Strivve Engr245 2017
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The document outlines a business model aimed at helping gig economy workers transition to stable employment by providing career progression opportunities and connecting them with employers and job training programs. It highlights the challenges faced by low-skilled workers in the job market and emphasizes the importance of enhancing existing initiatives rather than competing with them. The model relies on a subscription approach for employers and job seekers, with a focus on showcasing soft skills and building trust with a two-sided marketplace.
![Why?
We called them and found out we were asking for too big of a
behavior change
“[I didn’t make a video]
because it was different
and I wasn’t sure what it
was for...I’ll do it tonight
if the wifi works!”
[After explanation]
“Oh ok, no problem.
I’ll make one today.”
...Doesn’t happen.
“I just assumed I
couldn’t record the
video on my phone,
but I could make one
tonight”](https://image.slidesharecdn.com/6-170316012909/85/Strivve-Engr245-2017-16-320.jpg)
![Current employer
● “always making customers smile”
● “always on time and rarely misses a day.”
Prior employer
● “great team player”
● “take the initiative to help out”
● “we have missed having her ”
Verified
● High attendance record - 2 absences (sick
days) in last 2 years
● Successfully diffused 4 contentious customer
complaints in last 3 months
Languages: English - native language
Spanish - 40% professional fluency
Typing: 45WPM
References (0-10)
-click for details-
Current employer: 9
Professor: 8
Prior employer: 7
Connections:
2 Verifed references
1 [Stanford Hospital]
connection
8 Strivve connections
Last Profile Update:
5 days ago
Current Employment: United Healthcare Staffing
Duration of Last Positions: 3 mo, 2 mo
Explanation of work gaps: in school
Education: Bay Area Medical Academy
Certificates: Certified Phlebotomist
Direct Position Experience: 2 mo externship @
Zuckerberg hospital
Other Related Experience: none
Mary Montanez
Position Sought: Medical Assistant
My story:
“I got into medicine people because I like helping people.
I like to putting a smile on someone’s face.”
AccomplishmentsBackground
Strivve Verified Competencies
References
INTERVIEW!](https://image.slidesharecdn.com/6-170316012909/85/Strivve-Engr245-2017-20-320.jpg)
Strivve Engr245 2017
- 1. Market: Resegmenting as niche entrant Where we started... Helping gig workers use their customer ratings to get better career opportunities Darren, an uber driver Where we ended up! Helping low-skill workers advance their careers with ‘better resumes’ We interviewed 107 people Mary, an aspiring medical assistant Market: New market
- 2. Jenny Molyneaux MBA 2 - Background in user acquisition, growth, and tech Tom Bedecarre Mentor - Cofounder, Chairman of AKQA. Stanford DCI Fellow Christine Tataru CS, Masters in AI - Background in algorithms, bioinformatics, and software development Tatiana Brezina MBA 1 - Background in designing financial tools for underserved Americans Eleanor Cooper MBA 2 - Background in finance, design thinking A crew of people all committed to helping low-skilled workers find better jobs
- 3. • Gig economy workers who want to move into stable, full-time work. Their current work doesn’t meet their needs, but they don’t know how to pursue a better opportunity • Employers in industries struggling to find high quality low-skilled workers • Potentially, educators/ intermediaries (ie. community colleges, job training programs, etc) who are not reaching or adequately serving this demographic • Employers: provide jobs that our users can be placed into • Skills training programs (Job training programs, vocational schools, community colleges): we want to connect individuals to these programs / increase their impact • Gov: there is lots of political will and gov. funding for job training and upward mobility initiatives • Other companies : there are several other companies that work in this space, however target a different demographic. We want to enhance their work not compete with it • Problem: Gig-economy contract employees (GEWs) are not adequately rewarded for good performance or able to leverage it for career progression/ upward mobility. • Solution- GEWs: provide career progression opportunities, both ‘cross - gig platform’ as well as into non-contract roles • Solution- employers & intermediaries: saves time and costs in connecting them with an important demographic; reduces hiring & turnover costs • Acquiring users (contract workers) to our tool • Expenditures to maintain partnerships with employers • Labor costs because there are a number of manual elements to our product (updating new job opportunities, figuring out what skills are relevant cross-platform, connecting w job training programs) • Employers will pay for better