Lightspeed's 2018 Hiring Trends Report
Our mission is to empower startups to find, hire, and retain the best people. Data is the key to successful hiring but has historically not been used due to lack of availability. The
second installment of this report dives into challenges, insights, and best practices across the employee life-cycle.
Startup Recruiting Trends identifies where startups go wrong in recruiting and makes recommendations on how startups should approach hiring.
What's Included:
-Insights into recruiting best practices, diversity, and people programs.
-Recommendations on allocating resources.
-Benchmarking data on important hiring metrics: Recruiting team makeup, Hiring Goals, Reporting Structure and Pipeline Metrics.
Change the perception and reality of talent acquisition from a necessary cost of doing business to an ROI force to be reckoned with.
You will learn about the strategic importance of the four fundamental processes: competency management, pre-employment testing, interviewing and onboarding and how each plays a role in engaging candidates who’ll continue to enhance your business.
Startup Recruiting Trends identifies where startups go wrong in recruiting and makes recommendations on how startups should approach hiring.
What's Included:
-Insights into recruiting best practices, diversity, and people programs.
-Recommendations on allocating resources.
-Benchmarking data on important hiring metrics: Recruiting team makeup, Hiring Goals, Reporting Structure and Pipeline Metrics.
Change the perception and reality of talent acquisition from a necessary cost of doing business to an ROI force to be reckoned with.
You will learn about the strategic importance of the four fundamental processes: competency management, pre-employment testing, interviewing and onboarding and how each plays a role in engaging candidates who’ll continue to enhance your business.
Building In-House Executive Search CapabilityResearchEurope
A hot topic amongst talent managers is “How do I build in-house executive search capability?”
Companies who have achieved this report not only cost-savings, but improvements in time-to-hire and talent retention.
However, very few firms have successfully built in-house capabilities – and it’s not as straightforward as some would lead you to believe.
In this 30 minute webinar, Stephen Buchanan explores issues around building an in-house executive search team:
• Why build an in-house executive search team?
• Hiring in the right skills and experience
• Processes and systems
• Pitfalls to avoid
• Getting buy-in from internal stakeholders
• Return on investment
Lately, the term ‘employer branding’ has flooded corporate vernacular. Every respectable company seems to be incorporating an employer branding strategy. Leaders are figuring out ways to push it up on their priority list. The race to be ‘the best place to work’ is getting crowded each day. Here are some of the best practises companies ought to undertake to establish a strong employer brand and hence attract the best talent to their company.
How Hybrid Work Impacts the Employee ExperienceBambooHR
Join BambooHR and VerifiedFirst for a session on how the hybrid workforce model impacts the employee experience and how your organization can use this time to improve employee satisfaction.
During first 90 days…meet all senior leadership, hiring managers, and peers.
Gain a better understanding of the successes and challenges they are experiencing regarding talent acquisition.
Discuss and determine expectations, accountability, and what everyone’s role is within the hiring process.
Educate leadership and hiring managers on recruiting tactics and employment branding.
Be a great listener, win respect, build confidence, be proactive, and show reliability.
Discuss with various individuals if the current process has been effective, what strategies are successful, what changes need to be made, and where the company needs to be in the future.
Who is involved with recruiting, have individuals been trained to interview and hire, is the candidate experience consistent, what sourcing strategies are currently in place, etc.
Conduct a needs analysis (current and future openings- 3/6/9/12 months ahead).
Establish search “kickoff calls” with hiring managers.
During first 90 days…develop a nationwide talent acquisition strategy, recruiting process flow map, candidate sourcing strategy, and make sure there is consistency and standardization throughout the process.
Presentation to Using the Employee Lifecycle as Your Roadmap to Employee Enga...Elizabeth Lupfer
This is the complementary presentation to the "Using Employee Lifecycle as Your Roadmap to Employee Engagement" #infographic. Presented by Elizabeth Lupfer at the Talent Management Alliance's Employee Engagement conference in July 2014, this presentation is a walkthrough each area of the employee lifecycle and identifies how organization's can develop an employee engagement framework through adaptability, relevancy, sustainability and execution. If you've realized this spells ARSE, then you've got it. Because an ARSE is the foundation for any successful relationship -- employee engagement and the employee lifecycle.
