stuart trautenberg-lunch & learn presentation april 29, 2016

connecting great companies + top talent

TM

jobzlab.com

Presentation

1. The Beginning2. Uber Meets Moneyball Platform3. Hurdles

jobzlab.com

Hiring Manager FrustrationCan’t Find Talent Fast

jobzlab.com

Zero Follow UpNo Response From Companies

jobzlab.com

TM

Beginning

jobzlab.com

Hidden Talent- Illuminate Hidden Traits (S.A. Traut Assoc | JobzLab)

jobzlab.com

Uber Meets Money Ball PlatformOakland A’s 3rd Lowest Payroll

jobzlab.com

Eng | Dev Talent Problems- FiINDING

- Top 10% passive talented engineers & culture fits for the long-term (730,000 new tech jobs in 2015; 1/5th of all new office jobs)

- SCREENING | SELECTING- Bad hires cost a company 1.5x to 4x of the terminated

employee’s salary and can metastasize cultures- HIRING

- Slow, long, costly company hiring funnels that eats up teams' valuable work hours (Glassdoor 2015 study shows 35 days for 1 hire)

- RETAINING- Long-term hires (On average, engineers change jobs every 9.5

months) ie: Google is 1.1 years and Amazon is .88

jobzlab.com

Solutions- FIND: Referral $ reward marketplace that pays $2k-$6,500 for

referral hires, called “Friend Bounties”, and pays direct hires, called “Self-Bounties.” Referral chains: up to 3 friends can split bounties evenly

- SELECT-HIRING FUNNEL: Digital Data Snapshots…”Zoom”- Detailed Snapshot (Code Samples, Skill Ranks, Languages,

etc.)- Copyrighted Talent Algorythm Q’s & Grades called “TAG” - Photo

- ”The Vid”-Optional One Minute Video for Culture Match- RETAIN: ”TAG” Proprietary Talent Algorithm Grades (DNA,

Childhood, Adult Habits): Only 4-10 multiple choice questions with grades of A+ to F. Guarantee all A grades up to 1 year and B grades up to 6 months

9

jobzlab.com

Global Market Validation- The global staffing market in 2013 was worth an estimated

USD $416 Billion (using sales rather than gross profit)

10

Rank Country Value Global Market Share Forecast 2014 Growth

1 USA $124 Bil 30% 7%

2 Japan $58 Bil 14% 4%

3 UK $37 Bil 9% 7%

4 France $29 Bil 7% 2%

5 Germany $25 Bil 6% 5%

Top 5 Countries: Contribution per Country Breakdown

jobzlab.com

Glassdoor 32% Referral Hires

11

Recruiter Sourced5%

Recruiting Event4%

Agency4%

Employee Referral32%

Hiring Manager6%

Contractor Conversion / Transfer

5%

Glassdoor Profile & JobAds29%

Indeed6%

Craigslist1%

LinkedIn7%

University / Campus1%

Recruiter SourcedRecruiting EventAgencyEmployee ReferralHiring ManagerContractor Conversion / TransferGlassdoor Profile & JobAdsIndeedCraigslistLinkedInUniversity / Campus

Source of Hire2014

jobzlab.com

Spending Breakdown

12

Job Advertising27%

Employee Referral Bonus Program

15%

Recruiting Agency Costs13%

Employer Branding13%

Recruiting Events4%

Recruting Systems / Technology

13%

Other / Candidate Travel & Expense

15%

Job AdvertisingEmployee Referral Bonus ProgramRecruiting Agency CostsEmployer BrandingRecruiting EventsRecruting Systems / TechnologyOther / Candidate Travel & Expense

Recruiting Spendby Category2014

jobzlab.com

TM

Hurdle 1: Users

jobzlab.com

Start-up Seed- Acorn to and Oak

jobzlab.com

Cost Per User Acquisition

- Job Explorer|Referral-Partner CPA: Currently using Linkedin CPC Campaigns, the CPA is approx $45 for new Referral-Partner or Job Explorer User (FB: Red Shoelaces)

- Employer CPA: Currently approx $500 to gain a new Employer to post job openings

15

jobzlab.com

Field of NightmaresBuild it and they will come…Don’t Assume!

- Did not test if people in socialverse WOULD refer their friends- With Uber, everyone knows how to drive their own car- It costs a lot of $ & time to just get impressions | eyeballs- Impressions do not translate into a new user action - LINKEDIN CPC Campaign Tests:- $10k per month A to L Testing; not just A/B- Results: 500,000 impressions in 30 days; 3,000 clicks; 220 new

users…REALLY? $45.45 cost per user acquisition- I was told I was doing well!

jobzlab.com

CPC Out of Box Sample- Zuck on Paternity Leave

jobzlab.com

TM

Hurdle 2: UI

jobzlab.com

Low Friction UI- $24,000 to build MVP web site- Keywords only to find jobs- No alerts for Hiring Managers when new applicants apply- No daily User email blasts…”$5k bounty for Sr Web Dev in SF”- Site is too wordy- No App, but mobile optimized- LI had just changed it’s plug in rules at launch- Video takes too long to download- No Employer White Labeling- Cannot track referrals via Facebook, Linkedin, etc, only emails- NEED A 2.0 WEB SITE…$$$

jobzlab.com

TM

Hurdle 3: Revenue

jobzlab.com

Business Model: A | B Tests

21

Tier 1 (Years 1 & 2)JobzLab receives 7.5% fee for each external hire

Tier 2 (Start Year 3)Monthly or Annual Subscription Model Per Employer

Two-Tier Revenue Model

+

jobzlab.com

Where to Find New Users?- Easier Said Than Done…- Rev model 7.5% fee cannot scale today; takes time & $ to get

Users- Big Q: How does JobzLab acquire new users cost-effectively?- A shift, not pivot…Internal Employee Referral Tool Box- Salesforce Meeting: 50% of all successful hires are Employee

Referrals- They have a dedicated army- Companies between 50-250 employees do not drive employee

referrals- JobzLab can acquire employees & friends as new users and drive

employee/friend chain referrals for small to mid size companies- Annual Subscription Model

jobzlab.com

Business Model: Test A

- 7.5% fee for each hire (Recruiters on average earn 28% fees and low fees are 15%)

- Companies designate referral “bounties” (via Jobz guide) for each opening from $2,000 to $6,500 (Friend, Self & 3 in Chain).

