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May 2013
Recruiting: good to great
Page 2
Why?
• To Be Great at Recruiting
• Great Recruiting is:
• Telling Stories – Company & Positions
• Understanding the Candidate
• Crafting an Experience
• Work to make it a strength of your org
Page 3
Role of Talent
• Create the Experience
• Keep the Trains Moving
• Troubleshoot
• Learn to use data
Page 4
Agenda
• Recruiting Process/Experience
• Interview Structure
• Preparing Offers
• Compensation Data
• Sourcing
• Scaling Culture – Steve Cadigan
Page 5
The Experience
• The goal of recruiting is more than just a repeatable process, it is
about crafting an overall experience
• You should be deliberate about every step a candidate goes
through. Be aware of:
• It’s purpose
• What it feels like to go through
• Map steps and measure how long it takes
Page 6
The Experience
• Basic Anatomy
• Introduction
• Evaluation
• Connection
• Close
Page 7
Setup
• Goal:
• Sync with manager on the ideal candidate and prepare the interview team.
• The Position:
• Why does this role exist and what is the potential impact to the company?
• What will the person work on the first 3, 6, 12 months? Why is it interesting?
• What hard skills do they need? Required vs. nice to have – prioritize
• Perquisite experience? How senior?
• What are you willing to trade off: domain experience vs. coding chops
• Ideal candidates? Where do they work? Look through LinkedIn together
• Process:
• Select interview team and give them responsibilities – more to follow
Page 8
Introduction
• Goal: Generate Interest & Understand What They Value (LISTEN TO THEM)
• Generate Interest (storytelling):
• Why does the company exist and why does that matter?
• Why are you going to succeed where other have failed?
• Why does the company matter to you? Mission? Culture?
• Upcoming projects
• Set Expectations and Prepare for what lies next
Page 9
Introduction
• Discovery:
• Why are they looking and how serious are they?
• What are they not getting from their current company?
• When are they looking to make a decision? Timing?
• Who is the competition? Other startups, founding something, large companies
• What do they want out of their next position?
• What’s their current comp and what are they looking for? Stock vs. cash?
• Who are the decision makers? Parents, wife, kids, etc…
*WRITE IT DOWN & SYNC WITH THE HIRING MANAGER
Page 10
Evaluation
• Goal:
• Evaluate Fit , Communicate the Responsibilities of the Position &
Answer Outstanding Questions
• Main Areas:
• Work Experience, Relevant Skills, Culture Fit.
Page 11
Evaluation
• Work Experience
• Systematically breakdown what they’ve done for the past 5 years.
• What projects where they working on? What were their specific
responsibilities? – Really dig into the details.
• What did they deliver? How did they influence the direction of the product?
• How much autonomy did they have to make decisions? Enough, too much?
• Did they work on core parts of the project?
• How did they deal with roadblocks? What happens when they get frustrated?
• Look for people that had key roles and that have had increased responsibility
over time. Each role should be a step forward.
*Takeaway: What have they done, how well did they do it, was it hard
Page 12
Evaluation
• Relevant Skills: Break it down to the fewest people possible
• Technical Skills
• Programming languages, writing abilities, sourcing
• Problem Solving
• CS Fundamentals, deductive reasoning, situational questions
• They should be relevant to the position
• Practicals
• Tests, presentations, role playing
• Can be used as a filter if you have a lot of applicants or towards the
end of the process if you need to do a lot of selling.
• Examples of Previous of Work
• Code Samples, writing samples, portfolio
Page 13
Evaluation
*Takeaways:
• Strength of knowledge on each required skill
• Horsepower
• Problem solving abilities
• Quality of work
*2 - 3 interviews:
• Always leave time for questions and for interviewers to talk about their
experience
Page 14
Evaluation
• Culture Fit:
• Understand and quantify your culture first
• How do decisions get made?
• Conviction of ideas?
• How collaborative?
• Pedigree?
• Passions/Interests?
• Positive vs. questioning?
• How independent are people expected to be?
Page 15
Evaluation
• The questions asked should be relevant to your current culture or the one
you’re trying to build
• How much control do you want over decisions?
