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How Startups Can Build a Recruiting Machine

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Something important has changed in the recruiting process: the best people are almost never on the market, and you have to develop recruiting processes to find and sell passive candidates. In many cases, it will take months or years of relationship building with these candidates to find the right moment when they are open to considering a change. Closing them takes greater selling efforts than in the past due to the intense competition over the good candidates. This leads me to believe that there is now a third crucial startup skill that needs to be developed: recruiting.

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How Startups Can Build a Recruiting Machine

  1. 1. How Startups Can Build a Recruiting Machine #hiringforgrowth @lever Thursday April 7, 2016
  2. 2. ● Phone lines are muted - please use the chat box for questions ● Tweet us using #hiringforgrowth and @lever ● $100 Amazon Gift Card for the most useful tweet Kiran Dhillon Content Marketing Manager Lever @kirandhillon4 Thanks for joining us!
  3. 3. - Our featured speaker David Skok General Partner Matrix Partners ForEntrepreneurs Blog @BostonVC #hiringforgrowth
  4. 4. #hiringforgrowth There used to be two essential startup skills. Now there’s a third. Photo credit: http://bit.ly/1WeQWae
  5. 5. Two core startup skills Build a product with great product/ market fit Build a sales and marketing machine #hiringforgrowth
  6. 6. ● Explosion in startups ● Low growth in skilled workers ● Software is eating the world - everyone wants developers What’s changed? Demand now significantly outstrips supply - especially for technical talent
  7. 7. And recruiting has undergone its own revolution...
  8. 8. The hires that most impact your company’s performance aren’t looking for a job
  9. 9. Enter the third crucial startup skill Build a recruiting machine #hiringforgrowth Build a product with great product/ market fit Build a sales and marketing machine
  10. 10. Sourcing & Selling are the key new skills
  11. 11. #hiringforgrowth Recruiting well takes the entire village Photo credit: http://bit.ly/1WeQWae
  12. 12. #hiringforgrowth The catch: your village probably didn’t study recruiting at college Photo credit: http://bit.ly/1kD8Lis
  13. 13. The recruiting funnel #hiringforgrowth Candidates Highly productive employees Sourcing Evaluate & Sell Close Train Top of funnel Middle of funnel Sell Onboard
  14. 14. Top of funnel: What makes it so hard? #hiringforgrowth
  15. 15. Sourcing Selling
  16. 16. Q. When should you hire your first recruiter? #hiringforgrowth
  17. 17. Q. When should you hire your first recruiter? A. Earlier than you think. #hiringforgrowth
  18. 18. 1. They can bring more focus to your sourcing efforts 2. They’ll sell your company better than an outsourced recruiter would 3. They can build out a better candidate experience Note: you may still need to enlist the help of a headhunter for exec roles. If you do, choose carefully. 3 reasons to hire a full-time in-house recruiter early #hiringforgrowth
  19. 19. A full-time recruiter does NOT mean you’re off the hook “I have seen some companies get into trouble when team members think that having an in-house recruiter means they can now ‘pitch this problem over the fence.’ I tell clients (from CEO on down) that they are all part-time recruiters. Ensure that the CEO in particular visibly embodies this behavior.” Jordan Burton Founder, Burton Advisors LLC Former Partner, ghSMART #hiringforgrowth
  20. 20. #hiringforgrowth Photo credit: http://bit.ly/1S2rvCl Referrals are much easier in the digital age ● Sit with employees and review networks from all past jobs ● Offer referral bonuses ● The biggest motivator for your team: a strong mission/vision
  21. 21. Sourcing passive candidates Sources we like: ● AngelList - startup hires ● GitHub, StackOverflow - developers ● Dribbble - designers ● Sourcing.io - engineers ● Xing - select European talent ● LinkedIn, Facebook & Twitter - all ● Conference speaker lists - all For more tips on how to source a quality pipeline, download our free ebook: lever.co/ebook-sourcing
  22. 22. Why you need a strong talent brand #hiringforgrowth Companies with a strong talent brand have 43% lower cost per hire 20% faster rate of hire Source: LinkedIn