Linkedin global recruiting trends report 2017Pierre Bernard
Why read this ?
In order to plan for the future, you need to understand where
you stand compared to your peers. The goal of this report
is exactly that -- to help talent leaders like you benchmark
against teams across the globe when it comes to the most
important recruiting metrics and trends.
About this survey
This report is based on the survey responses of nearly 4,000
corporate talent acquisition leaders across 35 countries. All
respondents are at the manager level or higher.
Building In-House Executive Search CapabilityResearchEurope
A hot topic amongst talent managers is “How do I build in-house executive search capability?”
Companies who have achieved this report not only cost-savings, but improvements in time-to-hire and talent retention.
However, very few firms have successfully built in-house capabilities – and it’s not as straightforward as some would lead you to believe.
In this 30 minute webinar, Stephen Buchanan explores issues around building an in-house executive search team:
• Why build an in-house executive search team?
• Hiring in the right skills and experience
• Processes and systems
• Pitfalls to avoid
• Getting buy-in from internal stakeholders
• Return on investment
Lately, the term ‘employer branding’ has flooded corporate vernacular. Every respectable company seems to be incorporating an employer branding strategy. Leaders are figuring out ways to push it up on their priority list. The race to be ‘the best place to work’ is getting crowded each day. Here are some of the best practises companies ought to undertake to establish a strong employer brand and hence attract the best talent to their company.
How Hybrid Work Impacts the Employee ExperienceBambooHR
Join BambooHR and VerifiedFirst for a session on how the hybrid workforce model impacts the employee experience and how your organization can use this time to improve employee satisfaction.
During first 90 days…meet all senior leadership, hiring managers, and peers.
Gain a better understanding of the successes and challenges they are experiencing regarding talent acquisition.
Discuss and determine expectations, accountability, and what everyone’s role is within the hiring process.
Educate leadership and hiring managers on recruiting tactics and employment branding.
Be a great listener, win respect, build confidence, be proactive, and show reliability.
Discuss with various individuals if the current process has been effective, what strategies are successful, what changes need to be made, and where the company needs to be in the future.
Who is involved with recruiting, have individuals been trained to interview and hire, is the candidate experience consistent, what sourcing strategies are currently in place, etc.
Conduct a needs analysis (current and future openings- 3/6/9/12 months ahead).
Establish search “kickoff calls” with hiring managers.
During first 90 days…develop a nationwide talent acquisition strategy, recruiting process flow map, candidate sourcing strategy, and make sure there is consistency and standardization throughout the process.
Presentation to Using the Employee Lifecycle as Your Roadmap to Employee Enga...Elizabeth Lupfer
This is the complementary presentation to the "Using Employee Lifecycle as Your Roadmap to Employee Engagement" #infographic. Presented by Elizabeth Lupfer at the Talent Management Alliance's Employee Engagement conference in July 2014, this presentation is a walkthrough each area of the employee lifecycle and identifies how organization's can develop an employee engagement framework through adaptability, relevancy, sustainability and execution. If you've realized this spells ARSE, then you've got it. Because an ARSE is the foundation for any successful relationship -- employee engagement and the employee lifecycle.
Linkedin global recruiting trends report 2017Pierre Bernard
Why read this ?
In order to plan for the future, you need to understand where
you stand compared to your peers. The goal of this report
is exactly that -- to help talent leaders like you benchmark
against teams across the globe when it comes to the most
important recruiting metrics and trends.
About this survey
This report is based on the survey responses of nearly 4,000
corporate talent acquisition leaders across 35 countries. All
respondents are at the manager level or higher.
