Harj Taggar</a> is cofounder and CEO of <a href=https://www.ycombinator.com/"https://triplebyte.com//">Triplebyte (YC S15). Triplebyte helps great engineers find work at the fastest growing companies in the world, with the least amount of time and effort. Before cofounding Triplebyte, Harj was a Partner at YC.</em></p>\n<hr />\n<p>Once you&#8217;ve found an engineer you want to hire, the final step is presenting them an offer to join your team and convincing them to accept it. This post offers advice for increasing the percentage of the offers you make that are accepted. Since working on Triplebyte I&#8217;ve been surprised by just how much variance there is in this rate among companies. Companies that use Triplebyte have acceptance rates ranging from as low as 10% to as high as 90%.</p>\n<p>Generating an offer for an engineer is expensive. It takes time to source good candidates and then hours of your engineering team&#8217;s time doing technical phone screens and onsite interviews. You&#8217;ll likely need to complete five onsite interviews to generate a single offer (the industry standard onsite interview to offer rate for engineers is around 20%). Assuming six hours of engineering time spent interviewing that&#8217;s 30 hours of engineering productivity lost. Given this cost it makes economic sense to work as hard as you can to get your offers accepted.</p>\n<p>The work to increase your offer acceptance rate begins well before presenting the offer itself. It starts with designing a great candidate experience at each step leading up to the offer. Every interaction a candidate has with you must balance your need to extract signal from them while still getting them excited about joining. This begins with doing something seemingly simple &#8211; being responsive.</p>\n<h2>Speed</h2>\n<p>Read this <a href=https://www.ycombinator.com/"https://kellysutton.com/2016/10/20/visualizing-a-job-search-or-how-to-find-a-job-as-a-software-engineer.html/">blog post</a> to get an engineer&#8217;s perspective on the importance of speed and responsiveness in their job search process. Being fast and responsive seems like obvious advice and yet we still see companies move slowly and miss out on good people. There&#8217;s two reasons this happens.</p>\n<p>The first is entropy. Maintaining an organized system for managing candidates is hard. It will naturally trend towards disorder unless you work really hard against it. This is especially true for larger companies with more people and processes. As a smaller startup speed is a huge advantage you have over them when competing for engineers.</p>\n<p>Make this easier for yourself by using software to manage and track the status of your candidates. At first you can use something simple like a spreadsheet or Airtable. As you grow and need to setup interview panels to gather feedback from interviewers you should graduate to a real ATS (Applicant Tracking System) like <a href=https://www.ycombinator.com/"http://lever.co//">Lever. Make it clear who has responsibility for reviewing and acting on candidates every day.</p>\n<p>The second reason is psychological. It&#8217;s easy to believe that candidates who drop out because you were slow weren&#8217;t interested in your company anyway. This is bad reasoning and will make you miss out on good candidates. Managing a job search process quickly becomes overwhelming, especially for the best candidates with the most options. To even have the chance to close the best candidates treat every candidate dropping out before you replied them as a failure, not a lucky escape.</p>\n<p>With an organized and responsive process in place you can now focus on optimizing the quality of each candidate interaction. This starts with the first call.</p>\n<h1>First Call</h1>\n<p>The first call with a candidate typically lasts for about 25 minutes. I&#8217;d recommend the following agenda:</p>\n<ol>\n<li>Introduce yourself, the company and what you work on.</li>\n<li>Ask the candidate to introduce themselves and talk about what&#8217;s important to them in their next role (if you did the initial outreach and they&#8217;re not actively looking, you can soften this to e.g. “how do you think about developing your career and skills in the future?”).</li>\n<li>Ask questions about their skills and experiences to see if they match with what you&#8217;re looking for.</li>\n<li>Pitch the work being done at the company and why it&#8217;s an exciting time to join now.</li>\n<li>Finish with answering any questions they have and explain what the next steps in your hiring process are.</li>\n</ol>\n<p>It&#8217;s common to leave asking the candidate what they&#8217;re looking for until the end of the call. I think that&#8217;s suboptimal because you miss the opportunity to tailor your pitch around it throughout the call.</p>\n<p>If you&#8217;re an early stage company (less than 20 people) a founder should always be doing this call with engineering candidates. Commonly you&#8217;ll have one technical founder and one non-technical/sales founder. I&#8217;d recommend the sales founder do these calls even if they can&#8217;t speak in detail about the technical challenges. This gives the technical founder more uninterrupted time to build (<a href=https://www.ycombinator.com/"http://www.paulgraham.com/makersschedule.html/">maker vs manager schedule</a>). The sales founder should at least have enough sales ability to convince engineers to meet the technical founder in person to learn more about the technology.</p>\n<p>As you grow you&#8217;ll hire a recruiter and typically they&#8217;ll do these calls. I&#8217;d recommend doing the following to best set them up for success:</p>\n<ol>\n<li>Ask your recruiter to send you a monthly report on number of first calls they&#8217;re doing and the % that opt&#8217;ed out of coming onsite. Have your recruiter keep a list of reasons why candidates said they wouldn&#8217;t move forward and continually review these with them to improve the pitch.</li>\n<li>Assign one engineer to train your recruiter on how to talk about the interesting technical challenges at the company. Have them listen to mock pitches, give feedback, and repeat. I often see companies give their recruiter no help in learning how to best pitch the company and then complain when they see low conversions. That&#8217;s not fair to them nor optimal for you.</li>\n<li>Asking technical vetting questions is difficult for recruiters as they&#8217;re usually not technical. This is usually the most awkward aspect of the interactions between engineers and recruiters. Give your recruiter support and structure so they can do this well. I&#8217;d advise giving them specific technical questions to ask. One idea I&#8217;ve seen companies use to good effect is making them multiple choice format so the recruiter can read out the answers and ask the candidate to pick one that fits best. This helps your recruiter feel confident and provide a better candidate experience.</li>\n<li>If you&#8217;re working on a deeply technical product that doesn&#8217;t yet have marquee customers or traction, I&#8217;d actually recommend having an engineer do these first calls, at least for particularly promising candidates. In this case your main selling point is the depth of your technical challenges and it&#8217;ll be very hard to find a recruiter who can pitch those well.</li>\n</ol>\n<h2>Technical Phone Screen</h2>\n<p>If the first call goes well you&#8217;ll usually move the candidate forward to a technical phone screen with an engineer (companies that use Triplebyte will skip these phone screens and move straight to the onsite). These phone screens are usually 45 minutes of the candidate working through a coding problem and screen sharing. I&#8217;d recommend allotting one full hour for the phone screen. 45 minutes for working through a technical problem and up to 15 minutes for a conversation between the candidate and engineer to ask each other questions.</p>\n<p>Ideally you want to select the engineers who are best at pitching your company for these phone screens. There are also ways to make the experience more candidate friendly e.g. letting them pick from several problems to solve during the call. This creates some more work for you but if a candidate can show their strength on a problem they enjoy they&#8217;ll have a more positive feeling towards you. You can also let them code in their own environment and screen share with you instead of using an artificial environment (though some of these e.g. Coderpad do have advantages of better collaboration and recording features).</p>\n<p>If the technical phone screen goes well, the next step is the onsite interview.</p>\n<h2>Onsite Interview</h2>\n<p>The onsite interview will be the first time a candidate meets your team in person. Their experience throughout the day will be a huge deciding factor in where they end up. It&#8217;s important to think through the details of the candidate experience when setting up your onsite. Start with the basic logistics and be sure to:</p>\n<ol>\n<li>Send an email ahead of time with clear directions to the office.</li>\n<li>Assign someone to greet them when they arrive</li>\n<li>Have somewhere they can hang out if they arrive early (even if it&#8217;s just a spare desk and chair)</li>\n</ol>\n<p>A standard onsite interview agenda will typically look like this:</p>\n<ol>\n<li>Quick welcome and talking through the agenda for the day (5 minutes)</li>\n<li>Technical interview 1 (1 hour)</li>\n<li>Technical interview 2 (1 hour)</li>\n<li>Lunch (1 hour)</li>\n<li>Technical interview 3 (1 hour)</li>\n<li>Technical interview 4 (1 hour)</li>\n<li>Behavioral / culture interview (45 mins)</li>\n<li>Closing Q&amp;A for them to ask about the company (25 minutes)</li>\n</ol>\n<p>If you&#8217;re early stage I&#8217;d recommend having at least one of the founders involved in the closing Q&amp;A. It can also be a good idea to include a demo or roadmap section here at the end. Give the candidate a sneak preview of a new feature you&#8217;re working on or talk through the most exciting upcoming projects so they finish the day feeling excited about your future momentum.</p>\n<p>We asked engineers using Triplebyte what caused them to have bad experiences during onsite interviews. Almost all the replies centered on their interactions with the interviewers. The top three complaints were interviewers being (1) unprepared and not knowing anything about them (2) not being familiar with the technical questions they asked and (3) being determined to prove their intelligence to the interviewee.</p>\n<p>It&#8217;s unlikely an engineer will accept your offer if they had a bad interaction with an interviewer. I&#8217;d make the importance of providing a good interview experience a part of your company culture. You can start by writing a simple interviewing guide for your team that emphasizes the importance of being on-time, prepared and friendly when interviewing. You can also only pick the engineers who are friendliest and best at representing your company as interviewers.</p>\n<p>For question familiarity, have a centralized question bank that interviewers work through together before using them on candidates. For more ideas on the kind of content and questions you can use in technical interviews, my co-founder Ammon wrote a detailed post on <a href=https://www.ycombinator.com/"https://triplebyte.com/blog/how-to-interview-engineers/">how to interview engineers</a>.</p>\n<p>It&#8217;s also great to do something that makes lunch a chance for the candidate to get to know the team. At Triplebyte we Slack our team in the morning that a candidate is interviewing and ask people to head over to the lunch table at the same time. Our office manager introduces the candidate to the team and we do an icebreaker where the candidate gets to ask a question which everyone goes around and answers (we tell them to think of this ahead of time and make it lighthearted). It&#8217;s a good way for them to get to know the team and is usually quite fun. We&#8217;ve had candidates tell us this experience was the deciding factor in joining.</p>\n<h2>Making The Offer</h2>\n<p>After a successful onsite you&#8217;ll make the formal offer and the work to get it accepted really starts. The first step is making sure you actually present the offer details. A complaint we hear from Triplebyte candidates is being asked how likely they would be to accept an offer before knowing the actual offer details. The reality is that compensation details are a large factor in where people decide to work and you can&#8217;t expect someone to know if they want to work for you without giving them that data.</p>\n<p>Create a formal offer letter template that includes these details:</p>\n<ul>\n<li>Salary and benefits</li>\n<li>Signing bonus details (if applicable)</li>\n<li>Health insurance details (include a link to the policy documents)</li>\n<li>401(k) details, if any</li>\n<li>Vacation policy details</li>\n</ul>\n<p>Equity</p>\n<ul>\n<li>Total number of shares/stock options presented</li>\n<li>Total number of shares outstanding</li>\n<li>% ownership that represents</li>\n<li>Exercise price for options</li>\n<li>Vesting schedule details</li>\n</ul>\n<p>When presenting the offer I&#8217;d recommend doing things in the following order:</p>\n<p>Step One: Call to tell them they&#8217;ll be receiving an offer</p>\n<p>Have the hiring manager (if you&#8217;re early stage that&#8217;s the founder) call the candidate as soon as possible after the onsite. Do it the same day if you can. Tell them the day went really well and you&#8217;d love to make them an offer to join the team. Mention specific reasons why you&#8217;re excited about them joining the team and reference what they did well during the day. You could even have multiple people on the call and ask each of them to mention a specific reason they&#8217;d be excited to work with the candidate. Tell them the next step will be you (or a recruiter) calling them back to talk through offer details.</p>\n<p>Step Two: Call with offer details</p>\n<p>Call the next day to talk them through the offer details. Explaining salary and benefits is fairly straightforward. For equity, before giving any details, ask them how familiar they are with equity concepts like stock options or RSUs.</p>\n<ul>\n<li>If they have little familiarity, do not overwhelm them with information on the call. Give them a quick explanation of how equity works. Talk them through the numbers of your offer and tell them you&#8217;ll send them some resources on equity to read through on their own time.</li>\n<li>If they&#8217;re experienced with equity, then go straight into the numbers and ask if they have any questions about the details they&#8217;d like you to talk more about.