Working with a number of start-ups, and launching a new company, I think this article by Miguel Helft in the New York Times offers some interesting observations on how competitive the landscape is to hire talent, but more important, what a new company can offer that may be a lot more appealing to the best of the best!
In Fierce Competition, Google Finds Novel Ways to Feed
By MIGUEL HELFT
Published: May 28, 2007
(Picture: Alice Yu-shan Chang will work for Google after she receives master’s degrees in computer science and management science from Stanford.)
MOUNTAIN VIEW, Calif. — On a spring Saturday, about 90 students from Stanford and as many from the UniversityCalifornia, Berkeley, converged on Google’s corporate campus for a day of spirited team competition over mind-bending puzzles, Lego building problems and video games. Nitay Joffe, a computer engineer, chose the start-up company Powerset over Google. It was called the Google Games, a convivial way for the mostly computer science and engineering students to renew the Stanford-Berkeley rivalry. But behind the fun was a serious corporate recruiting event that underscores a rivalry no less intense: the tug of war for talent between Google and its competitors.
As much of the high-tech industry is enjoying a renewed boom, the competition for top recruits in engineering and other fields is as intense as ever. Companies like Google, Microsoft and Yahoo frequently find themselves going after the same candidates or recruiting in one another’s backyards. At the same time, they are running up against a myriad of start-up companies across Silicon Valley that have been pumped up with venture capital in recent years.
To lure talent, these companies have expanded their recruiting
arsenal far beyond the traditional job fair to include a growing number of
events like technology lectures, cocktail parties, pizza parties, treasure
hunts and programming contests, dubbed “code jams” or “hack days.” Much like
the Google Games, these are no-pressure recruiting occasions meant to create
excitement around their companies and impress potential recruits as young as
“It comes down to just getting them introduced to our
culture, showing them that, hey, being part of Google could be a lot of fun,”
said Ken Krieger, a Google engineer who had volunteered to supervise the
Lego-building contest. Google, more than
any other company, looms large in this latest chapter of Silicon
Valley’s talent wars.
The company has been vacuuming talent wherever it can
find it to keep fueling its torrid growth. Its work force has roughly doubled
every year for the last several years, to more than 12,200 at the end of March.
Google is now adding about 500 workers each month. Its Web site lists nearly
800 open positions in the San Francisco Bay Area alone.
If Google is hungry for top talent, the class of 2007 seems to think that a Google job offer is a prized commodity. Stories about Google’s notoriously tough and sometimes off-putting recruiting process continue to surface. Even so, the company was considered the most desirable employer for all undergraduates this year, and for the first time, it edged out the blue-chip consulting firm McKinsey & Company as the most desirable employer among M.B.A.’s, a position McKinsey had held for the last 12 years, according to surveys conducted by Universum, a research firm. “Being in an environment where you are going to learn a lot is the most important thing to me,” said Alice Yu-shan Chang, one of hundreds of recruits who are graduating this year and heading for Google.
Ms. Chang, who is finishing master’s degrees in computer science and management science at Stanford, was sought by both Microsoft and Google, as well as eBay and Oracle. She said Microsoft had done what it could to find the right group for her, first at its headquarters in Redmond, Wash., and then, upon learning that she did not want to leave the Bay Area, at its Mountain View campus, not far from Google’s. She received phone calls from company vice presidents and met face-to-face with one of them.
“With Google, you don’t have that much face time with
high-up people,” she said. But there was some wining and dining on the part of
Google, which Ms. Chang would not discuss in detail because she had signed a
nondisclosure agreement. Eventually, Google won, in part because it had agreed
to permit Ms. Chang to rotate positions every six months in the first year and
half, and because, for her, it was a better cultural fit. “There are a lot of young people there who
are very creative,” Ms. Chang, 25, said. Many of her peers at Microsoft would
have been in their 30s and 40s “and more family oriented,” she said.
