© 2012 David Teten. More at ffvc.com and teten.com
Recruiting Hacks: Best Practices in Recruiting High Performers
http://flickr.com/photos/h-k-d/2898797929/sizes/o/
David Teten, Partner, ff Venture Capital ffvc.com // @ffvc teten.com // @dteten
October 23, 2012
© 2012 David Teten. More at ffvc.com and teten.com
Don’t Take Notes!
Download these slides and get more free resources at:
teten.com/recruiting
© 2012 David Teten. More at ffvc.com and teten.com
• Founder Institute
• Dreamit Ventures
• ff Venture Capital portfolio companies
Selected Past Audiences for this Presentation
Intro Source Interview Hire Next Steps
© 2012 David Teten. More at ffvc.com and teten.com
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• Introduction
• Source
• Interview
• Hire
• Manage
• Next Steps
Intro Source Interview Hire Next Steps
© 2012 David Teten. More at ffvc.com and teten.com
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ff Venture Capital (ffvc.com) • Early-stage technology venture capital fund based in New York • Founded 1999, with over 160 investments in 55 companies • Focus on early stage web-based services companies with disruptive models, including
SaaS, video gaming, digital media, social, mobile and VoIP • First investments typically $75-$400K at valuations of <$5m pre-money • 50% of fund reserved for follow-on investments • Prominent investments include: Cornerstone OnDemand (IPO); Quigo Technologies (sold
to AOL for reported $340m); Klout, Voxy, 500px • Four partners: John Frankel (21 years Goldman Sachs);
David Teten; Alex Katz (CFO); (Michael Yavonditte, CEO, YieldMo, Venture Partner)
Intro Source Interview Hire Next Steps
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ff Venture Capital Recruiting Platform (ffvc.com/careers/) • Through our portfolio company, TheResumator, we promote open positions at our portfolio
companies on our jobs page. • We assist our portfolio companies in talent acquisition:
• Sourcing • Recruiting • Hiring • Onboarding
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David Teten (teten.com) • Partner, ff Venture Capital, early-stage technology venture capital fund • Founder and Chairman, Harvard Business School Alumni Angels of Greater New York • Founder and Chairman, Navon Partners, research and analytics focused on private
companies • Managing Director, Evalueserve, through September 2008. 2,500-person finance-focused
research and analytics firm. • Founder and CEO, Circle of Experts (investment research firm), sold to Evalueserve • Founder and CEO, Teten Executive Recruiting, sold to Accolo, #42 on 2007 Inc. 500 • Founder and CEO, GoldNames, domain name investment bank, based in Israel • Technology/Defense Investment Banking, Bear Stearns (#1 group at Bear investment
banking by revenues) • Lead author, The Virtual Handshake: Opening Doors and
Closing Deals Online (TheVirtualHandshake.com) • Harvard MBA 1998, Yale BA, both with honors.
Intro Source Interview Hire Next Steps
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Why should I care about social media for recruiting?
• Because 3 out of 4 Americans use social technology. (Forrester, The Growth Of Social Technology Adoption, 2008)
• 2/3 of global internet population visit social networks (Nielsen, Global Faces & Networked Places, 2009)
• Visiting social sites is now the 4th most popular online activity—ahead of personal email.
(Nielsen, Global Faces & Networked Places, 2009)
• Visitors spend 5 million minutes per day on Facebook. (Facebook)
http://www.slideshare.net/mzkagan/what-is-social-media-2005829 . http://www.flickr.com/photos/sreejithk2000/2385193167/sizes/l/
Intro Source Interview Hire Next Steps
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But I don’t use social media, and neither do (some of) my targets!
• The reality: you and your target employees are in the matrix whether you like it or not. • Your candidates search for you on Google before doing business with you. • You are already a member of gated online communities, which you may or may not be fully leveraging: your alumni network, your local “Moms” or “Dads” mailing list, your church/synagogue/mosque
You can accelerate your sales process by leveraging potential candidates’ digital footprints. These help you to source leads, filter them, and then run a better educated sales process.
http://www.slideshare.net/mzkagan/what-is-social-media-2005829 . http://www.flickr.com/photos/sreejithk2000/2385193167/sizes/l/
Character – Competence – Relevance – Strength – Information – Number – Diversity
© 2012 David Teten. More at ffvc.com and teten.com
Intro Source Interview Hire Next Steps Manage
• Introduction
• Source
• Interview
• Hire
• Manage
• Next Steps
Character – Competence – Relevance – Strength – Information – Number – Diversity
© 2012 David Teten. More at ffvc.com and teten.com
Intro Source Interview Hire Next Steps Manage
A, B… S – Always Be Sourcing!