  23. 23. How to articulate your talent brand ● Consider your brand as experienced by your employees. What makes you different/ special? ● Keep in mind what motivates your target talent, e.g., technical talent: ○ opportunity to solve technical problems ○ co-workers they can learn from ○ opportunity to contribute to open source ○ cool mission ○ culture they can relate to ● Think about channels to showcase your brand #hiringforgrowth
  24. 24. Promoting your talent brand will boost your recruiting efforts bit.ly/hubspot-culture 1.8 million views to date #hiringforgrowth
  25. 25. A few thoughts on getting to Developers
  26. 26. ● A key lesson we've learned is that engineers cannot be recruited ○ They are completely overwhelmed by LinkedIn messages and recruiters calling them a billion times ■ Especially if they're senior ○ They do not respond to these messages ○ We've tried a number of recruiters and they basically don't work ○ We now have a dedicated in-house recruiter and we don't have her recruit engineers ● Building a technical brand and getting the team out there seems to be the only real way to have success with this community From one of my Portfolio Companies
  27. 27. Know what you’re looking for in your hire Example: key competencies expected for a Matrix Partners associate #hiringforgrowth
  28. 28. Middle of funnel: Who’s selling whom? #hiringforgrowth
  29. 29. 1. Need to sell at each stage, while also evaluating 2. Need to nurture candidates 3. Need to manage your process Byproducts of the passive candidate age #hiringforgrowth
  30. 30. A great candidate experience secures hires and creates advocates #hiringforgrowth Photo credit: http://bit.ly/1j6qmh3
  31. 31. We incorporate three types of interview into evaluations Type of interview Approach Screening interview Initial evaluation to make sure candidate passes the bar for consideration Topgrading interview Chronological history of the career, to understand successes, failures, and results achieved by the specific individual. Focused interviews Conducted by team members to ensure candidates possess the core competencies. #hiringforgrowth
  32. 32. A few keys to successful interviewing ● Screen thoroughly to focus on top candidates ● Build rapport; mix evaluating with selling ● Assign focus areas to each interviewer; structure your feedback form accordingly ● Dig into the bad stuff, but don’t be judgmental
  33. 33. Reference checking is imperative, especially for senior hires Don’t Do ● Rely solely on references provided by the candidate ● Find other references who are mutual connections Recommended reading: bit.ly/reference-checking ● Let the reference drive the call ● Expect the reference to proactively raise negative points ● Lead the call; probe for exact details on the candidate’s achievements ● Find ways to frame ‘weakness’ questions to get accurate answers
  34. 34. How to manage your process? vs. #hiringforgrowth
  35. 35. Bottom of funnel: It ain’t over ‘till it’s over #hiringforgrowth
  36. 36. #hiringforgrowth Bring in your heavyweights Photo credit: http://bit.ly/1HUx1H0
  37. 37. 7 ways your VCs can help you hire executives #hiringforgrowth 1. Thinking through org design and timing of key hires 2. Help with job description, especially for ‘first of its kind’ exec roles 3. Figuring out compensation 4. Sourcing candidates 5. Tracking down backdoor references 6. Interview support 7. Selling!
  38. 38. Onboarding: Invest for productivity #hiringforgrowth
  39. 39. Onboarding is absolutely critical For more details, see see www.forentrepreneurs.com/onboarding Hubspot Sales example
  40. 40. Why we invested in Lever #hiringforgrowth
  41. 41. Sourcing & Selling are the key new skills
  42. 42. Why we invested in Lever Traditional ATS Evaluate & sell only Lever Source, nurture, evaluate & sell #hiringforgrowth
  43. 43. #hiringforgrowth Recruiting well takes the entire village Photo credit: http://bit.ly/1HUx8SX
  44. 44. Get your whole team hiring “With Lever in the hands of all Mattermark employees, we've cut our time to hire for open roles in half. Everyone from our team is sourcing candidates, referring friends, and contributing to hiring discussions. Hiring is now a team effort; I can train new employees about how to use Lever in two minutes. It's incredibly intuitive.” - Natasha, talent lead, Mattermark
  45. 45. Thank you! Questions? For more information: www.forEntrepreneurs.com Browse our webinar library: https://www.lever.co/recruiting-resources
  46. 46. 3 additional ways to keep in touch 1. Follow @lever on Twitter 2. Subscribe to our blog: www.lever.co/blog 3. Follow us on LinkedIn #hiringforgrowth

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