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The 3 biggest hiring mistakes you can make as a startup

For many Rwandan startups, one of the most challenging aspects of the journey is hiring the right team. In the early days of building your business, every hire counts, and the people you bring on board can either accelerate your growth or drag you down.

With Rwanda’s startup ecosystem on the rise, boasting a 40% increase in new business registrations in 2023, making the wrong hiring decisions could be fatal for your company’s future.

Let’s look at the three biggest hiring mistakes Rwandan startups often make—and how to avoid them.

Hiring friends instead of talent

It’s tempting. You need to hire quickly, and your cousin or that friend from school says they’re available. Plus, working with someone you already know feels comfortable. But here’s the problem: familiarity doesn’t equal expertise. In fact, studies show that 23% of startups fail due to poor team dynamics, often because of hiring friends or family members.

Your friend may have your back at family gatherings, but do they have the right skills to propel your startup forward? If they lack the relevant experience, they could end up costing your company more than just money. They could slow you down, delay important projects, and impact team morale. The startup space is highly competitive, and you can’t afford to waste time training someone who isn’t fit for the role just because they’re within your inner circle.

Prioritize skills over social connections. Write clear job descriptions, identify the qualifications you need, and open up the recruitment process to a wider pool of talent. You’ll be better off with someone who challenges you with fresh ideas rather than someone who agrees with everything you say just because they know you personally.

Skipping the cultural fit test

Imagine hiring a top-performing developer who meets all the technical requirements but doesn’t buy into your company’s vision. This disconnect can lead to internal conflicts, low engagement, and even high turnover rates.

Your startup may be small now, but every person you hire sets the tone for your future company culture. One of the biggest hiring mistakes Rwandan startups make is focusing solely on technical skills and ignoring cultural fit.

During the interview process, assess whether candidates share your company’s values and vision. Ask them how they handle collaboration, feedback, and high-pressure situations. Beyond technical skills, they should align with the direction you want your company to grow.

Neglecting to plan for growth

Many startups hire to fill an immediate need without thinking about long-term growth. The “we’ll cross that bridge when we get there” mindset might work for some things, but not when it comes to building a team. Hiring people without considering how they’ll scale with the company can lead to major issues down the road, such as redundancy, skills mismatches, and expensive turnover.

A study by LinkedIn found that the cost of replacing a bad hire can be as high as 30% of that employee’s first-year earnings. That’s money a startup can’t afford to waste.

Hire with the future in mind. Think beyond the immediate role and consider how this hire will evolve as the company scales. Will they be able to handle new challenges as your startup grows? Are they willing to learn new skills and adapt to changing business needs? Look for candidates with a growth mindset who see their role as more than just a paycheck but as an opportunity to grow with the company.

In the words of famous entrepreneur Fred Swaniker, “The people you hire determine the success of your vision.” So, hire wisely.

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