I am the CEO and founder
of a business with a startup team of four. We were working well together but we needed more help, especially with the
financials. We had our first round of financing and we were trying to grow the
business. Everyone did whatever was necessary to get things done and we had no conflicts, which was nice.
Someone recommended a
person with an MBA from the local university who had spent some time in Europe.
We met for lunch and got along quite well. He was eager to work for us. He wanted more money than everyone else was
making, but he said this was the going rate for finance people. I really needed
help, so I offered him the job.
When I went back and told
the team about him and how excited I was, they
were all upset that they did not have the opportunity to meet him before a
decision was made. I told them it was my decision since it was my company. One
teammate asked about the salary package and when I told them, they were
incredibly upset; why did I value this new person more than them? They had
sacrificed and worked hard and did not deserve this. I realized I’d made a huge
mistake. I apologized, but the damage
was done and the positive team culture and spirit never recovered.