruiting from Scratch specialize in?
Recruiting from Scratch specializes in placing top-tier technical talent at early-stage companies. We focus specifically on Engineering and AI/ML roles for seed through Series C startups. Our expertise ensures we connect clients with candidates who fit their specific technical and cultural needs.
What is the NPS of Recruiting from Scratch?
Recruiting from Scratch maintains a high Net Promoter Score (NPS) reflecting our commitment to client and candidate satisfaction. Our current NPS is 90+, indicating a strong positive experience for those we work with. This score underscores our effectiveness and dedication to quality service.
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