Three insights that will define your recruiting strategy in 2017 | Talent Con...LinkedIn Talent Solutions
Harry Dhebar, LinkedIn
Reuben Obaidullah, LinkedIn
Allison Schnidman, LinkedIn
Join us to discuss Talent Acquisition trends that will shape 2017, so you can plan for the future. We’ll look back into 2016, discuss the current role of the TA team, and explore where TA is going next year. The goal of this presentation is to help talent leaders like you benchmark yourself against teams across the globe - by reviewing the most important metrics from our most recent Global Recruiting Trends survey. We will outline what global TA leaders had to say about their teams, their business and what matters to them in 2017 and beyond.
Key highlights:
Learn what your TA peers are planning for in 2017.
Benchmark yourself against your peers on key metrics.
Understand the importance of employer brand to your overall strategy.
Check out the best of Talent Connect: http://bit.ly/2e5ojNe
We surveyed 2,604 talent acquisition leaders who work in a small or mid-sized corporate HR department in 35 different countries. All
respondents are at the manager level or higher and have some authority in their company’s recruitment solutions budget. These survey
respondents are LinkedIn members who were selected based on information in their LinkedIn profile and contacted via email.
Operational Workforce Planning: Optimizing Talent and Maximizing ProfitabilityVisier
Operational workforce planning – planning that is focused on mapping existing skills, capabilities and resources against current operational business challenges – is a critical piece of the workforce management puzzle. Mollie Lombardi, vice president and principal analyst of Aberdeen’s Human Capital Management practice and Visier's Chief Strategy Officer Dave Weisbeck discuss operational workforce planning and its financial impact on your business.
View the full webinar recording here:
http://www.visier.com/lp/operational-workforce-planning-optimizing-talent-webinar/
With many recruiting teams facing resource challenges on a regular basis, how can you stay proactive and navigative hiring cycles?
This presentation covers:
- Challenges facing companies hiring at scale
- The 2016 Global Recruiting Trends to embrace these
- Tips and tricks to put you on the fast track of hiring at scale
Cielo's 2016 Talent Rising Summit - Defining Success in Modern Talent Acquisi...Cielo
If talent acquisition is constantly evolving (and it is), shouldn’t the metrics we track and the KPIs we monitor evolve as well? We set out to better understand the current state of measurement – and the use of talent analytics.
Onboarding is the process of bringing new hires into our company—what Wikipedia calls “organizational socialization.”
When onboarding is well-executed, the new hire feels welcomed and integrated. Expectations are clearly communicated, mentors and training opportunities are provided, and feedback is offered to support growth and correction.
Les tendances 2016 du recrutement en FrancePierre Bernard
To truly influence business decisions, you need to understand where the industry is going. This annual report uncovers recruiting trends in France that will move your organization forward, and position you as a strategic business partner.
What’s more interesting is a renewed emphasis on relationships, which is a critical factor in talent acquisition. Learn how this theme ties into the top priorities, upcoming challenges and opportunities ahead in 2016 and beyond.
Starting a new job for anyone is a major life change and career transition. The on boarding experience is personal and affects the bottom line, productivity, culture and future ability of any firm to hire THE best talent. The detailed report leveraging global firms located in Nigeria has a number of interesting ideas for you to consider to Re imagine On boarding for your organization.
Now or Never — Tackling Employee Retention During a Labor Shortage.Beekeeper
In a climate where there are more jobs than job seekers, finding (and keeping) top talent has become a battleground for businesses that depend on hourly workers. Join this exciting webinar with Flagger Force and eduMe to learn how Flagger Force increased employee engagement, identifies and retains top talent, and increased retention rates by double digits (saving a quarter of a million dollars). You’ll also hear how eduMe’s strong partnership with Beekeeper helped Flagger Force keep their teams engaged with mobile-friendly upskilling and training that has been integrated into Beekeeper in a dynamic, intuitive way to meet the day-to-day needs of frontline workers.
Webinar: https://www.beekeeper.io/webinar/tack...
Launch your own employee referral program: https://www.beekeeper.io/employee-ref...
#laborshortage #employeereferrals #referrals #referralprogram #beekeeper #edume #flaggerforce #employeeengagement #workplacemanagement #b2bsaas #webinar
Compensation planning has traditionally been a specialized function of the HR department, not linked directly enough to other initiatives such as employee engagement – but that’s all beginning to change.
