Talent Playbook

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Maria Palma, Director of Platform @RRE Ventures

THE TALENT PLAYBOOKHOW TO SOURCE, HIRE AND RETAIN WORLD CLASS TALENT

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RRE VENTURES IS AN EARLY STAGE, SEED & SERIES A, VENTURE CAPITAL FIRM LOCATED IN NEW YORK

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WHERE RRE INVESTS

HERE ARE A FEW OF THE SPACES WE HAVE INVESTED IN AND SOME OF OUR 120 ACTIVE COMPANIES

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OUR FOUNDERS CONSISTENTLY TELL US THAT TALENT IS ONE OF THEIR BIGGEST PAIN POINTS

BUILDING THE RIGHT TEAM IS CRITICAL FOR ALL COMPANIES...

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BUT IT’S HARD, REALLY HARD

EVER HIRE THE WRONG PERSON?

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MEET JAMES,A CANDIDATE YOU THINK IS AWESOME

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YOU QUICKLY HIRE JAMES AND ARE EXCITED FOR HIM TO HIT THE GROUND RUNNING

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THEN YOU REALIZE JAMES ISN’T A FIT FOR THE ROLE OR COMPANY

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WHEN YOU LET HIM GO, IT’S HARD EMOTIONALLY, FINANCIALLY, AND OPERATIONALLY

IT SLOWS THE COMPANY DOWN AND NOW YOU NEED TO REHIRE FOR THAT POSITION

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HIRING MISTAKES ARE PAINFUL AND COSTLY

A SINGLE HIRING MISTAKE COSTS 15 TIMES BASE SALARY IN HARD COSTS & PRODUCTIVITY LOSS

15X

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- ”WHO” BY GEOFF SMART

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HIRING ALSO TAKES A LOT OF TIME

30-50% OF THEIR TIME ON PEOPLE

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OUR CEOs SPEND

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FINDING THE RIGHT PERSON IS NOT STRAIGHTFORWARD

YOU WANT THE PROCESS TO FEEL LIKE THIS...

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BUT IT FEELS MORE LIKE THIS

SO HIRING IS PAINFUL EXPENSIVE MESSY TIME CONSUMING

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BUT IS THERE A SIMPLE SOLUTION?WE DON’T HAVE ALL THE ANSWERS

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BUT, WE TALKED TO HEADS OF TALENT IN OUR NETWORK AND THIS IS WHAT WE LEARNED

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WHEN IT COMES TO TALENT, HAVING A LITTLE PROCESS GOES A LONG WAY

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THE NEED

- MOC FRAMEWORK- COMPETENCIES - JOB DESCRIPTION

ESSENTIALS

- EMPLOYER BRAND - CULTURE

- LITTLE BLACK BOOK - ONLINE - RECRUITERS - REFERRALS

SOURCING

- INTERVIEW PROCESS - APPLICANT TRACKING - REFERENCE CHECKS

INTERVIEWING

- MOTIVATION - COMPENSATION

CLOSING

- ONBOARDING - DEVELOPMENT - HIGH PERFORMERS - UNDERFORMANCE - TALENT PLANNING

RETAIN & DEVELOP

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THE NEED

- MOC FRAMEWORK- COMPETENCIES - JOB DESCRIPTION

ESSENTIALS

- EMPLOYER BRAND - CULTURE

- LITTLE BLACK BOOK - ONLINE - RECRUITERS - REFERRALS

SOURCING

- INTERVIEW PROCESS - APPLICANT TRACKING - REFERENCE CHECKS

INTERVIEWING

- MOTIVATION - COMPENSATION

CLOSING

- ONBOARDING - DEVELOPMENT - HIGH PERFORMERS - UNDERFORMANCE - TALENT PLANNING

RETAIN & DEVELOP

BEFORE HIRING YOU WANT TWO THINGS IN PLACE:

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1 EMPLOYER BRAND

CODIFIED CULTURE

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IT’S THE IDENTITY YOU CREATE TO ATTRACT PROSPECTIVE TALENT

WHAT IS EMPLOYER BRAND?

