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Weird, Authentic and Fun:
           The Zappos Family's Take On
           Recruiting and Social Media
Cheryl Anne Fernandez                 Drew Kovacs
HR Project Manager                    Sourcing Specialist
Zappos.com, Inc.                      Zappos.com, Inc.

cfernandez@zappos.com                 dkovacs@zappos.com
twitter.com/chinchin22                twitter.com/plaz_
linkedin.com/in/cherylannefernandez   linkedin.com/in/drewkovacs
Survey…Says!
Partial      - personal   0-20%
             - company    0-20%
Partial      - personal   20-50%
             - company    20-50%
Dedicated    - personal   50-80%
             - company    50-80%
(Actual Time Spent/Week     X%)
                                   2
ZAPPOS AT A GLANCE:
                        Founded in 1999                1887 in
                                                      Louisville




                                            2953
                                          employees
                                                                    1066 in
                                                                   Las Vegas




© 2009 sunnibrown.com
ZAPPOS AT A GLANCE:


            Fast, FREE                      FREE return
             shipping                        shipping




                          Fast, friendly,
                         expert Customer
               Fast        Loyalty Team        365-day
           fulfillment                      return policy

                         SERVICE!
© 2009 sunnibrown.com
SERVICE             CULTURE!
         How we ensure both with each employee:
                           $2000 incentive to quit

                           5 weeks of training

                           Open, collaborative

                           Trust



© 2009 sunnibrown.com
Q:   What is Zappos’ social media
     policy during work hours?


A:
     “Well, we really don’t have a policy…employees
     are able to log in on their breaks and send tweets
     or update Facebook.”
       - Fred Mossler, No Title, Zappos Merchandising, Inc.


     “Our customers always come first, but employees
A:   are free to use Twitter as long as our customers
     are not waiting to be helped.
       - Pam Tidmore, VP of Pipeline, Zappos CLT, HR, Zappos.com, Inc.


                                                                     6
Huh…buh…wha?!
Q:   So, how do you monitor activity?


A:    "We don’t monitor our employees. We feel that
      if we focus on the culture, we can trust our
      employees to make good decisions and we
      don’t need policies or monitoring of what they
      are doing.”
      - Fred Mossler, No Title, Zappos Merchandising, Inc.




                                                             7
8
Who are we?

                        What do we want?

                        How do we get there?

© 2009 sunnibrown.com
Who are we?




 Figured out
 values and culture.
© 2009 sunnibrown.com
1. Deliver WOW Through Service
2. Embrace and Drive Change
3. Create Fun and a little Weirdness
4. Be Adventurous, Creative, & Open-Minded
5. Pursue Growth & Learning
6. Build Open & Honest Relationships w/ Communication
7. Build a Positive Team & Family Spirit
8. Do More With Less
9. Be Passionate & Determined
10. Be Humble
                                           Who are we?
“Zappified” Recruitment Life Cycle

Skits, Videos
                                     Who are we?
No tools...



Zappos Recruiting 1.0

                        Who are we?
What do we want?



                           Vision Quest!



© 2009 sunnibrown.com
Original concept:
                      Provide best selection
                        of shoe sizes and styles
Thinking big:
 Provide best service
   (clothes, accessories,
    housewares, etc…)
                                    What do we want?
Original concept:
                       In-house, drive and
                         screen for culture.

Thinking big:
  WOW! service
  (feedback for all, referrals,
    exploratory)

                                  What do we want?
Tony + Twitter…


Zappos Recruiting 2.0

                    What do we want?

                                  17
Zappos Recruiting 2.0




                        What do we want?
How do we get there?



  “P. E. C.”

© 2009 sunnibrown.com
Personal Emotional Connection
 Very little constraints
  (a whole lotta trust)

 Authentic, personal touches

                           How do we get there?
PEC, Mullet-Style!

