Why
A customer recently asked our DBT Ventures team: "What recommendations do you have for closing top talent during the recruiting process?" Fantastic question. Let's explore this together.
What motivates top talent to join your company?
Top talent is usually motivated by 3 reasons:
People
Product
Pay
Let's call them The 3 P's so we sound all snazzy. It's important to understand these are broad categories, so let's dive into each one:
1. People
Humans are social creatures. The influence of other people throughout the recruiting process can not be overstated. The most talented candidates are often sound judges of character, authenticity, and intelligence. They also likely won't be swayed by smooth talk and lofty claims of success or ambition. They'll want to know about your:
Founders
Leadership team
What schools did they go to? Where did they work prior? What projects did they drive?
Quality of peers and management
Reputation of VC backers
Other VC portfolio companies (social proof)
Glassdoor reviews
The degree to which you showcase the above in a compelling way will directly influence your close rate of top talent. The best acceptance rates are often 90-95%+. This is also an area where Recruiting can help craft a memorable candidate experience to ensure the right people meet the candidate.
2. Product
The existential purpose of a company is the product and/or service offered. The product has a utility value (ease of use, accomplished X in Y time), and also a visionary value. Average candidates will typically orient around utility and insure the product is stable and works as claimed. Top talent will typically seek to appraise the visionary value of your product. Therefore, you'd be well served to nail the following questions:
What key problem are you solving for humanity?
What does the future look like in the fully-realized vision and value of your product?
How will the product evolve next year? What is the process that drives that evolution?
Does your company have a feedback loop to inform sustained product iteration?
How big is the total addressable market for your flagship product?
What other products are on the roadmap?
3. Pay
To attract (and close) top talent, you will need to offer above-market compensation in the following categories:
Cash (salary, bonus, sign on)
Equity (ISOs, grants)
Benefits (healthcare, meals, perks)
The relative importance of the above comp mix will vary from candidate to candidate, but be prepared to put your best offer out first. Top talent doesn't want to play low ball / high ball (with the exception of a few sales roles where negotiating might be expected). Lead with your best offer. You can also offer flexibility in the salary/bonus mix, e.g. 60/40 vs. 90/10 which more risk-averse candidates will appreciate.
If your company is <3 years old, make a point to be especially transparent about equity: # shares, ownership %, strike price, valuation. This is the only way the candidate will be able to evaluate the equity component which is often the biggest motivator to join a young company.
The 3 P's: People, Product, Pay.
Good luck! We hope you find this information useful to attract and close talented people for your company.