23

100 Companies X 10 Openings for Each = 1,000 Openings250 JobzLab Hires: $125,000 (avg salary) X 7.5% = $9,375

250 Hires (25% of 1,000 openings) X $9,375 (fee) = $2,343,750 Gross RevBounties Paid Out: $3,000 (avg bounty) X 250 = $750,000

Net Revenue Goal is $1,593,750

$2,343,750 (End of Year 2 Gross Rev Goal)

jobzlab.com

Business Model: Test BMonthly | Annual Subscription Per Co. User Station (Annual

10% Disc)

24

400 Companies X 1 User = 400 Co. Users x $325/mo (Business Choice)

Year Three Goal

$1,560,000

Start-Up Business Premier Enterprise

$199/mo $325/mo $575/mo Negotiated

10 Selection 20 Selections 40 Selections TBD

($130K/month)

jobzlab.com

Revenue Goals

25

Year 2 Total Gross Revenue GoalsTest A: 100 CompaniesBounties Paid Out (-$750,000) $2,343,750Year 3 Total Revenue GoalsTest A: 100 to 200 CompaniesBounties Paid Out (-$1,500.000) $4,687,500Year 4 Total Revenue GoalsTests A & B: 200 to 400 CompaniesBounties Paid Out (-$3,000,000) $10,935,000

jobzlab.com

TM

Hurdle 3: HR

jobzlab.com

Getting HR Meetings- Tend to be slow to respond or unresponsive to an intro meeting- Not very open minded to new start-up, proof of concept- Married to ATS that is not very effective- When adopt JobzLab, tend to be very slow to correspond- Prefer not to pay fees versus hiring their own candidates- Slow to respond to your candidates during the entire recruiting

funnel- Possible Remedy? The Shift…- Contact COO at 50-250 sized companies…COOs get the value add- Employees become Users; JobzLab drives the employees & friends

referrals process for companies- JobzLab’s goal is to get companies to 40-50% of all hires to be

employee referrals

jobzlab.com

TM

Hurdle 4: Biz Dev

jobzlab.com

Go Big!?Enterprise Sales Only…mistake- Biz Dev Advisor suggested to go after Enterprise companies

only…the rest will follow- Landed PlayStation, but bread n butter companies might be more

small to mid sized with limited resources- Lost months during long winded enterprise sales process, Airbnb,

Salesforce, Sony, etc.- Just beginning 50-250 sized biz dev to COOs to be internal referral

tool box- Keep the “story” simple- Need 1 or 2 Sales help- Need $ for Sales help

jobzlab.com

TM

Hurdle 5: Competition

jobzlab.com

Lots Can Happen in 6 Months

- Not much competition in 2014- $416 Bil Market…Got crowded fast- Digital Hiring Craze: Many digital platforms surfaced- Several are acquired or got out of gates early- Is there room for JobzLab?- What problems do we solve that others don’t?- Could we become a Unicorn?

jobzlab.com

Milestones: Launched 8-15-15- First 60 Days…

- Gaikai (Playstation): 60 Openings (First month got hire in Berlin Office)

- Sony PlayStaton: 12 Openings

- TrueVault: 5 Openings

- Keypr: 5 Openings

- Ziprecruiter.com Strategic Partnership

- The Job Doctor JobzLab is 1 of Baker’s Dozen companies to watch

- Company Meetings- Salesforce & Airbnb

- Beta Tested “TAG”

- Predictive assessments tested and worked very well; Copyrighted; Questions approved by Employment Lawyer per Sony request

32

jobzlab.com

3 Competitive Advantages?

33

- JobzLab is the social $ bounty referral marketplace connecting Employers, Recruiters, Engineers and the Public…making everyone recruiters

- 1. Photo 2. Detailed Profile (code samples, skill rankings, highlights) 3. ”TAG” Proprietary Analyics|Grades (DNA, Childhood, Habits) 4. One minute videoanswering 1 question

- Significantly reduces finding|vetting|hiring time in company recruiting funnel

- Long-term engineers; up to 1 year guarantee

- Built first Gaikai teams & culture (acquired by PlayStation for $380 mil); Built Nook Cloud; New PS teams; Consulted Oculus

Social $ Bounties

Digital CandidateTech|Culture Data

Ease of Use

GuaranteeFounder | Team

jobzlab.com

Super-Engaged Employees- Four Employee Types“The Coming Jobs War” by James Clifton (Gallup Chairman)

1. Engaged Employees: Top 20%, 28% of world’s employees2. Not Engaged Employees: Some value add, 9-5 employees, paychecks3. Actively Disengaged Employees: Go out of their way to disrupt everything4. “Super-Engaged” Employees: The phrase we coined for our hires; top 5% talent; great culture fits; make the team better and raise their game; 24/7; codes as primary hobby; out of the box (Magic Johnson, Larry Bird, Pat Summit, Mia Hamm, Wayne Gretsky, Michael Jordan}

jobzlab.com

Exit Strategy

35

jobzlab.com

Candidate FrustrationSpam Responses from HR

jobzlab.com

Interview & Offer LetterLand that job you always wanted!

jobzlab.com

TM

Thank you