IDEAS TO BUILD YOUR EMPLOYER BRAND

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BENEFITS ON YOUR SITE

HOST MEETUPS

MONITOR PUBLIC PRESENCE

WRITE CONTENT

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ADD BENEFITS & TEAM PICS TO YOUR WEBSITE

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SHOW THE PERKS

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AND THE BENEFITS

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HOST RELEVANT MEETUPS

IDENTIFY THE INTERESTS OF EMPLOYEES YOU WANT…

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THEN TARGET MEETUP GROUPS WHERE THEY HANGOUT

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HOST OR SUPPORT THEM

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HERE ARE SOME IDEAS

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MONITOR YOUR PUBLIC PRESENCE

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RESPOND TO REVIEWS, ESPECIALLY NEGATIVE ONES AND ENCOURAGE EMPLOYEES TO ADD REVIEWS

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EXAMPLE ON THE MUSE

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EMPLOYER PRESENCE SITES

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WRITE CONTENT

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CONTENT SHOWS PROSPECTIVE EMPLOYEES WHO YOU ARE AND WHAT YOU THINK

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MANAGED BY Q BLOG

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LINKEDIN ENGINEERING BLOG

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CONTRIBUTE PUBLICLY

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CONTRIBUTE TO ONLINE COMMUNITIES AND FORUMS, SHOW YOUR SKILLS

CAPTURING YOUR CULTURE ON PAPER MAKES IT EASIER TO HIRE AGAINST

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CODIFIED CULTURE

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IT ALSO ALIGNS YOUR TEAM ON CORE VALUES

POST-IT EXERCISE TO CODIFY CULTURE

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POST-IT CULTURE EXERCISE

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HAVE YOUR TEAM WRITE ADJECTIVES THAT YOUR COMPANY IS & IS NOT

SORT THROUGH TO FIND THEMES, BE HONEST ABOUT HOW YOUR COMPANY REALLY BEHAVES & ACTS

BOIL DOWN TO 3-5 MAIN VALUES OF YOUR COMPANY

TRANSLATE EACH VALUE INTO POSITIVE OR NEGATIVE INDICATORS THAT REPRESENT EACH ONE

5 FIND WAYS TO REINFORCE & RECOGNIZE CULTURE DAY TO DAY

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EXAMPLE OF INDICATORS

SEE ABOVE FOR AN EXAMPLE OF POSITIVE & NEGATIVE INDICATORS FOR TWO OF RRE’S VALUES

REMEMBER, CULTURE IS NOT JUST WHAT YOU PUT ON YOUR OFFICE WALLS

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BUT MORE IMPORTANTLY, CULTURE IS THE WAY THE TEAM THINKS, ACTS, & BEHAVES

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FOR EVERY HIRE YOU MAKE, YOUR CULTURE EVOLVES SLIGHTLY

REVISIT YOUR CULTURE AS YOU GROW

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RECAP OF WHAT YOU NEED BEFORE YOU HIRE

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EMPLOYER BRAND CODIFIED CULTURE

NOW YOU’RE READY TO GET STARTED ON HIRING

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THE NEED

- MOC FRAMEWORK- COMPETENCIES - JOB DESCRIPTION

ESSENTIALS

- EMPLOYER BRAND - CULTURE

- LITTLE BLACK BOOK - ONLINE - RECRUITERS - REFERRALS

SOURCING

- INTERVIEW PROCESS - APPLICANT TRACKING - REFERENCE CHECKS

INTERVIEWING

- MOTIVATION - COMPENSATION

CLOSING

- ONBOARDING - DEVELOPMENT - HIGH PERFORMERS - UNDERFORMANCE - TALENT PLANNING

RETAIN & DEVELOP

CLEARLY DEFINING THE ROLE AND WHO YOU NEED

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THE NEED

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HERE ARE THE STEPS TO DEFINE THE NEED

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DEFINE THE “MOC”

MISSION PURPOSE AND WHY THIS ROLE EXISTS

OUTCOMES 3 – 8 MEASUREABLE RESULTS TO ACHIEVE

COMPETENCIES BEHAVIORS NEEDED TO SUCCEED IN THIS ROLE

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BREAKDOWN COMPETENCIES

WRITE DOWN ATTRIBUTES OF EACH COMPETENCY THAT DEMONSTRATE IT AND CAN BE TESTED AGAINST

IN INTERVIEWS AND REFERENCE CHECKS

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WRITE DOWN OTHER SPECIFICS

LIST OUT OTHER DETAILS SUCH AS:

COMPENSATION DIRECT MANAGER LOCATION HARD SKILLS FIRST 90 DAY GOALS

NOW USE THIS INFORMATION TO WRITE THE JOB DESCRIPTION

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WRITE IT TO ATTRACT AN IDEAL CANDIDATE

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BUT NOW, WHERE DO

YOU FIND THIS

PERSON?