 NOT “networking,” or “building relationships”
   (Individual expression, being real)


 Specific feedback
   (Technical and/or culture-based)


                                      How do we get there?
Zappos Recruiting 2.+

Platforms
  Dedicated Youtube channel, LinkedIn group
  Iterative upgrades to jobs.zappos.com
Tools
  LinkedIn Recruiter account
  Jobvite analytics (activity best focused where?)

Employees                                  How do we get there?
23
24
25
“Be real and use your
  best judgment.”
- Tony Hsieh, CEO, Zappos.com, Inc.




                                  26
27
How Did Candidates
                                Find Us This Year?
                                               38321
                            34883, 91.0%
40000


35000


30000


25000


20000


15000


10000      3438, 9.0%
 5000


    0

        Referrals       Non Referrals      Total
Where Did Our Hires
                        Come From This Year?
                         2010 Hires

                                               2220
2500




2000                     1580, 71.2%


1500


         640, 28.8%
1000




 500




   0

       Referral       Non referral     Total
How many referrals from Jobvites?
                70, 3%




                         570, 26%
                                    Jobvites
                                    Non-Jobvite Referrals
                                    Non Referral
    1580, 71%




                                                            30
Social Media Breakdown
Source               Candidates       Hired   Not Hired   % Hired   % Not Hired


Non Social Media             23551    1670     21881        7%         93%


Facebook                      318      17       301         5%         95%


Facebook App                      6    2         4         33%         67%


LinkedIn                      11       0         11         0%         100%


Twitter                           1    0         1          0%         100%


TOTAL                        23887    1689     22198        7%         93%




Source               Candidates       Hired   Not Hired   % Hired   % Not Hired


Social Media                  336      19       317         6%         94%


Non Social Media             23551    1670     21881        7%         93%


TOTAL                        23887    1689     22198        7%         93%
Non-Social Media Breakdown
Location                         (All)
Social Media?                     N


Count of Full Name
                                 No      Yes   Grand Total
37signals.com                     6                6
AddThis                           1                1
Agency Conversion                77      116      193
boxesandarrows(UX)               11                11
Craigslist                       697     41       738
DeVry_University                  4                4
Dice                             117              117
Email                            24       3        27
Employee Referral                1305    409      1714
External Job Board - LVRJ         1                1
External Referral                43       6        49
here/a                           15                15
Hiring Manager                   86      42       128
Indeed                           1661    33       1694
Internal Candidate               363     237      600
Internal Transfer                 2      19        21
Non-Social Media Breakdown
Location                                  (All)
Social Media?                              N

Count of Full Name
                                           No     Yes    Grand Total
IU_Career_Site                             15                15
Job Fair                                    9                9
Job Notification                          736     30        766
Job_News_Louisville                        30                30
jobs.perl.org                               5      1         6
JustTechJobs                                6                6
LSHRM                                      44      1         45
Monster                                     5                5
Monster.com                               982      7        989
Oodle                                      26                26
outdoorindustry.com                         2                2
Recruiter                                  53     16         69
SHRM                                       32                32
SimplyHired                               361     12        373
stackoverflow                              45                45
Staffing Agency                           323     15        338
Sullivan College of Technology & Design   11      3         14
UNLV                                      11                11
Walk In Applicant                          51      2         53
Wow Through Service                         1                1
Zappos Career Site                        14716   677      15393
Zappos Yahoo Group                          4                4
Grand Total                               21881   1670     23551
• Expand use of ATS
                   functionalities.
Predicting the
                   – Create a video or
Future Age           demo for internal PR
                   – Contests
                   – Focus on department
                     or 1 hiring manager.

                 • Increased presence
                   on more platforms.
                   – Blogs, chat, RSS, social
                     networks, message
                     boards, podcasts,
                     video / photo sharing
                     sites, wikis….

