How to Identify Candidates Who Are a Bad Fit for Startups

In this week’s episode, I dive into the crucial red flags you need to watch for when hiring for your startup.

I’ve said it many times and will continue to say it: Hiring is arguably the most important capability your young startup needs to succeed!

Your first 50 hires will either make or break your startup.

These are the individuals who will navigate you through economic storms, tackle challenges head-on, and drive your growth.

But how do you identify those who won’t fit your dynamic, high-stakes environment?

These are the 5 red flags you need to watch out for when hiring for your startup:

Red Flag #1: The Short-Term Pay Prioritizers

Is your candidate obsessed with base pay?

Unless you’re swimming in venture capital, you should be offering competitive pay paired with equity and performance incentives.

Candidates who fixate solely on immediate financial gain might not be in it for the long haul.

They’re likely to jump ship at the first sign of trouble.

Remember: Short-term thinkers are not the builders of tomorrow.

Check out last week’s episode or newsletter for more information on why you should share compensation early in the hiring process.

Red Flag #2: The Employee Mentality

A startup isn’t just another job—it’s an adventure filled with ups and downs.

You need individuals who aren’t just checking boxes from a job description but are eager to dive into uncharted waters.

Those with an “employee mentality” tend to stick to the script, expecting promotions and praise to motivate them.

A killer startup team member will act like an owner, not a clock puncher.

Ask candidates to share times they took initiative beyond their defined roles. It’s these stories that reveal entrepreneurial spirit.

Red Flag #3: The Unprepared

Candidates who can’t be bothered to learn about your company are more interested in a paycheck than the job or your company.

You need team members who are passionate about your vision and are proactive in their research.

Imagine hiring someone who doesn’t even know what your company does—this lack of interest will cost you in the long run.

Red Flag #4: The Perk Hunters

Sure, everyone likes perks, but if a candidate’s questions revolve solely around benefits instead of the role itself, take note.

Entitlement and pettiness are toxic to small teams. Instead, you want candidates driven by the opportunity to make an impact.

Their excitement should be about the mission and growth, not extra vacation days.

Red Flag #5: The Inadaptable

Startups thrive on change and innovation, which means you need nimble thinkers who can solve problems creatively.

During interviews, dig into past experiences where candidates had to adapt rapidly or tackle unexpected challenges.

Their answers will help you gauge if they can handle the pressure of a fast-paced environment.

Tales from the Trenches

This past summer in Lebanon, a close friend shared a mind-boggling tale.

He offered two of his long-time employees a chance to own nearly half of a profitable service division—yet they declined because their immediate cash compensation would dip.

This example highlights the importance of long-term vision over short-term gains.

True startup champions are those who seize such opportunities with both hands.

In Closing

As you build your startup’s dream team, remember that the right hires are not just employees—they’re partners in your journey.

By recognizing these red flags, you’ll be better equipped to find those who will not only fit your culture but also share your vision and drive your success.

Stay tuned for the next episode, where I’ll discuss the changes you need to make to your hiring as you scale from 50, to 100, to 500+ employees.