Hiring Your First Team? Here's How Not to Screw Up Diversity | Entrepreneur

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The first 10 hires can define your startup’s future more than the first 100 customers. Culture, innovation and adaptability are born at this stage. And so are the biases if you’re not careful.

While most founders now acknowledge the importance of diversity, many still treat it as a goal to “tackle later.” That’s a mistake.

Diversity and inclusion aren’t post-product-market-fit luxuries. They’re foundational strategies that, when built into the core DNA of your team from day one, can fuel sustainable growth, broader thinking and better products.

Why diversity from day one matters

Diverse teams outperform: McKinsey research shows companies in the top quartile for ethnic and gender diversity outperform those in the bottom quartile by up to 36% in profitability.
Bias hardens with time: Early hiring decisions often set the tone for internal culture. If inclusion isn’t intentional from the beginning, it becomes harder to correct the course later.
Broader market perspective: A team that reflects different backgrounds can better anticipate the needs, challenges and aspirations of a wider customer base – a crucial edge for product-market fit.

Focusing on diversity and inclusion from the very beginning is a smart strategy for founders. Here are seven unique approaches to effectively build a diverse and inclusive team from day one.

1. Write inclusive job descriptions, not aspirational brochures

Before you write your first job description or talk to a recruiter, articulate the kind of culture you want to build. Avoid phrases like “rockstar,” “ninja” or “fast-paced hustler” — these subtly alienate many qualified candidates.

Instead, use neutral language that talks about the job in simple words like “marketer who knows….” or “developer with…” and emphasize growth opportunities.

2. Don’t delegate inclusion, lead with it

If you’re the founder or on the leadership team, you should be the loudest voice advocating inclusion. Outsourcing DEI efforts won’t cut it.

Founders who talk openly about inclusive values in all-hands, interviews and external branding set a clear tone for the company and also allow people from diverse backgrounds to apply for jobs in the company.

3. Start with ‘culture add,’ not ‘culture fit’

“Culture fit” tends to favor similarity over substance. Hiring for culture fit often translates to hiring people who think and act like you.

Shift the lens: look for candidates who bring new perspectives, challenge groupthink and add to your team’s collective strength. These people often don’t look or sound like you, and that’s the point. Early-stage startups benefit most from diverse cognitive models, not carbon copies of the founders.

4. Design bias-free hiring processes

Unconscious bias can seep into hiring decisions in subtle but impactful ways. Founders should set up systems that deliberately expand sourcing pools.

Tactical ideas:

Post job openings on diversity-focused platforms.
Use structured interview formats to reduce unconscious bias.
Score candidates using shared rubrics, not ad hoc opinions.

5. Embed diversity into business strategy

Diversity shouldn’t be confined to hiring. It needs to be embedded into your company’s DNA.

Whether it’s designing inclusive products, considering diverse user needs or partnering with organizations that align with your values, make diversity an ongoing, strategic business advantage.

6. Make equity equitable

If you’re offering equity, be transparent about what that means. Equity compensation in startups is notoriously opaque. Break down equity offers in plain terms and ensure equal access during negotiations, and founders can change that narrative:

Define equity bands for roles and communicate them clearly.
Offer education on how equity works, especially for first-time tech employees.
Ensure equal access to high-impact projects tied to future leadership roles.

Inclusive compensation practices build trust and reduce churn.

7. Create space before there’s a problem

Real inclusion is not a checkbox. Make sure you regularly assess your hiring data, company culture and employee engagement to identify areas for improvement.

Set up systems for feedback and conflict resolution from day one, not when the first issue arises. Anonymous suggestion boxes, regular inclusion check-ins or Slack channels for DEI (diversity, equity, inclusion) conversations signal that diverse voices are not just welcome but protected.

8. Build accessibility into your workflows

Inclusive startups think beyond gender or ethnicity. They consider ability, neurodiversity, socioeconomic background and more.

One easy starting point is accessibility:

Use communication tools that support screen readers and captioning.
Record meetings with transcripts.
Design remote-friendly processes from day one.

Inclusivity is not about checking boxes—it’s about removing friction for participation.

9. Interview for perspective, not just pedigree

To build a diverse workforce, expand your hiring reach. Leverage platforms that cater to underrepresented talent, collaborate with universities and organizations focused on diversity, and ensure job postings use inclusive language.

Many startups unintentionally screen for resumes from the same set of schools or companies. Shift focus: ask questions that uncover resilience, customer empathy, cross-cultural collaboration and problem-solving from different lenses – traits that matter far more than logos.

The real returns of diversity and inclusion

Diversity and inclusion are your competitive advantages. Startups that can combine these into their founding DNA are not only more resilient but also more creative, agile and better aligned with the reality of the modern world.

You won’t get it perfect, and that’s okay. No one does.

But what matters is the intention to build this culture right from the beginning, because a team that starts diverse stays stronger.

The first 10 hires can define your startup’s future more than the first 100 customers. Culture, innovation and adaptability are born at this stage. And so are the biases if you’re not careful.

While most founders now acknowledge the importance of diversity, many still treat it as a goal to “tackle later.” That’s a mistake.

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