Being part of a start-up is one of the most exciting experiences one can have. You have a mission to change the world. You’ve assembled a team of people around you to make that dream come true. And, they actually like spending time with each other. You’re cranking out code. You’re getting traction. You’re starting to scale.
This is when most founders start thinking about culture, and — to many — it takes the form of social events, free lunch, arcade games, or even roof decks. After a while, some cultish patterns can start to emerge. Start-up teams get nicknames like the “PayPal Mafia”, “Tweeps”, and “Googlers”. You also start to hear “drinking the Kool-Aid” — a nod to the Jonestown Massacre — when start-up teams talk about their mission. Peter Thiel even advises start-up founders to intentionally mirror cult behavior in their cultural design.
So, how do you build a culture that gets people on board and keeps them rowing in the same direction while offering your team the balanced, healthy, actualized lives outside of work?
Here are six sociological characteristics of cults and how — if left unchecked — they can manifest in company culture.

1: Authoritarian Leadership — Mission > Morality

I wasn’t in the room when Uber employees systematically ordered and canceled +5,560 Lyft rides. I have no idea what went into that decision — whether it someone went rogue (it happens) or if it was a decree from on-high. But, we do know that Uber’s rampant culture problems and turnover have been attributed to toxic leadership again, and again, and again and there’s a lesson in that. When you use your authority to create a culture that drives your team to win the game no matter how dirty it’s played, you lose. There will always be room in the market for a company who aligns with your customers’ and employees’ values.

2: Exclusivism — Brand > Compensation

There’s a famous shoe company that’s kind of a big deal in my old town. But everyone knows that working there means a pay cut: that you are in-part compensated by the prestige of the brand and the story you can tell on your resume. Start-ups ask people to get on board and take a pay cut so they can stay scrappy and keep pay roll low. And this is fine in the beginning. But when you start believing that the brand you’ve built (cause let’s be real, your employees built it too) is a substitute for compensation for skilled labor, you are banking on exclusivity. This could mean you’re on building an exploitive, inequitable culture.

3: Isolationism — No Time Outside

Building a strong team of talented, connected, smart people who like each other and want to hang out is awesome. Some of the most important relationships of my life have come from my start-up community. But I will never forget when our All Hands meeting was moved to 5 pm every Friday (8 pm for New York). Sure, there was wine and it was fun, but start-up hours had already taken a toll on my relationships and this felt like an unfair choice. Bringing in meals and snacks, laundry, massages, wine nights, and parties is a nice thing to do, but you also have to ask yourself if you’re trying to discourage people from time outside of the office. What message are you sending to those who want to nurture other aspects of their lives?

4: Opposition to Independent Thinking — A Lack of Discourse

Independent thinking is what being in a start-up is all about. If you want to color in the lines, building a disruptive technology company is not the way to go. But some founders haven’t mastered the art of discourse. They read brainstorming and problem solving as an inefficiency or — in some cases — a threat to their abilities. If you’re not sure if you’re doing this, ask your team for feedback about your management style. Remember that the best ideas can come from the most obscure places in a business and great leaders empower the people that surround them.

5: Fear of Being “Disfellowshiped” — Firing as Punishment

It’s hard to let someone go — especially when they are part of a small team that is tightly bonded. You’re also limited in what you can say legally and morally to protect the privacy of the employee. But, one thing is for certain, the fastest way to start a panic is to fire someone without cause or as a personal attack. It’s nasty business, but I’ve seen people disagree with a leader in discourse one day and be gone the next. This creates fear and instability in your culture. As a leader, you must hold yourself and your HR team to high and consistent standards when it comes to letting someone go.

6: Threats of Attack — Fear > Inspiration

How you motivate your team says a lot about your culture. Are you raising the alarm bells of the competitive landscape and putting the fear of God in your team every time that other company is mentioned in the press? Then you’re probably leading out of fear instead of inspiration. Fear triggers adrenaline and, while this might get a sprint out of your team, threats of attack aren’t sustainable to drive performance. They will also lead to burnout and, in some cases, adrenal fatigue.
Culture is vital to growing a team — and that team is your key to making a lasting impact on the world. But culture is more than your mission and values, and it’s definitely more than free lunch. It’s a continuous process of self-reflection and accountability. And companies, whose leaders get this right, last.