Recruitment and Selection Strategies for Building a Strong Team

Margo Crawfordbusiness sherpa


Entrepreneur’s Toolkit: www.marsdd.com/entrepreneurs-toolkit.html

HR Workbook 1: Building an A-Team HR Workbook 2: Compensation HR Workbook 3: HR at Work

Creating an HR plan: Butteriss on human resources Building HR processes, policies and procedures Compensating employees Hiring your friends: Is it such a good idea?

Video: Human Capital: Building high performance teams Video: Human Resources Management


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Start-Up Recruiting Building Your A-team


Introduction

GOAL

Share practical realities of building an A-team in a start-up environment

Tips, tools and lessons learned


Introduction

September 10th 12:00 – 1:00 PM (Room CR2) focus on recruitment and selection when building start up teams

September 17th 12:00 – 1:00 PM (Room CR2) compensation and rewards strategies/tools September 24th 12:00 – 1:00 PM (Room CR2) unique look at sales recruitment and sales compensation plans


Background

Business Sherpa   Virtual VP of HR supporting start-ups, early-stage

companies and social venture enterprises   25+ years of HR experience (10+ years in start-ups)   HR Professional of the Year Ottawa 2006

  Co-founder of Meriton Networks (optical networking start-up) from formation to sale 8 years later

  Supporting start-ups in Toronto and Ottawa over past 2.5 years as Business Sherpa


Unique Issues of a Start-up

Founders   May be in leadership roles whether they should be or

not!   Founders are the foundation with biases & preferences

– some good some bad

Money   You have it ….then you are running out of it   Over-filling the ranks will consume your cash quickly


Geographic Challenges   Where you form may not be where your ‘talent’ lives   Customers will impact who and where you recruit for

some roles

Market Timing   Don’t get multiple shots at hitting the market window

at the right time – anticipating vs. reacting even more critical

  Miss-hiring and losing time can be a devastating blow vs. an annoying inconvenience

Unique Issues of a Start-up


Building a Team – Recruitment 101

Your best shot at getting it right

Plan well

Search creatively

Choose wisely


Planning around key milestones = precision hiring

Ready Aim Hire

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Technical Milestones

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Recruitment Milestones

CEO

R&D Lead

CFO (P/T?)

PLM

Sr. R&D

Marcomms

Int./Jr. R&D

BD/Sales

QA

SE’s Sales

(Hunter) Sales

(Farmer)

CTO

Sales Support

Customer Support

HR (P/T?)

VP Sales

VP Marketing

Admin. Support CFO

(F/T) Accountant COO?

HR (F/T?)


Key Observations About Recruitment Milestones

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CEO

R&D Lead

CFO (P/T?)

PLM

Sr. R&D

Marcomms

Int./Jr. R&D

BD/Sales

QA

SE’s Sales

(Hunter) Sales

(Farmer)

CTO

Sales Support

Customer Support

HR (P/T?)

VP Sales

VP Marketing

Admin. Support CFO


HR (F/T?)

Identify Pillar Hires   Key to success, but timing may differ depending on budget, sector,

market, technology, customers, etc. Creatively Fill Gaps

  Functions must get done, even if you can’t hire   Consider all options advisors; part-time/virtual support; contract out;

technology licensing

VP-level Not Necessarily First Hire   Consider what must get done – do you need a ‘doer’ or a ‘builder’?


Key Observations – Recruitment Milestones

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CEO

R&D Lead

CFO (P/T?)

PLM

Sr. R&D

Marcomms

Int./Jr. R&D

BD/Sales

QA

SE’s Sales

(Hunter) Sales

(Farmer)

CTO

Sales Support

Customer Support

HR (P/T?)

VP Sales

VP Marketing

Admin. Support CFO


HR (F/T?)

Consider Timing   Recruitment can take from 1 – 3 months; plan accordingly

Be Prepared to Swap Out   Reality of limited time/funds/people   Think strategically

Building Up Headcount – Easy Solution   Very tempting to over-hire early in order to accelerate timelines   Can seriously affect the burn rate; or consume future key headcount


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Establish Key Recruitment Funnels   Initially based on your pillar hires   Based on key hires over time

Development Sales Product Mgmt.

Marketing

Continue to Fill The Hopper   When sourcing candidates, keep all funnels in mind – fill the hopper as

good candidates uncovered


High Credibility Sourcing

Low Credibility Sourcing

Trusted Individual Endorsement

Executive Search

Employee Word of Mouth

Employee Referral Program

Social Networking Recommendations

Head Hunters

Internal HR

Job Board

High Cost Process

Low Cost Process

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Finding Talent – time & $$$

Spending more $$$ does not necessarily reduce

time nor improve results.


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Resources To Help

Internal HR Team   Full time may not be affordable   Virtual HR being widely adopted for start-ups – can provide tremendous

value in supporting effective recruitment at a fraction of the cost of head hunters

Networking   Tremendous networks to support companies: team; MaRS; Board;

advisors; investors; former colleagues; schools


Ready Aim Hire

Recruiters   DO NOT handoff your recruitment – requires time and management   Expensive 20% - 25% of starting salary – use selectively   Keep focused on roles that are most challenging   Manage tightly and demand results – or change   Use limited recruiters at once – can be very overwhelming otherwise   Select firms that have specialized in your sector   Terms: contingency only and no exclusivity

Executive Search   Use only as needed and for most senior level roles   Typical terms 30 – 35% of starting salary and usually a retainer involved   Used very strategically and NOT as the first tool in the tool kit


Job Descriptio

n POST

Website (maybe?)

