Stereotypical Startup Culture Can Be Detrimental

This is the era of the startup. Between the simultaneous unemployment crisis America has been experiencing in for the past few years, and the technological boom that is seemingly unstoppable, startups (primarily in the tech sector) have been popping up left and right. With this influx of startups came an entirely new culture: one of relaxed schedules, no dress codes, huge personal freedoms, and a never ending supply of snacks. The stereotypical startup is full of young, charismatic go-getters who thrive in a “fun” and “casual” workplace.

While this new culture and mindset have been hugely beneficial for some companies (see:Google and Facebook), it may not be the right move for all startups. There are a few ways that “startup culture” can actually do more harm than good for certain startup businesses.

Too Much Money is Being Spent

This is actually one of the biggest problems that many startups are facing. Everyone wants to emulate the Google culture, with the free food, the games, and the chic & fun office space. But, the reality is that most startups cannot afford those overhead costs. Many companies will use a lot of the money from their investors to foster this fun space. While this will absolutely make a great impression on both employees and clients alike, it’s important to make sure that your company is saving money and focusing funds on creating a viable product/service.

The Lines Between Boss & Subordinate May Be Blurred

The beautiful part of startup culture is that it’s generally an environment of openness and personal connections. For a lot of companies, “culture fit” is important and people are hired based on how well they will get along with the existing employees. This creates a comfortable place of work and creativity, which is fantastic for productivity.

However, this wholly democratic environment may may lead to issues when hard decisions or conversations need to take place. If the bosses aren’t seen as leaders, and are instead seen as friends & peers, it makes it difficult to reign in a rowdy team, or to provide disciplinary action when an employee is out of line.

Be sure to check out the blog next month to learn more about the potential downfalls of the stereotypical startup culture.

The “Hands Off” Approach is Not Always Helpful

Many companies live and breath the low-key “laissez-faire” approach to management and culture. When hiring “cultural fits” is the focus of the recruitment process, the mindset is often that the new hires will fall into place. Many startups feel that it’s easier to just let the new hires adjust and discover things on their own, rather than forcing them into endless meetings and orientations when they start the job.

The problem with this approach is that the lack of engagement leaves the new employees’ development up to chance. If employees aren’t explicitly informed about the work quality and cultural expectations, they are never given the chance to develop according to the company’s intended standards. Company culture, standards of work, and the overall environment may begin to suffer over time as the lack of direction starts to take its toll.

Charisma Isn’t Everything

This is probably the most controversial point in this series. The reality is that many startups will hire based on culture fits, and the expected culture for startups is “fun, charismatic, people-persons”. This will undoubtedly make for a very pleasant place, full of employees who can easily make friends and create beautifully intune work.

But, it’s extremely important for startups to look beyond the perfect culture-fit and to also hire employees that have the skillsets and work ethics to build the startup into profitability and greatness. A business cannot be successful if everyone is fun and personable, but no one really has the skills that are necessary to build and innovate.


For more ideas on startup culture, check out the Entrepreneur articles that inspired me: here& here

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