What founders get wrong about hiring their first head of talent

Most founder-led TA searches stall because expectations are misaligned with market reality. Compensation, seniority, and scope need to be grounded in data before the search begins.

Founders often treat hiring a Head of Talent as a straightforward task. Define the role, post the job, interview candidates, make an offer. In practice, this approach fails more often than it succeeds. The search drags on, strong candidates drop out, and founders end up compromising on someone who does not fit. The problem is usually not the talent market. It is the assumptions founders bring to the search.

Misunderstanding compensation

The most common mistake is underestimating what experienced TA leaders cost. Founders who have bootstrapped or raised early rounds often anchor on compensation ranges that worked for their first hires. But TA leadership is a competitive market.

In Germany, experienced TA directors command salaries between €110,000 and €140,000, with significant variation based on company stage and scope. London runs higher. If your budget is 30% below market, you will attract candidates who are stretching into the role rather than candidates who have done it before.

Get compensation data before you launch the search. If you cannot afford the experience you need, adjust the profile or consider interim support while you build toward the full-time hire.

Hiring the wrong seniority

Founders often default to hiring senior because it feels safer. They want someone who has seen everything and will not need hand-holding. The problem is that seniority comes with expectations.

A VP of Talent from a 500-person company may expect a team, a budget, and clear executive sponsorship. If you are a 40-person startup where the founder is still the final interviewer on every hire, that candidate will be frustrated within months.

The reverse is also dangerous. Hiring too junior means you get someone who cannot build the systems you need. On average, startups make their first dedicated HR hire around 40 to 50 employees, which means many founders wait too long and then overcorrect. Match the profile to the work, not to an aspirational org chart.

Conflating recruiting with people operations

Another common mistake is hiring a Head of Talent who is expected to do recruiting, HR, and people operations all at once. This seems efficient on paper. In practice, it creates a role that no single person can do well.

Recruiting is high-volume, time-sensitive, and externally focused. People operations is process-driven, compliance-heavy, and internally focused. They require different skill sets, and conflating them sets both up to fail. If you only have budget for one hire, be clear about which function you are prioritising.

Running a search without market data

Founders who skip market research end up wasting time. They interview candidates who are wrong for the role, lose strong candidates to slow processes, and make offers that get rejected.

Before you start sourcing, understand the market. What are comparable companies paying? What does the talent pool look like? How long do similar searches take? This data helps you set realistic expectations, move faster when you find the right candidate, and avoid false starts that burn credibility.

The bottom line

Hiring your first Head of Talent is a strategic decision that sets the trajectory for your company's ability to compete for people. If you want to get it right, ground your expectations in market data, match seniority to your actual needs, and be honest about what the role really requires.

FAQ

When should a startup hire a Head of Talent?

‍Most startups make their first dedicated HR hire around 40 to 50 employees. The right timing depends on hiring velocity and whether founders have capacity to keep leading recruiting themselves.

What salary should I expect to pay a Head of Talent?

‍It depends on market and seniority. In Germany, experienced TA directors earn between €110,000 and €140,000. Get compensation data before you launch the search.

Should I hire a recruiter or a Head of People first?

‍If you have high-volume hiring ahead, start with recruiting. If you have compliance or culture challenges, start with people operations. Do not conflate the two roles into one hire.

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