What Startups Often Get Wrong About Hiring and How to Fix It

Hiring the right people is one of the most important decisions a startup can make.

In the UK, a poor hiring decision can cost a small business between 1.5 and 3 times the employee’s annual salary, potentially exceeding £60,000 in lost resources.

It's easy to rush the hiring process, but making quick decisions can lead to issues that harm long-term growth. A bad hire can hurt team morale, damage workplace culture, and affect financial results.

So, how can you avoid these mistakes? Let’s find out.

Common Hiring Mistakes Startups Make

Here are some common hiring mistakes that every startup makes:

Mistake 1: Hiring in Startup Mode vs Scaling Mode

In the early stages of a startup, acting quickly is essential. Time is limited, resources are few, and every new hire seems vital. This urgency often leads to a focus on speed over quality.

But what happens as the business grows and the team expands? The quick decisions that seemed necessary may start to show problems.

How to Fix?

Create a hiring plan that anticipates future roles and company growth.
Focus on building a strong team for the long term instead of just filling fast needs.
Set clear hiring goals as the company grows.

Mistake 2: Underestimating the Importance of Visibility

Startups often assume strong candidates will automatically find them, especially if the product or mission is compelling. In reality, visibility plays a much larger role in hiring success than many early teams expect.

According to specialists at kaizen-seo.com, who work with recruitment agencies, many startups underestimate how much hiring success depends on search visibility. As teams grow, roles begin to compete not just with other startups, but with established brands and large hiring platforms. When this shift happens, depending on informal networks or ad-hoc job postings is rarely enough.

Without a clear approach to how roles are presented and discovered online, startups can find themselves paying more for attention while reaching fewer of the candidates they actually want.

How to Fix?

Use SEO techniques to improve the visibility of your job postings.
Expand your reach by leveraging recruitment platforms and job boards.
Invest in a professional career page that clearly shows your company’s roles and culture.
Promote job openings on social media and online networks to attract candidates.

Mistake 3: Relying Too Heavily on Informal Networks

In the early stages of a startup, it can be tempting to depend on your network for hiring. Finding candidates may seem easy with personal recommendations or a quick post on social media.

While this can work for some roles, relying too much on informal networks can limit your options. This might lead to hiring people based on who you know rather than skills. Your connections may not always have the right candidates for the job.

How to Fix?

Use job boards and professional platforms like LinkedIn to broaden your hiring efforts.
Partner with staffing agencies to connect with skilled professionals.
Explore different sourcing methods to ensure you get a diverse and qualified group of candidates.
Keep an open mind for new talent outside your immediate network to avoid hiring bias.

Mistake 4: Skipping Over Clear Job Descriptions and Expectations

Startups frequently make a common mistake during hiring: they do not clearly define job roles and expectations. New employees may find themselves in unclear positions with no defined responsibilities, leading to confusion later.

Without clear expectations, employees might feel lost and experience frustration, which can hurt their productivity.

How to Fix?

Write clear job descriptions that outline duties, expectations, and required skills.
Set measurable goals for each role to ensure everyone knows what is expected of them.
Regularly review job descriptions to make sure they meet company requirements and support employee growth.
Make the hiring process transparent to ensure clear expectations from the start.

Mistake 5: Not Building a Team, and Just Filling Roles

Many startups rush to fill roles by focusing only on urgent business needs. While it is crucial to fill instant gaps, it’s also essential to think about your team’s long-term goals.

A job today might look different in six months or a year. The person you hire now could be key to the company's future expansion, so consider the long-term impact when you recruit.

Recent data from Michael Page shows that 65% of UK startups found that prioritising long-term hiring strategies reduced turnover and better aligned with business objectives. This emphasises the value of building a team that grows with the company.

How to Fix?

Balance immediate needs with future possibilities.
Look for candidates who can adapt as the company evolves.
Motivate employee development to prepare your staff for future leadership roles.
Create a long-term recruitment plan that matches with the company’s goals and vision.

Conclusion

Hiring for startups can be challenging, but you can succeed with the right approach. To avoid costly hiring mistakes, focus on visibility, follow a clear hiring process, define job roles, and think about how team members will collaborate in the future.

Building a strong team isn’t just about filling positions; it’s about placing the right people in the right roles for the long term.

With a solid plan, you can set your startup up for success and ensure your team grows alongside the business.