connecting great companies + top talent

TM

jobzlab.com

Presentation

1. The Beginning2. Uber Meets Moneyball Platform3. Hurdles

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Hiring Manager FrustrationCan’t Find Talent Fast

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Zero Follow UpNo Response From Companies

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Beginning

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Hidden Talent- Illuminate Hidden Traits (S.A. Traut Assoc | JobzLab)

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Uber Meets Money Ball PlatformOakland A’s 3rd Lowest Payroll

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Eng | Dev Talent Problems- FiINDING

- Top 10% passive talented engineers & culture fits for the long-term (730,000 new tech jobs in 2015; 1/5th of all new office jobs)

- SCREENING | SELECTING- Bad hires cost a company 1.5x to 4x of the terminated

employee’s salary and can metastasize cultures- HIRING

- Slow, long, costly company hiring funnels that eats up teams' valuable work hours (Glassdoor 2015 study shows 35 days for 1 hire)

- RETAINING- Long-term hires (On average, engineers change jobs every 9.5

months) ie: Google is 1.1 years and Amazon is .88

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Solutions- FIND: Referral $ reward marketplace that pays $2k-$6,500 for

referral hires, called “Friend Bounties”, and pays direct hires, called “Self-Bounties.” Referral chains: up to 3 friends can split bounties evenly

- SELECT-HIRING FUNNEL: Digital Data Snapshots…”Zoom”- Detailed Snapshot (Code Samples, Skill Ranks, Languages,

etc.)- Copyrighted Talent Algorythm Q’s & Grades called “TAG” - Photo

- ”The Vid”-Optional One Minute Video for Culture Match- RETAIN: ”TAG” Proprietary Talent Algorithm Grades (DNA,

Childhood, Adult Habits): Only 4-10 multiple choice questions with grades of A+ to F. Guarantee all A grades up to 1 year and B grades up to 6 months

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Global Market Validation- The global staffing market in 2013 was worth an estimated

USD $416 Billion (using sales rather than gross profit)

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Rank Country Value Global Market Share Forecast 2014 Growth

1 USA $124 Bil 30% 7%

2 Japan $58 Bil 14% 4%

3 UK $37 Bil 9% 7%

4 France $29 Bil 7% 2%

5 Germany $25 Bil 6% 5%

Top 5 Countries: Contribution per Country Breakdown

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Glassdoor 32% Referral Hires

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Recruiter Sourced5%

Recruiting Event4%

Agency4%

Employee Referral32%

Hiring Manager6%

Contractor Conversion / Transfer

5%

Glassdoor Profile & JobAds29%

Indeed6%

Craigslist1%

LinkedIn7%

University / Campus1%

Recruiter SourcedRecruiting EventAgencyEmployee ReferralHiring ManagerContractor Conversion / TransferGlassdoor Profile & JobAdsIndeedCraigslistLinkedInUniversity / Campus

Source of Hire2014

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Spending Breakdown

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Job Advertising27%

Employee Referral Bonus Program

15%

Recruiting Agency Costs13%

Employer Branding13%

Recruiting Events4%

Recruting Systems / Technology

13%

Other / Candidate Travel & Expense

15%

Job AdvertisingEmployee Referral Bonus ProgramRecruiting Agency CostsEmployer BrandingRecruiting EventsRecruting Systems / TechnologyOther / Candidate Travel & Expense

Recruiting Spendby Category2014

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Hurdle 1: Users

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Start-up Seed- Acorn to and Oak

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Cost Per User Acquisition

- Job Explorer|Referral-Partner CPA: Currently using Linkedin CPC Campaigns, the CPA is approx $45 for new Referral-Partner or Job Explorer User (FB: Red Shoelaces)

- Employer CPA: Currently approx $500 to gain a new Employer to post job openings

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Field of NightmaresBuild it and they will come…Don’t Assume!

- Did not test if people in socialverse WOULD refer their friends- With Uber, everyone knows how to drive their own car- It costs a lot of $ & time to just get impressions | eyeballs- Impressions do not translate into a new user action - LINKEDIN CPC Campaign Tests:- $10k per month A to L Testing; not just A/B- Results: 500,000 impressions in 30 days; 3,000 clicks; 220 new

users…REALLY? $45.45 cost per user acquisition- I was told I was doing well!

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CPC Out of Box Sample- Zuck on Paternity Leave

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Hurdle 2: UI

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Low Friction UI- $24,000 to build MVP web site- Keywords only to find jobs- No alerts for Hiring Managers when new applicants apply- No daily User email blasts…”$5k bounty for Sr Web Dev in SF”- Site is too wordy- No App, but mobile optimized- LI had just changed it’s plug in rules at launch- Video takes too long to download- No Employer White Labeling- Cannot track referrals via Facebook, Linkedin, etc, only emails- NEED A 2.0 WEB SITE…$$$

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Hurdle 3: Revenue

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Business Model: A | B Tests

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Tier 1 (Years 1 & 2)JobzLab receives 7.5% fee for each external hire

Tier 2 (Start Year 3)Monthly or Annual Subscription Model Per Employer

Two-Tier Revenue Model

+

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Where to Find New Users?- Easier Said Than Done…- Rev model 7.5% fee cannot scale today; takes time & $ to get

Users- Big Q: How does JobzLab acquire new users cost-effectively?- A shift, not pivot…Internal Employee Referral Tool Box- Salesforce Meeting: 50% of all successful hires are Employee

Referrals- They have a dedicated army- Companies between 50-250 employees do not drive employee

referrals- JobzLab can acquire employees & friends as new users and drive

employee/friend chain referrals for small to mid size companies- Annual Subscription Model

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Business Model: Test A

- 7.5% fee for each hire (Recruiters on average earn 28% fees and low fees are 15%)

- Companies designate referral “bounties” (via Jobz guide) for each opening from $2,000 to $6,500 (Friend, Self & 3 in Chain).

