The Recruiting Crisis
PETE LONDON IS BORN
The honeypot idea emerged slowly, “If only I weren’t a founder! Which recruiters would have contacted me as an engineer?” I stewed on the idea of posting my resume online with a fictitious name for days and then one sleepless night, without telling anyone, I woke up and posted a small three-page website with an about page, resume, and blog for a supposed Pete London whose interests and engineering persona mirrored my own except he wasn’t a founder. I swapped out my post-graduate experience with my husband so it wouldn’t be too easy to trace back to me. I returned to bed with a small glimmer of hope – I had been hunting for recruiters for months but now the recruiters would come to me!
LAST RESORT – LINKEDIN
My hopes sank pretty quickly. PeteLondon.com sat alone in Internet ether for weeks with absolutely nada activity. I was about to pull down the entire site when I thought – I’ll just post the resume on LinkedIn as a last resort.
Bam. It was as if I’d finally stumbled upon the door to the party.
On December 10th, 2009, the first LinkedIn message arrived from Google. Mozilla followed on December 15th. Ning and Facebook followed in January. Since then, Pete averaged a recruiter ping every 40 hours and saw 530 emails from 382 recruiters across 172 organizations.
* Q1 2009 and Q2 2012 data are not complete. Data collection began December 10th, 2009 and ended June 1, 2012
WHAT I LEARNED
After two and a half years, I learned less about recruiting recruiters and more about recruiting engineers. Here are my eight biggest take-aways to finding the best talent online…
Lesson 1: Recruiters rely exclusively upon LinkedIn
I also assumed that a professional who made their living from recruiting, would want to optimize their response rate and would seek out ways to contact Pete London beyond LinkedIn. Though Pete London’s website and personal email address were just one click from his LinkedIn profile page, the majority of emails still arrived via LinkedIn – especially from larger companies.
Surprisingly, very few recruiters tried more than one communication channel.
TIP #1: If you’re a start-up who always feels like you’re scraping the bottom of the LinkedIn barrel, you’re probably right – LinkedIn is incredibly competitive. Recruit latent talent off the grid.
TIP #2: Recruiters flock to LinkedIn first, if not always. To increase your personal opportunities, join LinkedIn.
Lesson 2: Fear the Silicon Valley long tail
When I wrote to potential engineers, I always imagined my email landing next to recruiting giants like Google or Facebook. As a result, I was careful to emphasize Meebo’s unique start-up learning opportunities, amazing culture, and the opportunity to make impact.
However, my strategy was misguided. The Silicon Valley companies that drew TechCrunch headlines from 2010-2012 (i.e. Adobe, Amazon, AOL, Apple, Facebook, Google, LinkedIn, Netflix, Microsoft, Mozilla, Skype, Twitter, Yahoo, Zynga) only represented 15% of the landscape.
But I should have been more scared than I was – the emails from start-ups and mid-sized companies sounded nearly identical (my own included), “We’re a fast-growing start-up disrupting a lucrative space where your talents will shine and your efforts will be amply rewarded.” By emphasizing the classic start-up experience, everyone sounded exactly the same:
Larger companies employed an entirely different strategy and anecdotally, I saw more terse, canned emails from larger companies than start-ups. To quantitatively compare strategies, I went through all emails and noted whether the recruiter included role details, company information, or if the email was personalized specifically to Pete. I was incredibly lenient and gave points whenever I could. By almost every metric, the larger companies performed weakest: smallest word count (114 vs. 148 words per email), least likely to describe the company mission or personalize email, and least likely to use a personal email address. However, large companies hired triple the number of recruiters and made up for their shortcomings in volume. Pete heard from an average of 1.4 recruiters at each start-up and 4.6 recruiters at each large company.
You might assume that with more internal recruiters, big companies would do better than start-ups who depend more upon external recruiters. After all, big companies have had more time, resources, infrastructure to make this a key strategic asset. But it turns out you don’t want to emulate the big guys and you also don’t want to assume they are your stiffest competition.
TIP #3: Your real recruiting nemesis is the start-up down the street. Pitch your job opportunities with more specificity than “fast-paced, innovative startup.”
Lesson 3: The recruiting landscape isn’t just filled with recruiters
Only 97% of the recruiting emails can be attributed to traditional recruiting. So who represents the remaining 3%?
Surprise! VCs – specifically early-stage angel investors.
* Q1 2009 and Q2 2012 data are not complete. Data collection began December 10th, 2009 and ended June 1, 2012
Though they are a small lot, they are a super lethal bunch with an eye on your jugular artery – your revered first engineers who built your system from scratch. The charming VCs know that your prized engineers could fulfill a similar role at their future portfolio companies and set their hooks early. In most cases they don’t have a specific company or role in mind but are just proactively networking and hoping to be top-of-mind in the future. Given how interconnected and fast-moving the start-up world is, this might be inevitable but woah! good to know.
TIP #4: Keep your engineers happy (i.e. free food, great people, & amazing challenges). When the VCs come knocking, make sure your MVP’s are glued in.
Lesson 4: Can a start-up rely upon external recruiting?
As a start-up, you are inevitably resource-starved. When you have the good fortune to gain traction, you have the setback of suffering infrastructure growing pains while realizing the only way to get ahead is to find time to recruit, interview, and close candidates. In the early days, external recruiters appeared on Meebo’s doorstep and promised to screen and pass along qualified candidates so I could turn my attention back to Friday’s release – it seemed like a dream come true!
However, the first people you hire set your engineering and cultural DNA for the lifetime of the organization and while you desperately need to hire well, can you depend upon external recruiters to step up to the task? Once the scaling challenges strike, does it make more sense to proactively hire a superstar in-house recruiter or to rely upon external recruiters to scale the engineering team?