Given the well-known correlation between employee engagement and productivity it is time to reexamine your compensation strategy to insure you are maximizing your employee compensation investment. In this Talent Takeaway's webinar, we will share 3 smart, simple and strategic ways to leverage your current compensation planning efforts to improve employee engagement and productivity including:
1. Easy ways to identify, reward & retain the right people with your current comp planning process
2. How to engage your managers to improve employee engagement
3. Tips to keep your best talent by communicating their full compensation value
Check out this content packed, 30 minute Talent Takeaways webinar – no selling, just sharing some good ideas.
2. INTRO
2
Report Data
Survey data is organized by the following topics:
• Headcount Planning
• Recruiting Teams
• Hiring Process
• People Programs
• Compensation
• 2018 Goals
Empowering startups with data
Our mission is to empower startups to find, hire, and retain the best people. Data is the
key to successful hiring, but has historically not been used due to lack of availability.
Our second annual report dives into challenges, insights, and best practices across the
employee life-cycle.
Insights
Key takeaways including headcount planning, team makeup, people
programs, and diversity.
4. INSIGHT
4
Tracking data creates success
Metrics are necessary to allocate resources, identify areas
of weakness in the hiring process, and invest in effective
programs. Startups who tracked metrics were 58% more
likely to hit their hiring goals. However, only 60% reported
tracking their recruiting efforts.
42%
50%
21%
64%
57%
63%
Early Expansion Late
Not Tracking Tracking
RECOMMENDATION Track pass-through
rates, interview time, and offer declines.
PERCENT OF COMPANIES THAT ACHIEVED THEIR HIRING GOALS
Based on tracking pipeline metrics
1
5. Somewhat
Effective52%Very
Effective7% Minimally
Effective33%
Not at all
Effective 8%
INSIGHT
93% of startups feel they are behind on diversity hiring
With less than 1/2 of startups having a diversity hiring
goal, it’s not surprising that the majority feel their diversity
efforts were ineffective. Year over year, investment in
diversity still does not reflect its importance.
RECOMMENDATION Invest in resources
with a focus on diversity & inclusion: recruiters,
programs, training, etc.
ARE YOUR DIVERSITY HIRING EFFORTS EFFECTIVE?
2
5
6. INSIGHT
6
The rule of “happy thirds” for hiring
Startups at every stage maintained “happy thirds” hiring
ratios: 1/3 sourced, 1/3 applied, 1/3 employee referral.
Investing in company brand and developing an effective
referral program ensures a balanced candidate flow.
SOURCE OF HIRE
RECOMMENDATION Develop balanced
hiring channels and teach everyone in your
company to source.
31%
22%
30%
14%
3%
28%
28%
30%
11%
3%
29%
27%
29%
10%
5%
Passive
Candidates
Agencies
Inbound
Candidates
Other
Employee
Referrals
EARLY EXPANSION LATE
3
7. 4%
35%
23%
10%
28%
5%
37% 38%
6%
14%
0%
29%
25%
8%
38%
Early Expansion Late
INSIGHT
7
Take-home assignments are generally misused
An ineffective take-home assignment can result in a poor
candidate experience and wasted team time. Our findings
show companies with the highest offer acceptance
rates use take-home assignments after the phone interview.
TAKE-HOME ASSIGNMENTS USAGE
RECOMMENDATION Use take-home
assignments after the phone interview when
they are most effective.
Before Recruiter
Phone Screen
After Recruiter
Phone Screen
After
Phone Interview
After Onsite
Interview
We do not use a take-
home assignment
4
8. INSIGHT
8
Focus on total compensation
Cash compensation continues to be the top reason
for declines when recruiters, HR, or hiring managers
deliver the offer.
MOST COMMON REASONS FOR OFFER DECLINES
By who delivers the offer
RECOMMENDATION Anyone delivering an
offer should be trained to explain total
compensation. An emphasis on equity can
offset a heavy focus on cash.