</li>\n</ul>\n<p>Tell them you&#8217;ll be sending through the formal offer letter, documenting all these details, via email shortly. They should take some time to digest that and the next step would be a follow up call to talk through their thoughts. Offer some times for that call right then.</p>\n<p>It&#8217;s tempting to push hard for a decision on this call. I&#8217;d recommend not doing that to avoid the candidate feeling pressured. This will make it harder for you to stay engaged with them as they go through the decision making process. It&#8217;s fine to ask them if they have any initial thoughts or questions and then move on if they seem hesitant to go into details. It is also ok to ask them about their decision making timeline if you haven&#8217;t discussed that already.</p>\n<h2>Culture</h2>\n<p>Now the offer has been presented it&#8217;s time to focus on closing. To be effective at closing candidates you need to work hard at selling them on the most exciting reasons to join. This sounds obvious but there is a temptation to stop if the candidate doesn&#8217;t seem immediately excited or asks probing questions about your business. The reality is that working at your company will seem more exciting to you than the candidate because you&#8217;ve had time and data to build up that excitement. Now you have to pull out all the stops to transfer that excitement.</p>\n<p>It&#8217;s common at this stage for candidates to start probing more deeply into questions about your company culture. They&#8217;re trying to build a picture of what it will be like to work with you on a daily basis. We&#8217;ve observed at Triplebyte that most companies use fairly generic descriptions of their culture. This is optimal for not offending candidates but won&#8217;t make your company stand out. To use your culture as a differentiator you&#8217;ll need to take some risk. You could try describing your culture with tradeoffs e.g. don&#8217;t just say you&#8217;re “collaborative”, say you&#8217;re willing to trade the upside of collaboration (better ideas and execution) for the downsides (reduced personal autonomy to just do things).</p>\n<p>Depending on the content you choose, being different in describing your culture could backfire or it could give you a hiring advantage with the right candidates. Whichever approach you take, make sure you and your team are prepared to talk in detail about this with candidates. Sounding unprepared about culture is itself a negative signal about how much the company cares about and values its team.</p>\n<h2>Closing</h2>\n<p>Make sure to get your team involved in the closing process. Ask everyone who met the candidate during the onsite to send them a follow up email with specific reasons they enjoyed it and offering to talk with them again. If you&#8217;re small it&#8217;s ok if this is literally the entire company. If you have multiple teams and you already know which team the candidate would be working on, make sure that team reaches out. Encourage them to talk about the details of what the first two weeks would look like and who would help get them ramped up. Nitty gritty details will make the offer feel more real and we&#8217;ve seen this be the deciding factor for candidates.</p>\n<p>If you&#8217;re early stage, include your investors in every engineering offer you make. Then become selective as you grow and the hiring pace picks up. Choose the investor you think will be most likely to effectively sell that candidate and give the candidate context on why you thought that in the intro email. Don&#8217;t pick an investor who isn&#8217;t up to date and familiar with the details about your company.</p>\n<p>Also think about more than just closing the candidate. Think about their personal circumstances and other decision makers involved. The best recruiters we work with at Triplebyte are continually taking notes about this and referring back to them to take action. I&#8217;ve seen a great recruiter learn early on that the candidate&#8217;s wife was reluctant to move location because she was worried it&#8217;d negatively impact her medical career. The recruiter spent time researching places she could work, gathered contact information and compensation data, and asked to speak with the wife to share it. The candidate accepted the offer shortly afterwards.</p>\n<p>What matters most during the closing process is how long its been since your last communication with the candidate. You need to strike a balance between proactively following up without being overbearing. It&#8217;s good to find reasons to reach out again that aren&#8217;t asking “have you decided yet?” even if you both know what the real agenda is. For example you could send them links to recent news stories you think they&#8217;d be interested in based on what you learnt about them during the onsite. If you&#8217;re doing team events send them an invitation to join. Your goal is to stay near the top of their mind as they&#8217;re deciding but not suffocate them.</p>\n<h2>Exploding Offers</h2>\n<p>One tactic companies use for closing is putting an aggressive deadline on the offer e.g. we need a final decision within a week. I&#8217;d advise against this because good candidates with multiple options will push back. It&#8217;s also something an experienced recruiter at a competing company can use as ammunition against you. If a candidate tells them about your deadline they might respond well I&#8217;d question the culture that company is trying to build if they only want to hire people who can decide quickly. We want everyone to be sure this is the best place for them over the long term and would never pressure someone into rushing their decision.</p>\n<p>A softer version you can try is an expiring signing bonus. We&#8217;ve seen this be effective and have used it ourselves with success at Triplebyte. The way I&#8217;d present this would be We want you to take all the time you need to make the right decision for you (and your family). At the same time we can&#8217;t leave offers hanging out there indefinitely as things can change rapidly at a startup. If you are able to make a final decision by X date, we&#8217;d be able to offer you a $X,000 signing bonus.</p>\n<h2>Big Company Competition and Bay Area Relocation</h2>\n<p>There are two common scenarios that present unique closing challenges &#8211; competing against big companies (Facebook and Google especially) and candidates considering relocation to the Bay Area. I&#8217;ll talk through some advice on handling both.</p>\n<p>As a startup it&#8217;s hard to compete with Facebook and Google compensation packages, especially for senior engineers. Unless you&#8217;re also a public company, you won&#8217;t be able to compete on total compensation. Still, you can win &#8211; we&#8217;ve seen startups successfully compete against them on Triplebyte. These are the arguments we&#8217;ve found are most successful:</p>\n<ol>\n<li><em>Learning</em>: You learn the fastest by being given real decision making responsibility. Large companies won&#8217;t give you this kind of responsibility for years, they need to have checks and balances in place to ensure no single person &#8211; especially a new hire &#8211; could cause too much damage. Fast growing startups don&#8217;t have this luxury and you&#8217;ll be thrown straight into making decisions that could materially affect the trajectory of the company.</li>\n<li><em>Career Progression</em>: Silicon Valley and the technology industry are unique because you can rise up through the ranks of a company faster than anywhere else (e.g. the Chief Product Officer of Facebook ($500bn market cap) is 36 years old). This only happens by joining a startup that grows fast and keeps throwing more responsibilities at you. Give the candidate examples of how this has already been happening for people at your startup and paint a specific picture of how the candidate could progress over the next few years with you.</li>\n<li><em>Opportunity cost</em>: At any point in time there will always be the safe option of working at a public technology company. The names might change but the experience of working at one is fungible. The experience of working at startups can vary wildly and you should present your startup as a unique opportunity right now because of the team and market. They can always go back to the big company experience if it doesn&#8217;t work out.</li>\n<li><em>Mentorship</em>: One concern engineers, especially juniors, can have about working at a smaller startup is they won&#8217;t learn best practices and the “right” way to do things. It will help a lot if you have experienced engineers on your team who would be willing to provide mentorship. If you do be sure to tell the candidate this.</li>\n</ol>\n<p>For candidates who would need to relocate to the Bay Area, they may be frightened by the cost of living, which has both increased in dollars and frequency of press coverage. While this is ultimately a personal decision for the candidate I have been surprised by how often even engineers don&#8217;t take an analytical approach to running the numbers to be sure what their actual cost of living would be. You can be proactive about this. Don&#8217;t assume that when a candidate says they don&#8217;t think they can afford to live in the Bay Area that they&#8217;ve run through the numbers. If you really want them to join then spend time helping them think through this. You can create a spreadsheet template with cost of living assumptions and work through this together with them to figure out what their real monthly income would be. We also wrote a <a href=https://www.ycombinator.com/"https://triplebyte.com/blog/does-it-make-sense-for-programmers-to-move-to-the-bay-area/">blog post</a> talking through the pros and cons in detail that you could share.</p>\n<h2>Feedback and Iterate</h2>\n<p>No company has a 100% offer acceptance rate and you will inevitably miss out on closing candidates you really wanted. That&#8217;s an inevitable part of hiring and it sucks. Use every rejected offer as an opportunity to gather data on how you can improve your hiring process and pitch. Do a quick exit interview with each candidate and ask for feedback on why they made the decision and their general feedback on the quality of your hiring process. Review these regularly with your team and use them to iterate and improve your interviewing and closing process over time.</p>\n<p>If you treat optimizing this process like you would optimizing your product you will see improved conversions and have more success hiring. Good luck!</p>\n<p><em>If you&#8217;re hiring engineers and would like to try Triplebyte, <a href=https://www.ycombinator.com/"http://triplebyte.com/tblog/express/">use this link</a> to sign up and you&#8217;ll get a special $15,000 hiring fee for your first hire</em></p>\n<!--kg-card-end: html-->","comment_id":"1102829","feature_image":null,"featured":false,"visibility":"public","email_recipient_filter":"none","created_at":"2018-09-07T04:20:17.000-07:00","updated_at":"2021-10-20T12:04:49.000-07:00","published_at":"2018-09-07T04:20:17.000-07:00","custom_excerpt":null,"codeinjection_head":null,"codeinjection_foot":null,"custom_template":null,"canonical_url":null,"authors":[{"id":"61fe29e3c7139e0001a71094","name":"Harj Taggar","slug":"harj-taggar","profile_image":"/blog/content/images/2022/02/Harj.jpg","cover_image":null,"bio":"Harj Taggar is a Managing Partner at YC. He was previously founder and CEO of Triplebyte (YC S15) and Auctomatic (YC W07), which was acquired by Live Current Media in 2008.","website":null,"location":null,"facebook":null,"twitter":null,"meta_title":null,"meta_description":null,"url":"https://ghost.prod.ycinside.com/author/harj-taggar/"}],"tags":[{"id":"61fe29efc7139e0001a71174","name":"Advice","slug":"advice","description":null,"feature_image":null,"visibility":"public","og_image":null,"og_title":null,"og_description":null,"twitter_image":null,"twitter_title":null,"twitter_description":null,"meta_title":null,"meta_description":null,"codeinjection_head":null,"codeinjection_foot":null,"canonical_url":null,"accent_color":null,"url":"https://ghost.prod.ycinside.com/tag/advice/"}],"primary_author":{"id":"61fe29e3c7139e0001a71094","name":"Harj Taggar","slug":"harj-taggar","profile_image":"https://ghost.prod.ycinside.com/content/images/2022/02/Harj.jpg","cover_image":null,"bio":"Harj Taggar is a Managing Partner at YC. He was previously founder and CEO of Triplebyte (YC S15) and Auctomatic (YC W07), which was acquired by Live Current Media in 2008.","website":null,"location":null,"facebook":null,"twitter":null,"meta_title":null,"meta_description":null,"url":"https://ghost.prod.ycinside.com/author/harj-taggar/"},"primary_tag":{"id":"61fe29efc7139e0001a71174","name":"Advice","slug":"advice","description":null,"feature_image":null,"visibility":"public","og_image":null,"og_title":null,"og_description":null,"twitter_image":null,"twitter_title":null,"twitter_description":null,"meta_title":null,"meta_description":null,"codeinjection_head":null,"codeinjection_foot":null,"canonical_url":null,"accent_color":null,"url":"https://ghost.prod.ycinside.com/tag/advice/"},"url":"https://ghost.prod.ycinside.com/convincing-engineers-to-join-your-team/","excerpt":"Harj Taggar [https://twitter.com/Harjeet] is cofounder and CEO of Triplebyte\n[https://triplebyte.com/] (YC S15). Triplebyte helps great engineers find work\nat the fastest growing companies in the world, with the least amount of time and\neffort. Before cofounding Triplebyte, Harj was a Partner at YC.\n\n\n--------------------------------------------------------------------------------\n\nOnce you’ve found an engineer you want to hire, the final step is presenting\nthem an offer to join your team and co","reading_time":15,"access":true,"og_image":null,"og_title":null,"og_description":null,"twitter_image":null,"twitter_title":null,"twitter_description":null,"meta_title":null,"meta_description":null,"email_subject":null,"frontmatter":null,"feature_image_alt":null,"feature_image_caption":null},"mentions":[],"related_posts":[{"id":"6669d02f5df3e40001fdc874","uuid":"57968021-b5aa-49be-8998-40df98cb033a","title":"Dissecting the past to predict the future: Tracy Young on building TigerEye","slug":"tracy-young-tigereye-interview","html":"<p>Tracy Young is unstoppable.</p><p>In 2018, Tracy and her co-founders sold their company <a href=https://www.ycombinator.com/"https://www.ycombinator.com/companies/plangrid/">PlanGrid for $875 million. By 2021, she was ready to jump back in and do it all over again with a brand new startup: <a href=https://www.ycombinator.com/"https://www.tigereye.com//">TigerEye.

