The key to the success of any company is building the right team at the right time, but the process of finding, recruiting and selecting the group who will be 'on the bus' through the journey can be one of the least planned out and executed activities in a start-up, often leaving companies having to rein in headcount, or reduce burn and critical gaps in their team at a later stage. In this session you will learn the principles of recruitment and selection as well as practical approaches for early stage companies including critical tips and pitfalls to avoid along with a set of lessons learned from years of supporting start-up companies. Part of the MaRS Best Practices Series - with speaker Margo Crawford, President & CEO, Business Sherpa More, including session video: http://www.marsdd.com/events/details.html?uuid=df2648aa-c50c-4c4b-9a61-66101151c9bd

1. Margo Crawfordbusiness sherpa

2. Margo Crawfordbusiness sherpa
Entrepreneur’s Toolkit: www.marsdd.com/entrepreneurs-toolkit.html
HR Workbook 1: Building an A-Team
HR Workbook 2: Compensation
HR Workbook 3: HR at Work
Creating an HR plan: Butteriss on human resources
Building HR processes, policies and procedures
Compensating employees
Hiring your friends: Is it such a good idea?
Video: Human Capital: Building high performance teams
Video: Human Resources Management

3. Margo Crawfordbusiness sherpa
business sherpa group
trusted. capable. results-driven
Start-Up Recruiting
Building Your A-team

4. Margo Crawfordbusiness sherpa
Introduction
GOAL
Share practical realities of building an
A-team in a start-up environment
Tips, tools and lessons learned

5. Margo Crawfordbusiness sherpa
Introduction
September 10th 12:00 – 1:00 PM (Room CR2)
focus on recruitment and selection when
building start up teams
September 17th 12:00 – 1:00 PM (Room CR2)
compensation and rewards strategies/tools
September 24th 12:00 – 1:00 PM (Room CR2)
unique look at sales recruitment and sales
compensation plans

6. Margo Crawfordbusiness sherpa
Background
Business Sherpa
 Virtual VP of HR supporting start-ups, early-stage
companies and social venture enterprises
 25+ years of HR experience (10+ years in start-ups)
 HR Professional of the Year Ottawa 2006
 Co-founder of Meriton Networks (optical networking
start-up) from formation to sale 8 years later
 Supporting start-ups in Toronto and Ottawa over past
2.5 years as Business Sherpa

7. Margo Crawfordbusiness sherpa
Unique Issues of a Start-up
Founders
 May be in leadership roles whether they should be or
not!
 Founders are the foundation with biases & preferences
– some good some bad
Money
 You have it ….then you are running out of it
 Over-filling the ranks will consume your cash quickly

8. Margo Crawfordbusiness sherpa
Geographic Challenges
 Where you form may not be where your ‘talent’ lives
 Customers will impact who and where you recruit for
some roles
Market Timing
 Don’t get multiple shots at hitting the market window
at the right time – anticipating vs. reacting even more
critical
 Miss-hiring and losing time can be a devastating blow
vs. an annoying inconvenience
Unique Issues of a Start-up

9. Margo Crawfordbusiness sherpa
Building a Team – Recruitment 101
Your best shot at getting it right
Plan well
Search creatively
Choose wisely

10. Margo Crawfordbusiness sherpa
Planning around key milestones = precision hiring
Ready Aim Hire
Formation
Year1
Year3
Year4
Year2
Year5
Technical
Milestones
Proofof
Concept
V.1
Product
V.1GA
Product
V.2
Product
V.2GA
Product
Financial
Milestones
Seed
Funding
SeriesA
SeriesB
Strategic
Revenue
+Margin
Revenue
Yearly
Revenue
Growth
Quarterly
Revenue
Growth
SeriesC
IPO/M&A
Customer
Milestones
Company
Launch
Early
Customer
BD
Customer
Trials
Strategic
Customer
Sales
Repeat
Sales
Repeat
Sales
Repeat
Sales
New
Accounts
New
Accounts
New
Accounts
V.1
Sustaining
V.2
Sustaining
Recruitment
Milestones
CEO
R&D
Lead
CFO
(P/T?)
PLM
Sr. R&D
Marcomms
Int./Jr.
R&D
BD/
Sales
QA
SE’s
Sales
(Hunter)
Sales
(Farmer)
CTO
Sales
Support
Customer
Support
HR
(P/T?)
VP
Sales
VP
Marketing
Admin.
Support CFO
(F/T)
Accountant COO?
HR
(F/T?)

11. Margo Crawfordbusiness sherpa
Key Observations About Recruitment Milestones
Ready Aim Hire
Recruitment
Milestones
CEO
R&D
Lead
CFO
(P/T?)
PLM
Sr. R&D
Marcomms
Int./Jr.
R&D
BD/
Sales
QA
SE’s
Sales
(Hunter)
Sales
(Farmer)
CTO
Sales
Support
Customer
Support
HR
(P/T?)
VP
Sales
VP
Marketing
Admin.
Support CFO
(F/T)
Accountant COO?
HR
(F/T?)
Identify Pillar Hires
 Key to success, but timing may differ depending on budget, sector,
market, technology, customers, etc.
Creatively Fill Gaps
 Functions must get done, even if you can’t hire
 Consider all options advisors; part-time/virtual support; contract out;
technology licensing
VP-level Not Necessarily First Hire
 Consider what must get done – do you need a ‘doer’ or a ‘builder’?