quality candidates to reduce their hiring turnover costs • Workers will pay either a small subscription fee for regular career progress tracking or a larger one time fee for job placement assistance • We may explore seeking revenue from existing funding sources for vocational training programs / colleges / related public grants • Our customers are on the move so we hope to track performance through an app. We are also thinking of having in-person visits w career counselors. • Reach employers & intermediaries via LinkedIn & GSB network intros • Requires dependable relationship to build the trust necessary for GEWs to share goals/ challenges • Need to address the emotional as well as practical barriers to pursuing upward mobility • Requires intermediaries view us as complementary to their work / initiatives • Technical expertise to build the product • Ability to understand HR/legal landscape • Career counselors & career path creators /connectors • De-risking career pursuit by providing actionable career pathways (may include identifying funding) • Converting local performance metrics (i.e. Uber’s stars) to universal metrics • Securing ‘fillable’ positions from employers 2 sided marketplace: 1. Gig workers looking for stable work 2. Employers looking for new info on candidates 2 key activities: 1. Converting gig reviews to a universal metric 2. Partnering with employers in need Week 1
- 4. Most gig workers don’t want traditional FTE jobs Week 10 Figuring out that Darren wasn’t the right customer Week 1 There are no easy metrics to distinguish gig performance
- 5. ...but we found a real pain point, for employers! • Gig economy workers who want to move into stable, full-time work. Their current work doesn’t meet their needs, but they don’t know how to pursue a better opportunity • Employers in industries struggling to find high quality low-skilled workers • Potentially, educators/ intermediaries (ie. community colleges, job training programs, etc) who are not reaching or adequately serving this demographic • De-risking career pursuit by providing actionable career pathways (may include identifying funding) • Converting local performance metrics (i.e. Uber’s stars) to universal metrics • Securing ‘fillable’ positions from employers Would love data to validate entry level job seekers’ abilities - Job Training career counselors & small business owners Fit is most important, but interviews are so time consuming - Liz Trujillo, small business owner ...so many applications… hard to get the right type of people. - Dave Hinders, Hinders Home Care Week 10Week 1
- 6. Time to focus on an industry Retail Banking Health Care IT Hospitality Fast growing industry Necessary skills not easy to identify/ validate Opportunities for workers without bachelor's degrees Leads to a career with above avg. income Hiring is big pain point Hiring our demo of interest Week 10Week 1
- 7. We interviewed lots of Health Care HR departments Week 10Week 1
- 8. Current Workflow And their pain points were exemplified by Tammi (Stanford Hospital Hiring Manager) Stanford Hospital posts online for Medical Assistant 60 applications overnight Call 5-10 applicants In-person interview 3 people Hire 1 person She told us her process was: 1. Inefficient (took way too long) 2. Inadequate (still can’t fill 30 open medical assistant positions) 4-5 Weeks Week 10Week 1
- 9. ...and were willing to pay for better applicant information. Platform to showcase networks, references, soft skills via personal profile Healthcare company Job Seekers Subscription: $100/seat/month activities payments Information on job candidate’s networks, references, and soft skills Referral fee: $50 for every 10 friends onboarded to Strivve Hiring Quoted regularly ~$100-$150 / seat/month “Phone interview evaluations cost $800 - $1,500 per hire” - Stanford Health Week 10Week 1
- 10. The information they wanted most was soft skills. “I could be missing tons of better fit candidates because I simply don’t have time to interview all qualified applicants” - Cole Souza, Menlo Clinic Stanford “I can tell within 30 sec. of meeting - by looking at body language, tone, speech patterns - whether they are potential hires” - Patricia Wei, Direct Urgent Care “It would be easier to hire someone without experience, but we use experience as a proxy” - Sammy Alan, One Medical Week 10Week 1
- 11. Behavioral & Personality Quizzes Videos Connections (Referrals & References) How do we ‘show off’ applicants’ soft skills? Week 10Week 1
- 12. So we sold employers on a fake candidate... Introducing Mary! (Our 1st MVP) Mary M. Info not typically found on a resume is: - Verified references - Social connections - Available work area - Story - Video interview Week 10Week 1
- 13. We ran ads to attract real “Marys” to our site Week 10Week 1 What’s our CAC? Will job seekers create videos?