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THE NEED

- MOC FRAMEWORK- COMPETENCIES - JOB DESCRIPTION

ESSENTIALS

- EMPLOYER BRAND - CULTURE

- LITTLE BLACK BOOK - ONLINE - RECRUITERS - REFERRALS

SOURCING

- INTERVIEW PROCESS - APPLICANT TRACKING - REFERENCE CHECKS

INTERVIEWING

- MOTIVATION - COMPENSATION

CLOSING

- ONBOARDING - DEVELOPMENT - HIGH PERFORMERS - UNDERFORMANCE - TALENT PLANNING

RETAIN & DEVELOP

HOW TO FIND AND ATTRACT A POOL OF GREAT CANDIDATES

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SOURCING

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OUTBOUND SOURCING: PROACTIVELY REACHING OUT TO CANDIDATES

FIRST TYPE OF OUTBOUND: YOUR LITTLE BLACK BOOK OF TALENT

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IT’S AN ACTIVE LIST OF THE MOST TALENTED PEOPLE YOU KNOW & KEEP IN TOUCH WITH

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WHAT IF I DON’T HAVEA LITTLE BLACK BOOK?

5 STEPS TO START

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LIST THE MOST TALENTED PEOPLE YOU KNOW (IN EXCEL OR GOOGLE DOC)

TELL THEM ABOUT YOUR COMPANY

ASK THEM WHO THEY THINK YOU SHOULD GET TO KNOW

BLOCK OUT TIME EACH WEEK, GET TO KNOW THEM & REPEAT

5 GROW LIST & MAINTAIN CONTACT

BRING IT

SECOND TYPE OF OUTBOUND: ONLINE SOURCING

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THE MAIN THREE

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LINKEDIN RECRUITER ALLOWS FOR ADVANCED SEARCHING & BETTER OUTREACH $125/

MONTH

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ANGELLIST IS A GLOBAL SOURCE TO FIND CANIDATES LOOKING TO WORK FOR STARTUPS

FREE

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A-LIST IS ANGELIST'S NEW TOOL WITH PREVETTED CANIDATES, FREE TO BROWSE

$10K TO HIRE

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GITHUB, LOOK AT PROFILES AND SEE PROJECTS THEY CONTRIBUTE TO

FREE

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OTHER GREAT ONLINE SOURCES

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THIRD TYPE OF OUTBOUND: RECRUITERS

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WHEN TO BRING ONE IN

IN HOUSE RECRUITER

STARTUPS TYPICALLY HIRE AN IN-HOUSE RECRUITER AT 30 PEOPLE

WHAT TO LOOK FOR IN YOUR FIRST RECRUITER

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CARES ABOUT PEOPLE

PROCESS-DRIVEN

VALUES CANDIDATE EXPERIENCE

USES TALENT METRICS

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RECRUITING FIRMS: GREAT IF YOU ARE TRYING TO

FILL MANY ROLES QUICKLY OR ARE STRUGGLING ON A SPECIFIC KEY HIRE

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~12 - 25% OF FIRST YEAR SALARY

PAID IF YOU HIRE

BETTER FOR JUNIOR ROLES

NOT EXCLUSIVE

CONTINGENT SEARCH FIRM

CONTINGENT

TIP: PAY THE HIGHER % FEE (SINCE NOT EXCLUSIVE) TO SEE BETTER RESUMES

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~33% OF FIRST YEAR SALARY

PAID REGARDLESS OF HIRE

BETTER FOR EXECUTIVE ROLES

EXCLUSIVE, QUALIFIED SEARCH

RETAINED SEARCH FIRM

TIP: NEGOTIATE FREE REPLACEMENT SEARCH IF CANDIDATE LEAVES <90 DAYS

RETAINED

IF YOU USE A FIRM, GET RECOMMENDATIONS FROM INVESTORS AND FOUNDERS

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INBOUND SOURCING: APPLICANTS WHO COME TO YOU DIRECTLY OR ARE REFERRED TO YOU