                                            34
The Future Age




                 35
Want complete immersion
in Zappos social media?

jobs.zappos.com
(open jobs, videos, company info)

blogs.zappos.com
(CEO, Zappos Family, lifestyles)

facebook.com/zappos
(ATS interface: Jobs tab)

twitter.zappos.com/employees
youtube.com/zappos
youtube.com/zapposfamilycareers                                 36


linkedin.com/companies/zappos.com
Groups: The Zappos Family of Companies, Zappos Family Careers
Contact Us!
(the boring, analytics stuff)         (the fun, strategy stuff)
Cheryl Anne Fernandez                 Drew Kovacs
HR Project Manager                    Sourcing Specialist
Zappos.com, Inc.                      Zappos.com, Inc.

cfernandez@zappos.com                 dkovacs@zappos.com
twitter.com/chinchin22                twitter.com/plaz_
linkedin.com/in/cherylannefernandez   linkedin.com/in/drewkovacs


Want a copy of this presentation?
How about copies of our culture book?
Any additional questions not addressed today?
Tour our offices next time you’re in Vegas! tours.zappos.com


                                                                   37
P.S. You might be wondering why we need to have a legal and financial disclaimer in this presentation, but you are still
      reading, so our lawyers, auditors and accountants would really like to make sure we make the following clarifications.

     Although an audit was underway and almost done, the financial information presented in this slide show was
     unaudited. We made every effort to present the best information we had at the time.

     Gross merchandise sales is a non-GAAP metric. We use it to express the total demand across all of our web sites and
     stores. This number measures the dollar value of the orders placed in the year before accruing for certain items such
     as returns, and it ignores certain timing cut-offs that are required by GAAP for revenue recognition purposes. So the
     gross merchandise sales number should be viewed just as an interesting number that we want to share with our
     friends.

     This presentation contains forward-looking statements that involve risks and uncertainties, as well as assumptions
     that, if they ever materialize or prove incorrect, could cause our results to differ materially from those expressed or
     implied by the forward-looking statements and assumptions. These risks and uncertainties include, but are not limited
     to, the risk of economic slowdown, the risk of over or under buying, the risk of consumers not shopping online or at
     our web site at the rate we expected, the risk of supplier shortages, the risk of new or growing competition, the risk of
     a natural or some other type of disaster affecting our fulfillment operations or web servers, and the risk of the world
     generally coming to an end. All statements other than statements of historical fact are statements that could be
     deemed forward-looking statements, including statements of expectation or belief; and any statement of assumptions
     underlying any of the foregoing. Zappos.com assumes no obligation and does not intend to update these forward-
     looking statements.

     Congratulations on making it through all the fine print. If you enjoy fine print, look for openings on our legal and
                                                                                                                          38
     finance team at jobs.zappos.com.
Q&A

Discussion

Thank you!
             39

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Jobvite_Zappos.comInc_Webcast_Presentation_042011