TigerEye builds AI-powered planning and revenue management software for businesses, combining AI and machine learning with a company’s own historical data to help them predict their future. It’s “Moneyball but for business,” as Tracy puts it. </p><p><strong>I recently sat down with Tracy to find out more about her, what drives her, and some of what she has learned along the way. We talked about:</strong></p><ul><li>Why she wanted to jump back in as a founder/CEO, and what sparked the idea for TigerEye</li><li>The YC interview that inspired her to focus on enterprise software</li><li>Why she and her co-founder spent months “dissecting the past” before starting another company, and what they’re doing differently this time.</li><li>The hard parts of joining a big company following an acquisition, her advice for new founders going through YC, and more!</li></ul><p><em>Find our conversation below, lightly edited for clarity and length.</em></p><hr><p><strong>You had a massive exit with PlanGrid. You took a couple of years and then jumped right back in to do it again with TigerEye. What drives you?</strong></p><p>That’s a really good question.</p><p>I think my kids drive me. I always need a project to work on; I’m a busybody that way.  I like working, and I like working with really smart, talented people.</p><p>But I also have a lot of energy and intensity, and my kids don’t need me all over them all the time. They have their own life, they don’t need founder-mom on top of them — because then I’m nitpicking every little thing. “Why are your toys out? Go pick that up!” <em>[laugh]</em></p><p>They don’t need that energy on them 24/7. So I output it into a startup.</p><p>But more than anything, I watched my parents work incredibly hard to give my siblings and me the life we have. They were refugees of the Vietnam War. They worked seven days a week for many years; they worked two jobs a piece just to make things work for our family. <a href=https://www.ycombinator.com/"https://www.ycombinator.com/library/JF-the-immigrant-journey-behind-a-silicon-valley-success-story/">It absolutely made me who I am today</a>, and I want my kids to see that you can dream, you can work hard, and you can do whatever you want as long as you’re passionate about it.</p><p><strong>What came first: the idea for TigerEye or the desire to keep building [after PlanGrid]?</strong></p><p>The desire to keep building.</p><p>[My co-founder] Ralph and I were actually working at YC in between PlanGrid and TigerEye — we were both Visiting Group Partners. We saw a lot of really cool technology come through during interviews, and while reading thousands of applications from all of these ambitious, talented founders.</p><p>It was really clear to us there was so much low-hanging fruit in enterprise, but the only people who would build solutions there… let me tell you a quick story: I remember interviewing a really, <em>really</em> talented engineer. He must’ve been only 18 years old, and he was building.. I don’t even remember, some kind of vague thing around video. We were looking at him and asked: you can build anything! Why don’t you solve real problems for real people’s jobs?</p><p>He looked at us and said: enterprise software is for old people. </p><p><strong>Oh jeez. What was your response?</strong></p><p>I laughed, but it got me thinking that the only people who would build great solutions in the enterprise world are the people who saw it firsthand. </p><p>We had this unfair advantage of having built a startup for almost 10 years, seeing it grow the whole time, and deploying every solution under the sun to make our company scale and work.</p><p>Then we got the privilege to be acquired into a public company, and to form a new construction business unit [within that company], where we then replaced all of our startup tools with the [big brand] winners — we were paying millions of dollars to buy the software each year, and then another several hundred thousand to deploy it and administer it.</p><p>It was so clear to us: we could take any category [of Enterprise software] between CRMs and ERPs and there were ten good startup ideas in there, right? But the only people who would build that type of software are people who saw it fail them for years.</p><p><strong>For those who don’t know, can you explain what TigerEye does? What was the pitch?</strong></p><p>When Ralph pitched me the idea of TigerEye, he said, “Remember all of those spreadsheets we’d have people make [when building PlanGrid], and they’d never actually answer our questions? I think I can build a business simulator — and automatically generate that data through simulation theory.”</p><p>In a past life he worked at Johns Hopkins University Applied Physics Laboratory using simulation theory and he felt strongly that it could be applied to business. That was really interesting to me.</p><p><strong>Can you give me examples of what TigerEye is simulating, and what it bases its simulations on?</strong></p><p>Something that’s interesting about, say, Salesforce, is that it’s a flat database. When a sales rep hits save on an opportunity, it overrides the history. There’s no version control.</p><p>But that history is interesting! Especially if you have a lot of it, because now we can understand rep behavior over time. So we go into the CRM and snapshot everything every 15 minutes. We pick up every minor change that’s happening over time and use a bunch of AI, machine learning, and advanced statistics to use their historical [data] to predict their future. We’re like Moneyball but for business.</p><p>It gets even more important at public companies, where you’re trying to figure out: where are we going to clock out this quarter, or this month? Where’s our business going to be? </p><p>You constantly have really smart people munging numbers on a spreadsheet to try to predict the future, and these spreadsheets don’t work.</p><figure class=\"kg-card kg-embed-card\"><iframe width=\"200\" height=\"113\" src=https://www.ycombinator.com/"https://www.youtube.com/embed/5eYN7-l6d_A?feature=oembed\%22 frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen title=\"Introducing TigerEye\"></iframe></figure><p><strong>What was it like for you to go from running your own startup for 10 years, moving at your own pace, to being within a larger corporate environment?</strong></p><p>It really sucked for me. I think everyone knew this.</p><p>Startups move at such a velocity. To get inserted into a 40+ year old public company… there’s a cultural difference. There’s definitely decision-making differences, and I think that was the hardest part. I felt like I couldn’t sneeze without asking permission from five head-of-somethings.</p><p><strong>Between your experiences with PlanGrid and then at a bigger company — how retrospective did you get about all of this before diving back in?</strong></p><p>We left Autodesk in March 2020 — and then, as you recall, went right into a worldwide lockdown. </p><p>I’m married to my co-founder [Ralph], so we ended up spending most of shelter-in-place and that COVID period dissecting the past. We suddenly didn’t have a job, we’d left Autodesk, we’re used to moving at such a velocity, and then we came to a complete standstill. </p><p>What we ended up doing is dissecting everything we felt we did wrong, and everything we did right. Everyone we thought we wanted to work with again, and everyone we for sure were not going to work with again. We mapped out the differences between those that we’d want to work with again, and those we didn’t. The first 24 or 25 people [at TigerEye] were people we’d worked with before.</p><figure class=\"kg-card kg-image-card kg-card-hascaption\"><img src=https://www.ycombinator.com/"https://ghost.prod.ycinside.com/content/images/2024/06/tracy-and-ralph.png/" class=\"kg-image\" alt loading=\"lazy\" width=\"1388\" height=\"913\" srcset=\"https://ghost.prod.ycinside.com/content/images/size/w600/2024/06/tracy-and-ralph.png 600w, https://ghost.prod.ycinside.com/content/images/size/w1000/2024/06/tracy-and-ralph.png 1000w, https://ghost.prod.ycinside.com/content/images/2024/06/tracy-and-ralph.png 1388w\" sizes=\"(min-width: 720px) 720px\"><figcaption><em>TigerEye co-founders Tracy Young and Ralph Gootee</em></figcaption></figure><p><strong>What determined whether or not you wanted to work with someone again?