FROM YOUR WEBSITE TO SOCIAL MEDIA, THERE ARE MANY SOURCES OF INBOUND

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ONE INEXPENSIVE & HIGH QUALITY INBOUND CHANNEL IS EMPLOYEE REFERRALS

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COMPENSATE YOUR EMPLOYEES FOR BRINGING IN TALENT

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BUILD REFERRALS INTO YOUR CULTURE SO HIRING GREAT PEOPLE IS EVERYONE’S RESPONSIBILITY

TYPICAL AMOUNT IS $2- $5K AFTER THE EMPLOYEE HAS BEEN THERE 90 DAYS

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ONE CAUTION WITH REFERRALS, WATCH OUT FOR DIVERSITY SO YOU DON’T HIRE MORE OF YOURSELF

CS

CS

DIVERSITY DRIVES PERFORMANCE, RESEARCH HAS SHOWN THAT DIVERSE GROUPS OUTPERFORM THOSE WITH LESS DIVERSITY

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DIVERSITY GOES BEYOND RACE AND GENDER, IT’S ALSO ABOUT THOUGHT AND BACKGROUND

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THE NEED

- MOC FRAMEWORK- COMPETENCIES - JOB DESCRIPTION

ESSENTIALS

- EMPLOYER BRAND - CULTURE

- LITTLE BLACK BOOK - ONLINE - RECRUITERS - REFERRALS

SOURCING

- INTERVIEW PROCESS - APPLICANT TRACKING - REFERENCE CHECKS

INTERVIEWING

- MOTIVATION - COMPENSATION

CLOSING

- ONBOARDING - DEVELOPMENT - HIGH PERFORMERS - UNDERFORMANCE - TALENT PLANNING

RETAIN & DEVELOP

EVALUATING CANDIDATES TO FIND THE RIGHT FIT

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INTERVIEWING

HIRING MANAGER

HEAD OF TALENT

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FOR INTERVIEWS, EVERYONE SHOULD HAVE A ROLE

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THE INTERVIEW PROCESS

DEFINE THE INTERVIEW STEPS AND OBJECTIVES FOR EACH INTERVIEWER

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CONSIDER GIVING CANDIDATES A SMALL SKILLS TEST, ESPECIALLY FOR TECHNICAL ROLES

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FOR CULTURAL FIT INTERVIEWS, THE BEER TEST ALONE IS NOT GOOD ENOUGH TO ASSESS

REMEMBER INTERVIEWS ARE A TWO WAY STREET

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THIS IS NOT A SECRET, TELL CANDIDATES YOUR PROCESS

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TELL THE CANDIDATE WHAT TO EXPECT:

WHAT ARE THE NEXT STEPS?

WHO WILL THEY MEET WITH?

WHAT IS THE TIME FRAME?

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STANDARDIZE RESPONSE TIMES TO CANDIDATES 7 DAYS FOR ONLINE APPLICATION 2 DAYS FROM ONSITE INTERVIEW

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WITHOUT PREP, CANDIDATES OFTEN GET THE SAME QUESTIONS ALL DAY

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EACH ROLE REQUIRES UNIQUE INTERVIEW QUESTIONS

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PEEL THE ONION: DIG INTO THE CANDIDATE’S

RESPONSES & PUSH FOR SPECIFICS

A FEW THINGS YOU ARE NOT ALLOWED TO ASK ABOUT IN THE US:

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AGE MARITAL STATUS CHILDREN SEXUAL ORIENTATION DISABILITIES

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HAVE INTERVIEWERS SCORE CANDIDATES ON A 1 - 4 SCALE, THEN DEBRIEF WITH TEAM

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HELPS KEEP TRACK OF CANDIDATES FROM APPLICATION TO HIRE

APPLICANT TRACKING SYSTEM:

