When founders think about building a company, culture is often something they imagine creating later.
First comes the product, then funding, then customers. Culture is seen as something that can be intentionally designed once the business has gained momentum, through values workshops, team retreats, or a polished careers page.
In reality, culture starts forming much earlier; with the first few employees.
Those early hires do far more than fill roles or help manage the workload. They establish the standards, behaviours, communication styles, and expectations that future employees will inherit. Long before a company has an HR department, leadership framework, or formal set of values, its first employees are already shaping what it means to work there.
The first employees become the “unofficial founders” of culture
Founders naturally have a huge influence on company culture. They set the vision, make early decisions, and define what the company is trying to build.
But as a startup grows, founders can’t be part of every conversation or reinforce every expectation. That’s when early employees become incredibly influential.
New hires quickly look to them to understand how work gets done, how decisions are made, and what behaviours lead to success.
If those first employees are proactive, collaborative, and comfortable solving problems independently, those behaviours become the norm. If they wait for approval, avoid accountability, or operate in silos, those habits spread just as quickly.
Culture is contagious, especially in small teams.
Startups amplify individual behaviours
In established organizations, one person’s habits rarely shape the entire company. Processes, managers, and systems help create consistency.
Startups are different.
In a team of five, every person’s behaviour influences the environment. Someone who consistently brings solutions instead of problems can encourage ownership across the team. Someone who resists feedback or creates unnecessary friction can normalize those behaviours just as quickly.
That’s why hiring early employees isn’t just about technical skills. It’s about choosing the behaviours you want repeated as your company grows.
Skills can be taught. Attitudes are harder to change.
Early-stage companies often hire under pressure. Customers are waiting, priorities are shifting, and there’s more work than people.
Naturally, founders prioritize experience—and for good reason.
But startups demand a different mindset than established companies. The person who thrives in a structured organization isn’t always the one who succeeds in an environment where priorities change weekly.
Early employees need to be comfortable making decisions without perfect processes or clear answers. A candidate with an impressive resume may struggle in that environment, while someone with less direct experience but greater curiosity, adaptability, and ownership may thrive.
In startups, mindset often matters as much as experience.
The danger of hiring only for “culture fit”
While culture matters, founders should be careful about interpreting it the wrong way.
“Culture fit” can easily become an excuse to hire people who feel familiar—those with similar backgrounds, personalities, or communication styles. Over time, that can create a company where everyone thinks alike.
A better approach is hiring for culture contribution. The goal isn’t to build a team of identical people, but one that shares core principles while bringing different perspectives.
For example, a startup might value direct communication. That doesn’t mean hiring only outspoken personalities. It means finding people who communicate honestly and respectfully, regardless of their style.
The strongest early teams combine complementary strengths—operational discipline, creativity, and the confidence to challenge assumptions. Great cultures aren’t built by people who are the same. They’re built by people who believe in the same mission and elevate one another.
Founders need to be intentional about what they reward
One of the fastest ways culture develops is through recognition. What gets rewarded gets repeated.
If a founder consistently praises the person who works the longest hours, the team may conclude that burnout is valued. If they recognize thoughtful decision-making, collaboration, and sustainable execution instead, those behaviours become the norm.
Employees quickly learn which behaviours earn recognition—and repeat them.
Sometimes founders unintentionally create a culture they never intended. A company may say it values innovation, but if every mistake is criticized, employees learn to avoid taking risks. It may say it values teamwork, but if only individual achievements are celebrated, people naturally begin competing instead of collaborating.
Culture is built through daily actions, not just stated values.
The first hires determine what kind of company you become
The impact of early hires lasts long after they’re considered “early.”
Many become managers, mentors, and leaders. They interview future employees, onboard new team members, and teach others “how things work around here.”
A poor early hire doesn’t just cost time or money. They normalize behaviours that can shape the company for years.
On the other hand, the right early hires create momentum that lasts. They help protect the company’s values while allowing its culture to evolve as the business grows.
Building culture starts with the first conversation
For founders, culture doesn’t begin once the company reaches a certain size. It starts with the very first hiring decision. Every early hire shapes how future employees will work, collaborate, and define success.
That’s why early hiring isn’t just about filling critical roles. It’s about choosing the people who will influence everyone who joins after them.
The first employees are often remembered for the work they accomplished, the customers they helped win, or the problems they solved. But their most lasting contribution is something far less visible: they help define the culture the company will carry for years to come.