Team•6 min read

Hiring Guide for Startups | 2026

How to hire your first employees. Roles, process, and compensation.

First Hire Framework

First 5 Hires

  1. Engineer(s) — Build the product
  2. Sales/Growth — Get customers
  3. Support — Keep customers
  4. Marketing — Build awareness
  5. Operations — Run the business

Hiring Process

1. Define the Role

  • Clear description
  • Key responsibilities
  • Success metrics

2. Source Candidates

  • LinkedIn
  • Referrals
  • Communities

3. Screen

  • Resume review
  • Quick call
  • Technical screen

4. Interview

  • Culture fit
  • Skills test
  • Team fit

5. Make Offer

  • Competitive
  • Equity
  • Growth

Compensation Framework

EquityRole
0.1-0.25%Early employee
0.25-0.5%Key first hire
0.5-1%C-suite

Contractor vs Employee

FactorContractorEmployee
CostHigher hourly+ benefits
ControlLessMore
FlexibilityMoreLess

Conclusion

Hire slow, fire fast.