Shopify's CEO says companies that hire founders often make a big mistake: Don't 'put them in like founder day care'

In a recent episode of the "Founder's Podcast," Shopify's CEO Tobi Lütke shared critical insights on how companies often mishandle their most innovative employees. He urged organizations not to confine individuals with entrepreneurial backgrounds to isolated teams, a practice he referred to as placing them in "founder day care." Lütke emphasized the unique perspective that founders bring, noting that many companies fail to appreciate this valuable asset. "It's a very special thing," he stated, expressing concern that businesses often shield these individuals, limiting their impact. He likened the practice to sending them to the "outskirts" of the company, where their potential can be stifled. Reflecting on his experiences during the pandemic, Lütke recognized that some founders of acquired companies were being marginalized. In response, he took action to elevate their visibility within Shopify, placing them in more prominent roles rather than relegating them to less influential positions. He even created a dedicated Slack channel for these founders to collaborate and provide input. Shopify's recent acquisitions include logistics company Deliverr and influencer marketing startup Dovetale, both of which have retained their founders in product roles. Notably, the CEO of Deliverr has since left to pursue another venture after a year with Shopify. Lütke concluded his discussion by highlighting a key question he uses to identify potential leaders within his team: "Have you started a company before?" This approach, he believes, is instrumental in recognizing employees who can thrive in challenging situations.