I've hired over 20 interns for my startup in the last month.
While it was exciting to lead a large team, the drawbacks of overstaffing were more pronounced than the benefits. Interestingly, our team's effectiveness seemed to diminish with 20 members, compared to the initial 5. Why might this be?
This is likely due to a problem of talent density, where even 1-2 just adequate performers can affect the entire group's performance. This idea was notably put forward by Reed Hastings, the founder of Netflix.
I was familiar with this concept from his book "No Rules Rules." However, I thought that given the nature of my business, which primarily targets international students, having many international students on my team would create a compound impact in promoting the app and solving the cold-start problem. But this wasn't necessarily the case.
In fact, our most skilled team members often felt demotivated and exasperated, either feeling like they were the only ones contributing or having to navigate the shortcomings of less skilled members. Additionally, the extensive communication required with the entire team turned out to be counterproductive, further impeding our progress.
Faced with a difficult choice, the solution seems clear: let go of the less capable members. It's always regrettable to part ways with team members, but it appears to be the only viable option. This action, I hope, will foster the company's growth and propel us forward.