- 14. We ran ads to attract real “Marys” to our site CTR: 1.1% CVR: 1.9% 1st 12 hr. leads: 2 Week 10Week 1 We could attract job seekers to our website at an affordable price
- 15. ...but it was hard to get them to make a profile. 33 people hit our landing page 4 people gave their name, number, email 1 person submitted resume 0 people made video Week 10 (1 week of results) Week 1
- 16. Why? We called them and found out we were asking for too big of a behavior change “[I didn’t make a video] because it was different and I wasn’t sure what it was for...I’ll do it tonight if the wifi works!” [After explanation] “Oh ok, no problem. I’ll make one today.” ...Doesn’t happen. “I just assumed I couldn’t record the video on my phone, but I could make one tonight”
- 17. Finally...we got a real “Mary”! Week 10Week 1 A candidate seeking a Medical Assistant position came to our site and completed a profile
- 18. Her application was in bad shape... Week 10Week 1 NO INTERVIEW
- 19. ...so we made her a Strivve Profile. Week 10Week 1
- 20. Current employer ● “always making customers smile” ● “always on time and rarely misses a day.” Prior employer ● “great team player” ● “take the initiative to help out” ● “we have missed having her ” Verified ● High attendance record - 2 absences (sick days) in last 2 years ● Successfully diffused 4 contentious customer complaints in last 3 months Languages: English - native language Spanish - 40% professional fluency Typing: 45WPM References (0-10) -click for details- Current employer: 9 Professor: 8 Prior employer: 7 Connections: 2 Verifed references 1 [Stanford Hospital] connection 8 Strivve connections Last Profile Update: 5 days ago Current Employment: United Healthcare Staffing Duration of Last Positions: 3 mo, 2 mo Explanation of work gaps: in school Education: Bay Area Medical Academy Certificates: Certified Phlebotomist Direct Position Experience: 2 mo externship @ Zuckerberg hospital Other Related Experience: none Mary Montanez Position Sought: Medical Assistant My story: “I got into medicine people because I like helping people. I like to putting a smile on someone’s face.” AccomplishmentsBackground Strivve Verified Competencies References INTERVIEW!
- 21. I can’t believe that profile is for the same person I rejected! - Patricia, Direct Urgent Care I’ve probably applied to 50 jobs. I had no idea why I was getting rejected. This is so exciting! - Mary Both Tammi (Employer) and Mary (Job Seeker) were happy! Week 10 Mary got interviews with: Week 1
- 22. Employers loved the new information but were wary of the new format Week 10 We built a final MVP that looked a little more like a resume. Week 1
- 23. Employers starting asking us to verify more! …like tech-savviness and WPM We realized there are great opportunities to measure a lot more than just soft skills Week 10Week 1
- 24. GET Week 10Week 1 KEEP GROW ACQUIRE Job applicants submit Strivve resumes to employers’ job posts ACTIVATE Register to see job applicants’ videos KEEP Ability to search for passive job seekers (often considered best candidates) Revenue impact? Employer subscription model: UPSELL Customized video interview questions NEXT SELL Verification of additional types of skills Freemium model instead of upfront subscription
- 25. Cash flow positive in year 3. ~$1MM funding needed Week 10Week 1
- 26. • Acquiring users to our platform - advertisement • Expenditures to maintain partnerships with employers & intermediaries • Labor costs up front to design & manually check our systems are working - connections, reference verifications • Job-seeker: Get: Craigslist, Facebook ads, employer job posts Keep: profile ‘last updated’ status & text reminders Grow: Info. + connections to training and self-development opportunities • Employer: Get: direct network outreach Keep: Continually updated candidate pool; access to more data points (Strivve metrics) Grow:Personalize metrics and video questions based on employer needs • Reach employers & intermediaries via LinkedIn & GSB network intros; also in places where they typically recruit this demographic (trade schools, job fairs, monster/indeed, etc) • Reach job seekers in same places, in addition to Facebook & Craigslist ads • Employers will pay a subscription fee on a per seat basis (major hospitals may opt for per ‘employer’ basis for data to assess candidates in areas they care about • Potential for advertisement revenue • We may explore seeking revenue from existing funding sources for vocational training programs / colleges / related public grants Week 8 Job Seekers: Problem: Low-income job seekers have no professional networks / transferable credibility building platform Solution: Job seekers - Can showcase / get credit for their best skills & traits - Find personal connections for referrals /info/’role models’ Employers Problem: hospitals receive high volumes of applicants but lack information to efficiently sift to find ‘soft skill fit’ candidates Solution: Employers - Have access to a candidate database with connections, references, & video answers to ‘fit’ questions • Employers, at least initially, to draw job seekers to the platform • Skills training programs (Job training programs, vocational schools, community colleges): we want to connect individuals