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100 Companies X 10 Openings for Each = 1,000 Openings250 JobzLab Hires: $125,000 (avg salary) X 7.5% = $9,375

250 Hires (25% of 1,000 openings) X $9,375 (fee) = $2,343,750 Gross RevBounties Paid Out: $3,000 (avg bounty) X 250 = $750,000

Net Revenue Goal is $1,593,750

$2,343,750 (End of Year 2 Gross Rev Goal)

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Business Model: Test BMonthly | Annual Subscription Per Co. User Station (Annual

10% Disc)

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400 Companies X 1 User = 400 Co. Users x $325/mo (Business Choice)

Year Three Goal

$1,560,000

Start-Up Business Premier Enterprise

$199/mo $325/mo $575/mo Negotiated

10 Selection 20 Selections 40 Selections TBD

($130K/month)

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Revenue Goals

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Year 2 Total Gross Revenue GoalsTest A: 100 CompaniesBounties Paid Out (-$750,000) $2,343,750Year 3 Total Revenue GoalsTest A: 100 to 200 CompaniesBounties Paid Out (-$1,500.000) $4,687,500Year 4 Total Revenue GoalsTests A & B: 200 to 400 CompaniesBounties Paid Out (-$3,000,000) $10,935,000

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Hurdle 3: HR

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Getting HR Meetings- Tend to be slow to respond or unresponsive to an intro meeting- Not very open minded to new start-up, proof of concept- Married to ATS that is not very effective- When adopt JobzLab, tend to be very slow to correspond- Prefer not to pay fees versus hiring their own candidates- Slow to respond to your candidates during the entire recruiting

funnel- Possible Remedy? The Shift…- Contact COO at 50-250 sized companies…COOs get the value add- Employees become Users; JobzLab drives the employees & friends

referrals process for companies- JobzLab’s goal is to get companies to 40-50% of all hires to be

employee referrals

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Hurdle 4: Biz Dev

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Go Big!?Enterprise Sales Only…mistake- Biz Dev Advisor suggested to go after Enterprise companies

only…the rest will follow- Landed PlayStation, but bread n butter companies might be more

small to mid sized with limited resources- Lost months during long winded enterprise sales process, Airbnb,

Salesforce, Sony, etc.- Just beginning 50-250 sized biz dev to COOs to be internal referral

tool box- Keep the “story” simple- Need 1 or 2 Sales help- Need $ for Sales help

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Hurdle 5: Competition

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Lots Can Happen in 6 Months

- Not much competition in 2014- $416 Bil Market…Got crowded fast- Digital Hiring Craze: Many digital platforms surfaced- Several are acquired or got out of gates early- Is there room for JobzLab?- What problems do we solve that others don’t?- Could we become a Unicorn?

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Milestones: Launched 8-15-15- First 60 Days…

- Gaikai (Playstation): 60 Openings (First month got hire in Berlin Office)

- Sony PlayStaton: 12 Openings

- TrueVault: 5 Openings

- Keypr: 5 Openings

- Ziprecruiter.com Strategic Partnership

- The Job Doctor JobzLab is 1 of Baker’s Dozen companies to watch

- Company Meetings- Salesforce & Airbnb

- Beta Tested “TAG”

- Predictive assessments tested and worked very well; Copyrighted; Questions approved by Employment Lawyer per Sony request

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3 Competitive Advantages?

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- JobzLab is the social $ bounty referral marketplace connecting Employers, Recruiters, Engineers and the Public…making everyone recruiters

- 1. Photo 2. Detailed Profile (code samples, skill rankings, highlights) 3. ”TAG” Proprietary Analyics|Grades (DNA, Childhood, Habits) 4. One minute videoanswering 1 question

- Significantly reduces finding|vetting|hiring time in company recruiting funnel

- Long-term engineers; up to 1 year guarantee

- Built first Gaikai teams & culture (acquired by PlayStation for $380 mil); Built Nook Cloud; New PS teams; Consulted Oculus

Social $ Bounties

Digital CandidateTech|Culture Data

Ease of Use

GuaranteeFounder | Team

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Super-Engaged Employees- Four Employee Types“The Coming Jobs War” by James Clifton (Gallup Chairman)

1. Engaged Employees: Top 20%, 28% of world’s employees2. Not Engaged Employees: Some value add, 9-5 employees, paychecks3. Actively Disengaged Employees: Go out of their way to disrupt everything4. “Super-Engaged” Employees: The phrase we coined for our hires; top 5% talent; great culture fits; make the team better and raise their game; 24/7; codes as primary hobby; out of the box (Magic Johnson, Larry Bird, Pat Summit, Mia Hamm, Wayne Gretsky, Michael Jordan}

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Exit Strategy

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Candidate FrustrationSpam Responses from HR

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Interview & Offer LetterLand that job you always wanted!

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TM

Thank you