Hiring the right people is one of the toughest challenges for startups. Move too fast, and you risk overcomplicating things. Move too slow, and execution suffers. But hiring is just the beginning—keeping top talent is where many companies fail.
In this episode, Doron Segal, CTO of Perdem, shares hard-earned lessons from scaling multiple startups. He explains why companies overspend on hiring but neglect retention, how hiring strategies should evolve with a startup’s growth, and why bringing in big-company talent too early can backfire.
So how do you hire smarter, scale the right way, and keep great employees engaged? Let’s dive into Doron Segal’s insights.
Hiring the Right Talent for Each Startup Stage
Why Early-Stage Startups Shouldn’t Hire Big Tech Engineers
It’s tempting for startups to recruit engineers from big tech companies like Google or Facebook. After all, they have impressive experience, right? Not always. Doron Segal explains why hiring from large corporations too early can slow a startup down instead of speeding it up.
Big tech engineers are used to structured environments—clear processes, established teams, and specialized roles. Startups, on the other hand, thrive on speed and flexibility. When you only have a few engineers, you don’t need someone who specializes in optimizing a system for a billion users. You need people who can build quickly, solve messy problems, and handle multiple responsibilities at once.
Another mistake is hiring based on prestige instead of fit. A resume with a big-name company might look impressive, but that doesn’t mean the person will thrive in a fast-paced, constantly changing startup environment. Instead of looking for “who worked at the biggest company,” focus on “who can do the job that needs to be done right now.”
Who Should You Hire First? Junior vs. Senior Engineers
When startups are small, hiring the right engineers can make or break progress. Doron Segal emphasizes that junior engineers are often the better choice in the early stages.
- Junior engineers: They move fast, adapt quickly, and don’t demand massive salaries. They’re ideal for building the first version of a product, testing ideas, and iterating without overcomplicating things.
- Senior engineers: They become valuable when the company is ready to scale—improving system architecture, stabilizing infrastructure, and preparing for growth. But hiring them too early can backfire. If the company isn’t at the right stage, it may over-engineer simple problems or get frustrated with the lack of resources and processes.
So when is the right time to bring in senior talent? The moment things start breaking. When customers are using the system regularly, performance issues pop up, or security becomes a concern, it’s time to level up the team.
Avoiding Common Hiring Mistakes
Hiring is one of the most expensive decisions a startup makes, so it’s important to get it right. Here are some mistakes Doron Segal warns against:
- Overhiring too soon – Startups should run lean. Hiring too many engineers before finding product-market fit burns money without real returns.
- Hiring for titles instead of skills – A startup doesn’t need a CTO or VP of Engineering right away. It needs engineers who can build. Big titles don’t mean much if the product isn’t working yet.
- Assuming a strong resume means a strong fit – Engineers from large companies may struggle in startups. Make sure they can handle the fast-moving, constantly shifting nature of an early-stage business.
The Hidden Cost of Hiring: Why Retention Matters More
Companies Spend Too Much on Hiring & Too Little on Retention
Startups pour money into recruiting—paying high agency fees, running ads, and spending months searching for the “perfect” candidate. But once that person is hired, investment often stops.
Doron Segal points out that companies rarely put the same effort into keeping employees as they do into hiring them. This is a costly mistake. If employees leave too soon, all that hiring effort goes to waste. Instead of just recruiting more, companies should focus on making their existing team want to stay.
Retention isn’t just about perks. It’s about creating an environment where employees feel valued, challenged, and excited to work. Investing in mentorship, growth opportunities, and employee satisfaction ultimately saves more money than constantly replacing talent.
One of the best retention strategies? Happy employees attract more great employees. Word-of-mouth from team members who enjoy their work is more powerful than any recruiter.
The Role of HR in Early-Stage Startups (Even If You Don’t Have One Yet)
Many startups don’t think about HR until it’s too late. But HR isn’t just about payroll and policies—it’s about keeping employees engaged and ensuring they have the support they need to do their best work.
In the early days, HR responsibilities often fall to founders or managers. Doron Segal suggests that leaders take ownership of:
- Employee feedback loops – Regular check-ins to understand what’s working and what’s not.
- Growth opportunities – Ensuring employees have a path forward, whether it’s learning new skills or taking on bigger responsibilities.
- Culture and well-being – Making sure employees feel connected to the company’s mission and are excited about what they’re building.
So when is it time to hire a dedicated HR person? When these responsibilities become too much for founders or managers to handle effectively. If growth is stalling because leadership is too busy managing people instead of driving the business, it’s time to bring in HR support.
Recognizing the Right Time to Scale: When to Scrap Your MVP and Rebuild
The Natural Evolution from MVP to Scalable Product
Every startup begins with an MVP—a quick, functional product built to test an idea. But no startup can rely on its MVP forever. Over time, as the user base grows and new features become necessary, an MVP that once seemed efficient can start to feel like a liability.
Doron Segal explains that knowing when to move beyond the MVP is one of the most important decisions a startup can make. So how do you know it’s time? Here are the key signs:
- System instability & frequent failures – When users start reporting issues regularly, or when your system crashes under load, it’s a clear sign the MVP is struggling to keep up.
- New features are difficult to implement – If adding even simple features requires a massive overhaul, your MVP’s architecture is likely too rigid.