to these programs / increase their impact . They can also refer job seekers to us, after they graduate • Companies providing similar services to high-skilled demos. (LinkedIn) • Other companies providing services to our demo(Coursera, financial services products) • Entry level employers who would like to have career advancement as a benefit for retention • Career Coaches • Government bc they provide funding to our partners contingent on certain metrics (i.e. % placement rate after training program) • Low income / low skill workers who want to enter or be promoted within the healthcare industry - Already have certification (if necessary) but little experience - Decently tech savvy (can follow links to upload video) - Have good soft skills to promote • Health care industry employers hiring entry level positions - hospitals as early adopters - Too many applicants to sort properly (need faster way to find out more) - Concerned about hiring people with soft skills and patient care mentality • Technical expertise to build the product • Ability to understand HR/legal landscape • Career counselors & career path creators /connectors • Access to job seekers for entry level positions • Attract employers and passive & active job candidates to the platform • Source references that are as high or higher quality than employers get on their own • Facilitate job seekers’ finding connections with employers’ employees • Facilitate job seekers finding ‘friends’ on the platform Still 2 sided marketplace: 1. Low-skilled healthcare workers who need help differentiating themselves 2. Employers who need more info
- 27. 107 interviews later… a few things we learned: LSWs & employers rely on resumes, but do not ‘speak the same language’. Low skill workers (LSWs) are focused on immediate pain points, ie. job placement. Creativity is required when your product replaces the person who’s buying it. Employers don’t realize how often they are pre-cutting qualified candidates. LSWs & employers are resistant to changing the job application process. Week 10Week 1 LSWs are more hesitant to ‘trust institutions’ or enter data online. There are emotional barriers to LSWs seeking higher wage jobs LSWs & HR managers are concerned about discrimination & biases in the hiring process.
- 28. What’s next? Week 10Week 1 Customer Need Product- Market Fit
- 29. What’s next? Week 10Week 1 Healthcare is an ideal starting point, but just the beginning.
- 30. ● Stanford Professor Michal Kosinski can grade 5 employability traits with just your Facebook profile! ● At least one company is working on Audiolytics: evaluating someone’s soft skills and cognitive ability with just voice recordings. The team members of Strivve will continue exploring this space independently through course-work and either reunite with a better solution or considering joining companies already operating in this space. Further Exploration
- 33. Final Competitor Diagram Week 10Week 1 Needs updating!
- 34. TAM / SAM / Target Market / Revenue in Year 3 TAM = $85.5B SAM = $29B Target Market = $5.7B Key assumptions: at scale, 20% of US healthcare employers pay for Strivve Year 3 Revenue = ~$5M Key assumptions: - Revenue generated through a subscription model with two flavors: basic ($100/seat/mo.) & premium ($200/seat/mo.) - 90 employers served in year 3
- 35. Appendix
- 37. • Gig economy workers who are ‘financially strapped’. In current roles, they lack adequate consistent income, income growth opportunities, benefits, etc. Low income workers who want to receive training or change career paths • Employers in industries that struggle to fill skilled roles and with employees retention • Potentially, educators/ intermediaries (ie. community colleges, job training programs, etc) who are not reaching or adequately serving this demographic • Employers: provide jobs that our users can be placed into • Skills training programs (Job training programs, vocational schools, community colleges): we want to connect individuals to these programs / increase their impact • Gov: there is lots of political will and gov. funding for job training and upward mobility initiatives • Other companies : there are several other companies that work in this space, however target a different demographic. We want to enhance their work not compete with it • Problem: Gig-economy contract employees (GEWs) are not adequately rewarded for good performance or able to leverage it for career progression/ upward mobility. Problem: some low income workers want more interesting, better paying jobs • Solution- GEWs: provide career progression opportunities, both ‘cross -gig platform’ as well as into non-contract roles • Solution- employers & intermediaries: saves time and costs in connecting them with an important demographic; reduces hiring & turnover costs Solution: Offer clear information, direction, structure and support Solution: Offer connections to job-training programs, making application and financial planning simple • Acquiring users (contract workers) to our tool • Expenditures to maintain partnerships with employers • Labor costs because there are a number of manual elements to our product (updating new job opportunities, figuring out what skills are relevant cross-platform, connecting w job training