Extreme Hiring

Summary

In this episode of Matrix Moments, Vikram Vaidyanathan of Matrix Partners India delves into the critical yet often underestimated role of hiring for founders. He emphasizes that early-stage hiring momentum directly drives company growth and advises prioritizing DNA and intrinsic qualities over skills in initial hires. Vikram outlines strategies like extreme referencing, defining organizational DNA, and founders dedicating regular time to recruitment. He also discusses balancing capability versus culture fit, building recruitment processes, and handling mis-hires with thoughtful interventions. The conversation provides actionable insights for founders to build strong, high-performing teams that fuel startup success.

Takeaways

• 😀 The importance of extreme hiring: Founders should focus on hiring with momentum, especially at early stages, as it is directly tied to company growth.
• 😀 DNA vs. skill set: At the early stages, prioritize hiring people with the right DNA (intrinsic qualities like hunger and hustle) over technical skills.
• 😀 Hiring 10 people first: Instead of aiming for perfection, focus on getting the first 10 hires to create momentum for scaling your team.
• 😀 Experience vs. passion: When faced with candidates who are passionate but inexperienced vs. experienced but less enthusiastic, early-stage founders should favor intrinsic qualities over experience.
• 😀 Defining company DNA: Make sure to define your company's intrinsic qualities, like hunger and hustle, to use as a common language when hiring and evaluating candidates.
• 😀 Extreme referencing: This means talking to people who know the candidate deeply—peers, managers, and even personal acquaintances—before making a hiring decision.
• 😀 360-degree referencing: To assess a candidate’s DNA, gather feedback from multiple sources, including direct reports, peers, and even family members where possible.
• 😀 Managing the hiring process: Founders should set aside dedicated time for hiring each day and ensure they are actively involved in the recruitment process.
• 😀 Every employee is a recruiter: Encourage current employees to help hire by getting them to refer candidates. A small team can rapidly grow through this method.
• 😀 When to hire external help: While consultants, recruiters, or RPOs can assist in building your team, hiring a full-time recruiter is crucial when scaling the company with more than 15-20 hires a year.
• 😀 Mistakes in hiring: If a new hire doesn’t work out, founders should first assess if the person fits the company culture and intrinsic values. If not, it’s best to part ways quickly. If they do, invest time in helping them succeed.

Q & A

What is the relationship between early-stage hiring and company momentum?

Vikram emphasizes that hiring momentum, especially at the early stages, directly correlates to company momentum. The faster you can onboard people who believe in your vision and can contribute, the faster your company will grow. The first 10 hires set the pace for future growth, and the quality of hiring accelerates momentum.

How should founders balance the decision between hiring passionate hustlers and experienced professionals?

Vikram suggests that in the early stages, it’s more important to prioritize intrinsic qualities like hunger and hustle (ambition and ability to get things done) over experience. For co-founder or CXO-level roles, DNA fit (cultural and personality alignment) is critical, while skills can be learned later. However, in scaling stages, when specific expertise is needed, skill set can outweigh DNA.

What does Vikram mean by 'intrinsic-based hiring'?

Intrinsic-based hiring refers to focusing on a candidate’s core qualities, such as drive, hustle, and cultural alignment, rather than just their skills or experience. This approach helps build a team that can grow and adapt in an uncertain, rapidly evolving startup environment.

What is 'extreme referencing' and why is it important?

Extreme referencing involves gathering deep insights about a candidate from a variety of sources, including bosses, peers, subordinates, and even personal connections like friends and spouses. Vikram believes this provides a fuller picture of a person’s intrinsic qualities and cultural fit, which is essential for early-stage hiring.

How early in the hiring process should extreme referencing take place?

Extreme referencing should occur early in the process, ideally before meeting the candidate or right after the first conversation. This helps verify hypotheses and assess intrinsic qualities before making a decision.

Should founders handle hiring themselves or outsource it to consultants or recruiters?

Vikram advises that founders should build their own hiring muscle early, spending dedicated time each week on recruitment. While recruiters and consultants can assist, especially with managing the process, founders should remain deeply involved in the hiring process, especially in the early stages, to ensure cultural and DNA alignment.

What role does the founder’s calendar play in the hiring process?

A founder’s calendar is crucial in managing the time and energy dedicated to hiring. Vikram recommends blocking out two hours each day specifically for recruitment activities—one hour in the morning for planning and one hour in the evening for interviews. Additionally, dedicating a larger block of time on weekends for decision-making helps maintain momentum.

How can a company scale its hiring without compromising quality?

Vikram suggests making every employee a source of new candidates by encouraging them to refer at least two people. This creates a network effect, where the team helps expand the talent pool while maintaining cultural alignment. Additionally, a dedicated recruiter can streamline the process, ensuring that quality hires continue to enter the pipeline.

What should a founder do if they realize they’ve made a poor hire?

Vikram identifies three scenarios where a poor hire might occur: a mismatch in DNA/culture, a misfit in the role, or poor chemistry. For culture misfits, founders should intervene early to address the issue. For role misfits, it’s important to invest in the person’s development, providing support and feedback. If chemistry is the issue, Vikram urges founders to over-invest in building that chemistry before deciding to part ways.

How should a founder handle the decision to let go of an underperforming employee?

Vikram suggests acting swiftly and decisively if the person is not a cultural fit or doesn’t align with the team’s values. If the person is struggling with the role, however, the founder should invest more time in them, surrounding them with support to help them succeed. Clear and honest conversations about aspirations and expectations are key to making these decisions thoughtfully.