Alec Baldwin in Glengarry Glen Ross
Source: http://www.onlygoodmovies.com/blog/thoughts-on-film/glengarry-glen-ross-my-favorite-movie-scenes/
Character – Competence – Relevance – Strength – Information – Number – Diversity
© 2012 David Teten. More at ffvc.com and teten.com
Intro Source Interview Hire Next Steps Manage
Social media allows you to convert cold calls to warm calls.
http://www.flickr.com/photos/23439761@N03/3258313816/sizes/l/
Character – Competence – Relevance – Strength – Information – Number – Diversity
© 2012 David Teten. More at ffvc.com and teten.com
Intro Source Interview Hire Next Steps Manage
= D * ∑ (Chn*Con *Rn* Sn*In)
Ch = Character Co = Your Firm’s Competence R = Relevance of the contact S = Strength of your relationship I = Information N = Number of people D = Diversity
N
n=1 David Teten and Scott Allen, The Virtual Handshake: Opening Doors and Closing Deals Online (www.TheVirtualHandshake.com)
Corporate Network Valuation Formula
Character – Competence – Relevance – Strength – Information – Number – Diversity
© 2012 David Teten. More at ffvc.com and teten.com
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• Boardex • Identified (ff company) • Klout (ff company) • Saleforce • Data.com • Pipl • TalentBin • ZoomInfo
Leading Providers of Biography Analysis Data
Biography analysis software allows you to search by common affinity and more effective subsequent outreach.
Character – Competence – Relevance – Strength – Information – Number – Diversity
© 2012 David Teten. More at ffvc.com and teten.com
Intro Source Interview Hire Next Steps Manage
• Passion! • People you know • Functional skills • People with something to prove
– Failed entrepreneurs – People from a less prestigious
background
Your best hires are people who think and act like entrepreneurs (within reason). A batting average of .666 is stellar.
http://www.flickr.com/photos/cleverclaire1983/1377913882/
Character – Competence – Relevance – Strength – Information – Number – Diversity
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• Pretty on paper • Mercenaries
instead of missionaries
• Poor time management
• Not team players
Your worst hires usually look great.
http://www.flickr.com/photos/23905174@N00/2438005410/
Character – Competence – Relevance – Strength – Information – Number – Diversity
© 2012 David Teten. More at ffvc.com and teten.com
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• Groups.Yahoo.com
• Groups.Google.com
• Ning
Online Community Platforms
Almost everyone prefers to interact online behind some barriers.
Character – Competence – Relevance – Strength – Information – Number – Diversity
© 2012 David Teten. More at ffvc.com and teten.com
Intro Source Interview Hire Next Steps Manage
• Automatic gating:
• Geekli.st
• Stack Overflow
• Vetted gating:
• Some Meetups (highly technical ones)
Sample Gated Communities for Engineers
Developers/Engineers prefer to interact online behind barriers to non-technical people and recruiters.
Character – Competence – Relevance – Strength – Information – Number – Diversity
© 2012 David Teten. More at ffvc.com and teten.com
Intro Source Interview Hire Next Steps Manage
• IERGOnline.com
• Executive-Forum.org
• INMobile.org
• Sermo.com
• Some LinkedIn groups
Sample Gated Communities for Senior Executives
Senior executives prefer to interact online behind barriers to lower-level personnel, just as they do in traditional networks.
Character – Competence – Relevance – Strength – Information – Number – Diversity
© 2012 David Teten. More at ffvc.com and teten.com
Intro Source Interview Hire Next Steps Manage
Look for people who want to buy what you’re selling.