12. Margo Crawfordbusiness sherpa
Key Observations – Recruitment Milestones
Ready Aim Hire
Recruitment
Milestones
CEO
R&D
Lead
CFO
(P/T?)
PLM
Sr. R&D
Marcomms
Int./Jr.
R&D
BD/
Sales
QA
SE’s
Sales
(Hunter)
Sales
(Farmer)
CTO
Sales
Support
Customer
Support
HR
(P/T?)
VP
Sales
VP
Marketing
Admin.
Support CFO
(F/T)
Accountant COO?
HR
(F/T?)
Consider Timing
 Recruitment can take from 1 – 3 months; plan accordingly
Be Prepared to Swap Out
 Reality of limited time/funds/people
 Think strategically
Building Up Headcount – Easy Solution
 Very tempting to over-hire early in order to accelerate timelines
 Can seriously affect the burn rate; or consume future key headcount

13. Margo Crawfordbusiness sherpa
Ready Aim Hire
Establish Key Recruitment Funnels
 Initially based on your pillar hires
 Based on key hires over time
Development Sales Product
Mgmt.
Marketing
Continue to Fill The Hopper
 When sourcing candidates, keep all funnels in mind – fill the hopper as
good candidates uncovered

14. Margo Crawfordbusiness sherpa
High Credibility
Sourcing
Low Credibility
Sourcing
Trusted Individual
Endorsement
Executive Search
Employee
Word of Mouth
Employee Referral
Program
Social Networking
Recommendations
Head Hunters
Internal HR
Job Board
High Cost
Process
Low Cost
Process
Ready Aim Hire
Finding Talent – time & $$$
Spending more $$$ does
not necessarily reduce
time nor improve results.

15. Margo Crawfordbusiness sherpa
Ready Aim Hire
Resources To Help
Internal HR Team
 Full time may not be affordable
 Virtual HR being widely adopted for start-ups – can provide tremendous
value in supporting effective recruitment at a fraction of the cost of
head hunters
Networking
 Tremendous networks to support companies: team; MaRS; Board;
advisors; investors; former colleagues; schools

16. Margo Crawfordbusiness sherpa
Ready Aim Hire
Recruiters
 DO NOT handoff your recruitment – requires time and management
 Expensive 20% - 25% of starting salary – use selectively
 Keep focused on roles that are most challenging
 Manage tightly and demand results – or change
 Use limited recruiters at once – can be very overwhelming otherwise
 Select firms that have specialized in your sector
 Terms: contingency only and no exclusivity
Executive Search
 Use only as needed and for most senior level roles
 Typical terms 30 – 35% of starting salary and usually a retainer involved
 Used very strategically and NOT as the first tool in the tool kit

17. Margo Crawfordbusiness sherpa
Job
Descriptio
n POST
Website (maybe?)
Job Boards
Paper
Engage
Recruiters
Ready Aim Hire
Typical Approach:

18. Margo Crawfordbusiness sherpa
Typical Result:
Job
Descriptio
n
Onslaught
of
responses
Ready Aim Hire
Engage
Recruiters

19. Margo Crawfordbusiness sherpa
Signs of ineffective Recruitment:
 Looking at resumes sporadically – as they come in OR as you can get to
them
 Interviewing candidates weeks apart
 In a continual state of wanting to see who else might be out there
 Changing requirements while recruiting
 Interviewing on the fly
 Preparation for an interview is re-reading the resume
Reality of start-up environment
 There are many pressures and fires to be put out – recruitment will not
remain the highest priority throughout the recruitment process
 Resources are thin – so support to manage the process is often not there
 Conditions constantly changing
Ready Aim Hire

20. Margo Crawfordbusiness sherpa
Keys to Effective Recruitment in a Start-Up:
Ready Aim Hire
1. Process
2. Description
3. Choice

21. Margo Crawfordbusiness sherpa
Process
 Tight recruitment process will save time and improve results
 Create a project plan for each recruitment effort
 Have all resources work to this plan and key decision points
Ready Aim Hire
Stage 1 – create a recruitment funnel
 Job postings – on targeted sites
 Recruiters – internal and external as appropriate
 Strategic search – source from networks
Stage 2 – develop long list
 High quality match resumes only
 Do not screen ad hoc – review large sets of resumes at once
 Do not allow recruiters to feed resumes in a trickle

22. Margo Crawfordbusiness sherpa
Stage 3 – identify short list:
 Best matches
 Aim for 6 – 8 - do not start interviewing until you have this
Ready Aim Hire
Stage 4 – 1st round interviews:
 Make interviews structured and consistent
 Interview with others – efficient; easier to assess candidate (can
have several interviewer groups)
 Prepare questions – connect to job description
Stage 5 – 2nd round interviews/testing:
 Introduce a ‘testing’ component – e.g. do a presentation for you
 Aim for 3 top candidates
Stage 6 – references and offer:
 Get permission for references (think about who should conduct
references)