</strong></p><p>It was the people we thought were incredibly talented, and that we had a fun time building with. It’s as simple as that: looking back, yes, I would love to work with that person again. We had that core value in place before we even narrowed in on a product idea.</p><p><strong>Can you tell me a bit about what you’re doing differently as a founder this time, day-to-day?</strong></p><p>It’s a little bit different this time around; when I first started PlanGrid, I was in my mid-to-late 20s. I’m approaching 40 this year, and I have 3 young kids.</p><p>Getting the luxury of doing it a second time around, I know the things that are a higher value — the things that only I can do as a CEO and founder. There are certain decisions only I can make, and there are decisions that are better off made by someone else at the company.</p><h3 id=\"it-makes-people-feel-like-they-suck-at-their-job-when-the-ceo-jumps-in-and-does-it-for-them\"><em>\"It makes people feel like they suck at their job when the CEO jumps in and does it for them.\"</em><br></h3><p>I think in my 20s, as a founder and a first-time CEO, I honestly didn’t know what my job was. I always jumped onto support tickets; if customers had an issue, I’d be the first one to jump in. Companies get to a point where that’s not the best use of your time. We had really great support people on the team — and it feels really bad when the CEO is jumping in to do your job! It makes people feel like they suck at their job when the CEO jumps in and does it for them.</p><p>So this time I’m really deliberate in how I spend my time.</p><p><strong>What does that look like?</strong></p><p>These days it’s mostly product and sales. But it’s also about having really heavily protected family time, and really heavily protected work time.</p><p><strong>That dedicated family time… I generally don’t ask questions about founders being married to each other because it feels too personal, but since you mentioned it earlier: does that make it easier or harder to separate life and work? Easier because your partner already understands the things that are going on in your life, or harder because, in some way, work is always in the air?</strong></p><p>We’ve been doing this together for so long that it’s hard for me to even know what it’s like on the other side. We worked together [on PlanGrid] starting in 2011; we got married in 2013. With three kids, and now two startups — yeah, it’s hard.</p><p>It’s funny, but we often get founders who are thinking about starting a company with their partners, and the advice we give is: don’t do it. And the reason for that is that startups are hard. And marriage is hard. And having children is hard! So it’s this combinatorial explosion of problems that could come up.</p><p>But we’re also a good example that it can work, but we’ve done a lot of work on personal growth, and practicing patience, and practicing forgiveness to be able to do what we do. </p><p><strong>Last question here, but: you have an incredibly rare perspective on YC. You went through it as a founder multiple times, you were a Visiting Group Partner... for anyone going through the incoming YC batch, or applying in the future, what would you tell them to really maximize their time?</strong></p><p>It’s easy to get a bit obsessive — the goal is to make as much progress as you can in three months, so that you have a great Demo Day with as much revenue and progress as you can.</p><p>But I would encourage everyone to look at the people around them [in the batch], and the startups around them, and put in the effort to get to know them. Learn what they’re building.</p><p>I think back to YC Winter 2012 and Summer 2022, and it’s the people that really are the best part of YC. It’s the friendships I made; the partners that I got to work with. It’s really easy to be 100% heads down and obsessive over your thing — of course, talk to customers, make something people want! — but don’t forget that you are getting an incredible opportunity to meet people who are going through the exact same journey you are.</p><hr><p><em>Find out more <a href=https://www.ycombinator.com/"https://www.tigereye.com//">about TigerEye here</a>, and <a href=https://www.ycombinator.com/"https://www.linkedin.com/newsletters/predictable-growth-7018963257554046976//">find Tracy's newsletter \"Predictable Growth\" here</a>.</em></p>","comment_id":"6669d02f5df3e40001fdc874","feature_image":"/blog/content/images/2024/06/tracy.png","featured":true,"visibility":"public","email_recipient_filter":"none","created_at":"2024-06-12T09:43:27.000-07:00","updated_at":"2024-06-12T11:07:13.000-07:00","published_at":"2024-06-12T11:00:00.000-07:00","custom_excerpt":"In 2018, Tracy Young and her co-founders sold PlanGrid for $875 million. By 2021, she was ready to jump back in and do it all over again with a brand new startup. I chatted with Tracy about what drives her and some of what she's learned along the way.","codeinjection_head":null,"codeinjection_foot":null,"custom_template":null,"canonical_url":null,"authors":[{"id":"645000ebb09be6000165fbad","name":"Greg Kumparak","slug":"greg","profile_image":"/blog/content/images/2023/05/greg.jpeg","cover_image":null,"bio":"Greg oversees editorial content at Y Combinator. He was previously an editor at TechCrunch for nearly 15 years.","website":null,"location":null,"facebook":null,"twitter":null,"meta_title":null,"meta_description":null,"url":"https://ghost.prod.ycinside.com/author/greg/"}],"tags":[{"id":"63d1aa7a466acf0001099b6a","name":"#25267","slug":"hash-25267","description":null,"feature_image":null,"visibility":"internal","og_image":null,"og_title":null,"og_description":null,"twitter_image":null,"twitter_title":null,"twitter_description":null,"meta_title":null,"meta_description":null,"codeinjection_head":null,"codeinjection_foot":null,"canonical_url":null,"accent_color":null,"url":"https://ghost.prod.ycinside.com/404/"},{"id":"63d1aa7a466acf0001099b6b","name":"#8","slug":"hash-8","description":null,"feature_image":null,"visibility":"internal","og_image":null,"og_title":null,"og_description":null,"twitter_image":null,"twitter_title":null,"twitter_description":null,"meta_title":null,"meta_description":null,"codeinjection_head":null,"codeinjection_foot":null,"canonical_url":null,"accent_color":null,"url":"https://ghost.prod.ycinside.com/404/"},{"id":"61fe29efc7139e0001a71152","name":"Founder Stories","slug":"founder-stories","description":null,"feature_image":null,"visibility":"public","og_image":null,"og_title":null,"og_description":null,"twitter_image":null,"twitter_title":null,"twitter_description":null,"meta_title":null,"meta_description":null,"codeinjection_head":null,"codeinjection_foot":null,"canonical_url":null,"accent_color":null,"url":"https://ghost.prod.ycinside.com/tag/founder-stories/"},{"id":"61fe29efc7139e0001a71174","name":"Advice","slug":"advice","description":null,"feature_image":null,"visibility":"public","og_image":null,"og_title":null,"og_description":null,"twitter_image":null,"twitter_title":null,"twitter_description":null,"meta_title":null,"meta_description":null,"codeinjection_head":null,"codeinjection_foot":null,"canonical_url":null,"accent_color":null,"url":"https://ghost.prod.ycinside.com/tag/advice/"}],"primary_author":{"id":"645000ebb09be6000165fbad","name":"Greg Kumparak","slug":"greg","profile_image":"https://ghost.prod.ycinside.com/content/images/2023/05/greg.jpeg","cover_image":null,"bio":"Greg oversees editorial content at Y Combinator. He was previously an editor at TechCrunch for nearly 15 years.","website":null,"location":null,"facebook":null,"twitter":null,"meta_title":null,"meta_description":null,"url":"https://ghost.prod.ycinside.com/author/greg/"},"primary_tag":null,"url":"https://ghost.prod.ycinside.com/tracy-young-tigereye-interview/","excerpt":"Tracy Young is unstoppable.","reading_time":8,"access":true,"og_image":null,"og_title":null,"og_description":null,"twitter_image":null,"twitter_title":null,"twitter_description":null,"meta_title":null,"meta_description":null,"email_subject":null,"frontmatter":null,"feature_image_alt":null,"feature_image_caption":null},{"id":"6348578e2184dc0001eebf80","uuid":"e6a0a134-b255-40e8-b7be-01494afbabe8","title":"Learnings of a CEO: Matt Schulman, Pave, on Hiring","slug":"learnings-of-a-ceo-matt-schulman-pave","html":"<p>Welcome to the third edition of Learnings of a CEO. You can read previous editions <a href=https://www.ycombinator.com/"https://www.ycombinator.com/blog?query=learnings%20of%20a%20CEO\%22>here.

