❗Startups “Management Team”​ Hiring: The Hungry Up-&-Coming Talents VS The Established Expensive Leaders❗

After going on vacation for a couple of weeks, I decided to finally open my inbox only to find that most of the messages I’ve been getting have been revolving around one thing; HIRING TALENTS!

I can’t emphasize on how much of a pain point this has been for founders in recent years! I can write 10 articles and they won’t be enough to cover this hot topic.

In this article though, I just want to highlight 1 very specific message I got.

A SENIOR MANAGEMENT HIRING DILEMMA!

Should founders of early-stage startups (from seed to series A) hire top management talents who are:

- Established, Experienced & Expensive

Or

- Young, Hungry and Up-&-Coming

These talents are going to lead the startups’ strategic direction & execution which means that they will either drive the company to more growth & hopefully another round of investment or to a fast and ugly death that will become just another tomb in the graveyard of startups!

Now let’s take a deeper look on what both profiles might look like (stereotypically of course)!

1) Established, Experienced & Expensive

(P.S. We don’t have a lot of those in our relatively young startup ecosystem)

- They did it before: Experienced leaders who lead multiple startups into the next stage, scaled operations, built teams and have been doing this for a while now

- They are very expensive to hire:

o Their salary brackets broke anything founders are used to pay

o Won’t join without equity (maybe even generous bonuses)

o Demand on them is high and supply is very low in Egypt, so they come with an overprice such as most imported cars in Egypt nowadays (my way of venting mid article on how the cars industry has become a joke)

- Will not easily compromise on your startups needs: In terms of accomodating to the ways of working, relocating to a new city or committing to specific # of office days. You have to understand that they are in a different stage of their life & career that is shaped by their family commitments &/or their overall wellbeing. Long passed are the days where they were doing to do anything for the company; they now have the leverage!

- They know their worth: So don’t expect them to be all over you, if anything, they probably get job offers every week so their decision to join you will take a lot of time and selling efforts on your side!

now let’s take a look at the 2nd profile!

2) Young, Hungry and Up-&-Coming

- They contributed to a startup’s success story: Have had direct impact on the growth and success of at least one startup, playing a role that only a high potential talent can do! They might not necessarily have been the GM or the most senior leader of the organization, but they definitely made things happen!

- Relatively affordable: Even with their high salaries, the entire compensation package will make more sense in comparison to what you’d normally offer to a veteran leader in the industry!

- HUNGRY: They are at a point of their life & career where they are probably are willing to go the extra mile to do what’s best for business in aims of not only proving themselves but also stretching their capabilities and building a solid track record & personal brand. From relocating to another city to hitting the office more often to showing up even when not needed…you can expect it all from them!

- More hands-on: They are more likely to do things themselves and work closely with their teams more than established leaders who might not be willing to personally engage in operations and supervising execution (which is sometimes essential in certain stages of startups)

The million-dollar question is, how do we decide which profile do we need in the stage we’re in as a startup!

There are a few critical factors that will heavily affect this decision:

For the Young, Hungry and Up-&-Coming

- Does your startup have the time to invest in the young up & coming talent and bet on their potential?

- Among the founders &/or board members, are their people willing to mentor this young high potential leader?

- How hungry, focused, driven and willing to learn while taking accountability is this talent?

- Is this talent capable to step up from execution and showcase his strategic thinking/leading muscles?

For the Established, Experienced & Expensive

- Does your startup have the money to invest in a super experienced expensive leader?

- Are the founders/board members willing to give the veteran leader the space to drive the startup’s agenda?

- Is the more expensive experienced talent a guaranteed card to your success? Meaning that in their track record they actually have achieved a lot in a very similar industry/situation.

- Is this veteran executive here to guide the team or build with their own hands?

In all cases, can your startup recover from hiring the wrong profile?

Will it be easier to recover the money from hiring the expensive leader or easier to recover from the time wasted with younger promising one?

So share with me what experience have you had with both profiles in your company?