Remote Interviewing SolutionsNumber of customers:Total: 29 Kevin Lo Bryan Jadot
What we thought• Hypothesis o Engineers wanted a tool that would integrate elements of a typical remote interview (video chat, collaborative coding, code execution / testing)• How we tested it o Talked to 29 customers: many engineers, many recruiters, 1 HR employee, 1 VC
Business Model Canvas Key Partners Key Activities Value Propositions Customer Relations Customer Segments 1) Amazon 1) Customer Problem Encourage hiring Individuals 2) Dice, Indeed, service Wants to conduct engineers to use the Hiring managers and Workopolis 2) Sales interview remotely but free version. Spreads engineers conducting needs to use several virally through interviews in software mediums company. Company engineering fields. has to pay for the Solution additional interviews. Companies Integrated product for Initially growth stage conducting interviews companies, but later remotely. first tier, large software companies. Key Features 1) Collaborative editor Job they want us to do with code formatting. Ability to effectively and Key Resources 2) Record interviews Channels quickly interview 1) Servers (AWS) 3) Execute and test 1) Website candidates, so they can 2) IP of our code code. return to their jobs. execution server 4) Video chatCost Structure Revenue Streams1) Servers 1) Freemium2) Designers 2) Monthly subscription3) Technical support engineers 3) Yearly subscription4) Account managers 4) Per interview
Monday night - What we learned• Small market o TAM only $5-10M. o Target market only $1.25-2.5M• Engineers who conducted interviews were interested in our product, but we werent sure if they thought the company was willing to pay o Liked code execution but didnt feel like it was crucial o Other features werent as important o Mostly, this process is useful for quickly screening out fakers• A better idea of the recruiting and interviewing process o From the perspective of engineers, recruiters and human resources employees.
Market Analysis• TAM: About 1-2 million software interviews per year based on data from US Bureau Labor of Statistics. o Charging $5 per interview, we will make $5-10 million per year.• SAM: About half of these interviews are conducted remotely and can run on our platform o Many companies just hire locally o $2.5-5 million per year• Target Market: Growth stage (size: 20-2,000) companies actively hiring o $1.25-2.5 million per year
Business Model Canvas Customer Segments IndividualsKey Partners Key Activities Value Propositions Customer Hiring managers and1) Amazon 1) Customer Problem Relations Engineers conducting2) Dice, Indeed, service Interviewers arent Encourage hiring interviews in softwareWorkopolis 2) Sales getting as much engineers to use engineering fields. information out of the free version. remote interviews as Spreads virally Recruiters and CTOs they want to. through company. looking to get more 1) Interviews take up Company has to analytics about good engineering time pay for the programming 2) Tough to assess a additional questions candidate accurately in interviews. a short amount of time Initially from growth stage companies, but Solution later first tier, large Integrated product for Channels software companies. conducting remote 1) Website Key Resources interviews quickly and 2) Talk directly to Job they want us to do 1) Servers (AWS) providing predictive engineers and Ability to effectively 2) IP of our code analytics of employee recruiters and quickly interview execution server performance based on candidates, so they questions asked and can return to their evaluations jobs. Cost Structure Revenue Streams 1) Servers 1) Freemium 2) Designers 2) Monthly subscription 3) Technical support engineers 3) Yearly subscription 4) Account managers 4) Per interview
Tuesday Night - What we learned• Got more data about engineer concerns during interviews o Tool used to conduct interviews is not an area that can be improved o Concerns about false positives (bad hires are a headache) o Engineers dont want an automated solution either because they cant see thought processes o Additional legal issues• Finished mapping the recruiting pipeline.• Came up with the idea of an analytics platform that could deduce correlations between interview performance and job performance
At Facebook. Director of HR orrecruiting has a large budget forthese sorts of tools. Still workingon taxonomy of customers... Recruiting pipeline
Business Model Canvas Customer Segments IndividualsKey Partners Key Activities Value Propositions Customer Engineers conducting1) Amazon 1) Customer Problem Relations interviews in software2) Dice, Indeed, service Tough to assess a Encourage hiring engineering fields.Workopolis 2) Sales candidate accurately in engineers to use3) ATS tools like a short amount of time the free version. Recruiters andJobvite Spreads virally engineering execs4) Evaluation Solution through the looking to get moretools Analytics platform that company. Forced analytics about correlates job to pay. interview effectiveness performance with Sell directly to specific interview engineering execs Initially from growth procedures and and head of HR stage companies, but questions. later first tier, large Integrated product for software companies. conducting remote interviews quickly and Requested job Key Resources providing predictive Channels Ability to effectively 1) Servers (AWS) analytics of employee 1) Website and quickly interview 2) IP of our code performance based on 2) Talk directly to candidates, so they execution server questions asked and engineers and can return to their evaluations recruiters and jobs. HR Cost Structure Revenue Streams 1) Servers 1) Freemium Trial period 2) Designers 2) Monthly subscription 3) Technical support engineers 3) Yearly subscription 4) Account managers 4) Per successful candidate interview
Wednesday Night - What we learned• More confirmation on problems with interviewing platform: alternative isnt bad enough to warrant paying for our solution• Learned a lot about agency recruiters• Competitive analysis o Who are the key players and their feature sets? Recruiting / screen process is a very competitive market o What are people doing that is similar to us?