• Startups that shut down
• TechCrunch Deadpool
• Traditional VC news sources – Mashable
– TechCrunch
– Topix.net/VC
– VentureWire
– VCBuzz
Character – Competence – Relevance – Strength – Information – Number – Diversity
© 2012 David Teten. More at ffvc.com and teten.com
Intro Source Interview Hire Next Steps Manage
Hacks for recruiting hackers in NY
http://www.flickr.com/photos/techshownetwork/2946211873/
• Classes (General Assembly, NYHacker.org, Flatiron School, Hackathons, HackerLeague.com)
• Ex-residents, e.g. If they went to school in NY, try to bring them back
• Your current hackers: referral programs
• Allow remote workers
• Find hackers by hobbies
• GitHub
• Personal Projects
Character – Competence – Relevance – Strength – Information – Number – Diversity
© 2012 David Teten. More at ffvc.com and teten.com
Intro Source Interview Hire Next Steps Manage
Psychology of Recruiting Hackers
http://www.flickr.com/photos/techshownetwork/2946209857/sizes/s/
• “Try not to immediately pitch your idea to every programmer you meet. Get to know developers as people first, and understand what kinds of projects interest them. Working with a developer on a project of any scope is a team effort, so you'll want to establish mutual respect and rapport before you begin.” – Evan Korth, NYU
• Source hackers through technology used and challenges faced. They often care more about the tech you use than specific industry pain points.
• Entrepreneurs are trying to solve this problem. Examples:
– Githire.com
– developerauction.com
– whitetruffle.com
– TalentBin.com
Character – Competence – Relevance – Strength – Information – Number – Diversity
© 2012 David Teten. More at ffvc.com and teten.com
Intro Source Interview Hire Next Steps Manage
Find one, find them all.
• Always be sourcing
• Your close network
• Keep them informed using social media
• Employee networks
• Set up an internal referral program
Friends
Character – Competence – Relevance – Strength – Information – Number – Diversity
© 2012 David Teten. More at ffvc.com and teten.com
Intro Source Interview Hire Next Steps Manage
Find one, find them all.
• LinkedIn references
• Github comments
• Facebook likes
Friends of a Friend
Character – Competence – Relevance – Strength – Information – Number – Diversity
© 2012 David Teten. More at ffvc.com and teten.com
Intro Source Interview Hire Next Steps Manage
Meeting people face-to-face is very powerful…if you can do it efficiently.
Character – Competence – Relevance – Strength – Information – Number – Diversity
© 2012 David Teten. More at ffvc.com and teten.com
Intro Source Interview Hire Next Steps Manage
The more media you use, the greater the Strength of your relationship.
http://flickr.com/photos/re-ality/41676755/sizes/o/
• Phone
• Instant messaging
• Internet telephony (Skype)
• Web conferencing
• SMS
Character – Competence – Relevance – Strength – Information – Number – Diversity
© 2012 David Teten. More at ffvc.com and teten.com
Intro Source Interview Hire Next Steps Manage
Effective recruiters are data hounds.
Tools for Assimilating Data into Your CRM System
Data source Selected technology for inserting data into CRM Business Cards
ScanBizCards, Cardscan, IRIScan, Neatco, Plustek
Emails Contact Capture, eGrabber, Gwabbit
Cloud Plaxo, LinkedIn
CRM Salesforce, Act
Character – Competence – Relevance – Strength – Information – Number – Diversity
© 2012 David Teten. More at ffvc.com and teten.com
Intro Source Interview Hire Next Steps Manage
Use an applicant tracking system to reduce your email deluge.
TheResumator.com (ff company)
Character – Competence – Relevance – Strength – Information – Number – Diversity
© 2012 David Teten. More at ffvc.com and teten.com
Intro Source Interview Hire Next Steps Manage
• Your employees • Contingency • Retained
• Find the already-successful, not the to-be-successful
• Internal recruiters • Recruiting process outsourcers (e.g., Accolo*)
If you value your time above ~$100/hour (seriously), hire a recruiter.
* I’m on the Advisory Board http://www.flickr.com/photos/23912576@N05/2962194797/
Character – Competence – Relevance – Strength – Information – Number – Diversity
© 2012 David Teten. More at ffvc.com and teten.com
Intro Source Interview Hire Next Steps Manage
New York Intern Sources
http://flickr.com/photos/foundphotoslj/1134148114/
Business Schools • Columbia Business School Small Business Consulting
Program • NYU Entrepreneurs Exchange Club • InsiteNY.org • Levin Institute JumpStart Colleges: HackNY, Turing Fellows, Student Special
Interest Groups Job Boards: UrbanInterns.com, Insidestartups.org Offshore: iimafii.org
Character – Competence – Relevance – Strength – Information – Number – Diversity
© 2012 David Teten. More at ffvc.com and teten.com
Intro Source Interview Hire Next Steps Manage
Expand your horizons by the smallest amount possible. Look for people who are close to your target, but not exactly there.
