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