Founder-employee chemistry: Dos and don’ts

Having run three startups over the last decade, I’ve had to hire plenty of people and let some go. In the process, I’ve learned a thing or two about how founders and their team members work together.

Here are some of my thoughts, in no particular order, on how to create good founder-employee chemistry. Please note that these are my personal thoughts based on my experiences and are not directed at any particular person, employee, or founder.

Image credit: Timmy Loen

0 to 1 but not 1 to 100

The initial intake of startup employees hired in the first one to two years will take the company from 0 to 1, but not necessarily from 1 to 100. Both founders and staff need to understand this to avoid disappointment.

Comfort is the enemy

Once an employee starts getting comfortable in their job, it can become dangerous territory. In a startup environment, it’s important to remain energized and constantly improve yourself because the minute you start feeling too comfortable, complacency comes in.

Be honest with yourself

If you’re a founder who’s delivering layoff news to an employee, yet they feel their performance doesn’t justify the decision, there are two ways to proceed.

First, make sure you’ve reviewed their performance regularly and convey your dissatisfaction to them so that they aren’t shocked. Second, if you’ve done this and they are still shocked, reassure them that they have nothing to fear. With their competencies, it should be easy for them to find another role.

Crap doesn’t always roll downhill

A founder always has at least one investor, if not more, breathing down their necks at all times, but good founders treat their staff as if nothing is wrong. Every employee needs to understand this and put themselves in the shoes of the founder at least once in a while.

You can’t put the genie back into the bottle

Words cannot be taken back, so be careful with your words, anger, and temper. Always be respectful. However, whether you’re a founder or employee, you can always apologize if you’re in the wrong.

Understand what you signed up for

When you join a startup as an employee, you should know that it has limited funding. So don’t settle in as if it’s a corporate job at a well-established multinational corporation.

Know when to cut bait

If you feel your expectations and the way the startup is run are a mismatch, please resign immediately. Staying in a bad situation hurts your career and the startup.

Similarly, if you find yourself not wanting to go to work every morning or losing enthusiasm, it may be time to get out.

Be humble

Change is the only constant as employees come and go, especially in a startup. So don’t be too hard on yourself.

Loyalty is the gold standard

Although few and far between, some employees will stay through the entire lifetime of the startup. They are the most resilient and have a deep understanding of the founder’s decision-making.

It’s a bumpy road

Product, not profit

Learn as you go

Remember the vision