Core Values Need to be Core To Your Business

In addition to your product (or service), your most important asset is your people.

Creating a strong team culture that is set up for success can stem from thoughtful and purposeful development of company core values. Doing this early in your company journey and vetting prospective employees to align with these core values during your hiring process is key.

Core values are an important ingredient in the recipe for success in any business. Core values are not about branding or PR, but rather deeply-held beliefs that should serve as the lifeblood of your company, especially important for early-stage startups where the first 10 employees have a profound and lasting impact on company culture.

At Climate People we speak with Founders daily and we’ve heard a common theme from many multi-time Founders: they often admit to undervaluing culture early on, focusing instead on recruiting talent with very specific skills, while aggressively seeking pursuing funding and revenue. These Founders have shared countless stories about the lack of attention to company culture and the core values that shape it.  Hard lessons learned, perhaps so you won’t have to!

The Critical Role of Early Hires

1. Your First Hires Shape Your Company’s DNA

Your initial hires have an outsized influence on your company’s development and culture. They define the behaviors, work ethic, and culture that become embedded into the fabric of your organization.

2. The Ripple Effect of Early Hires

Early team members that align with your core values will make it easier to attract like-minded talent. Their influence extends beyond their immediate roles, shaping how future employees adapt and engage. Additionally, shared values provide a sense of stability and shared purpose during challenging times, fostering resilience and resulting in better employee retention.

3. Multi-Time Founders’ Lessons Learned

Founders who overlooked the importance of culture often faced growth roadblocks caused by misaligned hires.

However, those who prioritized it early on set themselves up for success with a values-aligned team from day one. With one of our customers, when the company was just three co-founders, they had already established core values to test for during interviews. Their values—honesty, optimism, and a commitment to maximum learning rate—created a strong foundation for talent attraction. This proactive approach ensured every hire aligned with their vision and were strong fits both technically , as well as culturally.

Why Core Values Are Essential

1. The True Purpose of Core Values

Core values are deeply held beliefs that act as the connective tissue for your business. They’re not just slogans or marketing tools, but principles that guide decision-making and behavior.

2. The Role of Core Values in Recruitment

Clear core values attract candidates who genuinely resonate with your vision, streamlining and improving talent acquisition by reducing the number of bad or misaligned hires. They act as a map for both hiring managers and candidates to assess fit and ensure this hire is set up for long-term success.

3. The Role of Core Values in Retention

Aligned teams foster commitment and loyalty, especially during challenging times. Core values shape consistent, positive behaviors, creating an environment where employees thrive and have the tenacity to power through down markets. This mentality reigns especially true in mission-driven sectors, like climate, healthcare, and education. Employees are much more likely to “ride-it-out” through the tough times if they believe in the mission and the people they work with.

Crafting Core Values

• Keep it simple: Aim for 3-5 core values to ensure they’re achievable and impactful.
• Make them sticky: Only about 38% of HR leaders believe most employees can recite their company’s core values. We don’t want this to be the case; use concise, impactful language. You should also embed these values in all aspects in your company culture: website, company handbooks and careers pages are a great start, but go further by incorporating them in your team stand ups and mapping company success stories to actions related to core values.
• Involve your team: Reflect on shared beliefs and collaborate with current employees to define values that resonate.

Practical Steps to Integrate Core Values

1. Articulate Your Core Values Early

Founders should reflect on their mission and vision, translating these into clear, actionable values. Involving the team in this process creates buy-in and alignment.

2. Incorporate Core Values into Your Hiring Process

Building on the earlier example of a startup with values like honesty, optimism, and a commitment to maximum learning rate, here’s how they could have incorporated those values into their hiring process:

• For honesty: "Can you share a time when you had to deliver difficult news to a colleague or client? How did you handle it?"
• For optimism: "Describe a project that faced significant challenges. How did you maintain focus and keep others motivated?"
• For learning rate: "Tell me about a time when you had to quickly learn a new skill or concept to complete a task. What approach did you take? What was the outcome?”

In addition to tailoring questions to these values, they explicitly communicated their core values during the hiring process to ensure candidates understood the expectations from the start. This clarity helped the team identify individuals who not only had the right skills, but also aligned with the company’s mission and culture. As they told us, “we have too much work on our plate to not be honest with each other.”

3. Reinforce Core Values in Daily Operations

Embed your values into every stage of the employee journey:

• Onboarding: Introduce values as part of new hire orientation.
• Performance reviews: Assess how employees embody core values in their roles.
• Team rituals: Celebrate employees who demonstrate core values in action.

Long-Term Benefits of Core Values

1. Strong Culture Drives Sustainable Growth

Aligned teams are more innovative and resilient, driving long-term success.

2. Avoid the Costs of Misaligned Hires

Hiring without core value alignment can lead to financial losses and cultural instability. Prioritizing values reduces these risks and creates a stronger foundation.

3. Lay the Foundation for Future Success

Your first 10 hires will set the tone for your company’s culture. Getting it right early pays dividends as your team grows.

Prioritizing core values in recruiting and retention is not optional—it’s essential. Founders must treat culture creation as a proactive, ongoing process that evolves alongside their business. By anchoring your team with well-defined core values, you’ll build a resilient and aligned organization poised for long-term success.