Your company is growing. The team is stretched thin. They’re hustling as they try to keep up with mounting demands. It’s time to hire--past time, if you’re being honest with yourself--and the pressure to bring another body on board is on. Still, you know that you can’t let this pressure blur your judgment. Each new hire is critical.
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Startup, scaleup, or corporation, finding the right people to grow your team is a major pain point regardless of company stage or industry. According to the U.S. Department of Labor Statistics, the average cost of a bad hiring decision is 30% of the individual's first-year earnings. A recent survey conducted by Harris Interactive, via CareerBuilder, identified that 41% of employers say the cost is more than $25,000, while 25% identified the cost to be over $50,000. Worse, a poor fit can yield long-term negative effects on customer relationships, company culture and team performance.
Those who have made hiring decisions--especially those who’ve made hiring mistakes-- understand the immense pressure, and incredible uncertainty involved in growing a team. Ultimately, your hiring choices come down to your priorities. So, what do you prioritize as you look for new hires? Do you select for the most robust technical skill set? Impressive credentials or education? Or, is there something else?
At Startup Institute we’re interested in finding out exactly what differentiates a rockstar candidate from a “good” one. What attributes do these top performers possess? How do we screen for the right raw material? And how do we grow their careers?
According to new research that we’ve conducted on the characteristics of successful employees at rapidly growing companies, 92% of high-growth company executives believe that culture skills-- so-called “soft skills”-- are as important as technical ability; 25% of this majority asserting that soft skills are more important than technical skills.
In addition to fielding over 200 surveys with entrepreneurial leaders, executives, and hiring managers at high-growth companies, we analyzed direct interviews with many of these leaders to uncover what qualities they value most highly in their employees, and consider most significant to driving success for their businesses. We wanted to know what kind of employees founders and CEO’s would like to clone. Six characteristics surfaced as top performance indicators:
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Desire to learn: The shelf-life of knowledge today can be measured in months--so knowing how to learn and doing it, constantly, is crucial. These employees are insatiably curious and coachable. They have mindsets of continuous improvement and actively seek feedback.
Ability to thrive amidst ambiguity: High-growth companies value people who are resilient, and can take initiative, assuming a role as a leader through uncertain and stressful circumstances.
Passion: Passionate employees love what they do, have high personal standards, and work hard--and smart--to see their goals realized.
Scrappiness & grit: These people exhibit the persistence, confidence, and can-do attitudes to make things happen, and are able to deliver results with limited resources and information.
Excellence at collaboration: Highly collaborative individuals are motivated more by the performance of a cohesive team over their own glory. They build strong professional relationships through trust and communication, and by showing appreciation for the contributions of their coworkers.
Willingness to put the company before oneself: The desire to be a part of something bigger drives these people to take ownership over projects and make decisions in the best interest of the business.
Our findings revealed that these six qualities are complementary. Nearly all executives interviewed identified at least three of the six--implying that the characteristics are of real value when they exist as a “success cluster,” enabling long-term success and leadership potential. Think about your own rockstars--which characteristics do they possess? Which ones do you possess?
What does this mean for Chicago’s innovation economy? It means we can hire smarter. Too often we react to the gaping hole on our staff by hiring the first technical fit to fill the opening. Demonstrated technical skills are crucial--just be careful overdoing the screen here. As our research indicates, cultural and soft skills tend to yield bigger and longer-lasting dividends. The person possessing the right culture fit for your company can navigate the fast-changing landscape with commitment, curiosity, and a team-first attitude. This success cluster creates a powerful snowball effect--propelling your mission and revenue, while attracting more high-quality candidates through a strong company culture.
Startup Institute Chicago selects and develops web dev, web design, sales, and marketing talent to propel them into careers they love--helping our tech ecosystem thrive. Get the report: The Six Characteristics of Successful Employees in Rapidly Growing Companies We hope it serves as a catalyst for conversation about smarter hiring and culture-building within your company.
