As an engineering leader in a growing company, you care about six things when adding teammates and building high performing teams.
- Hiring the best talent.
- Hiring quickly.
- Ramping new hires quickly and maintaining psychological safety and productivity as you grow.
- Retaining great talent.
- Not turning your engineering team into full time interviewers as you scale (interview hours/hire).
- Building diverse teams to capitalize on the benefits of diverse teams on overall team and company performance.
Hiring High Performers, Building High Performing Diverse Teams, and Optimizing Employee Lifetime Value
It's a competitive hiring environment and finding, attracting and closing great talent through old channels like job postings or LinkedIn where everyone is spamming the same talent can be challenging and lead to adverse outcomes like hiring the most available talent vs. the best talent. These practices can also have a negative effect on your brand. The good news is that your employees are more socially connected than ever and once your company is over 50 - 100 people, there's a high probability that someone in your company or extended network is connected to exactly the type of talent you want to attract.
The challenge is that your teammates are busy building product, shipping code, and achieving other critical goals, and don't have time to go through their network for every job posting. Let's be honest, most employees don't even know what job postings are open. And even if they do make the time, it's a friction filled process that requires clicking through social networks without getting distracted, cross-referencing what your connections are currently doing, spreadsheets, composing emails, with lots of drop off points in the funnel. In short, it's a frustrating, uncomfortable experience for your teammates.
Teamable, through mining the web for work information on your collective social connections, making suggestions for open jobs, and enabling your teams to find, refer, engage and attract talent, enables you to tap into the power of crowdsourcing to hire top, passive talent at scale. More here on How Teamable Works.
Need further proof? There's the concept of Employee Lifetime Value (ELTV), articulately explained by our partners at Greenhouse in the chart below.
Figure One: The Employee Lifetime Value (ELTV) (courtesty of Greenhouse).
Combining studies on the characteristics of referrals vs non-referral hires (see here) - referral hires:
- Ramp faster.
- Are more productive sooner.
- and stay longer.
From studies on psychological safety and high performing teams (see 'Additional Resources' at end of this article), you can easily see the effect of referral hires on your engineering output over time:
Figure Two: Engineering output and ELTV overlay.
The added advantage of teams with psychological safety is that they are more likely to be able to capitalize on the full benefits of diversity (read more on the benefits of diversity), and Teamable also enables you to find, attract and include diverse talent to your teams.
Hiring Quickly and Optimizing Interview Hours Per Hire
This article from Sequoia explains how recruiting is a funnel and...
"Increasing your referral percentage is the single most important thing you can do to grow your team. A company that hires 20% of its engineers from referrals will spend more than 1,200 hours adding 12 engineers. The same company with an 80% referral percentage will spend about 750 hours."
Below is the recruiting funnel from the article without referral leads and overlaid is the funnel if you use Teamable and your teammates' connections and relationships
Figure Three: Recruiting Funnel.
With proper recognition and a program like Teamable, it's not even the referral bonuses that motivate your top performers to provide referrals. At the end of this article, is an online session that we did with Sequoia-backed Stripe on how they worked with Teamable to optimize this process and increase their source of hire from referrals to 60% at scale without referral bonuses. The formula is basic.
(Intrinsic motivation + frictionless process + recognition) > extrinsic motivation
Ready to get started leveraging your networks and motivation and team science to build great teams?
- Stripe on optimizing referral programs at scale with no referral bonuses. They also used Teamable to find, attract and close the right engineering managers which are nonlinear factors in productivity, growth, speed and retention.
Figure Four: Stripe Webinar on how to Use Teamable and Greenhouse for Referrals.
2. Scaling Teams: Strategies for Successful Organizations - Book by Teamable advisor David Loftessness (eero, Twitter, Amazon) and Alexander Grosse (BCGDigital, Soundcloud) to expand awareness on this topic for engineering leaders. One of the goals of Teamable is to build psychological safety team cohesion to minimize this phenomenon from the book:
Figure Five: Rapid Team Growth and Diminishing Returns.
3. Sequoia article on the funnel math and relative advantages of referrals for high growth companies.
4. How to run a successful sourcing jam - by the Teamable team.
5. Classic Google study on intrinsic v extrinsic motivation and the negative impact of increasing referral bonuses on the hiring funnel v the positive impact of "aided recall" and network-based referral recruiting. Links to papers on other benefits of referral hires.
7. Platohq - teamable partner in bringing engineering leadership mentorship directly into your slack. Hiring great talent is critical but proper mentorship and tools once they've started and as they grow within your company is too!
8. Study on the five factors of the most successful teams at Google with "psychological safety" being the biggest factor. We studied with this team before they published this and built it into Teamable.
9. Google on "The Rule of Four" for interview panels and number of interviews to make an optimal hiring decision.
10. Studies on the effect of diverse teams on performance.