Pave helps companies plan, communicate, and benchmark employee compensation. Today, the company has 160 employees, more than 3,500 customers, and is valued at $1.6B. Founder and CEO <a href=https://www.ycombinator.com/"https://twitter.com/matthewschulman?lang=en\%22>Matt Schulman</a> has created one of the most comprehensive and thorough recruiting processes, which has made him one of the most successful recruiters in the YC community. We sat down with Matt to hear his insight on <a href=https://www.ycombinator.com/"https://www.workatastartup.com/companies/pave-2/">building a team</a> in the early stages of his company and today as a CEO of a growth-stage company. </p><p><strong>Many of the first Pave employees were hired as a contractor before converting to a full-time employee. Would you recommend this strategy to founders? </strong></p><p>I strongly recommend the contract-to-hire setup in the early days of a startup, as it led me to have a 100% close rate with the candidates we wanted to convert to full-time. This strategy worked for two reasons: </p><p>1) By the end of the contract, the contractors had poured weeks of energy into the work – learning the code base and investing their time – and getting to know potential coworkers. This escalated their sense of commitment.</p><p>2) I was flexible on working hours – open to them working nights or weekends. This made it easier for the candidates who were busy with full-time employment to say yes to working with Pave and earn extra income on the side. </p><p>To convince people who were employed to work for Pave as a contractor on top of their current job, I framed the process as a mutual evaluation. This is an opportunity to evaluate the company and come to a mutual decision at the end of 2, 4, or 6 weeks together – no pressure. We paid them a fair market rate, and as mentioned, we were flexible on working hours. One contractor worked their day job until 5:00pm and then on Pave from 6:00pm-2:00am, for example. They were excited to be able to build something from the ground up and work closely with me at the earliest stage of the company – which is another strategy I used to encourage people to work with us. </p><p>Before Pave, I was an engineer at Facebook and regularly worked on side projects. These projects were my fun, guilty pleasures because when I built something from the ground up, I felt an emotional attachment to the work. Usually engineers at large companies feel part of a machine, but when they build something full-stack from the ground up, there’s a magical allure to that work. I gave those contractors ownership over the work and often jammed out with them – working side by side at all hours. (One note: I did not have the contractors touch customer PII.) Within weeks, we’d both know whether Pave would be a good fit, and if so, we were already committed to each other.</p><p><strong>What were you looking for in early employees? </strong></p><p>When starting to build out the team, I was given a tip that the first 10 hires would set the tone for the next 100. Because of this, I personally recruited 100% of the early Pave employees. I sourced people, took phone screens, went to dinner, coffee, and on walks with candidates, and spoke with them for hours on Zoom and Facetime. It was an all-encompassing process. But I found that early advice to be accurate: The first 10 employees are the most important aspect in the company’s life cycle – other than finding product-market fit – and recruiting has to be the founder’s priority.</p><p>When recruiting for the first ten employees, I wasn’t looking for experts in specific areas but generalists with rapid career growth, passion for our mission, and a hunger to work. Those early employees readily tackled whatever fire we were facing that day from engineering work and sales to back office and HR. I also had a deep level of trust with those first ten hires, as they were all in my network. </p><p>Today, I still look for mission alignment and hunger but there are times I need to hire a specialist. I identify the tightest set of criteria for the role and only talk to people who fit that criteria. This is very different from the early days when I was solely looking for generalists who could fill multiple roles.</p><p><strong>How did you convince those early employees to join Pave? </strong></p><p>I always found ways to continue our conversation even when I could sense the candidate wanted to turn down the offer. I would do this by scheduling future conversations – saying that I needed to share something new with them – and then I would get to work writing a Google Doc that showed how I planned to invest in their career. We still use this strategy at Pave today, but it has evolved and is now affectionately called the collaborative Google Doc.</p><p>The collaborative Google Doc is shared with the candidate and used throughout the entire interview process. The document outlines expectations for the role and frames the interview process in stages, communicating which stage the candidate is in at any given time to ensure we are working within their ideal timeline. We encourage the candidate to comment and add their thoughts to the document, including feedback for me and their thoughts on the interview process.</p><p>As we get further into the interview process, I get more specific about what I’m looking for in a candidate. And when we get even deeper, I write multiple pages on what I’ve learned about their career aspirations through our conversations and backchanneling, and how I’m going to support them. </p><p>When it comes to backchanneling for potential executive hires, I try to talk with at least 10 people and ask, “If I have the privilege to be this person's manager, I want to set them up for the utmost success. What are your specific recommendations about the best ways to set this person up for success and unleash their full potential?” This 360 review is shared with the candidate right before I deliver the compensation package. I outline what I learned about their strengths and weaknesses, and specific ways that I’ll push them and support them.</p><p>When I communicate compensation, I lay out all the facts, including cash amount, equity (shares and dollar amount), and the benefits package. In addition, we also share:</p><ul><li>The salary band for the role (and implicitly their position in it).</li><li>The level that the employee will be in the organization, along with more information on our leveling framework and what each level means.</li><li>The methodology for determining the compensation, like the market data we use (75th percentile for similar stage companies).</li><li>Broader information on compensation philosophy, including how someone moves through the band, gets promoted, etc.</li><li>Additional info on equity: current preferred price, current post money valuation, details on vesting, PTE window, 409A price, and more – essentially everything they need to determine the actual value of the grant.</li></ul><p>We’re ultra transparent about compensation because compensation should not be a guessing game; people deserve to understand every aspect of their compensation package and how it was derived. I then offer to meet live to answer any questions or discuss feedback – or ask them to leave their comments in the Google Doc. Most candidates will ask questions in the document, as it can be more approachable.</p><p><strong>For every open role at Pave, a Slack channel is created to drive urgency and ensure no detail goes missed. Tell me about this process. </strong></p><p>As a seed-stage company, I was creating Slack channels for every role. Today, Slack channels are created for roles that I’m involved with – like hiring a head of finance or VP of engineering. The process still looks the same, however. </p><p>I create a Slack channel for that role and add relevant stakeholders. Every morning I ask for an update. What’s the movement? Have we sourced any more candidates? Have we talked with candidates X, Y, and Z? I do this to keep the process moving forward every day. I also post updates – sharing with the team when I spoke with a reference, for example. When we extend an offer, I use this Slack channel to encourage stakeholders to reach out to the candidate through text messages or Loom videos. </p><p>Loom videos are an interesting medium. If you’re a candidate and receive six Loom videos from different people at the company, it may feel bizarre and a bit overwhelming. But the videos show we are excited about the candidate and also gives insight into our energetic culture. </p><p><strong>You also review email copy and do drip campaigns for candidate outreach. Tell me about this. </strong></p><p>We have a pre-written email sequence that is sent from me or the hiring manager depending on the context, and then we use <a href=https://www.ycombinator.com/"https://www.ycombinator.com/companies/gem/">Gem to automate this. The response rates for these campaigns are much higher than if the emails were coming from a recruiter. Before the emails are sent out, I’ll spend 30 minutes personalizing 30 emails (one to two sentences at the onset of the email) that will be sent to target profiles. And then it’s important you do a drip. If you only send one email, most of the time the candidate won’t respond. I find sending a third email with a short message like, “Hey, any thoughts?” leads to the most responses. </p><p><strong>How do you think about where your job ends and your team begins when it comes to recruiting?</strong></p><p>Today, if I’m not the hiring manager, I delegate and come in only at the end of the process for a sell call. The process looks vastly different if I’m the hiring manager. I spend a lot of time reviewing resumes and identifying the top 25 profiles in the space. Every outreach to them is very personalized, and I have time to do this because I focus on quality over quantity of candidates. Quality over quantity was a big lesson for me, actually. At first, I would look at all inbound resumes and thousands of applicants. But I have come to realize that I have more success when I map out the market and find the top 25 candidates in the space. Then I'll find a way to get one of them in the door.</p><p><strong>Describe the ideal candidate for senior-level positions when Pave was a smaller company. </strong></p><p>As a company of 35 people, we didn’t need managers who delegated – which has merit at a later-stage company. We needed people who would personally take on the hard work. Often, first-time founders hire someone senior for optics reasons. Instead, you should look for someone earlier in their career who has grown at a crazy high slope – often referred to in the tech industry as a high-slope candidate versus a Y-intercept candidate. There is a time and place for both types of hires, but as a 35-person startup, almost always go for the slope, not the high Y-intercept. And in some cases, you may meet exceptional candidates with both high slope and high Y-intercept. This is the dream case!</p><p>Another mistake first-time founders can make is rushing hires by trying to squeeze them in before a term sheet. Don’t try to meet some arbitrary deadline or cliff date. If it takes six months or a year to hire an executive, that’s ok – wait for the right person.*<br><br><em>*This answer has been updated to clarify the founder’s intention behind the statement.