Lessons from 10+ Years of Startup HR: What I Wish Every Founder Knew
After more than a decade of working in the fast-paced world of startups, I’ve seen almost everything regarding HR. The wild pivots, the “we need to hire someone yesterday” urgency, the inevitable growing pains—it’s all part of the startup journey. But here’s the thing: many of the most challenging HR problems I’ve seen could have been avoided with more foresight, strategy, and the right systems in place.
As the founder of Mosaic HR Solutions and a Licensed Professional Counselor (LPC), I’ve had the unique advantage of working at the intersection of business operations and human behavior. Startups thrive on innovation and speed, but people—not products—are what drive long-term success.
If I could sit down with every founder and give them the inside track on what really makes or breaks a growing business from an HR perspective, here’s what I’d say.
1. Hire for the Business You Want to Become—Not Just the One You Are Now
Start-ups are notorious for hiring reactively. A big contract comes in, and suddenly, you need to double the team overnight. Or you realize you’ve outgrown the DIY bookkeeping solution and scramble to hire a finance lead.
The Problem:
When you hire based solely on immediate needs, you risk building a team that isn’t equipped for the future. Reactive hiring leads to mismatched skill sets, poor team cohesion, and higher turnover.
What I Wish Founders Knew:
Hire based on scalability and long-term vision—not just to plug holes.
Build out job descriptions with growth in mind—consider how the role will evolve over the next 12–24 months.
Don’t settle for the first warm body. A bad hire costs more than waiting for the right one.
2. Overhiring Will Cost You More Than Just Money
One of the most common mistakes I’ve seen in startups—especially after a big funding round or a successful product launch—is overhiring. When things are going well, it’s tempting to scale fast, hire more people, and expand aggressively to keep up with demand.
The Problem:
Overhiring creates a dangerous cycle:
When hiring outpaces revenue growth, companies quickly become overstaffed.
Headcount costs eat into margins, putting pressure on the leadership to course-correct.
When funding dries up, or revenue slows, the only solution becomes layoffs—and that’s where things get messy.
I know this personally—I’ve had to lead the termination of over 400 employees throughout my career. Letting people go is one of the most complex parts of business, and I’ve seen the emotional and cultural toll it takes on both the employees being let go and those left behind. Layoffs don’t just affect those leaving—they send shockwaves through the entire company.
But what hurts the most is when the person I’m terminating starts worrying about me more than themselves—asking if I’m okay, thanking me for the opportunity, and showing grace even in one of the most challenging moments of their career. That’s when you know you’ve built a strong culture—because how someone exits says more about your leadership than how they enter.
The Impact of Overhiring and Layoffs:
Loss of Trust and Psychological Safety:
Employees who survive the layoffs are left wondering if they’re next.
Morale plummets and people become less engaged and fearful of making mistakes or speaking up.
Damaged Employer Brand:
News of layoffs spreads quickly, especially in industries like tech.
Future hiring becomes more complex when your reputation is tied to instability.
Productivity Crash:
After layoffs, surviving employees often face increased workloads to cover the gaps.
Burnout sets in, performance drops and turnover increases.
Culture Breakdown:
Layoffs create a lingering sense of uncertainty and resentment.
Employees start working defensively instead of collaboratively—less innovation, more self-preservation.
Exiting with Grace:
Letting someone go isn’t just about paperwork and severance—it’s about giving them the space to walk away with dignity. When layoffs are handled poorly, the emotional damage can last long after the employee is gone. However, approaching them with care and respect can create a smoother transition and maintain a positive relationship with the departing employee.
What I Wish Founders Knew:
Hire cautiously, not emotionally.
Scale hiring to sustainable growth rates.
Build a flexible workforce strategy—use contract workers or freelancers for short-term needs.
Exit with grace—provide severance, career transition resources, and respect.
3. Onboarding Isn’t Just a Week—It’s a Culture Strategy
I’ve seen too many startups treat onboarding like a one-and-done checklist:
✅ Laptop issued
✅ Company policies emailed
✅ Slack invite sent
And then… nothing.
The Problem:
Poor onboarding leads to slow ramp-up times, lower engagement, and higher turnover.
What I Wish Founders Knew:
Onboarding should last at least 90 days.
Include a cultural orientation as part of onboarding.
Make the process interactive—pair new hires with mentors and schedule regular check-ins.
4. Culture Happens By Design—Or By Default
If you don’t intentionally define and reinforce your company culture, it will form itself—and not always in ways you’ll like.
What I Wish Founders Knew:
Define your core values early.
Reinforce culture through hiring, feedback, and recognition.
Lead by example—if you want a culture of transparency, you need to model that behavior consistently.
5. Burnout Will Kill Your Business Faster Than a Competitor
Startups are famous for long hours and hustle culture—but that’s not sustainable.
What I Wish Founders Knew:
Create boundaries around work hours.
Encourage time off and model it yourself.
Build in recovery periods after intense project cycles.
6. Your First Managers Will Set the Tone for Your Entire Organization
Your first hires into management roles will define how your company scales.
What I Wish Founders Knew:
Promote people based on leadership potential—not just technical skills.
Provide management training on feedback, conflict, and performance management.
Check-in regularly with your managers.
7. Feedback Is the Most Powerful (and Underused) Growth Tool
Annual reviews are too infrequent to drive meaningful change.
What I Wish Founders Knew:
Create a continuous feedback culture.
Teach managers how to give constructive, actionable feedback.
Make feedback a two-way street.
8. Equity and Inclusion Start at the Beginning
It’s easier to build an equitable and inclusive culture from the start than to try to fix it later.
What I Wish Founders Knew:
Diversify your talent pipeline.
Create fair, structured interview processes.
Foster psychological safety.
9. Letting Go is Part of Growth
Holding on to poor performers or toxic employees hurts the whole team.
What I Wish Founders Knew:
If you’ve offered feedback and support and nothing’s changing, it’s time to part ways.
Be firm but compassionate—a termination should never feel personal.
Protect your culture—letting go of the wrong people allows the right people to thrive.
Final Thoughts: The Mosaic Approach to Startup HR
Startups are all about agility, but there’s no room for shortcuts when it comes to people. Your team is your biggest asset—and your HR strategy should reflect that.
At Mosaic HR Solutions, I help startups build HR foundations that scale. I know what works and doesn't, from hiring to performance management to leadership development, because I’ve seen it all firsthand.
Building a business is hard. But building a resilient, engaged team? That’s where the magic happens.
If you’re ready to set your team up for success, let’s talk. Your people deserve it.