Business Model Canvas Customer Segments Individuals Key Activities Value Propositions Customer Internal recruiters andKey Partners 1) Customer Problem Relations engineering execs1) Amazon service Tough to assess a Sell directly to looking to get more2) ATS tools like 2) Sales candidate accurately in engineering execs analytics aboutJobvite a short amount of time and head of HR. interview effectiveness3) Evaluationtools Solution Initially give away Initially from growth Analytics platform that for free to build stage companies, but correlates job corpus of data. later first tier, large performance with software companies. specific interview procedures and Requested job questions. Ability to effectively and quickly interview Key Features candidates Ability to predict Key Resources Channels 1) Servers (AWS) 1) Website 2) Talk directly to recruiters and HR Cost Structure Revenue Streams 1) Servers 1) Trial period 2) Designers 2) Monthly subscription 3) Technical support engineers 3) Yearly subscription 4) Account managers 4) Per successful candidate
Thursday Night - What we learned• More validation with analytics platform idea, although a lot of people were dubious without seeing actual results because of amount of data required.• Another pain point from recruiter o Problem: prioritizing resumes would help with recruiters meeting recruiting quota o Solution: correlate terms in a resume with the candidates success in the interview process to create a tool that can identify what sort of resumes indicate good performance.• Recruiting team has a budget somewhere between $1000 - $10,000 before going through VP for approval (LinkedIn)
Business Model Canvas Customer Segments Individuals Key Activities Value Propositions Customer Internal recruiters andKey Partners 1) Customer Problem Relations execs looking to get1) Amazon service Tough to assess a Sell directly to more analytics about2) ATS tools like 2) Sales candidate accurately in engineering execs interview effectivenessJobvite3) Evaluation a short amount of time and head of HR. Initially from growthtools Solution Initially give away stage companies, but Analytics platform that for free to build later first tier, large correlates job corpus of data. software companies. performance with specific interview Keep it under about Requested job procedures and $10,000 Ability to effectively questions. and quickly interview candidates Channels Key Features 1) Website Ability to predict 2) Talk directly to Key Resources HR and 1) Servers (AWS) recruiting 3) We know a lot of recruiters and engineers Cost Structure Revenue Streams 1) Servers 1) Trial period 2) Designers 2) Monthly subscription 3) Technical support engineers 3) Yearly subscription 4) Account managers 4) Per successful candidate
Value Proposition• Recruiters are basically guessing about the helpfulness of their questions. What questions are best?• Recruiters say they need better analytics – that ATS software does a terrible job at analytics• Solution: we provide a platform that ties into ATS software like Jobvite and HRS software that collects evaluations to provide feedback on the effectiveness of interviewing practices
Key Features• Page for interviewer to conduct interview and upload comments afterwards o Lists questions to ask and ratings (in order to gauge the interviewee more accurately) o Rate interviewee afterwards in categories like: Code elegance Communication Experience o Can import data from Jobvite periodically This would be a frictionless and automatic process
Key Features (cont.)• Page for performance reviews o Users can rate hired candidates 1-2 years later in categories like: Productivity Good teamwork Technical skill Any other aspect that HR wants... o Compile all these statistics about performance o Can periodically import data from performance tracking software: Taleo, etc. Seamless and automatic
How it worksIterative approach to assessing candidates Recruiting pipeline Sourcing Assessing Decision Evaluation pipeline
Where we go from here• Develop a better understanding of the market for an analytics platform o Size and demand• Do additional competitive analysis of this idea o Analytics tools are often buried in ATS software. These tools take time to get ahold of since were currently going through sales channels.• Flesh out the key feature set based on more customer feedback.
Acknowledgments• The awesome class• Andy Sack• Jon Feiber• Ken Pickar• Charles House• Steve Blank