Job Boards

Paper

Engage Recruiters

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Typical Approach:


Typical Result:

Job Descriptio

n Onslaught

of responses

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Engage Recruiters


Signs of ineffective Recruitment:   Looking at resumes sporadically – as they come in OR as you can get to

them   Interviewing candidates weeks apart   In a continual state of wanting to see who else might be out there   Changing requirements while recruiting   Interviewing on the fly   Preparation for an interview is re-reading the resume

Reality of start-up environment   There are many pressures and fires to be put out – recruitment will not

remain the highest priority throughout the recruitment process   Resources are thin – so support to manage the process is often not there   Conditions constantly changing

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Keys to Effective Recruitment in a Start-Up:

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1.  Process

2.  Description

3.  Choice


Process   Tight recruitment process will save time and improve results   Create a project plan for each recruitment effort   Have all resources work to this plan and key decision points

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Stage 1 – create a recruitment funnel   Job postings – on targeted sites   Recruiters – internal and external as appropriate   Strategic search – source from networks

Stage 2 – develop long list   High quality match resumes only   Do not screen ad hoc – review large sets of resumes at once   Do not allow recruiters to feed resumes in a trickle


Stage 3 – identify short list:   Best matches   Aim for 6 – 8 - do not start interviewing until you have this

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Stage 4 – 1st round interviews:   Make interviews structured and consistent   Interview with others – efficient; easier to assess candidate (can

have several interviewer groups)   Prepare questions – connect to job description

Stage 5 – 2nd round interviews/testing:   Introduce a ‘testing’ component – e.g. do a presentation for you   Aim for 3 top candidates

Stage 6 – references and offer:   Get permission for references (think about who should conduct

references)


Sample Recruitment Plan:

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Job Descriptio

n

A vanilla job description will produce vanilla results.

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Description   Becomes an essential filter for automated and

manual search mechanisms   A guidepost to keep selection on track


Features of Excellent Job Postings for Start-Ups

  Clearly articulates ‘table steaks’ skills   Paints a real picture of the ideal candidate   Sells the opportunity through role, technology, industry, etc.   Has a deadline to match recruitment plan

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Reaching Out – advertising your GREAT opportunity   Job Boards – 2 types

  Those that cost a lot and reach millions of candidates   Those that cost little and reach targeted audiences

  User groups   Business/professional networks   Professional associations   Alumni associations   Etc.

  Print ads – don’t!!! Useless for start ups for $$$   Web site – may or may not be an option (stealth vs. launched)   Word of mouth – ALWAYS – use advisors, board, investors,

colleagues   Social Networking

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Social Networking has completely changed the game…..   Previously company phone lists were a protected asset   Now – access to everyone   Problem is the clutter has multiplied

  One network can access millions   Everyone is a ‘friend’ and can recommend a candidate – with no way of

validating the quality of the reference

SO how do you find and reach your stars?


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Best Professional Networking Tool

Pro’s   Access to millions of professionals in all industries, professions

and geographies   Career focused   Provides access to contacts useful beyond recruitment

Con’s   Access to millions of professionals in all industries, professions

and geographies   Unreliable filtering of quality candidates   Adoption just picking up in Canada – network is still light


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Tips on effectively using Linked In   Post opportunities – about $150/posting   Take every opportunity to build network in all geographies and

industries   Use search capabilities   Reach out to candidates – customized and personal   Leverage common contacts, or marquee roles/industries/

technology   When searching – look at what other funnels you can fill   Update company’s profile – update key events


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Choice   Biggest failure in recruiting is to have one to choose from   THIS IS NOT A CHOICE!!   Never stop at the front end of the process (filling the funnel)

until a candidate is hired   Do not be left in a default position

AIM TO HAVE A CHOICE OF 3


Choosing is the biggest challenge of all!!   Who YOU like the best may not be best for the company   Interview – a balance of asking and selling – hard to know what you are

seeing   Comparing candidates over a protracted process is difficult to do   Interviews easily drift off course   Interviewing is mentally exhausting   A tendency to like or dislike; be cynical or wanting to make candidates

feel comfortable can take away from the evaluation process   A highly faulty process!!! Be aware of this and plan accordingly.

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Mitigating the Risks:   Prepare questions based on the job description – ask questions that tell

you something   2nd round of interviews can be very telling

  Interview several candidates over a couple of days – keep it very tight   Know your biases and plan around this   Interview with someone else – so you can mentally rest and evaluate

during interview   Big believer in ‘testing’ – or putting candidate in-situ as much as possible   Finally – put your concerns on the table….in fact force yourself to find

some to put on the table

1st Interview: Company – asking Candidate - selling

2nd Interview: Company – selling Candidate - asking

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Making an offer:   WAIT – check references first!! ALWAYS   Do your homework

  Understand where they are at/expectations   What can you pay   What is the ‘bundle’ you offer (salary, benefits, options, role,

opportunity, sector, technology) – this is the offer – not just $$$   Provide verbal and written offers (make sure you have a solid

employment contract) with a deadline to accept – so you can go back to other candidates

  Once offer is accepted – keep connected to the candidate until they are in the door and in seat

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Best Recruiting Tips for Start-Ups

1.  Know the pillars you must build upon.

2.  $$$ spent ≠ saved time or quality results.

3.  Use full scope of recruitment tools.

4.  No not hand off recruitment

5.  Most effective recruitment:   Tight Process   Clear Description   Have Choices


Best Recruiting Tips for Start-Ups

6.  Descriptions are your best filter and guidepost to keep recruitment on track

7.  Never make a default choice – aim for 3 solid candidates to choose from.

8.  Know the biases risking the process – mitigate these.


Questions

Thank You!