• By industry • By geography • By personal
characteristics
http://flickr.com/photos/extranoise/169187125/sizes/l/
© 2012 David Teten. More at ffvc.com and teten.com
Intro Source Interview Hire Next Steps Manage
• Introduction
• Source
• Interview
• Hire
• Manage
• Next Steps
© 2012 David Teten. More at ffvc.com and teten.com
Intro Source Interview Hire Next Steps Manage
• Go through every career move: when, why, who, what, how
• What are you proud of? • What were your failures? • Why did you leave? • What will your last manager
say when we contact him? • Why are you here today?
Topgrade your people.
© 2012 David Teten. More at ffvc.com and teten.com
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• Ignore the irrelevant • Don’t check their references; check yours (“off-list references”) • Close the deal • Meet the
spouse/partner, if possible
Interview hard.
http://www.flickr.com/photos/27620885@N02/2654393745/ http://www.flickr.com/photos/27620885@N02/2654393745/
© 2012 David Teten. More at ffvc.com and teten.com
Intro Source Interview Hire Next Steps Manage
• Host • Technical • Project manager
(non-technical) • Lunch • HR • Technical #2 • Host
Coordinate interviews.
http://www.flickr.com/photos/adjourned/3068866048/
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Intro Source Interview Hire Next Steps Manage
• Introduction
• Source
• Interview
• Hire
• Manage
• Next Steps
© 2012 David Teten. More at ffvc.com and teten.com
Intro Source Interview Hire Next Steps Manage
• Open book management • “Hire the best, pay the best” • Speed wins • Let them choose in which
currency they want payment – Title – Stock – Cash – Responsibility
Compensation is not just cash.
http://www.flickr.com/photos/oskay/412424747/
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Intro Source Interview Hire Next Steps Manage
Who to hire – Garage: < $100k funding
Business / Product / Sales /
Marketing
Engineer Engineer
Position Equity Salary Engineer 3 - 10% ~$50k VP 3 - 10% ~$50k CEO 10 - 20% ~$50k
2 engineers + business person
Updated from estimates in Aaron Patzer, Mint.com CEO, Founder Institute Presentation, July 2008
© 2012 David Teten. More at ffvc.com and teten.com
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Who to hire – Seed: < $1.0m funding
Business / Sales / Marketing
Product / Design / UI Dir / VP / Eng
Engineer Engineer Engineer Position Equity Salary Engineer 0.5 - 3% ~$100 - $175k VP 1 - 3 % ~$80 - $125k CEO 5 - 15% ~$80k - $150K
4 engineers + product + business person
Updated from estimates in Aaron Patzer, Mint.com CEO, Founder Institute Presentation, July 2008
© 2012 David Teten. More at ffvc.com and teten.com
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Who to hire – Funded: $1.0m + funding
CEO
Sales / Marketing / PR Dir / VP / Eng
QA / Test Engineer x 4 Tech Ops / IT / Servers
Product / Design / UI HR / Finance
Position Equity Salary Engineer 0.2 - 1% ~$100 - $175k VP 1 - 2% ~$80 - 125k CEO 4 - 7% ~$100 - 150k
10 – 12 people, $4.0m in Series A funding scenario
Updated from estimates in Aaron Patzer, Mint.com CEO, Founder Institute Presentation, July 2008
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Position Mean Salary
Management – CEO $92,000 Management – CTO $82,500 Engineer – VP/Dir/Lead $118,000 Engineer – Senior $103,500 Engineer $71,000 Other – VP/Dir $114,500 Other $50,500 Intern $20,500
Real Numbers from ffVC Companies
ffVC portfolio companies
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More Compensation Data
• CompStudy tech industry compensation study – compstudy.com
• 2011 ExpertCEO Salary Survey – expertceo.com/media/kunena/attachments/legacy/files/
ExpertCEO_February_2011_Salary_Survey.pdf (pages 3-4) • GlassDoor.com • Payscale.com • Salary.com
© 2012 David Teten. More at ffvc.com and teten.com
Source Interview Hire Next Steps Manage Intro
• Introduction
• Source
• Interview
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• Manage
• Next Steps
© 2012 David Teten. More at ffvc.com and teten.com
Source Interview Hire Next Steps Manage Intro
• Each employee writes down 3-5 “SMART” goals
• Specific • Measureable • Attainable • Responsibility • Time-bound
Measure what you manage.