23. Margo Crawfordbusiness sherpa
Sample Recruitment Plan:
Ready Aim Hire

24. Margo Crawfordbusiness sherpa
Job
Descriptio
n
A vanilla job description will
produce vanilla results.
Ready Aim Hire
Description
 Becomes an essential filter for automated and
manual search mechanisms
 A guidepost to keep selection on track

25. Margo Crawfordbusiness sherpa
Features of Excellent Job Postings for Start-Ups
 Clearly articulates ‘table steaks’ skills
 Paints a real picture of the ideal candidate
 Sells the opportunity through role, technology, industry, etc.
 Has a deadline to match recruitment plan
Ready Aim Hire

26. Margo Crawfordbusiness sherpa
Reaching Out – advertising your GREAT opportunity
 Job Boards – 2 types
 Those that cost a lot and reach millions of candidates
 Those that cost little and reach targeted audiences
 User groups
 Business/professional networks
 Professional associations
 Alumni associations
 Etc.
 Print ads – don’t!!! Useless for start ups for $$$
 Web site – may or may not be an option (stealth vs. launched)
 Word of mouth – ALWAYS – use advisors, board, investors,
colleagues
 Social Networking
Ready Aim Hire

27. Margo Crawfordbusiness sherpa
Ready Aim Hire
Social Networking has completely changed the game…..
 Previously company phone lists were a protected asset
 Now – access to everyone
 Problem is the clutter has multiplied
 One network can access millions
 Everyone is a ‘friend’ and can recommend a candidate – with no way of
validating the quality of the reference
SO how do you
find and reach
your stars?

28. Margo Crawfordbusiness sherpa
Ready Aim Hire
Best Professional Networking Tool
Pro’s
 Access to millions of professionals in all industries, professions
and geographies
 Career focused
 Provides access to contacts useful beyond recruitment
Con’s
 Access to millions of professionals in all industries, professions
and geographies
 Unreliable filtering of quality candidates
 Adoption just picking up in Canada – network is still light

29. Margo Crawfordbusiness sherpa
Ready Aim Hire
Tips on effectively using Linked In
 Post opportunities – about $150/posting
 Take every opportunity to build network in all geographies and
industries
 Use search capabilities
 Reach out to candidates – customized and personal
 Leverage common contacts, or marquee roles/industries/
technology
 When searching – look at what other funnels you can fill
 Update company’s profile – update key events

30. Margo Crawfordbusiness sherpa
Ready Aim Hire
Choice
 Biggest failure in recruiting is to have one to choose from
 THIS IS NOT A CHOICE!!
 Never stop at the front end of the process (filling the funnel)
until a candidate is hired
 Do not be left in a default position
AIM TO HAVE A CHOICE
OF 3

31. Margo Crawfordbusiness sherpa
Choosing is the biggest challenge of all!!
 Who YOU like the best may not be best for the company
 Interview – a balance of asking and selling – hard to know what you are
seeing
 Comparing candidates over a protracted process is difficult to do
 Interviews easily drift off course
 Interviewing is mentally exhausting
 A tendency to like or dislike; be cynical or wanting to make candidates
feel comfortable can take away from the evaluation process
 A highly faulty process!!! Be aware of this and plan accordingly.
Ready Aim Hire

32. Margo Crawfordbusiness sherpa
Mitigating the Risks:
 Prepare questions based on the job description – ask questions that tell
you something
 2nd round of interviews can be very telling
 Interview several candidates over a couple of days – keep it very tight
 Know your biases and plan around this
 Interview with someone else – so you can mentally rest and evaluate
during interview
 Big believer in ‘testing’ – or putting candidate in-situ as much as possible
 Finally – put your concerns on the table….in fact force yourself to find
some to put on the table
1st Interview:
Company – asking
Candidate - selling
2nd Interview:
Company – selling
Candidate - asking
Ready Aim Hire

33. Margo Crawfordbusiness sherpa
Making an offer:
 WAIT – check references first!! ALWAYS
 Do your homework
 Understand where they are at/expectations
 What can you pay
 What is the ‘bundle’ you offer (salary, benefits, options, role,
opportunity, sector, technology) – this is the offer – not just $$$
 Provide verbal and written offers (make sure you have a solid
employment contract) with a deadline to accept – so you can go back to
other candidates
 Once offer is accepted – keep connected to the candidate until they are
in the door and in seat
Ready Aim Hire

34. Margo Crawfordbusiness sherpa
Best Recruiting Tips for Start-Ups
1. Know the pillars you must build upon.
2. $$$ spent ≠ saved time or quality results.
3. Use full scope of recruitment tools.
4. No not hand off recruitment
5. Most effective recruitment:
 Tight Process
 Clear Description
 Have Choices

35. Margo Crawfordbusiness sherpa
Best Recruiting Tips for Start-Ups
6. Descriptions are your best filter and
guidepost to keep recruitment on track
7. Never make a default choice – aim for 3 solid
candidates to choose from.
8. Know the biases risking the process – mitigate
these.

36. Margo Crawfordbusiness sherpa
Questions
Thank You!