- User growth is outpacing infrastructure capabilities – A growing customer base is great—until your system starts slowing down or breaking under pressure. If performance issues start driving users away, it’s time to rethink your foundation.
Think of an MVP like a starter home—it’s enough to get you going, but eventually, you’ll need more space, stronger foundations, and better design.
Balancing Speed vs. Scalability: When to Invest in Better Engineering
Startups often face a dilemma: move fast and keep iterating, or slow down and build for the long haul. The key is knowing when to shift gears.
Doron Segal emphasizes that the right time to rebuild is actually when it feels too late. If things are just starting to break, that’s a good sign—because it means you’ve found product-market fit. Some companies try to rebuild too soon before they even know if customers truly want the product. This leads to wasted time and resources.
So how do startups strike the right balance?
- Avoid over-engineering too early – A fancy system isn’t necessary when you only have a handful of users. Focus on speed and experimentation first.
- Recognize the breaking point – The moment when system failures and technical debt slow down progress is when it’s time to rebuild.
- Adjust hiring strategies – In the early days, generalist engineers who can wear multiple hats are invaluable. But as the company scales, specialized roles—such as infrastructure engineers, security experts, and data architects—become essential.
Scaling isn’t about building a perfect system from day one. It’s about timing—waiting until the demand justifies the investment, but not so long that the product collapses under its weight.
What Management Lessons Can Be Applied When Scaling Up Hiring and Retention?
Scaling up hiring and retention requires a strategic approach. Leaders must focus on building a strong company culture and clear communication pathways. Additionally, they should prioritize employee feedback and development opportunities, especially when navigating the complexities of management transitions, to ensure that the workforce remains engaged and aligned with organizational goals.
Structuring Your Engineering Team for Long-Term Success
Bringing in Senior Engineers Without Slowing Down the Team
Hiring senior engineers seems like a no-brainer for scaling startups, but Doron Segal warns that bringing them in too early—or integrating them the wrong way—can slow things down.
Senior engineers from large companies often come with deeply ingrained habits. They’re used to structured environments, long planning cycles, and strict processes. But in a fast-moving startup, speed and adaptability matter more than polished systems. So when do senior hires help, and when do they hurt?
When Senior Engineers Are an Asset
- You’re scaling beyond the MVP and need expertise in infrastructure, security, or performance optimization.
- The team is struggling with technical debt, and you need leadership to refactor and improve long-term stability.
- The product has hit product-market fit, and engineering needs to transition from “quick fixes” to “sustainable growth.”
When Senior Engineers Create Bottlenecks
- They push for complex systems before the company needs them.
- They try to apply big-company processes (standups, retros, heavy documentation) to a small, agile team.
- They expect to delegate rather than build—startups need doers, not just strategists.
The Solution? Bring in senior engineers gradually, and make sure they understand the startup’s speed-first culture. Pair them with existing engineers to ensure knowledge-sharing instead of control.
Creating a Sustainable Team Culture
Most startups focus on compensation and perks when thinking about retention. However according to Doron Segal, culture keeps people around longer than money ever will. A strong team culture leads to better collaboration, higher engagement, and fewer unexpected resignations.
So how do you build a culture that makes people want to stay?
Regular Feedback Loops Keep Teams Engaged
Great teams don’t just execute tasks—they reflect, adapt, and improve. Setting up simple feedback loops, like regular one-on-ones or anonymous surveys, helps address small frustrations before they turn into major problems.
Balancing Structure with Startup Agility
Startups thrive on flexibility, but as teams grow, they need some structure to prevent chaos. The challenge is introducing processes without killing innovation.
- Early on, keep workflows light—quick standups, informal check-ins, and minimal reporting.
- As the company scales, layer in structure slowly—clear ownership, lightweight documentation, and decision-making guidelines.
- Avoid bureaucracy—if a process isn’t helping the team move faster, cut it.
A great team culture isn’t about free snacks or fancy titles—it’s about trust, ownership, and a shared sense of purpose. Get those right, and people will stay even when other companies offer higher salaries.
Conclusion: Building a Startup Team That Scales
Hiring, retention, and team management aren’t just checkboxes for growing startups—they define whether a company thrives or struggles. Doron Segal’s insights reveal that hiring the right people at the right time is more important than simply hiring the most experienced or prestigious candidates.
Startups don’t need a VP of Engineering when they’re still figuring out product-market fit. They don’t need a heavy bureaucracy when their team is just a handful of engineers. Instead, they need fast learners, adaptable problem-solvers, and a culture that supports growth.
- Hire for the stage you’re at—start with generalists, and bring in specialists when scaling requires it.
- Retention matters as much as hiring—companies waste money on recruiting but often neglect keeping employees engaged.
- MVPs aren’t built to last—know when to scrap, rebuild, and scale without over-engineering too soon.
- Team culture is the foundation of long-term success—structured enough to avoid chaos, but flexible enough to keep innovation alive.
At the end of the day, great teams don’t just execute—they evolve. The best founders and CTOs recognize when to shift gears when to invest in retention, and when to scale without losing agility.
So if you’re leading a startup or planning to, ask yourself: Are you building a team that will get you to the next level—or one that’s just checking the boxes? The difference could define your company’s future.