http://www.flickr.com/photos/chailey/138654755/ . http://en.wikipedia.org/wiki/SMART_criteria
© 2012 David Teten. More at ffvc.com and teten.com
Source Interview Hire Next Steps Manage Intro
• Ad hoc feedback against goals regularly – As SOON as you see something wrong, don’t wait
Feedback
• Regular detailed reviews (2x per year or more) – Employee writes down
progress against goals – You write back your input – You sit down and discuss
Source: http://lethain.com/feedback-loops-in-software-development/
© 2012 David Teten. More at ffvc.com and teten.com
Source Interview Hire Next Steps Manage Intro
• Offer chance to improve • Exit interviews=Learning
Fire fast, but fairly.
http://www.flickr.com/photos/betsyweber/2492339715/
© 2012 David Teten. More at ffvc.com and teten.com
Intro Source Interview Hire Next Steps Manage
• Introduction
• Source
• Interview
• Hire
• Manage
• Next Steps
© 2012 David Teten. More at ffvc.com and teten.com
Intro Source Interview Hire Next Steps Manage
Any questions ?
Slides at teten.com/recruiting
More resources at ffvc.com and teten.com
Sign up for updates at Teten.com and Twitter @dteten
© 2012 David Teten. More at ffvc.com and teten.com
Intro Source Interview Hire Next Steps Manage
• Ryan Armbrust, Associate, ff Venture Capital • Matt Joyce, Intern, ff Venture Capital • Manjul Shah, CEO, Like.com • Aaron Patzer, CEO, Mint.com • Jed Chen, SmithStreetSolutions,
for help in research and graphics • Darren X. Luo, Singapore
Acknowledgments to…
© 2012 David Teten. More at ffvc.com and teten.com
Appendix: Slides from Singapore Founder Institute Launch
http://www.flickr.com/photos/90664717@N00/380336885/sizes/z/in/photostream/
© 2012 David Teten. More at ffvc.com and teten.com
Universities: • NUS Business School Career Services: http://bit.ly/9GOqAb • NUS Career Services Center: www.nus.edu.sg/osa/career/employer/index.html • NUS Overseas Colleges (NOC) www.overseas.nus.edu.sg/
The ilead Program: www.nus.edu.sg/nec/ee/ilead/index.html NOC Alumni: www.nocalumni.org/site/index.php
• NTU Business School: www.nbs.ntu.edu.sg/careerservices/index.asp • NTU Career Services Center: www.nbs.ntu.edu.sg/careerservices/index.asp • SMU: www.smu.edu.sg/students/career_services/for_employer/recruit.asp • Singapore Institute of Management: www.sim.edu.sg
Intern Sources in Singapore
Darren Luo (NUS), http://flickr.com/photos/foundphotoslj/1134148114/
Polytechnics • Singapore Polytechnic: http://bit.ly/aPGxwu
• Entrepreneurship IAP: www.sp.edu.sg/wps/portal/vp-spws/spws.i.entrepreneurshipinsp.itp • Temasek Polytechnic: www.tp.edu.sg/home/global/glo_sip.htm • Ngee Ann Polytechnic: www.np.edu.sg/ss/internship/Pages/local.aspx • Nanyang Polytechnic: www.nyp.edu.sg/aboutNYP/job_opportunities_for_employers.html • Republic Polytechnic: www.rp.sg/iep/employer/
© 2012 David Teten. More at ffvc.com and teten.com Darren Luo (NUS), http://flickr.com/photos/foundphotoslj/1134148114/
• jobs.triplepoint.asia/jobs
• www.singapore-interns.com
• singaporeinternship.com
• originsingapore.com
• internsg.com
• IIM Ahmedabad Forum for Industry
Interaction `
Intern Sources in Singapore