After idea validation, funding, and partnership, startup founders are often challenged with getting the right people to join their team. Should they hire individuals who are incredibly passionate about the business?  Or those who have a lot of experience in the industry? This is a real dilemma that sparks many discussions and differing opinions.  What exactly is at the heart of this issue, and how can startup founders make the best choice for their venture?

Let us expatiate on these terms; experience vs passion. Let's delve into the advantages and disadvantages of hiring based on experience and passion and then shed more light on the merits of each approach. We aim to provide startup founders with insights and perspectives to help them make informed hiring decisions. This is a  thought-provoking discussion that unravels the secrets to building a successful startup team.

What does it mean to hire for passion?

To hire for passion means seeking out individuals who possess unwavering dedication, genuine enthusiasm, and a strong emotional connection to your startup's mission and vision. These are individuals who believe wholeheartedly in the purpose and potential of your startup. And they are driven by an innate desire to make a meaningful impact. Hiring for passion is more about recruiting employees who are truly excited about the work they will be doing and are motivated to go above and beyond to contribute to the success of the startup.

These individuals bring an infectious energy and a can-do attitude to the team. They inspire others and create a positive and dynamic work environment. The big question is, what characterizes passionate employees? Passionate employees are often characterized by their boundless curiosity, relentless drive, and willingness to take risks. They are those employees who possess an entrepreneurial spirit and are eager to push boundaries, explore new ideas, and challenge the status quo. 

What does it mean to hire for experience?

When startups hire based on experience, it means they prioritize candidates who have already worked in similar roles or industries and have gained practical knowledge and skills. Such startups recognize the value of bringing in employees who have already faced and overcome challenges, acquired expertise, and developed a deep understanding of their field.

Hiring based on experience also implies seeking candidates who possess specific technical skills or domain expertise that align with a company. These individuals have likely honed their abilities through years of practice, training, and hands-on experience. The idea is that by bringing in experienced professionals, startups can leverage their industry knowledge, best practices, and established networks to gain a competitive edge.

Passion vs Experience - Pros and Cons

Hiring for passion and experience both have many advantages and also disadvantages. For one, passionate employees have a genuine enthusiasm for the startup's mission and are deeply committed to its success. Their passion drives them to go the extra mile, put in extra effort, and bring a contagious energy to the team. They often have a strong belief in the startup's vision and are motivated to make a meaningful impact. This passion even inspires others and creates a positive and engaging work environment. Additionally, passionate employees tend to be more creative and innovative, constantly seeking new solutions and pushing boundaries.

Even with the sea of advantages, there are also potential drawbacks to hiring based solely on passion. Firstly, passionate individuals may lack the necessary experience and practical skills required to navigate the challenges specific to the startup industry. Again, they might need additional training and guidance to develop their expertise. Without relevant experience, they could struggle to make informed decisions or handle complex situations, potentially leading to setbacks or inefficiencies.

On the other hand, hiring for experience has the following advantages: Experienced employees bring a wealth of knowledge and industry insights to startups. They have likely encountered similar obstacles in their careers and can draw from their past experiences to navigate challenges more effectively. Moreso, their expertise can provide a solid foundation for making informed decisions, implementing best practices, and anticipating potential issues. 

Experienced hires can also contribute to the startup's growth by leveraging their networks and established industry relationships. However, relying solely on experience when hiring may have its limitations. For instance, experienced individuals may become set in their ways and resistant to change or innovation. They might bring a more traditional mindset that is not always conducive to the fast-paced and dynamic nature of startups. 

Additionally, they may be less inclined to take risks or venture into uncharted territories, which can be a crucial aspect of startup success. Striking a balance between experience and adaptability is essential to ensure that the startup continues to innovate and evolve.

So which is the best approach - hire for passion or hire for experience? 

In his post about what he looks out for when he hires, Dave Nevogt wrote;

What really distinguishes the standout candidates from the rest are those intangible qualities—like passion, enthusiasm, and drive to be the absolute best

In the first place, passionate individuals bring infectious energy and unwavering dedication to the team -which is one of the pillars of a successful startup. They are genuinely enthusiastic about the startup's mission and are driven to make a meaningful impact. According to a study by Deloitte, passionate employees are more likely to demonstrate higher levels of commitment, productivity, and overall job satisfaction. Their passion fuels creativity and innovation to solve problems (two growth catalysts every startup needs), inspiring others and creating a positive work environment. 

To support this perspective, James Li, Co-founder of Mighty Health (YC) and Angel investor in his thought-provoking piece about 6 things startup founders look for when hiring wrote:

‍Passion for the problem: Does he/she personally care about the problem we're solving?

If the candidate is doing it for the money (and they aren't in pure sales), then they've wandered into the wrong room.

This is not to say that passion alone is sufficient to address the challenges that startups face. Or that startups can successfully build a powerful team by solely recruiting passionate candidates. After all, experienced candidates bring a wealth of industry knowledge and practical skills to the table on second thought. How? Because they have likely encountered similar obstacles before and can provide valuable insights and guidance. They bring a level of expertise that can help startups navigate complexities and make informed decisions. 

It's important to strike a balance between passion and experience. While passionate individuals infuse startups with energy and inspire others, experienced professionals provide stability and industry insights. Emphasizing the importance of diversity in the workplace, that is the need to have both experienced and passionate employees, a study conducted by the Harvard Business Review found that:

‍People from diverse backgrounds might actually alter the behavior of a group’s social majority in ways that lead to improved and more accurate group thinking. Considering all these factors,  hiring employees with a combination of passion and experience is the best option for a startup's success. By cultivating a diverse team that comprises individuals with both qualities, startups create a powerful synergy that propels them forward.

Why it can be difficult to get employees who are both passionate and have the experience

To answer this question, there are two key points to look at. Firstly, these exceptional individuals who embody both passion and experience are often sought after by bigger and more established companies. These companies often have well-established brands, attractive benefits packages, and a perceived sense of stability.  Consequently, they're more drawn to these established companies, where they believe their skills and experience will be valued and rewarded proportionally.

Analyzing 7 problems of small businesses, Guidant Financial revealed that the number one problem of small businesses is recruitment and retention problems. Stating that even last year, reports found labor quality issues such as employee recruitment and retention challenges as major challenges. And that this year (2023) those same challenges are still around.

Secondly, startups are often strapped for cash and may find it challenging to compete with larger companies in terms of salary offerings. Naturally, experienced professionals command higher salaries due to their expertise and track record. Hence, startups, with their limited financial resources, may struggle to meet the salary expectations of these experienced individuals. 

These two factors create a competitive landscape where startups find it difficult to secure employees who possess both passion and experience. They face the challenge of standing out and convincing talented individuals that joining their startup is a worthwhile opportunity. 

Closing thoughts

Although it is difficult, it is not impossible for startups to find and recruit candidates who ate both experienced and passionate.  Many passionate individuals often overlook the financial aspect and take jobs with startups. However, they are rare. Furthermore, startups can focus more on showcasing their mission and purpose, which can attract passionate individuals who resonate with their vision. They can also offer equity or other non-monetary benefits to compensate for the salary limitations.  Additionally, startups can emphasize the opportunity for learning, growth, and autonomy, which can be appealing to experienced professionals seeking new challenges and opportunities to make a meaningful impact.

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