RECRUITER
Cash Compensation
HR
Cash Compensation
HIRING MANAGER
Cash Compensation
C-LEVEL
Location & Scope
5
9. INSIGHT
9
Basic people programs are a must
People programs are important for developing company
culture and minimizing attrition. Most companies have a
baseline of new hire onboarding, referral programs, and
performance review programs.
RECOMMENDATION Best-in-class people
programs include manager training,
unconscious bias training, and diversity &
inclusion programs.
MOST COMMON PROGRAMS
Across all stages
41% Manager Training
39% Internal Mobility
27% Unconscious Bias Training
24% Diversity & Inclusion Programs
12% Recruiter Training
1% Other
1% No Programs
71% New Hire Onboarding
63% Referral Program
55% Performance Reviews
46% Intern & University Programs
44% Interview Training
43% Compensation Refresh Program
43% Health & Wellness Program
6
10. INSIGHT
10
Build a balanced recruiting team
Across stages, the highest leverage hires are recruiters.
Early-stage startups should focus on hiring hands-on
recruiters with less emphasis on managers.
MAGIC RATIOS
RECOMMENDATION As you grow, remove
operational overhead with recruiting
coordinators.
Teams who met hiring goals had on average
1 RECRUITING
COORDINATOR
3 RECRUITERS
PER PER
1 MANAGER 5 DIRECT REPORTS
(OR FEWER)
7
11. INSIGHT
11
Startups are constantly evolving,
headcount plans should too
Only 2/3 of companies have a headcount plan and less
than 1/2 involve recruiting in planning meetings. This can
lead to misalignment between business objectives and
recruiter hiring capacity.
RECOMMENDATION Headcount plan
quarterly and involve your head of recruiting.
PERCENT OF COMPANIES THAT ACHIEVED HIRING GOALS
Based on headcount planning frequency
No Headcount
Planning
45%
55%
Bi-Annually
57%
67%QuarterlyAnnually
8
12. REPORT DATAFULL REPORT DATA
‣ Headcount Planning
‣ Recruiting Teams
‣ Hiring Process
‣ People Programs
‣ Compensation
‣ 2018 Goals
14. 2017 HEADCOUNT PLANS
14
One of the biggest risk factors for a startup is wasted time. If you don’t have
a plan, it’s impossible to effectively allocate resources. 100% of companies
should have a headcount plan to maximize efficiency.
ANNUAL HEADCOUNT PLAN
STARTUPS WITH A HEADCOUNT PLAN
EARLY
45 PEOPLE
EXPANSION
121 PEOPLE
LATE
217 PEOPLE
66%
EARLY
71%
EXPANSION
65%
LATE
15. 55%
EXPANSION
49%
LATE
51%
EARLY
65% 62%
52%
Early Expansion Late
2017 HIRING SUCCESS
15
41% of startups missed their hiring goals in 2017. There are a number of contributing
factors, however, only 1/2 of startups reported having the necessary recruiting team
to effectively hit these goals.
STARTUPS WHO HIT THEIR 2017 HIRING GOAL STARTUPS WHO REPORTED
SUFFICIENT RECRUITING
TEAM SIZE
16. PLANNING FREQUENCY
16
Headcount plans are traditionally treated as annual and static. However, the needs of a
company shift rapidly throughout the year. Aligning your planning process with quarterly
sales, product, and engineering goals is the key to effectively deploying resources.
PERCENT OF COMPANIES THAT ACHIEVED
HIRING GOALS
Based on headcount planning frequency
AVERAGE FREQUENCY OF
HEADCOUNT PLANNING
No Headcount
Planning
45%
29%
20%
46%
5%
Annually
Bi-Annually
Quarterly
We Don’t Set
Hiring Goals
Annually
55%
Bi-Annually
57%
67%
Quarterly
17. 33%
Expansion Late
EXECUTIVE REPORTING
17
Startups who involved their head of recruiting in headcount planning were
significantly more likely to achieve their hiring goals. For optimal results,
report progress weekly and revisit the plan quarterly.