• How do you handle disagreements with coworkers? What do you do if you
disagree with a decision that’s been made?
• What risks have you taken? What was the outcome, what did you learn?
• When have you gone out of your way to do something or learn a skill that
wasn’t required?
• When was the last time someone was critical of your work, how did you handle
it?
*Takeaways: How well do they fit into the organization you have and do you think
they can adapt?
Page 16
Connection
• Find ways of endearing the candidate to you
• Social interaction:
• Team lunch, dinner, golf, ping pong
• Potentially engaging other interests: family-life, outdoor activities, etc
• Check-in:
• Engage the candidate after their onsite
• How excited are they?
• What questions do they need answered?
• Offer to spend more time outside of the interview process
• Discuss career growth and future aspirations
• Love Bomb:
• Have the interviewers reach back out
• Send a gift basket that relates to their interest
Page 17
Debrief
• Goal: Moderate a discussion with Hiring Manager and Interviewer(s) to determine
hiring decision
• Facilitating the conversation:
• Require concrete data
• Avoid statements like “I feel”
• Be thoughtful about the order in which people give feedback
• Don’t have the most influential people speak up first
• Look for a champion
• A weak YES is really a NO
• Don’t hire someone to be the weakest person on the team
• Get value out of “no’s”
• Know why they are a pass
• Learn what would have made them a YES
Page 18
Close: pre-offer
• Goal: Have the candidate ready to accept before the offer is delivered
• Begins at the Introduction: Reinforced through each stage of the process (slide 8)
• Take each thing they value and cross it off the list as you interact with the
candidate
• Have hiring manager and other leaders communicate the vision for the
company and how the candidate fits in. Why it is a career and not a job.
• Constantly check-in:
• How excited are they about the position?
• What concerns to the they have about the company, job, etc?
• What questions do they need answered?
• How does it compare to other positions?
• If terms could be agreed upon, would you accept?
• When can you start?
• Learn to position against: smaller companies, other startups larger companies
Page 19
Close: talking numbers
• Making Comp Recommendations
1. Employee’s comp history – discuss early
2. Expectations/Motivations (equity vs. cash)
3. Industry benchmarks
4. Competing offers
5. Internal comparisons
Page 20
Close: delivery
• Figure out the best person to deliver the offer
• Hiring manager, CEO, Recruiter
• Have a “confidant”
• Typically the recruiter, someone that can discuss the details of the
offer while still being removed from the negotiation
• Negotiation
• Avoid unless they’re ready to accept
• Sign-on Bonus
Page 21
Close: the counter
• Mentally prepare the candidate for a counter offer
• Strengthen their resolve
• Stay connected, it’s not done until they show up
Page 22
Experience Killers
• Time in process
• Clock is ticking from initial intro or connection
• Treat employee referrals like gold
• Lumpy communication
• Follow-up immediately
• Missing interviews or being left waiting
• Not paying complete attention – checking phone/email
• Inconsistent expectations between interviewers, candidates
• Asking the same questions
• People that don’t know what the hell they’re talking about
• Weak Process
• Not challenging enough
Page 23
Useful Metrics
• Goal: Understand conversion and time in process
• Overall Conversion Funnel
• Total Outreach  response rate  interview process  offer
• Instrument interview process
• Track each stage in ATS
• Understand the funnel conversion from phone screen to offer
• Track days spent in each step
• Offer Conversion
• Run a post-mortem on each rejected offer, avoid making the same mistake
twice
• Sources
• Track where offers and hires come from, will help you better allocate time
Page 24
Comp
• Define your philosophy:
• Create salary bands
• Don’t be a slave to data but be aware when you’re breaking band
• Update bands each year
• Start to level employees but don’t worry about it until 50 or so
• Stock Refresh
• @ 3 years in
Page 25
Comp: trends
• Modest increase in salary and equity (<5%) from 2012
• Average Salary for New Grad Engineers at top companies: $100K
• Companies are essentially paying 2 years ahead of current experience
• Will likely push other salaries up
• Little to no discount on salary for early stage companies