The answer is surprising – external and internal recruiters perform similarly in start-up environments. Internal recruiters are 14% more likely to describe the position but 14% less likely to personalize the email.
However, larger companies don’t have a viable external recruiting option. External recruiters at the top companies were much weaker overall – 340% less likely to include a description of the role, 140% less likely to personalize their email, and 88% less likely to include detailed company information. Though larger company recruiters were relatively weak overall, in-house recruiters are their only viable option.
Given this significant performance difference, it’s no surprise that larger companies also employ far more internal recruiters than start-ups.
TIP #5: As a start-up, you can sleep easier knowing that external recruiters are a fantastic resource. Find your superstar engineers first and your superstar in-house recruiters second.
TIP #6: Contingency recruiting farms are financially incentivized to hire for less selective companies. For difficult roles, a dedicated contract recruiter may be your only realistic option.
However, before you get too excited about external recruiters, read further…
Lesson 5: Be careful whom you invite into your house
Unfortunately, it’s not all about the numbers. Though external recruiters perform well for start-ups, there’s another side to this story. It pains me to write this but I think it’s important to share…
Meebo employed lots of external recruiters when we were getting off the ground. We had standard 18-month no-poach restrictions with all of our contractors that specified that those recruiters were not allowed to contact Meebo employees within 18 months of our contract expiring. Most of those contracts expired in 2008-2009.
However, every recruiter and firm we’d worked with who was still in the recruiting business tried to poach Pete London.
Every single one!
It’s impossible to know whether our former recruiters were pinging employees during the no-poach period prior to 2009 but I wouldn’t be surprised. However, I doubt they were being malicious – it’s more likely they were just disorganized and didn’t communicate an off-limits list to their staff.
In addition to pings from too-familiar recruiters, there were two cases that left me especially uneasy. In the first case, a former recruiting agency tried to poach Pete London and then 15 minutes later, wrote to me offering recruiting services! I was being pulled on both ends! When I didn’t respond, they repeated the stunt again six weeks later. I got wind that they’d sent recruiting emails to everyone on our Engineering teams and I called them on it (without referencing Pete London). I never heard from them again.
The second case that made me uneasy involved a contractor recruiter who worked from Meebo’s office for nearly a year. During this time, the recruiter went to lunch with the team, participated in hackdays, and became close with many folks. Two years later, that recruiter poached Pete London and a few hours later, showed up at Meebo’s informal Friday happy hour! I was definitely in a queasy gray zone where there wasn’t a strong divide between our personal and professional relationship. Technically, it was hard to nail down any real grievances, but I was certainly aware that our teams were constantly under former recruiter attack.
External recruiters are an inevitable necessity for start-ups. But after seeing all of the emails that those external recruiters generated in subsequent years, I wish Meebo had switched to in-house recruiting sooner.
The external recruiters you work with today are good but they will learn your strengths, your team, and you’ll probably be uncomfortably top of mind later on.
TIP #7: External recruiters are a mixed blessing – be selective and switch to internal recruiters as soon as you can.
TIP #8: Push for at least 18-month no-poach policies with external recruiters.
Lesson #6: The most common little white lie is…
With very few exceptions, recruiter emails were well-written, smarmy-free, and didn’t smell of phishing. I expected far worse. However, if a little white lie is going to sneak into an email, it’s going to look like this…
Little white lies appeared across all recruiting groups and generally took the form, “I was referred to you” or “I’ve heard very good things.” While even unfounded flattery feels good, I learned to be suspicious of vague recruiter compliments.
TIP #9: Flattery will get you everywhere! Take recruiter praises with a healthy pinch of salt.
Lesson #7: It’s time to buy more hoodies
* Q1 2009 and Q2 2012 data are not complete. Data collection began December 10th, 2009 and stopped on June 1, 2012
TIP #10: As the city of Palo Alto or Mountain View, I would make sure that resident tech companies are happy and that public transportation is a top priority.
TIP #11: When writing to candidates, specify where your office is located – it’s no longer assumed that an opportunity is south of San Mateo unless otherwise specified.
TIP #12: The entrepreneurial epicenter is no longer Palo Alto. If you’re south of San Mateo, figure out your SF strategy now.
Lesson #8: Who’s the best in the valley?
There were 19 emails from managers, execs, founders, and board members who presumably had no professional background in recruiting. However, those non-recruiters collectively outperformed every other professional recruiting segment – scoring just as high or higher by every metric: email quality, outreach technique, and word count. No matter how many recruiters you hire, there is no substitute for a heart-felt note from a future manager.
However, managers have responsibilities beyond recruiting and it’s not realistic to spend eight hours a day reading resumes and penning candidate emails – professional recruiters are a necessity. However, most managers probably hope to hire a recruiter who does the job better than themselves. Of all of the emails Pete received, only 40% of the recruiter emails scored better than the average manager who actively sought out Pete London. And within this top 40%, there were proportionately more start-up recruiters than any other segment.
TIP #13: Look for recruiters with start-up backgrounds rather than large companies.
TIP #14: Hire the best recruiters and treat them like gold. If a product is only as good as its team, then the product is only as good as its recruiting team.
Of the 382 recruiters, there was only one recruiter who actually figured it out. To do so, he did one thing that no other recruiter did – picked up the phone and called someone who should have been connected to Pete to ask for an introduction. And that’s where the ruse unraveled. If there were one recruiter I would have partnered with during my toughest hiring crunch ever, it would have been him.
However, that recruiter had also recruited for Meebo the prior year and he shouldn’t have been poaching Pete London from our team. He apologized. In the end, the honeypot ended up identifying the one amazing recruiter I already knew about but couldn’t justify working with again.
In the next blog post, I’ll examine the “best recruiters of silicon valley” more. With their permission, I’ll list the top five recruiters and a few email snippets.