STARTUPS WITH A RECRUITER WHO
PARTICIPATES IN HEADCOUNT PLANNING
METRICS REVIEW FREQUENCY
WITH EXEC TEAM
42%
Early
54%
2%Annually
24%Quarterly
17%Monthly
50%Weekly
7%Never
18. 2017 ATTRITION
18
Attrition drains knowledge, resources, and morale. Planning for it is essential
to creating an accurate headcount plan, planning recruiter capacity, and
minimizing business impact.
ANNUAL ATTRITION
OVERALL
ENGINEERING
13.5%
18.1%
17.5%
Early
Expansion
Late
10.4%
11.9%
13.5%
Early
Expansion
Late
20. 20
6
4
16
6
3
Late
Expansion
Early
TEAM SIZE
20
Properly resourcing your recruiting team directly impacts your ability to hit
company goals. Successful startups had slightly larger recruiting teams than
the average, but team makeup was a stronger indicator of success.
STARTUPS WITH A RECRUITING TEAM
EARLY 96% EXPANSION 100% LATE
SIZE OF RECRUITING TEAM
Size of teams that hit their hiring goalsAverage team size
77%
21. TEAM STRUCTURE
21
Building an effective recruiting team is highly dependent on your company size and
hiring goals. Early-stage startups should focus on hiring hands-on recruiters with
less emphasis on managers.
RECRUITING TEAM MAKEUP
EARLY EXPANSION LATE
Managers &
Leads 1 1 2
Tech
Recruiters 1 2 3
Non-Tech
Recruiters 1 2 4
Sourcers 0 0 3
Recruiting
Coordinators 0 1 3
Other 0 0 1
MAGIC RATIOS
Teams who met hiring goals had on average
1 RECRUITING
COORDINATOR
3 RECRUITERS
PER
1 MANAGER 5 DIRECT REPORTS
(OR FEWER)
PER
23. INDIVIDUAL RECRUITER GOALS
23
100% of startups should give recruiters individual goals, but not many
actually do. Best-in-class teams align recruiter goals with quarterly
headcount plans.
STARTUPS WITH INDIVIDUAL
RECRUITER GOALS
INDIVIDUAL RECRUITER HIRING GOALS
(QUARTERLY)
NUMBER OF JOB REQUISITIONS
(QUARTERLY)EXPANSION
51%
LATE
34%
Tech Recruiter
Non-Tech
Recruiter
Sourcer
University
Recruiter
Early 5 9 2 0
Expansion 7 10 4 6
Late 6 8 5 7
Tech Recruiter
Non-Tech
Recruiter
Sourcer
University
Recruiter
Early 7 10 3 0
Expansion 8 12 6 4
Late 11 13 11 8
EARLY
42%
25. SOURCE OF HIRE
25
Startups at every stage maintained “happy thirds” hiring ratios: 1/3 sourced,
1/3 applied, 1/3 employee referral. Investing in company brand and
developing an effective referral program ensures a balanced candidate flow.
SOURCE OF HIRE
31%
22%
30%
14%
3%
28%
28%
30%
11%
3%
29%
27%
29%
10%
5%
Passive
Candidates
Agencies
Inbound
Candidates
Other
Employee
Referrals
EARLY EXPANSION LATE
26. HIRING PASS-THROUGH RATES
26
Startups that successfully hit their hiring goals were more efficient across
their entire pipeline. Analyze pass-through rates regularly and address any
stages that dip below benchmarks.
PASS-THROUGH RATES OVERALL
Email
Outreach
Recruiter
Screen
Phone
Interview
Onsite
Interview
Offer
HIRED
EARLY EXPANSION LATE EARLY EXPANSION LATE
34% 28% 27% 28% 23% 19%
53% 56% 53% 58% 59% 56%
45% 46% 56% 44% 38% 42%
36% 39% 32% 36% 31% 31%
70% 75% 81% 67% 69% 65%
ENGINEERING
27. 4%
35%
23%
10%
28%
5%
37% 38%
6%
14%
0%
29%
25%
8%
38%
Early Expansion Late
TAKE-HOME ASSIGNMENTS
27
Take-home assignments are a controversial topic. While sometimes effective, they are
often misused and can result in a poor candidate experience. Our findings show take-
home assignments used after the phone interview led to higher offer acceptance rates.