</em></p>","comment_id":"6348578e2184dc0001eebf80","feature_image":"/blog/content/images/2022/10/BlogTwitter-Image-Template--8-.jpg","featured":true,"visibility":"public","email_recipient_filter":"none","created_at":"2022-10-13T11:23:10.000-07:00","updated_at":"2022-10-26T08:44:29.000-07:00","published_at":"2022-10-17T09:00:11.000-07:00","custom_excerpt":"Pave Founder and CEO Matt Schulman has created one of the most comprehensive and thorough recruiting processes, which has made him one of the most successful recruiters in the YC community.","codeinjection_head":null,"codeinjection_foot":null,"custom_template":null,"canonical_url":null,"authors":[{"id":"61fe29e3c7139e0001a710a7","name":"Lindsay Amos","slug":"lindsay-amos","profile_image":"/blog/content/images/2022/02/Lindsay.jpg","cover_image":null,"bio":"Lindsay Amos is the Senior Director of Communications at Y Combinator. 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You can read previous editions here.","reading_time":7,"access":true,"og_image":null,"og_title":null,"og_description":null,"twitter_image":null,"twitter_title":null,"twitter_description":null,"meta_title":null,"meta_description":null,"email_subject":null,"frontmatter":null,"feature_image_alt":null,"feature_image_caption":null},{"id":"62c640aadb59f2000159e618","uuid":"062e4f3f-c2e8-4f21-8a15-eb02adb47efe","title":"Same, Same but Different with Vanta and Zapier","slug":"same-same-but-different-with-vanta-and-zapier","html":"<p>Both <a href=https://www.ycombinator.com/"https://www.vanta.com//">Vanta CEO <a href=https://www.ycombinator.com/"https://twitter.com/christinacaci/">Christina Cacioppo</a> and <a href=https://www.ycombinator.com/"https://zapier.com//">Zapier CEO <a href=https://www.ycombinator.com/"https://twitter.com/wadefoster/">Wade Foster</a> made the decision to take a disciplined approach to fundraising. They flipped the equation of a typical startup founder: instead of raising money to enable a certain amount of growth, they eliminated the assumption of fundraising, controlled their spend, and evaluated how to ramp up spending based on what the business was bringing in. <br></p><p>YC’s <a href=https://www.ycombinator.com/"https://twitter.com/anuhariharan/">Anu Hariharan</a> sat down with Christina and Wade to talk about their unique funding history in our first episode of <a href=https://www.ycombinator.com/"https://www.ycombinator.com/blog/new-yc-audio-series-same-same-but-different/">Same, Same but Different.</a> </p><div class=\"kg-card kg-audio-card\"><img src=https://www.ycombinator.com/"https://ghost.prod.ycinside.com/content/media/2022/07/SSBD_Final_1_thumb.jpg?v&#x3D;1657216763245\" alt=\"audio-thumbnail\" class=\"kg-audio-thumbnail\"><div class=\"kg-audio-thumbnail placeholder kg-audio-hide\"><svg width=\"24\" height=\"24\" fill=\"none\" xmlns=\"http://www.w3.org/2000/svg\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M7.5 15.33a.75.75 0 1 0 0 1.5.75.75 0 0 0 0-1.5Zm-2.25.75a2.25 2.25 0 1 1 4.5 0 2.25 2.25 0 0 1-4.5 0ZM15 13.83a.75.75 0 1 0 0 1.5.75.75 0 0 0 0-1.5Zm-2.25.75a2.25 2.25 0 1 1 4.5 0 2.25 2.25 0 0 1-4.5 0Z\"/><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M14.486 6.81A2.25 2.25 0 0 1 17.25 9v5.579a.75.75 0 0 1-1.5 0v-5.58a.75.75 0 0 0-.932-.727.755.755 0 0 1-.059.013l-4.465.744a.75.75 0 0 0-.544.72v6.33a.75.75 0 0 1-1.5 0v-6.33a2.25 2.25 0 0 1 1.763-2.194l4.473-.746Z\"/><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M3 1.5a.75.75 0 0 0-.75.75v19.5a.75.75 0 0 0 .75.75h18a.75.75 0 0 0 .75-.75V5.133a.75.75 0 0 0-.225-.535l-.002-.002-3-2.883A.75.75 0 0 0 18 1.5H3ZM1.409.659A2.25 2.25 0 0 1 3 0h15a2.25 2.25 0 0 1 1.568.637l.003.002 3 2.883a2.25 2.25 0 0 1 .679 1.61V21.75A2.25 2.25 0 0 1 21 24H3a2.25 2.25 0 0 1-2.25-2.25V2.25c0-.597.237-1.169.659-1.591Z\"/></svg></div><div class=\"kg-audio-player-container\"><audio src=https://www.ycombinator.com/"https://ghost.prod.ycinside.com/content/media/2022/07/SSBD_Final_1.mp3/" preload=\"metadata\"></audio><div class=\"kg-audio-title\">Same, Same but Different with Vanta and Zapier</div><div class=\"kg-audio-player\"><button class=\"kg-audio-play-icon\"><svg xmlns=\"http://www.w3.org/2000/svg\" viewBox=\"0 0 24 24\"><path d=\"M23.14 10.608 2.253.164A1.559 1.559 0 0 0 0 1.557v20.887a1.558 1.558 0 0 0 2.253 1.392L23.14 13.393a1.557 1.557 0 0 0 0-2.785Z\"/></svg></button><button class=\"kg-audio-pause-icon kg-audio-hide\"><svg xmlns=\"http://www.w3.org/2000/svg\" viewBox=\"0 0 24 24\"><rect x=\"3\" y=\"1\" width=\"7\" height=\"22\" rx=\"1.5\" ry=\"1.5\"/><rect x=\"14\" y=\"1\" width=\"7\" height=\"22\" rx=\"1.5\" ry=\"1.5\"/></svg></button><span class=\"kg-audio-current-time\">0:00</span><div class=\"kg-audio-time\">/<span class=\"kg-audio-duration\">59:28</span></div><input type=\"range\" class=\"kg-audio-seek-slider\" max=\"100\" value=\"0\"><button class=\"kg-audio-playback-rate\">1&#215;</button><button class=\"kg-audio-unmute-icon\"><svg xmlns=\"http://www.w3.org/2000/svg\" viewBox=\"0 0 24 24\"><path d=\"M15.189 2.021a9.728 9.728 0 0 0-7.924 4.85.249.249 0 0 1-.221.133H5.25a3 3 0 0 0-3 3v2a3 3 0 0 0 3 3h1.794a.249.249 0 0 1 .221.133 9.73 9.73 0 0 0 7.924 4.85h.06a1 1 0 0 0 1-1V3.02a1 1 0 0 0-1.06-.998Z\"/></svg></button><button class=\"kg-audio-mute-icon kg-audio-hide\"><svg xmlns=\"http://www.w3.org/2000/svg\" viewBox=\"0 0 24 24\"><path d=\"M16.177 4.3a.248.248 0 0 0 .073-.176v-1.1a1 1 0 0 0-1.061-1 9.728 9.728 0 0 0-7.924 4.85.249.249 0 0 1-.221.133H5.25a3 3 0 0 0-3 3v2a3 3 0 0 0 3 3h.114a.251.251 0 0 0 .177-.073ZM23.707 1.706A1 1 0 0 0 22.293.292l-22 22a1 1 0 0 0 0 1.414l.009.009a1 1 0 0 0 1.405-.009l6.63-6.631A.251.251 0 0 1 8.515 17a.245.245 0 0 1 .177.075 10.081 10.081 0 0 0 6.5 2.92 1 1 0 0 0 1.061-1V9.266a.247.247 0 0 1 .073-.176Z\"/></svg></button><input type=\"range\" class=\"kg-audio-volume-slider\" max=\"100\" value=\"100\"></div></div></div><p><strong>You can also listen on <a href=https://www.ycombinator.com/"https://open.spotify.com/episode/3c1CmZtpzCqMa2MxXK845H?si=Ay6GBKIuT4OPfZePwUO4bQ\%22>Spotify, <a href=https://www.ycombinator.com/"https://podcasts.apple.com/us/podcast/158-same-same-but-different-with-vanta-and-zapier/id1236907421?i=1000569160335\%22>Apple Podcasts</a>, or <a href=https://www.ycombinator.com/"https://twitter.com/i/spaces/1vAxRkrNwoXKl/">Twitter. </strong><br></p><p><strong>3:20 </strong>- Christina, why did you wait so long before raising your first round?<br></p><p><em>Vanta was bootstrapped until raising a Series A round that ended up looking more like a traditional Series C. The company has surpassed 3,000 customers and is valued at $1.6B.</em><br></p><ul><li>Investors want to fund businesses that don't actually need funding.</li><li>Christina talks about ensuring they were truly building something that people wanted and finding product-market fit.<br></li></ul><p><strong>7:10 </strong>- Christina, what was the scale of Vanta when you decided to raise? Why did you decide to raise if you were cash-flow positive? <br></p><ul><li>Vanta had true signs of product-market fit, as shown by the impact of sales and marketing.</li><li>Christina talks about raising to ensure they didn’t lose the market they created. <br></li></ul><p><strong>10:50</strong> - Christina, how did you say no to the investors wanting to fund Vanta? What was your mental model? <br></p><ul><li>Be pragmatic with how you plan to spend funds; ensure the dilution from fundraising is worth it.</li><li>Christina talks about already hiring as quickly as possible and funds not helping with this challenge.<br></li></ul><p><strong>14:15 </strong>- Wade, tell us about your experience raising a seed and why you decided not to raise again. <br></p><p><em>Zapier raised only a $1.3M seed round in 2012 and has been profitable since 2014. The company is valued at $5B. </em><br></p><ul><li>Treat each funding round like it will be the last money you ever get.</li><li>Wade talks about his personal experience working for a quickly-growing, bootstrapped company, growing Zapier in a cost-effective way, and addressing constraints without fundraising. <br></li></ul><p><strong>20:00</strong> - Wade, did you always want to build a bootstrap company? When did you know Zapier had product-market fit and that it was a business model predisposed to being bootstrapped? <br></p><ul><li>When you make something people care about, it’s easy to sell to customers.</li><li>Don’t hire until it hurts.</li><li>Wade talks about finding product-market fit, their repeatable go-to market strategy to grow their base without a ton of capital, and their philosophy around hiring and building a remote company. <br></li></ul><p><strong>24:30</strong> - Wade, how did you attract talent without big headlines about fundraising news?<br></p><ul><li>Wade talks about hiring in a distributed way, writing about their learnings, and unique hiring tactics to raise the profile of Zapier as an employer. <br></li></ul><p><strong>27:00</strong> - Wade, what was the hardest part about hiring for a bootstrapped company? <br></p><ul><li>Wade talks about this not being an issue when hiring outside of Silicon Valley and already being profitable. <br></li></ul><p><strong>29:15</strong> - Christina, can you highlight Vanta’s journey to product-market fit?<br></p><ul><li>You can’t raise your way into the right product.</li><li>Christina shares insight into her first customers and advice on testing the value proposition with early users. <br></li></ul><p><strong>35:45 </strong>- Christina, when did you know you had product-market fit and what were the signs? <br></p><ul><li>The path to product-market fit isn’t linear.</li><li>Christina speaks to the mistake of focusing solely on hiring versus selling in the early days. <br></li></ul><p><strong>38:45 </strong>- Christina, how did you attract talent without big headlines about fundraising news?<br></p><ul><li>Christina shares how her pitch to candidates changed throughout Vanta’s journey. <br></li></ul><p><strong>44:10 </strong>- Wade, how has hiring changed since the pandemic? <br></p><ul><li>Wade speaks to more companies competing in this remote environment and how this is shifting again given today’s economic climate. <br></li></ul><p><strong>46:45</strong> - Wade, what is your advice for founders whether to fundraise or not? <br></p><ul><li>Determine the constraints in your business and figure out how to address those.</li><li>Wade shares their biggest challenges and his mental model to determine whether to raise or not raise. <br></li></ul><p><strong>49:00 </strong>- Wade, talk about your early days and how you were able to reach product-market fit as a remote company. <br></p><ul><li>When building a company, pick a lane: all remote or all in-office; the hybrid approach is the most challenging.</li><li>Wade talks about how this played out for Zapier, including working in-person with his co-founders the first few years and reaching product-market fit during this time. <br></li></ul><p><strong>51:15</strong> - Christina, do you recommend in-person, remote, or hybrid? <br></p><ul><li>Christina talks about the importance of documentation for remote and hybrid companies.<br></li></ul><p><strong>53:30 </strong>- Christina, how long in Vanta’s experience was in-person important? <br></p><ul><li>Christina shares the challenges of shifting from in-person to remote. <br></li></ul><p><strong>55:30 </strong>- Christina, how are you thinking about fundraising today in this funding environment and what advice do you have for founders? <br></p><ul><li>If you can, push your fundraising out — and if you can’t, it’s all about unit economics.</li><li>Christina talks about her recent experience fundraising (<a href=https://www.ycombinator.com/"https://www.vanta.com/blog/vanta-announces-series-b/">$110M Series B</a>) and the importance of metrics.<br></li></ul><p><strong>58:00 </strong>- Wade, what advice do you have for founders in this funding environment? <br></p><ul><li>Running a good business never goes out of style. 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Convincing Engineers to Join Your Team