programs) • Employers will pay for better quality candidates to reduce their hiring turnover costs Platforms like Uber will invest because • Workers will pay either a small subscription fee for regular career progress tracking or a larger one time fee for job placement assistance • We may explore seeking revenue from existing funding sources for vocational training programs / colleges / related public grants • Our customers are on the move so we hope to track performance through an app. We are also thinking of having in-person visits w career counselors. • Reach employers & intermediaries via LinkedIn & GSB network intros • Requires dependable relationship to build the trust necessary for GEWs to share goals/ challenges • Need to address the emotional as well as practical barriers to pursuing upward mobility • Requires intermediaries view us as complementary to their work / initiatives • Technical expertise to build the product • Ability to understand HR/legal landscape • Career counselors & career path creators /connectors • De-risking career pursuit by providing actionable career pathways (may include identifying funding) • Securing ‘fillable’ positions from employers • Converting local performance metrics (i.e. Uber’s stars) to universal metrics Week 2
- 38. • Employers: provide jobs that our users can be placed into • Skills training programs (Job training programs, vocational schools, community colleges): we want to connect individuals to these programs / increase their impact • Gov: there is lots of political will and gov. funding for job training and upward mobility initiatives • Other companies : there are several other companies that work in this space, however target a different demographic. We want to enhance their work not compete with it • Acquiring users to our platform • Expenditures to maintain partnerships with employers & intermediaries • Labor costs because there are a number of manual elements to our product (updating new job opportunities, figuring out what skills are relevant cross-platform, connecting w job training programs) • Requires dependable relationship to build the trust necessary for low income workers to share more personal skills and career goals • Requires intermediaries view us as complementary to their work / initiatives • Requires employers to view us as helpful, not poaching their talent; HR teams may see us a threat • Technical expertise to build the product • Ability to understand HR/legal landscape • Career counselors & career path creators /connectors • De-risking career pursuit by providing actionable career pathways (may include identifying funding) • Securing ‘fillable’ positions from employers • Develop tests to assess soft skills and experience that employers trust • Problem: low income workers who want more interesting, better paying jobs don’t know where to start Problem: Employers in health care lack adequate quality of entry level job candidates (JCs) and quantity of mid-skill JCs Soft skills are very important but information is not accessible on current platforms • Solution: Provide clear, digestible career path information & simplify application process for job-training programs and jobs Solution: digital talent platform - LinkedIn of unskilled and lower-skill workers - which allows employers to identify unskilled workers with high soft skills and qualified, low- skill ‘passive job seekers’ • Reach employers & intermediaries via LinkedIn & GSB network intros; also in places where they typically recruit this demographic (trade schools, job fairs, monster/indeed, etc) • Reach job seekers in same places, in addition to Facebook ads • Low income / low skill workers who want to enter or be promoted within the health care industry • Health care industry employers hiring unskilled and low skill positions • Potentially, educators/ intermediaries (ie. community colleges, job training programs, etc) who are not reaching or adequately serving this demographic • Employers will pay a subscription fee or placement fee for better quality candidates • Potential for advertisement revenue • We may explore seeking revenue from existing funding sources for vocational training programs / colleges / related public grants
- 39. • Acquiring users to our platform - advertisement • Expenditures to maintain partnerships with employers & intermediaries • Labor costs up front to design & manually check our systems are working - connections, reference verifications - because there are a number of manual elements to our product (updating new job opportunities, figuring out what skills are relevant cross-platform, connecting w job training programs) • Job-seeker: Get: Craigslist, Facebook ads, employer job posts Keep: profile ‘last updated’ status & text reminders Grow: Info. + connections to training and self-development opportunities • Employer: Get: direct network outreach Keep: Continually updated candidate pool; access to more data points (Strivve metrics) Grow:Personalize metrics and video questions based on employer needs • Reach employers & intermediaries via LinkedIn & GSB network intros; also in places where they typically recruit this demographic (trade schools, job fairs, monster/indeed, etc) • Reach job seekers in same places, in addition to Facebook & Craigslist ads • Employers will pay a subscription fee on a per seat basis (major hospitals may opt for per ‘employer’ basis or placement fee for better quality candidates for data to assess candidates in areas they care about • Potential for advertisement revenue • We may explore seeking revenue from existing funding sources for vocational training programs / colleges / related public grants Week 6 Job Seekers: Problem: Low-income job seekers have no professional networks / transferable credibility building platform Solution: Job seekers - Can showcase / get credit for their best skills & traits - Find personal connections for referrals /info/’role models’ Employers Problem: hospitals receive high volumes of applicants but lack information to efficiently sift to find ‘soft skill fit’ candidates Solution: Employers - Have access to a candidate database with connections, references, & video answers to ‘fit’ questions • Attract passive and active job candidates to the platform • Verify references • Facilitate finding any connections a job seeker has to employer company’s current employees • Develop tests to assess soft skills and experience that employers trust • Employers, at least initially, to draw job seekers to the platform • Skills training programs (Job training programs, vocational schools, community colleges): we want to connect individuals to these programs / increase their impact • Other companies : there are several other companies that work in this space, however target a different demographic. We want to enhance their work not compete with it (LinkedIn) • Other companies providing services that our demographic could benefit from but had not been effectively reached (Coursera, financial services products) • Low income / low skill workers who want to enter or be promoted within the healthcare industry - Already have certification (if necessary) but little experience - Decently tech savvy (can follow links to upload video) - Have good soft skills to promote • Health care industry employers hiring entry level positions - hospitals as early adopters - Too many applicants to sort properly (need faster way to find out more) - Concerned about hiring people with soft skills and patient care mentality • Technical expertise to build the product • Ability to understand HR/legal landscape • Career counselors & career path creators /connectors • Access to job seekers for entry level positions
- 40. • Gig economy workers who want to move into stable, full-time work. Their current work doesn’t meet their needs, but they don’t know how to pursue a better opportunity • Employers in industries struggling to find high quality low-skilled workers • Potentially, educators/ intermediaries (ie. community colleges, job training programs, etc) who are not reaching or adequately serving this demographic • Employers: provide jobs that our users can be placed into • Skills training programs (Job training programs, vocational schools, community colleges): we want to connect individuals to these programs / increase their impact • Gov: there is lots of political will and gov. funding for job training and upward mobility initiatives • Other companies : there are several other companies that work in this space, however target a different demographic. We want to enhance their work not compete with it • Problem: Gig-economy contract employees (GEWs) are not adequately rewarded for good performance or able to leverage it for career progression/ upward mobility. • Solution- GEWs: provide career progression opportunities, both ‘cross - gig platform’ as well as into non-contract roles • Solution- employers & intermediaries: saves time and costs in connecting them with an important demographic; reduces hiring & turnover costs • Acquiring users (contract workers) to our tool • Expenditures to maintain partnerships with employers • Labor costs because there are a number of manual elements to our product (updating new job opportunities, figuring out what skills are relevant cross-platform, connecting w job training programs) • Employers will pay for better quality candidates to reduce their hiring turnover costs • Workers will pay either a small subscription fee for regular career progress tracking or a larger one time fee for job placement assistance • We may explore seeking revenue from existing funding sources for vocational training programs / colleges / related public grants • Our customers are on the move so we hope to track performance through an app. We are also thinking of having in-person visits w career counselors. • Reach employers & intermediaries via LinkedIn & GSB network intros • Requires dependable relationship to build the trust necessary for GEWs to share goals/ challenges • Need to address the emotional as well as practical barriers to pursuing upward mobility • Requires intermediaries view us as complementary to their work / initiatives • Technical expertise to build the product • Ability to understand HR/legal landscape • Career counselors & career path creators /connectors • De-risking career pursuit by providing actionable career pathways (may include identifying funding) • Converting local performance metrics (i.e. Uber’s stars) to universal metrics • Securing ‘fillable’ positions from employers