TAKE-HOME ASSIGNMENTS USAGE
Before Recruiter
Phone Screen
After Recruiter
Phone Screen
After
Phone Interview
After Onsite
Interview
We do not use a
take-home
assignment
28. OFFERS & DECLINES
28
Who delivers the offer matters. As cash compensation is the top reason for
declines, recruiters, HR, and hiring managers should be thoroughly trained in
positioning cash and equity compensation.
WHO PRIMARILY DELIVERS OFFERS
MOST COMMON REASONS FOR OFFER
DECLINES BY WHO DELIVERS THE OFFER
54%
17%
34%
29%
76%
12%
39%
19%
92%
16%
24%
4%
Recruiter HR Hiring Manager C-Level
Early Expansion Late
RECRUITER
Cash Compensation
HR
Cash Compensation
HIRING MANAGER
Cash Compensation
C-LEVEL
Location & Scope
1
Cash
Compensation
2
Counter
Offer
3
Scope of
Role
4
Location
5
Industry
REASONS FOR OFFER DECLINES
Across all stages
30. Early Expansion Late
$1,006,389
$406,675
$179,032
BUDGET
30
Hiring is expensive and startups should anticipate paying for adequate systems,
recruitment branding, and events. However, our findings show that larger-than-average
budgets were not correlated to more successful hiring.
AVERAGE RECRUITING BUDGET
Average budget excluding team salaries
STARTUPS WITH AN APPROVED
ANNUAL RECRUITING BUDGET
EARLY
40%
EXPANSION
46%
LATE
75%
31. 41% Manager Training
39% Internal Mobility
27% Unconscious Bias Training
24% Diversity & Inclusion Programs
12% Recruiter Training
1% Other
1% No Programs
PEOPLE PROGRAMS
31
People programs are important for developing company culture and
minimizing attrition. Most companies have a baseline of new hire onboarding,
referral programs, and performance review programs.
STARTUPS WITH AN INTERNAL HR TEAM
MOST COMMON PROGRAMS
Across all stages
71% New Hire Onboarding
63% Referral Program
55% Performance Reviews
46% Intern & University Programs
44% Interview Training
43% Compensation Refresh Program
43% Health & Wellness Program
70% EARLY 93% EXPANSION 92% LATE
32. 52% 53%
45%
Early Expansion Late
DIVERSITY & INCLUSION
32
Change doesn’t happen on its own. There’s still an underinvestment in
diversity & inclusion initiatives. 93% of respondents felt their diversity hiring
efforts were only “minimally,” “somewhat,” or “not at all” effective.
STARTUPS WITH A DIVERSITY HIRING GOAL
2016
2017
1 Sourced
2 Employee Referrals
3 Applied
4 External Diversity Groups
5 Agencies
TOP DIVERSITY HIRING SOURCES
Across all stages
Somewhat
Effective52%Very
Effective7% Minimally
Effective33%
Not at all
Effective 8%
ARE YOUR DIVERSITY HIRING EFFORTS EFFECTIVE?
34. SALARY REVIEWS
34
Compensation is an important factor for both candidates and employees. While the majority
of companies revisit compensation annually, we found that bi-annual salary reviews were
correlated to lower attrition. It’s important to have a philosophy and review it regularly.
48%
31%
12%
9% Annually
Bi-Annually
Quarterly
None
AVERAGE SALARY REVIEW FREQUENCY
Across all stages
SALARY REVIEW FREQUENCY
& ATTRITION
Not at all
18.9%
Annually
16.7%
Bi-Annually
15.4%
17.3%
Quarterly
35. 32%
9%
18%
41%
34%
5%
28%
33%
59%
12%
17%
12%
Early Expansion Late
Evergreen program
(applies to all employees)
EQUITY REFRESH
Refresh programs are complex and can affect attrition. Before choosing a
model, consult an expert about your compensation philosophy, market
factors, equity burn-rate, etc.