by Harj Taggar9/7/2018

Harj Taggar is cofounder and CEO of Triplebyte (YC S15). Triplebyte helps great engineers find work at the fastest growing companies in the world, with the least amount of time and effort. Before cofounding Triplebyte, Harj was a Partner at YC.


Once you’ve found an engineer you want to hire, the final step is presenting them an offer to join your team and convincing them to accept it. This post offers advice for increasing the percentage of the offers you make that are accepted. Since working on Triplebyte I’ve been surprised by just how much variance there is in this rate among companies. Companies that use Triplebyte have acceptance rates ranging from as low as 10% to as high as 90%.

Generating an offer for an engineer is expensive. It takes time to source good candidates and then hours of your engineering team’s time doing technical phone screens and onsite interviews. You’ll likely need to complete five onsite interviews to generate a single offer (the industry standard onsite interview to offer rate for engineers is around 20%). Assuming six hours of engineering time spent interviewing that’s 30 hours of engineering productivity lost. Given this cost it makes economic sense to work as hard as you can to get your offers accepted.

The work to increase your offer acceptance rate begins well before presenting the offer itself. It starts with designing a great candidate experience at each step leading up to the offer. Every interaction a candidate has with you must balance your need to extract signal from them while still getting them excited about joining. This begins with doing something seemingly simple – being responsive.

Speed

Read this blog post to get an engineer’s perspective on the importance of speed and responsiveness in their job search process. Being fast and responsive seems like obvious advice and yet we still see companies move slowly and miss out on good people. There’s two reasons this happens.

The first is entropy. Maintaining an organized system for managing candidates is hard. It will naturally trend towards disorder unless you work really hard against it. This is especially true for larger companies with more people and processes. As a smaller startup speed is a huge advantage you have over them when competing for engineers.

Make this easier for yourself by using software to manage and track the status of your candidates. At first you can use something simple like a spreadsheet or Airtable. As you grow and need to setup interview panels to gather feedback from interviewers you should graduate to a real ATS (Applicant Tracking System) like Lever. Make it clear who has responsibility for reviewing and acting on candidates every day.

The second reason is psychological. It’s easy to believe that candidates who drop out because you were slow weren’t interested in your company anyway. This is bad reasoning and will make you miss out on good candidates. Managing a job search process quickly becomes overwhelming, especially for the best candidates with the most options. To even have the chance to close the best candidates treat every candidate dropping out before you replied them as a failure, not a lucky escape.

With an organized and responsive process in place you can now focus on optimizing the quality of each candidate interaction. This starts with the first call.

First Call

The first call with a candidate typically lasts for about 25 minutes. I’d recommend the following agenda:

  1. Introduce yourself, the company and what you work on.
  2. Ask the candidate to introduce themselves and talk about what’s important to them in their next role (if you did the initial outreach and they’re not actively looking, you can soften this to e.g. “how do you think about developing your career and skills in the future?”).
  3. Ask questions about their skills and experiences to see if they match with what you’re looking for.
  4. Pitch the work being done at the company and why it’s an exciting time to join now.
  5. Finish with answering any questions they have and explain what the next steps in your hiring process are.

It’s common to leave asking the candidate what they’re looking for until the end of the call. I think that’s suboptimal because you miss the opportunity to tailor your pitch around it throughout the call.

If you’re an early stage company (less than 20 people) a founder should always be doing this call with engineering candidates. Commonly you’ll have one technical founder and one non-technical/sales founder. I’d recommend the sales founder do these calls even if they can’t speak in detail about the technical challenges. This gives the technical founder more uninterrupted time to build (maker vs manager schedule). The sales founder should at least have enough sales ability to convince engineers to meet the technical founder in person to learn more about the technology.

As you grow you’ll hire a recruiter and typically they’ll do these calls. I’d recommend doing the following to best set them up for success:

  1. Ask your recruiter to send you a monthly report on number of first calls they’re doing and the % that opt’ed out of coming onsite. Have your recruiter keep a list of reasons why candidates said they wouldn’t move forward and continually review these with them to improve the pitch.
  2. Assign one engineer to train your recruiter on how to talk about the interesting technical challenges at the company. Have them listen to mock pitches, give feedback, and repeat. I often see companies give their recruiter no help in learning how to best pitch the company and then complain when they see low conversions. That’s not fair to them nor optimal for you.
  3. Asking technical vetting questions is difficult for recruiters as they’re usually not technical. This is usually the most awkward aspect of the interactions between engineers and recruiters. Give your recruiter support and structure so they can do this well. I’d advise giving them specific technical questions to ask. One idea I’ve seen companies use to good effect is making them multiple choice format so the recruiter can read out the answers and ask the candidate to pick one that fits best. This helps your recruiter feel confident and provide a better candidate experience.
  4. If you’re working on a deeply technical product that doesn’t yet have marquee customers or traction, I’d actually recommend having an engineer do these first calls, at least for particularly promising candidates. In this case your main selling point is the depth of your technical challenges and it’ll be very hard to find a recruiter who can pitch those well.

Technical Phone Screen

If the first call goes well you’ll usually move the candidate forward to a technical phone screen with an engineer (companies that use Triplebyte will skip these phone screens and move straight to the onsite). These phone screens are usually 45 minutes of the candidate working through a coding problem and screen sharing. I’d recommend allotting one full hour for the phone screen. 45 minutes for working through a technical problem and up to 15 minutes for a conversation between the candidate and engineer to ask each other questions.

Ideally you want to select the engineers who are best at pitching your company for these phone screens. There are also ways to make the experience more candidate friendly e.g. letting them pick from several problems to solve during the call. This creates some more work for you but if a candidate can show their strength on a problem they enjoy they’ll have a more positive feeling towards you. You can also let them code in their own environment and screen share with you instead of using an artificial environment (though some of these e.g. Coderpad do have advantages of better collaboration and recording features).

If the technical phone screen goes well, the next step is the onsite interview.

Onsite Interview

The onsite interview will be the first time a candidate meets your team in person. Their experience throughout the day will be a huge deciding factor in where they end up. It’s important to think through the details of the candidate experience when setting up your onsite. Start with the basic logistics and be sure to:

  1. Send an email ahead of time with clear directions to the office.
  2. Assign someone to greet them when they arrive
  3. Have somewhere they can hang out if they arrive early (even if it’s just a spare desk and chair)

A standard onsite interview agenda will typically look like this:

  1. Quick welcome and talking through the agenda for the day (5 minutes)
  2. Technical interview 1 (1 hour)
  3. Technical interview 2 (1 hour)
  4. Lunch (1 hour)
  5. Technical interview 3 (1 hour)
  6. Technical interview 4 (1 hour)
  7. Behavioral / culture interview (45 mins)
  8. Closing Q&A for them to ask about the company (25 minutes)

If you’re early stage I’d recommend having at least one of the founders involved in the closing Q&A. It can also be a good idea to include a demo or roadmap section here at the end. Give the candidate a sneak preview of a new feature you’re working on or talk through the most exciting upcoming projects so they finish the day feeling excited about your future momentum.

We asked engineers using Triplebyte what caused them to have bad experiences during onsite interviews. Almost all the replies centered on their interactions with the interviewers. The top three complaints were interviewers being (1) unprepared and not knowing anything about them (2) not being familiar with the technical questions they asked and (3) being determined to prove their intelligence to the interviewee.