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GREENHOUSE

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LEVER

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APPLICANT TRACKING IN EXCEL

KEEP TRACK OF CANDIDATES THROUGH THE INTERVIEW PROCESS WITH SCORES & COMMENTS

REFERENCE CHECKS

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TAKE THE TIME TO DO THEM

DELVE DEEPER THAN SURFACE READ BETWEEN THE LINES

FIND YOUR OWN REFERENCES

DON’T BE LAZY ON THIS ONE, REFERENCE CHECKS TELL YOU A LOT & FINDING YOUR OWN REFERENCES CAN MAKE A BIG DIFFERENCE

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THE NEED

- MOC FRAMEWORK- COMPETENCIES - JOB DESCRIPTION

ESSENTIALS

- EMPLOYER BRAND - CULTURE

- LITTLE BLACK BOOK - ONLINE - RECRUITERS - REFERRALS

SOURCING

- INTERVIEW PROCESS - APPLICANT TRACKING - REFERENCE CHECKS

INTERVIEWING

- MOTIVATION - COMPENSATION

CLOSING

- ONBOARDING - DEVELOPMENT - HIGH PERFORMERS - UNDERFORMANCE - TALENT PLANNING

RETAIN & DEVELOP

GETTING THE CANDIDATE YOU WANT OVER THE FINISH LINE

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CLOSING

THINK ABOUT WHAT’S REALLY MOTIVATING THIS CANDIDATE TO JOIN

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TIPS TO SELL AND CLOSE THE CANDIDATE

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SOCIALIZE WITH THE CANDIDATE

UNDERSTAND FAMILY CONCERNS ADDRESS ANY CONCERNS

HELP WITH RELOCATION

5 HAVE TEAM/BOARD REACH OUT

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YOUR INVESTORS & NETWORK CAN BE A FANTASTIC RESOURCE FOR COMPENSATION DATA

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COMPENSATION BENCHMARKS

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Average Base Salary For Engineers By Company Stage & Level of Experience

Ave

rage

Bas

e Sa

lary

$75,000

$106,250

$137,500

$168,750

$200,000

Funding Stage

Seed Funding Only Post Series B Post Series D Growth Capital Funding Only

1 Year Expereince 2 Years Expereince 3 Years Expereince4 Years Expereince 5 Years Expereince Director Level

FOR EXAMPLE, HERE IS DATA RRE RECENTLY PULLED FROM ADVANCED HR FOR A PORTFOLIO COMPANY

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COMPENSATION BENCHMARKS

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ANGELIST CAN ALSO BE A GREAT RESOURCE FOR EQUITY & SALARY DATA

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MAKE SURE TO COVER THESE IN YOUR EMPLOYMENT AGREEMENT:

CONFIDENTIALITY IP PROTECTION NON-COMPETE

CONGRATULATIONS, YOU ARE SET TO HIRE GREAT CANDIDATES

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THE NEED

- MOC FRAMEWORK- COMPETENCIES - JOB DESCRIPTION

ESSENTIALS

- EMPLOYER BRAND - CULTURE

- LITTLE BLACK BOOK - ONLINE - RECRUITERS - REFERRALS

SOURCING

- INTERVIEW PROCESS - APPLICANT TRACKING - REFERENCE CHECKS

INTERVIEWING

- MOTIVATION - COMPENSATION

CLOSING

- ONBOARDING - DEVELOPMENT - HIGH PERFORMERS - UNDERFORMANCE - TALENT PLANNING

RETAIN & DEVELOP

KEEP AND GROW THE BEST TALENT IN YOUR STARTUP

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RETAIN & DEVELOP

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1. ONBOARDING 2. DEVELOPMENT 3. HIGH PERFORMERS4. UNDERPERFORMERS5. TALENT PLANNING

CONSIDERATIONS POST- HIRE

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ONBOARDING

ONBOARDING SHOULD MAKE YOUR NEW EMPLOYEES FEEL

WELCOME

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INVESTING TIME INTO PEOPLE IN THE FIRST 90 DAYS IS CRITICAL

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ON DAY ONE HAVE TOOLS SETUP AND KEY MEETINGS SCHEDULED

HAVE MANAGERS SCHEDULE 30-60-90

DAY CHECK-INS

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SO NOW THAT YOU HAVE THEM ON BOARD, HOW DO YOU KEEP AND DEVELOP THEM?

