WSJ: Increase in Valley hiring changes methods for others

The Wall Street Journal reported yesterday that due to a large influx of hiring at Venture-backed companies in Silicon Valley, so called “second-tier” locations are stepping up the recruitment efforts to try and attract new hires. Talking about an Austin-based company called SailPoint (backed by, among others, our friends over at Austin Ventures), the WSJ writes:

“The days of ‘I’ll take what I can get’ are over,” says Mark McClain, the 60-employee company’s chief executive. SailPoint mostly competes against other startups, some of which are in Silicon Valley. Candidates he recruits now often have at least one offer in hand, sometimes two, he says. Mr. McClain says he hasn’t had to start offering perks such as increased signing bonuses, but anticipates that he will. For now, he is emphasizing Austin’s short commute times, cheap real estate and quality of life to potential employees.

“As hiring improves in the Valley, I’d expect that we might have to start looking at bonuses, salaries, or options again as ways to attract people,” he says. “We feel some of that tightness coming back.”
As you can probably guess, this is nothing but great news for people wanting to work at a startup. With so many places hiring (like the 10,000+ jobs in the StartUpHire database), the opportunites just get better and better for potential employees.

There’s also been a shift in recruiting strategies. The WSJ explains how open-source software developer Red Hat, based in Raleigh, NC,  has done this:

Previously, Red Hat’s recruiting pitch focused on pay, benefits and the product a developer would work on. But as Red Hat executives watched their Silicon Valley rivals rebound, they didn’t want to have to compete against them on pay and benefits. “We realized the competition would pick up,” says DeLisa Alexander, who heads human resources and brand marketing.

Instead, Red Hat made its pitch more personal. Hiring managers now are trained to talk about their career histories, emphasizing the variety of projects they work on and ideas they have been able to execute. The idea is to portray Red Hat as a more entrepreneurial place to build a career than its rivals in California. So far, the company has retrained 50 of its 437 hiring managers, and the firm says the effort is helping to land hires.

This more personal and entrepreneurial (read: startup) pitch apparently has worked, and resonates well with the people who are seeking jobs now.

All this is important to know if you’re considering a job at a startup company, so we encourage you to go check it out.

P.S. Startup Employers:  visit www.startuphire.com/signup/e   to post your job openings to the world’s largest community of passive and active job seekers with startup experience.

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