Startup Health Litmus Test Questions for the Recruiter

I enjoy working with early-stage startups.  Some recruiters think I am crazy – the monetary compensation is not usually as high as corporate, I will often work deferred and on contingency, and the risk is great.  The searches are harder because you are looking for extreme talented people who are willing to step away from a lucrative job, bet on their ability to deliver, and work for a deferred or low initial cash compensation.  So why do I do it?  It’s FUN!  The right startup team will be comprised of very interesting, highly intelligent entrepreneurs and I love to see how they put the next best thing together.  And to build the initial team that may one day turn into the next big brand – priceless (almost!).

I have paid a heavy price from some of my earliest involvements with startups,  including extended placed contractor payroll dollars.  Also priceless – lost meals with family, missed child performances, missed paying business deals, stress, etc.  Startups are to a large extent art, and so is the decision to work with one.  I have started a list of considerations I run through now when approached by a startup to recruit.  I will share it here, and please – if you have some items or advice to add, let me know!

• Company Viability Background
• Value Statement – simple, clear?
• When/Why Founded
• Founders’ Background
  • Starts
  • Funding Connections and Experience
  • Successful exits
  • Expertise in current core industry/sector
  • Are Founders “in” 100%?  How long can they last?
• Core Team in place?
• Board Members
• Competition Research
• Current Funding Status
• Possible exits – have they planned?
• Early Adopters, Clients, Partners on board?
• Software Build Framework:  Fast Engineering Iterations  (Agile)
• User Testing – Perspective/Plan
• Marketing Approach and Expertise
• Experience Evaluation with other Recruiters
• Corporate Structure?  Credit Ratings; Personal Guarantee of Financial Commitments
• How consistent and transparent is their communication with ME?
  • Readily available by email, IM, and/or phone
  • Able to put agreements in writing and sign
  • Review and respond to candidate submissions in a timely manner
  • Give me multiple contacts, including CFO or other key finance person
  • Keep me updated on their funding progress and team changes
• Is some payment in equity available?

Talent Makes the Company

Talent is a critical component of any business in any economy.  Is your company working hard to attract and keep the best talent?  Your company’s HR leader needs to be focused on this because it’s PEOPLE that make the difference.

If your company has turnover, WHERE is it (which teams, which managers) and WHERE do they go?  To your direct competitor(s)?  Somewhere else?

Companies that cut costs in a recession, rather than “heads”, fare better in the long run.  This is not a knee-jerk reaction:  It is a less tactical and more strategic approach.  Cutting people breaks trust with all employees, while keeping employees through the tough times fosters loyalty.

When you are considering a new company to work with, look past the base salary and also consider what kind of culture, career growth opportunities, and creative benefits they provide.  Some HR departments allow spouses to call in to handle benefits management.  Some companies have mentoring and leadership training programs, and encourage changing teams, changing offices, and promoting internally to stay challenged in your career. Career path planning and employee retention programs can tell you a great deal about how invested the company is in its employees’ job satisfaction, and its valuation of the people who make the company successful.

Startup Mentality

I am most intrigued by working with startups, where passion, talent, and creativity reign.  Risk pressure is always present, however.  I know why I jump in as a recruiter, even though finding people who are often required to work for equity and deferred cash makes my job much more challenging:  It’s exciting to meet developers, executives, and others who are ready to take the startup plunge for the first time, and great to know a network of folks who become addicted to repeating the cycle. This is the world of game-changers.   If you are teetering on the edge of catching the startup bug, here are a few good links I found to nudge you a little closer:

Top 10 Reasons to Join a Startup:  http://www.instigatorblog.com/top-10-reasons-to-join-a-startup/2007/05/23/

How to evaluate a startup:  http://blogs.bnet.com/intercom/?p=709

How to start a startup:  http://sonyjoy.com/15-mantras-for-every-startup-that-aims-to-make-it-big/

I currently have some startup opportunities in Palo Alto, CA, for server-side and UI developers, LAMP environment, eComm and social media sectors.  Contact me at val at nerdsearch . net.

Valerie Fahs-Thatcher

New Jobs and Career Niches

Here are some growing new job trends:

1. Facilitators – Specialists of social media, collaboration tools, and telecommute solutions.  Facilitators will support distributed teams with technology and communication know-how.
2. Green – Many existing positions will take on the new “color”, helping existing companies and teams gradually shift to more sustainable practices and skills.  This is a good time to paint your own toolbox green and reapply your skills with a fresh approach.
3. Social Media Experts – Some strongly argue that brand control and message through social media is not just important – it’s CRUCIAL now.  Companies and individuals are struggling to grasp and adopt the social media concepts and capabilities:  Social Media Experts can keep them focused on their core competencies while bringing them into the new social media age.
4. Generation Liaisons – Bridging between the Millennials (born 1977 – 2002) and the Baby Boomers (born 1946 – 1964) will be an important role played by savvy GenXers (born 1965 – 1976).  The tools, attitudes, work ethics, motivational drivers, and communication preferences between the Millennials and GenXers will be an important gap to bridge.

 

Thanks spotlight to: Dee McCrory #DeeMcCrory and SDForum  Tech Women #sdtechwomen

Whisperings to (and from) a Recruiter – 11/25/09

• Money for big solar projects, frozen since January 2009, has begun to slowly flow again since late summer.
• Talented job-seekers going crazy from the silence of 2009 are starting to hear their phones ring with calls from recruiters who have heard of them through their networks, not job boards or applications.  There is an expectation that hiring will really open up in January 2010.  Recruiters are fattening their candidate pipes and trying to get interviews for January seats conducted by their clients now, if possible.
• In addition to new seats opening in January 2010, there is a prediction that a game of musical chairs will also be underfoot.  Many employees have played it safe with their jobs this past year, or have taken available positions with too long a commute, or not their aspirational fit:  These folks will likely be on the move.

-Valerie Fahs-Thatcher