  • 1. Weird, Authentic and Fun: The Zappos Family's Take On Recruiting and Social Media Cheryl Anne Fernandez Drew Kovacs HR Project Manager Sourcing Specialist Zappos.com, Inc. Zappos.com, Inc. cfernandez@zappos.com dkovacs@zappos.com twitter.com/chinchin22 twitter.com/plaz_ linkedin.com/in/cherylannefernandez linkedin.com/in/drewkovacs
  • 2. Survey…Says! Partial - personal 0-20% - company 0-20% Partial - personal 20-50% - company 20-50% Dedicated - personal 50-80% - company 50-80% (Actual Time Spent/Week X%) 2
  • 3. ZAPPOS AT A GLANCE: Founded in 1999 1887 in Louisville 2953 employees 1066 in Las Vegas © 2009 sunnibrown.com
  • 4. ZAPPOS AT A GLANCE: Fast, FREE FREE return shipping shipping Fast, friendly, expert Customer Fast Loyalty Team 365-day fulfillment return policy SERVICE! © 2009 sunnibrown.com
  • 5. SERVICE CULTURE! How we ensure both with each employee: $2000 incentive to quit 5 weeks of training Open, collaborative Trust © 2009 sunnibrown.com
  • 6. Q: What is Zappos’ social media policy during work hours? A: “Well, we really don’t have a policy…employees are able to log in on their breaks and send tweets or update Facebook.” - Fred Mossler, No Title, Zappos Merchandising, Inc. “Our customers always come first, but employees A: are free to use Twitter as long as our customers are not waiting to be helped. - Pam Tidmore, VP of Pipeline, Zappos CLT, HR, Zappos.com, Inc. 6
  • 7. Huh…buh…wha?! Q: So, how do you monitor activity? A: "We don’t monitor our employees. We feel that if we focus on the culture, we can trust our employees to make good decisions and we don’t need policies or monitoring of what they are doing.” - Fred Mossler, No Title, Zappos Merchandising, Inc. 7
  • 8. 8
  • 9. Who are we? What do we want? How do we get there? © 2009 sunnibrown.com
  • 10. Who are we? Figured out values and culture. © 2009 sunnibrown.com
  • 11. 1. Deliver WOW Through Service 2. Embrace and Drive Change 3. Create Fun and a little Weirdness 4. Be Adventurous, Creative, & Open-Minded 5. Pursue Growth & Learning 6. Build Open & Honest Relationships w/ Communication 7. Build a Positive Team & Family Spirit 8. Do More With Less 9. Be Passionate & Determined 10. Be Humble Who are we?
  • 12. “Zappified” Recruitment Life Cycle Skits, Videos Who are we?
  • 13. No tools... Zappos Recruiting 1.0 Who are we?
  • 14. What do we want? Vision Quest! © 2009 sunnibrown.com
  • 15. Original concept: Provide best selection of shoe sizes and styles Thinking big: Provide best service (clothes, accessories, housewares, etc…) What do we want?
  • 16. Original concept: In-house, drive and screen for culture. Thinking big: WOW! service (feedback for all, referrals, exploratory) What do we want?
  • 17. Tony + Twitter… Zappos Recruiting 2.0 What do we want? 17
  • 18. Zappos Recruiting 2.0 What do we want?
  • 19. How do we get there? “P. E. C.” © 2009 sunnibrown.com
  • 20. Personal Emotional Connection Very little constraints (a whole lotta trust) Authentic, personal touches How do we get there?
  • 21. PEC, Mullet-Style! NOT “networking,” or “building relationships” (Individual expression, being real) Specific feedback (Technical and/or culture-based) How do we get there?
  • 22. Zappos Recruiting 2.+ Platforms Dedicated Youtube channel, LinkedIn group Iterative upgrades to jobs.zappos.com Tools LinkedIn Recruiter account Jobvite analytics (activity best focused where?) Employees How do we get there?
  • 23. 23
  • 24. 24
  • 25. 25
  • 26. “Be real and use your best judgment.” - Tony Hsieh, CEO, Zappos.com, Inc. 26
  • 27. 27
  • 28. How Did Candidates Find Us This Year? 38321 34883, 91.0% 40000 35000 30000 25000 20000 15000 10000 3438, 9.0% 5000 0 Referrals Non Referrals Total
  • 29. Where Did Our Hires Come From This Year? 2010 Hires 2220 2500 2000 1580, 71.2% 1500 640, 28.8% 1000 500 0 Referral Non referral Total
  • 30. How many referrals from Jobvites? 70, 3% 570, 26% Jobvites Non-Jobvite Referrals Non Referral 1580, 71% 30
  • 31. Social Media Breakdown Source Candidates Hired Not Hired % Hired % Not Hired Non Social Media 23551 1670 21881 7% 93% Facebook 318 17 301 5% 95% Facebook App 6 2 4 33% 67% LinkedIn 11 0 11 0% 100% Twitter 1 0 1 0% 100% TOTAL 23887 1689 22198 7% 93% Source Candidates Hired Not Hired % Hired % Not Hired Social Media 336 19 317 6% 94% Non Social Media 23551 1670 21881 7% 93% TOTAL 23887 1689 22198 7% 93%
