Building great startup culture—and why it’s critical to your success
Building great startup culture—and why it’s critical to your success
Words Farah Kanji
March 18th 2022 / 10 min read
For a time, after the Silicon Valley startup boom, people had a strong idea of what startups looked like. Almost a countercultural movement to the stuffy corporate world, people in startups wore jeans and hoodies, ate pizza and drank beer, and held meetings while playing table football. In a sense, it was a movement for bringing what you’d do in your private life into the office—blurring the work/life distinction.
Culture, in my mind, is a lot more than this. Culture is the sense of community, purpose, and belonging we all feel at a company. It’s the way we treat each other, respect each other, and build relationships with each other.
Ultimately, establishing the right culture may be one of the most important things you do as a founder, having huge knock-on effects on your ability to recruit talent, the happiness of your team, and the success of your company. There’s also a fine line between creating a thriving startup culture and completing a box-ticking exercise. From our experience, here’s how to get it right.
🔍 Quick Summary
Defining your company’s mission and values is the first step towards implementing your culture
Culture feeds into your hiring process, and hiring then feeds back into your culture
What questions you should ask in a values-led hiring process
Advice for sustaining culture and keeping hold of talent
Defining startup culture
Defining your startup culture should be one of the early decisions you make as a founder.
Startup culture is inherently tied to the mission of your business. This is ultimately what differentiates it from any other social group. This underlines your reason for being there, for doing what you do. In a broad sense, startup culture is the way your company’s purpose manifests throughout the organisation and team.
“It's about a group of people finding alignment with the business course, and working together to achieve that goal.”
Asil Choudhury, talent lead at Perlego
Is culture organic, or does it need to be implemented? This really depends on what stage you’re at in the business. At an early stage, culture does feel more organic. In small teams, especially if it’s just the founding team, you’re likely to be very aligned on your goals, motivations, and values. Early employees are likely to reflect your values, since founders will be closely involved in making these hires.
Culture does have to be more intentional once you scale. As founders become more removed from the hiring process, you need to be able to rely on a values-driven hiring process. This will ensure that your culture permeates the organisation as you double and triple in size, and that the decisions your employees make reflect those values.
There are a number of ways to define your culture. One way is by identifying the ‘North Star’ or your business—the mission and values that your business really wouldn’t be the same without. This is really important, as it will help guide two things: one, it will help you create a scalable hiring process that ensures you’re bringing on employees who are aligned to your mission; secondly, it will help inform your employees how to behave when things haven’t been explicitly laid out.
As a founder, you need to be very proactive about backing up these values. You should constantly remind yourself, and everyone else, why you are building that company. Rally people around that bigger picture mission, and remind people what the expected behaviours look like in order to achieve that.
“To build a strong culture, you need to make some unusual statements to tell everyone in no uncertain terms what you stand for as a business.”
– Cat Jones, Byway founder.
Source: Built In
Creating culture through hiring
As your company grows, that’s when you’ll really start to see your startup culture take shape. That’s why implementing a culture-driven hiring process is so important.
Hiring someone to lead on talent (whether that’s an external talent partner, a head of talent, or a Chief People Officer) should happen very early on in your startup journey. A talent lead will know exactly where to source the right talent, and will work very closely with the founding team to ensure that the right people are brought on board.
Your hiring process will need to be closely aligned with your values and mission. For one, this means that any applicant will understand the culture of the company they’re applying for: after all, interviews are a vetting process for both sides. You should display your core values on any job description. On a practical level, applicants are self-selecting if they can clearly see what sort of culture a company has (and if it’s clear if they will or won’t fit into that).
“By projecting our values out, we can attract people who resonate with those values. So we can find people who really align with that mission.”
– Asil Choudhury, Perlego
There are other ways of openly displaying your values. B Corp Certification, for instance, is a great signpost for culture at a sustainability or mission driven company. By clearly displaying that you’re a B Corp, any employee you hire or partner you work with will see your credentials front and centre.
The interview process should seek to deeply understand cultural fit. Scenario-based questions will help you hire around culture, as they can help you understand a candidate’s own perception of culture and what their responses are in certain situations. Seek to understand values alignment and how values might manifest across different behaviours. This will also positively impact the diversity of your talent pipeline: if you hire on competency over background or experience, you’ll open up to a much more diverse set of candidates.
Source: Mega Interview
Conversations around diversity should be happening throughout this process. Not just gender and ethnic diversity, but also diversity of thought. Be careful not just to rely on referrals or employing former colleagues: while this may be easy at first, you’ll build a homogenous workforce that isn’t conducive to innovation. Use your values to guide the types of people you hire, but be sure to incorporate a wide range of personalities and perspectives, too.
Maintaining culture authentically
Following the ‘Great Resignation’ of 2021, companies are battling (and often failing) to retain their most valuable asset. Indeed, hiring is only half the battle; keeping hold of talent is as big a challenge.
Your culture, and the ways you maintain and project this, will be a strong asset to keeping your employees engaged and happy. Consider this your employee value proposition.
First, consider what differentiates your startup from ‘conventional’ careers. For many younger employees, the idea of climbing the corporate ladder doesn’t have the same appeal. Instead, the concept of ‘squiggly careers’ better encapsulates how today’s employees perceive their career not as a linear set of jobs, but rather as a variety of non-linear experiences.
The nature of startup jobs means that you’re likely to be called upon for a variety of tasks. What’s described in your job description is just a fraction of what you’ll end up doing. This might be tough for those looking for clearly defined roles; but it’s ideal for those eager to get involved across functions of the business.
It’s also worth thinking about how you embody your values in an everyday sense. Inclusion, for instance, shouldn’t just be something that you nod to in your mission statement: it should be backed up in practice, whether that’s inclusive family leave policies or an equal pay analysis, or with resources, like a code of conduct or inclusive office spaces (like a prayer or meditation room). Read our guide to DEI best practice here
Also think about how employees can bring their own personalities to work. ‘Lunch and Learns’ or ‘Show & Tell’ are popular and effective ways of displaying culture, as well as encouraging employees to feel comfortable about opening up. If you’re hybrid or fully remote, these activities can be a particularly valuable tool to maintain engagement and understand what drives your employees. If you aren’t having those incidental interactions in a physical space, it’s important to intentionally foster these in a hybrid setting.
There are many lessons to be learned from the Great Resignation. One takeaway is the realignment we’ve seen around what employees—particularly millennials and Gen-Zers—look for in a job. While top salaries and stable corporate careers might have once been an appeal, many people are now looking for flexibility, higher responsibility, and visibility in the workplace. Many things that startups are well-placed to offer.
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