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DEVELOPMENT

GROWING YOUR EXISTING TALENT

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HELP YOUR EMPLOYEES IDENTIFY SKILLS THEY NEED & WANT TO DEVELOP

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NOW WORK TO FIND WAYS TO BUILD THOSE SKILLS

SOME IDEAS

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REIMBURSE EXTERNAL TRAININGS

PROVIDE CAREER COACHING

CREATE MANAGEMENT WORKSHOPS

OFFER INTERNAL SKILLS TRAINING

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AN IDEA FROM ONE OF OUR PORTFOLIO COMPANIES

OFFER A WEEK OF DEVELOPMENT TIME THAT EACH EMPLOYEE SPENDS AS AGREED WITH MANAGER

A CULTURE OF FEEDBACK IS ALSO CRITICAL, IT IMPROVES & EVOLVES YOUR ENTIRE TEAM

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GIVE FEEDBACK IN REAL TIME, DON’T JUST WAIT FOR PERFORMANCE REVIEWS

GREAT, TELL THEM TELL OTHER PEOPLE

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NOT SO GREAT, TELL THEMIN PRIVATE

IF THEY DO SOMETHING…

GET FEEDBACKON YOURSELF AS WELL, ESPECIALLY ASK WHAT YOU CAN DO BETTER

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GIVING FEEDBACK ALSO SETS THE RIGHT EXPECTATIONS FOR PROMOTIONS AND MINIMIZES DISTRACTIONS

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HIGH PERFORMERS

HOW DO YOU KEEP YOUR HIGH

PERFORMERS?

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EXPOSE THEM TO NEW CHALLENGES AND LET THEM KNOW THEY HAVE ROOM TO GROW WITHIN YOUR COMPANY

TO KEEP HIGH PERFORMERS BE SURE TO ADDRESS LOW PERFORMERS

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UNDERPERFORMANCE

HOW TO ADDRESS PROBLEMS WITH PERFORMANCE

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AS A STARTUP YOU CAN’T

AFFORD TO KEEP LOW

PERFORMERS

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IF SOMEONE IS CONSISTENTLY UNDERPERFORMING, TELL THEM FORMALLY USING A PIP...

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PERFORMANCE IMPROVEMENT PLAN (PIP): SPECIFIES OCCURRENCES OF LOW PERFORMANCE WITH ACTION PLAN AND TIMELINE

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A PIP SHOULD BE SIGNED BY BOTH THE EMPLOYEE AND MANAGER

KEY ADVANTAGES TO PIPS

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DOCUMENTS IN REAL TIME

RECORD IN CASE OF LEGAL ACTIVITY

DEMONSTRATES A FAIR PROCESS

SHOWS SEVERITY OF THE ISSUE

AFTER A PIP THE EMPLOYEE WILL

EITHER IMPROVE OR GET

TERMINATED

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WITH ANY TERMINATION, RIF OR LAYOFF, BE AS TRANSPARENT AND QUICK AS POSSIBLE

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TALENT PLANNING

PLANNING FOR CHANGE AND

GROWTH

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TALENT PLANNING: PLANNING FUTURE GROWTH & REPLACEMENTS FOR KEY ROLES AS THE COMPANY SCALES

LOOKING AHEAD IS CRITICAL AS YOU GROW AND SCALE TO HAVE THE TEAM YOU NEED AT EACH STAGE

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YOU NEED ACTION & BACKUP PLANS FOR SPECIFIC CRITICAL ROLES

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TALENT PLANNING

FOR KEY ROLES, IDENTIFY TALENT THAT COULD STEP IN NOW OR LATER, CREATE DEVELOPMENT PLANS

WHERE THERE ARE GAPS

NOW YOU ARE SET TO HIRE & RETAIN GREAT TALENTOFF TO THE RACES

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WE HOPE YOU LEARNED SOMETHING ABOUT HOW TO GET & RETAIN GREAT TALENT

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IF YOU FOUND THIS USEFUL, PLEASE CLICK LIKE & SHARE

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DOWNLOAD ALL THE TEMPLATES USED IN THIS DECK

@RRE

RRE VENTURES

PLATFORM@RRE.COM

MEDIUM.COM/@RRE

CLICK TO DOWNLOAD THE TEMPLATES

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BETH SCHEER

HOMEBREW

SPECIAL THANKS TO…

LORNA HAGEN ONDECK

STEVE SCHLAFMAN RRE VENTURES

AMY WOLF FORRESTER

MANAGED BY Q

NATALIE WADSWORTH

SAILTHRU

JOY SUN GROUPS

JACQUI MAGUIRE GREENHOUSE

BRANDON LIPMAN RRE VENTURES

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