• Perks are getting more creative
• Laundry service, task rabbit, uber

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Recruiting: Good to Great

  • 2. Page 2 Why? • To Be Great at Recruiting • Great Recruiting is: • Telling Stories – Company & Positions • Understanding the Candidate • Crafting an Experience • Work to make it a strength of your org
  • 3. Page 3 Role of Talent • Create the Experience • Keep the Trains Moving • Troubleshoot • Learn to use data
  • 4. Page 4 Agenda • Recruiting Process/Experience • Interview Structure • Preparing Offers • Compensation Data • Sourcing • Scaling Culture – Steve Cadigan
  • 5. Page 5 The Experience • The goal of recruiting is more than just a repeatable process, it is about crafting an overall experience • You should be deliberate about every step a candidate goes through. Be aware of: • It’s purpose • What it feels like to go through • Map steps and measure how long it takes
  • 6. Page 6 The Experience • Basic Anatomy • Introduction • Evaluation • Connection • Close
  • 7. Page 7 Setup • Goal: • Sync with manager on the ideal candidate and prepare the interview team. • The Position: • Why does this role exist and what is the potential impact to the company? • What will the person work on the first 3, 6, 12 months? Why is it interesting? • What hard skills do they need? Required vs. nice to have – prioritize • Perquisite experience? How senior? • What are you willing to trade off: domain experience vs. coding chops • Ideal candidates? Where do they work? Look through LinkedIn together • Process: • Select interview team and give them responsibilities – more to follow
  • 8. Page 8 Introduction • Goal: Generate Interest & Understand What They Value (LISTEN TO THEM) • Generate Interest (storytelling): • Why does the company exist and why does that matter? • Why are you going to succeed where other have failed? • Why does the company matter to you? Mission? Culture? • Upcoming projects • Set Expectations and Prepare for what lies next
  • 9. Page 9 Introduction • Discovery: • Why are they looking and how serious are they? • What are they not getting from their current company? • When are they looking to make a decision? Timing? • Who is the competition? Other startups, founding something, large companies • What do they want out of their next position? • What’s their current comp and what are they looking for? Stock vs. cash? • Who are the decision makers? Parents, wife, kids, etc… *WRITE IT DOWN & SYNC WITH THE HIRING MANAGER
  • 10. Page 10 Evaluation • Goal: • Evaluate Fit , Communicate the Responsibilities of the Position & Answer Outstanding Questions • Main Areas: • Work Experience, Relevant Skills, Culture Fit.
  • 11. Page 11 Evaluation • Work Experience • Systematically breakdown what they’ve done for the past 5 years. • What projects where they working on? What were their specific responsibilities? – Really dig into the details. • What did they deliver? How did they influence the direction of the product? • How much autonomy did they have to make decisions? Enough, too much? • Did they work on core parts of the project? • How did they deal with roadblocks? What happens when they get frustrated? • Look for people that had key roles and that have had increased responsibility over time. Each role should be a step forward. *Takeaway: What have they done, how well did they do it, was it hard
  • 12. Page 12 Evaluation • Relevant Skills: Break it down to the fewest people possible • Technical Skills • Programming languages, writing abilities, sourcing • Problem Solving • CS Fundamentals, deductive reasoning, situational questions • They should be relevant to the position • Practicals • Tests, presentations, role playing • Can be used as a filter if you have a lot of applicants or towards the end of the process if you need to do a lot of selling. • Examples of Previous of Work • Code Samples, writing samples, portfolio
  • 13. Page 13 Evaluation *Takeaways: • Strength of knowledge on each required skill • Horsepower • Problem solving abilities • Quality of work *2 - 3 interviews: • Always leave time for questions and for interviewers to talk about their experience
  • 14. Page 14 Evaluation • Culture Fit: • Understand and quantify your culture first • How do decisions get made? • Conviction of ideas? • How collaborative? • Pedigree? • Passions/Interests? • Positive vs. questioning? • How independent are people expected to be?