PROGRAM TYPES
Only for top
performers
Spot grants
No standardized
equity refresh
program
35
36. 14%4 YEARS
5%7 YEARS
74%90 DAYS
EQUITY EXERCISE
36
Expansion and late-stage companies with extended equity exercise periods
had lower attrition and higher offer acceptance rates.
MOST COMMON EQUITY EXERCISE PERIOD
Across all stages, % of companies
EQUITY EXERCISE WINDOW
& ATTRITION
90 Days 1 Year or More
Early 13.5 % 13.8 %
Expansion 20.5 % 13.8 %
Late 22.4 % 15.0%
38. 2018 HIRING
38
The majority of companies are planning on hiring more employees and recruiters in
2018. With an expected increase in demand for recruiters, we anticipate longer
times to hire and potential increases in compensation requirements.
EXPECTED OVERALL
HIRING
EXPECTED ADDITIONS TO RECRUITING
TEAMS IN 2018
Managers/
Leads 0 1 1
Tech Recruiters 1 2 1
Non-Tech
Recruiters 0 1 2
Sourcers 1 1 1
Recruiting
Coordinators 1 1 1
55%of startups expect to
increase their overall
company hiring
EARLY EXPANSION LATE
39. 2018 CHALLENGES
39
Startups at all stages struggle with their recruitment brand. Identify
your specific recruiting strengths and weaknesses and invest time and
budget in them.
TOP COMPANY RECRUITING CHALLENGES FOR 2018
1 Brand Brand Brand
2 Candidate Pool Interview Process Compensation
3 Recruiting Team Size Recruiting Team Size Interview Process
4 Interview Process Leadership Candidate Pool
5 Leadership Candidate Pool Company Growth
EARLY EXPANSION LATE
41. DEMOGRAPHICS
41
1 San Francisco Bay Area 71%
2 New York City 12%
3 Boston 3%
4 Los Angeles 3%
5 Seattle 1%
6 Chicago 1%
7
Other (Austin, Toronto,
etc.)
9%
LOCATION
STAGE STARTUP SIZE
1
3
2
4
5
6
49%
FUNDING
1%
8%
14%
22%
15%
9%
31%
$0-$3 M
$3-$10 M
$10-$25 M
$25-$50 M
$50-$75 M
$75-$100 M
$100+ M
LATE
SERIES E+
14%
EXPANSION
SERIES C-D
37%
10%
300-500 People
10%
500+ People
34%
100-300 People
46%
0-100 People
RESPONDENT JOB LEVEL
STARTUP INDUSTRY
Consumer 28%
Enterprise 60%
Healthcare & Life Sciences 7%
Finance 3%
Other 2%
Founder/ Executive 6%
Vice President 14%
Director 41%
Manager 17%
Team Lead 9%
Individual Contributor 13%
RESPONDENT JOB FUNCTION
57%
Recruiting
35%
HR
8%
Founder / Other
312 RESPONDENTS
EARLY
SEED - Series B
42. Lightspeed Venture Partners is an early-stage venture capital firm focused on accelerating disruptive innovations and
trends in the Enterprise and Consumer sectors. Over the past two decades, the Lightspeed team has backed
hundreds of entrepreneurs and helped build more than 300 companies globally, including Snap, The Honest
Company, Nest, Nutanix, AppDynamics, MuleSoft, and GrubHub.
The firm currently manages over $4 billion of committed capital and invests in the U.S. and internationally, with
investment professionals and advisors in Silicon Valley, Israel, India, and China.
ABOUT LIGHTSPEED
42
SURVEY DIRECTORS
Luke Beseda
Talent Infrastructure
luke@lsvp.com
Alexandra Makreas
Talent Marketing
alexandra@lsvp.com
Cat Surane
Talent Infrastructure
csurane@lsvp.com