It’s unlikely an engineer will accept your offer if they had a bad interaction with an interviewer. I’d make the importance of providing a good interview experience a part of your company culture. You can start by writing a simple interviewing guide for your team that emphasizes the importance of being on-time, prepared and friendly when interviewing. You can also only pick the engineers who are friendliest and best at representing your company as interviewers.

For question familiarity, have a centralized question bank that interviewers work through together before using them on candidates. For more ideas on the kind of content and questions you can use in technical interviews, my co-founder Ammon wrote a detailed post on how to interview engineers.

It’s also great to do something that makes lunch a chance for the candidate to get to know the team. At Triplebyte we Slack our team in the morning that a candidate is interviewing and ask people to head over to the lunch table at the same time. Our office manager introduces the candidate to the team and we do an icebreaker where the candidate gets to ask a question which everyone goes around and answers (we tell them to think of this ahead of time and make it lighthearted). It’s a good way for them to get to know the team and is usually quite fun. We’ve had candidates tell us this experience was the deciding factor in joining.

Making The Offer

After a successful onsite you’ll make the formal offer and the work to get it accepted really starts. The first step is making sure you actually present the offer details. A complaint we hear from Triplebyte candidates is being asked how likely they would be to accept an offer before knowing the actual offer details. The reality is that compensation details are a large factor in where people decide to work and you can’t expect someone to know if they want to work for you without giving them that data.

Create a formal offer letter template that includes these details:

  • Salary and benefits
  • Signing bonus details (if applicable)
  • Health insurance details (include a link to the policy documents)
  • 401(k) details, if any
  • Vacation policy details

Equity

  • Total number of shares/stock options presented
  • Total number of shares outstanding
  • % ownership that represents
  • Exercise price for options
  • Vesting schedule details

When presenting the offer I’d recommend doing things in the following order:

Step One: Call to tell them they’ll be receiving an offer

Have the hiring manager (if you’re early stage that’s the founder) call the candidate as soon as possible after the onsite. Do it the same day if you can. Tell them the day went really well and you’d love to make them an offer to join the team. Mention specific reasons why you’re excited about them joining the team and reference what they did well during the day. You could even have multiple people on the call and ask each of them to mention a specific reason they’d be excited to work with the candidate. Tell them the next step will be you (or a recruiter) calling them back to talk through offer details.

Step Two: Call with offer details

Call the next day to talk them through the offer details. Explaining salary and benefits is fairly straightforward. For equity, before giving any details, ask them how familiar they are with equity concepts like stock options or RSUs.

  • If they have little familiarity, do not overwhelm them with information on the call. Give them a quick explanation of how equity works. Talk them through the numbers of your offer and tell them you’ll send them some resources on equity to read through on their own time.
  • If they’re experienced with equity, then go straight into the numbers and ask if they have any questions about the details they’d like you to talk more about.

Tell them you’ll be sending through the formal offer letter, documenting all these details, via email shortly. They should take some time to digest that and the next step would be a follow up call to talk through their thoughts. Offer some times for that call right then.

It’s tempting to push hard for a decision on this call. I’d recommend not doing that to avoid the candidate feeling pressured. This will make it harder for you to stay engaged with them as they go through the decision making process. It’s fine to ask them if they have any initial thoughts or questions and then move on if they seem hesitant to go into details. It is also ok to ask them about their decision making timeline if you haven’t discussed that already.

Culture

Now the offer has been presented it’s time to focus on closing. To be effective at closing candidates you need to work hard at selling them on the most exciting reasons to join. This sounds obvious but there is a temptation to stop if the candidate doesn’t seem immediately excited or asks probing questions about your business. The reality is that working at your company will seem more exciting to you than the candidate because you’ve had time and data to build up that excitement. Now you have to pull out all the stops to transfer that excitement.

It’s common at this stage for candidates to start probing more deeply into questions about your company culture. They’re trying to build a picture of what it will be like to work with you on a daily basis. We’ve observed at Triplebyte that most companies use fairly generic descriptions of their culture. This is optimal for not offending candidates but won’t make your company stand out. To use your culture as a differentiator you’ll need to take some risk. You could try describing your culture with tradeoffs e.g. don’t just say you’re “collaborative”, say you’re willing to trade the upside of collaboration (better ideas and execution) for the downsides (reduced personal autonomy to just do things).

Depending on the content you choose, being different in describing your culture could backfire or it could give you a hiring advantage with the right candidates. Whichever approach you take, make sure you and your team are prepared to talk in detail about this with candidates. Sounding unprepared about culture is itself a negative signal about how much the company cares about and values its team.

Closing

Make sure to get your team involved in the closing process. Ask everyone who met the candidate during the onsite to send them a follow up email with specific reasons they enjoyed it and offering to talk with them again. If you’re small it’s ok if this is literally the entire company. If you have multiple teams and you already know which team the candidate would be working on, make sure that team reaches out. Encourage them to talk about the details of what the first two weeks would look like and who would help get them ramped up. Nitty gritty details will make the offer feel more real and we’ve seen this be the deciding factor for candidates.

If you’re early stage, include your investors in every engineering offer you make. Then become selective as you grow and the hiring pace picks up. Choose the investor you think will be most likely to effectively sell that candidate and give the candidate context on why you thought that in the intro email. Don’t pick an investor who isn’t up to date and familiar with the details about your company.

Also think about more than just closing the candidate. Think about their personal circumstances and other decision makers involved. The best recruiters we work with at Triplebyte are continually taking notes about this and referring back to them to take action. I’ve seen a great recruiter learn early on that the candidate’s wife was reluctant to move location because she was worried it’d negatively impact her medical career. The recruiter spent time researching places she could work, gathered contact information and compensation data, and asked to speak with the wife to share it. The candidate accepted the offer shortly afterwards.

What matters most during the closing process is how long its been since your last communication with the candidate. You need to strike a balance between proactively following up without being overbearing. It’s good to find reasons to reach out again that aren’t asking “have you decided yet?” even if you both know what the real agenda is. For example you could send them links to recent news stories you think they’d be interested in based on what you learnt about them during the onsite. If you’re doing team events send them an invitation to join. Your goal is to stay near the top of their mind as they’re deciding but not suffocate them.

Exploding Offers

One tactic companies use for closing is putting an aggressive deadline on the offer e.g. we need a final decision within a week. I’d advise against this because good candidates with multiple options will push back. It’s also something an experienced recruiter at a competing company can use as ammunition against you. If a candidate tells them about your deadline they might respond well I’d question the culture that company is trying to build if they only want to hire people who can decide quickly. We want everyone to be sure this is the best place for them over the long term and would never pressure someone into rushing their decision.

A softer version you can try is an expiring signing bonus. We’ve seen this be effective and have used it ourselves with success at Triplebyte. The way I’d present this would be We want you to take all the time you need to make the right decision for you (and your family). At the same time we can’t leave offers hanging out there indefinitely as things can change rapidly at a startup. If you are able to make a final decision by X date, we’d be able to offer you a $X,000 signing bonus.

Big Company Competition and Bay Area Relocation

There are two common scenarios that present unique closing challenges – competing against big companies (Facebook and Google especially) and candidates considering relocation to the Bay Area. I’ll talk through some advice on handling both.

As a startup it’s hard to compete with Facebook and Google compensation packages, especially for senior engineers. Unless you’re also a public company, you won’t be able to compete on total compensation. Still, you can win – we’ve seen startups successfully compete against them on Triplebyte. These are the arguments we’ve found are most successful:

  1. Learning: You learn the fastest by being given real decision making responsibility. Large companies won’t give you this kind of responsibility for years, they need to have checks and balances in place to ensure no single person – especially a new hire – could cause too much damage. Fast growing startups don’t have this luxury and you’ll be thrown straight into making decisions that could materially affect the trajectory of the company.
  2. Career Progression: Silicon Valley and the technology industry are unique because you can rise up through the ranks of a company faster than anywhere else (e.g. the Chief Product Officer of Facebook ($500bn market cap) is 36 years old). This only happens by joining a startup that grows fast and keeps throwing more responsibilities at you. Give the candidate examples of how this has already been happening for people at your startup and paint a specific picture of how the candidate could progress over the next few years with you.
  3. Opportunity cost: At any point in time there will always be the safe option of working at a public technology company. The names might change but the experience of working at one is fungible. The experience of working at startups can vary wildly and you should present your startup as a unique opportunity right now because of the team and market. They can always go back to the big company experience if it doesn’t work out.
  4. Mentorship: One concern engineers, especially juniors, can have about working at a smaller startup is they won’t learn best practices and the “right” way to do things. It will help a lot if you have experienced engineers on your team who would be willing to provide mentorship. If you do be sure to tell the candidate this.

For candidates who would need to relocate to the Bay Area, they may be frightened by the cost of living, which has both increased in dollars and frequency of press coverage. While this is ultimately a personal decision for the candidate I have been surprised by how often even engineers don’t take an analytical approach to running the numbers to be sure what their actual cost of living would be. You can be proactive about this. Don’t assume that when a candidate says they don’t think they can afford to live in the Bay Area that they’ve run through the numbers. If you really want them to join then spend time helping them think through this. You can create a spreadsheet template with cost of living assumptions and work through this together with them to figure out what their real monthly income would be. We also wrote a blog post talking through the pros and cons in detail that you could share.

Feedback and Iterate

No company has a 100% offer acceptance rate and you will inevitably miss out on closing candidates you really wanted. That’s an inevitable part of hiring and it sucks. Use every rejected offer as an opportunity to gather data on how you can improve your hiring process and pitch. Do a quick exit interview with each candidate and ask for feedback on why they made the decision and their general feedback on the quality of your hiring process. Review these regularly with your team and use them to iterate and improve your interviewing and closing process over time.

If you treat optimizing this process like you would optimizing your product you will see improved conversions and have more success hiring. Good luck!

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Author

  • Harj Taggar

    Harj Taggar is a Managing Partner at YC. He was previously founder and CEO of Triplebyte (YC S15) and Auctomatic (YC W07), which was acquired by Live Current Media in 2008.