  • 15. Page 15 Evaluation • The questions asked should be relevant to your current culture or the one you’re trying to build • How much control do you want over decisions? • How do you handle disagreements with coworkers? What do you do if you disagree with a decision that’s been made? • What risks have you taken? What was the outcome, what did you learn? • When have you gone out of your way to do something or learn a skill that wasn’t required? • When was the last time someone was critical of your work, how did you handle it? *Takeaways: How well do they fit into the organization you have and do you think they can adapt?
  • 16. Page 16 Connection • Find ways of endearing the candidate to you • Social interaction: • Team lunch, dinner, golf, ping pong • Potentially engaging other interests: family-life, outdoor activities, etc • Check-in: • Engage the candidate after their onsite • How excited are they? • What questions do they need answered? • Offer to spend more time outside of the interview process • Discuss career growth and future aspirations • Love Bomb: • Have the interviewers reach back out • Send a gift basket that relates to their interest
  • 17. Page 17 Debrief • Goal: Moderate a discussion with Hiring Manager and Interviewer(s) to determine hiring decision • Facilitating the conversation: • Require concrete data • Avoid statements like “I feel” • Be thoughtful about the order in which people give feedback • Don’t have the most influential people speak up first • Look for a champion • A weak YES is really a NO • Don’t hire someone to be the weakest person on the team • Get value out of “no’s” • Know why they are a pass • Learn what would have made them a YES
  • 18. Page 18 Close: pre-offer • Goal: Have the candidate ready to accept before the offer is delivered • Begins at the Introduction: Reinforced through each stage of the process (slide 8) • Take each thing they value and cross it off the list as you interact with the candidate • Have hiring manager and other leaders communicate the vision for the company and how the candidate fits in. Why it is a career and not a job. • Constantly check-in: • How excited are they about the position? • What concerns to the they have about the company, job, etc? • What questions do they need answered? • How does it compare to other positions? • If terms could be agreed upon, would you accept? • When can you start? • Learn to position against: smaller companies, other startups larger companies
  • 19. Page 19 Close: talking numbers • Making Comp Recommendations 1. Employee’s comp history – discuss early 2. Expectations/Motivations (equity vs. cash) 3. Industry benchmarks 4. Competing offers 5. Internal comparisons
  • 20. Page 20 Close: delivery • Figure out the best person to deliver the offer • Hiring manager, CEO, Recruiter • Have a “confidant” • Typically the recruiter, someone that can discuss the details of the offer while still being removed from the negotiation • Negotiation • Avoid unless they’re ready to accept • Sign-on Bonus
  • 21. Page 21 Close: the counter • Mentally prepare the candidate for a counter offer • Strengthen their resolve • Stay connected, it’s not done until they show up
  • 22. Page 22 Experience Killers • Time in process • Clock is ticking from initial intro or connection • Treat employee referrals like gold • Lumpy communication • Follow-up immediately • Missing interviews or being left waiting • Not paying complete attention – checking phone/email • Inconsistent expectations between interviewers, candidates • Asking the same questions • People that don’t know what the hell they’re talking about • Weak Process • Not challenging enough
  • 23. Page 23 Useful Metrics • Goal: Understand conversion and time in process • Overall Conversion Funnel • Total Outreach  response rate  interview process  offer • Instrument interview process • Track each stage in ATS • Understand the funnel conversion from phone screen to offer • Track days spent in each step • Offer Conversion • Run a post-mortem on each rejected offer, avoid making the same mistake twice • Sources • Track where offers and hires come from, will help you better allocate time
  • 24. Page 24 Comp • Define your philosophy: • Create salary bands • Don’t be a slave to data but be aware when you’re breaking band • Update bands each year • Start to level employees but don’t worry about it until 50 or so • Stock Refresh • @ 3 years in
  • 25. Page 25 Comp: trends • Modest increase in salary and equity (<5%) from 2012 • Average Salary for New Grad Engineers at top companies: $100K • Companies are essentially paying 2 years ahead of current experience • Will likely push other salaries up • Little to no discount on salary for early stage companies • Perks are getting more creative • Laundry service, task rabbit, uber