In the last two years, Google has expanded its university
recruiting programs to nearly 200 campuses from about 70. But the ubiquity of
its events has ruffled some feathers. Max Levchin, the chief executive of
Slide, a technology start-up in San Francisco,
said he used to have good luck recruiting from his alma mater, the University of Illinois
at Urbana-Champaign, by going there in midyear and persuading computer-science
students to defer graduation and join him in Silicon
Valley. “Now all I hear about is Google holding a puzzle hunt
this, or Google campus pizza that,” Mr. Levchin said in an e-mail interview.
Chief executives at other start-ups had similar frustrations.
Stanford does not keep an official tally of where its
students go, and even informal numbers are not in for the class of 2007. But an
unscientific, voluntary check of students run by the university’s career center
showed that Stanford had funneled more of its graduates to Google than to any
other employer in the last three years.
While playing down the rivalry with Microsoft, which is hiring at an
even faster rate than Google, albeit into a company nearly six times as large,
Google has not shied away from bringing the competition for talent to
Microsoft’s door. Google has more openings in the Seattle
area than anywhere else in the country other than California
and New York.
“I think it’s unlikely that you’ll see us back up a truck
to their parking lot,” Google’s director for staffing programs, Judy Gilbert,
said. “We have done a lot of things to engage with the local talent in an
As an example, Ms. Gilbert, a former recruiter for McKinsey, pointed to a lecture this year at Google by Kaifu Lee, the president of Google Greater China, which was intended to appeal to the “large community of Chinese ex-pats” in the Seattle area. Mr. Lee used to head Microsoft’s research organization in China. After Google hired him in 2005, Microsoft sued Google and Mr. Lee, accusing him of violating a noncompete agreement and misusing inside information. The lawsuit was later settled.
Google’s efforts notwithstanding, Microsoft and Yahoo say they are able to hire the candidates they need. “Our competition is really the market for top talent, not a specific company,” said Scott Pitarsky, Microsoft’s general manager for talent acquisition.
Similarly, Yahoo, which held a hack day at its campus
that was attended by about 500 programmers, as well as smaller ones elsewhere,
said its recruiting strategies were working. The company also opened a research
center at Berkeley
in part to attract student interns.
“Dozens of people have come from the labs into Yahoo,” said Bradley
Horowitz, vice president for product strategy at Yahoo. All three companies say their toughest
recruiting challenges come from start-ups, who snap up people like Nitay Joffe.
Mr. Joffe, who had summer internships at Google for the
last two years, expected to go to work there. But before Mr. Joffe, a recent
computer engineering graduate of the University
of California, San
Diego, accepted a job, a friend suggested he check out a San Francisco start-up,
Powerset, which is trying to build a rival search engine.
“Powerset had everything that Google had in terms of what I was looking for — smart people, interesting projects, great amenities,” Mr. Joffe said. Powerset also had one thing Google could not offer: the potential to strike it rich with the Internet equivalent of a lottery ticket. “When you get a stock option at 5 cents and it goes to $50 …,” Mr. Joffe said, before his voice trailed off. With Google’s shares hovering around $480, it no longer offers the same potential. “Google isn’t going to $4,000,” said Mr. Joffe, who began working at Powerset recently. For every recruit who gets away, Google hopes many more enter its pipeline of potential employees at events like the Google Games.
“We never say, ‘Come work for us,’ ” said Ronner Lee, who is in charge of Google’s university programs at Berkeley. “If they like what they see here and they want to approach us with questions, that’s great.” If the goal was to impress this crowd, it did not hurt that the games were held inside one of Google’s cafeterias, where the food is free, healthful and plentiful. Or that students were picked up at their campuses by Google’s free shuttles, which are outfitted with wireless Internet access. Or that many of the puzzles were created by the No. 2 Sudoku player in the world, who, by the way, happens to work at Google. David Nguyen, a doctoral student at Berkeley who went to Google for the games, said the company clearly understands its target audience. “This is exactly the kind of person they want,” Mr. Nguyen said, “someone who is going to work and solve problems on a Saturday and enjoy it.”