  • 32. Non-Social Media Breakdown Location (All) Social Media? N Count of Full Name No Yes Grand Total 37signals.com 6 6 AddThis 1 1 Agency Conversion 77 116 193 boxesandarrows(UX) 11 11 Craigslist 697 41 738 DeVry_University 4 4 Dice 117 117 Email 24 3 27 Employee Referral 1305 409 1714 External Job Board - LVRJ 1 1 External Referral 43 6 49 here/a 15 15 Hiring Manager 86 42 128 Indeed 1661 33 1694 Internal Candidate 363 237 600 Internal Transfer 2 19 21
  • 33. Non-Social Media Breakdown Location (All) Social Media? N Count of Full Name No Yes Grand Total IU_Career_Site 15 15 Job Fair 9 9 Job Notification 736 30 766 Job_News_Louisville 30 30 jobs.perl.org 5 1 6 JustTechJobs 6 6 LSHRM 44 1 45 Monster 5 5 Monster.com 982 7 989 Oodle 26 26 outdoorindustry.com 2 2 Recruiter 53 16 69 SHRM 32 32 SimplyHired 361 12 373 stackoverflow 45 45 Staffing Agency 323 15 338 Sullivan College of Technology & Design 11 3 14 UNLV 11 11 Walk In Applicant 51 2 53 Wow Through Service 1 1 Zappos Career Site 14716 677 15393 Zappos Yahoo Group 4 4 Grand Total 21881 1670 23551
  • 34. • Expand use of ATS functionalities. Predicting the – Create a video or Future Age demo for internal PR – Contests – Focus on department or 1 hiring manager. • Increased presence on more platforms. – Blogs, chat, RSS, social networks, message boards, podcasts, video / photo sharing sites, wikis…. 34
  • 36. Want complete immersion in Zappos social media? jobs.zappos.com (open jobs, videos, company info) blogs.zappos.com (CEO, Zappos Family, lifestyles) facebook.com/zappos (ATS interface: Jobs tab) twitter.zappos.com/employees youtube.com/zappos youtube.com/zapposfamilycareers 36 linkedin.com/companies/zappos.com Groups: The Zappos Family of Companies, Zappos Family Careers
  • 37. Contact Us! (the boring, analytics stuff) (the fun, strategy stuff) Cheryl Anne Fernandez Drew Kovacs HR Project Manager Sourcing Specialist Zappos.com, Inc. Zappos.com, Inc. cfernandez@zappos.com dkovacs@zappos.com twitter.com/chinchin22 twitter.com/plaz_ linkedin.com/in/cherylannefernandez linkedin.com/in/drewkovacs Want a copy of this presentation? How about copies of our culture book? Any additional questions not addressed today? Tour our offices next time you’re in Vegas! tours.zappos.com 37
  • 38. P.S. You might be wondering why we need to have a legal and financial disclaimer in this presentation, but you are still reading, so our lawyers, auditors and accountants would really like to make sure we make the following clarifications. Although an audit was underway and almost done, the financial information presented in this slide show was unaudited. We made every effort to present the best information we had at the time. Gross merchandise sales is a non-GAAP metric. We use it to express the total demand across all of our web sites and stores. This number measures the dollar value of the orders placed in the year before accruing for certain items such as returns, and it ignores certain timing cut-offs that are required by GAAP for revenue recognition purposes. So the gross merchandise sales number should be viewed just as an interesting number that we want to share with our friends. This presentation contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they ever materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by the forward-looking statements and assumptions. These risks and uncertainties include, but are not limited to, the risk of economic slowdown, the risk of over or under buying, the risk of consumers not shopping online or at our web site at the rate we expected, the risk of supplier shortages, the risk of new or growing competition, the risk of a natural or some other type of disaster affecting our fulfillment operations or web servers, and the risk of the world generally coming to an end. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including statements of expectation or belief; and any statement of assumptions underlying any of the foregoing. Zappos.com assumes no obligation and does not intend to update these forward- looking statements. Congratulations on making it through all the fine print. If you enjoy fine print, look for openings on our legal and 38 finance team at jobs.zappos.com.