Hiring is broken. And the reason is simple: Traditional interviews don’t work. Most companies hire the wrong people and take a long time to do it.
Chances are, you are probably making the same mistake.
Research shows that traditional interviews do not predict job performance. Yet time and again, companies continue to hire this way. The costs of these mistakes are tremendous. Without an easy way to do it better, most companies stumble along repeating the same mistakes.
You know the type of interview I’m talking about: Tell me about your background. How would your last boss describe you? What do you do outside work?
Despite their ubiquity, these standard interview questions tell you little. Why? Because:
Interviewers are biased. Interviewers look for people they are biased towards, rather than who will actually do the best job. This usually means they prefer candidates that act and look like themselves.
Interviews test interviewing skills, not job skills. We are all familiar with the candidate who nailed the interviews, but sucked on the job. The reverse of this also happens.
The result is that the best candidates are often not the people who get hired. This cripples companies over time.
And because of the interviewers' bias to hire people that act and look like themselves, traditional interviews cut against the candidates that companies are most looking to hire—like women and minorities.
There is a better way.
Job Simulations are the Solution
The solution is to simulate the job during the interview process.
Hiring a sales rep? Simulate the prospecting and outreach they’d do. See if they makes smart choices and can sell you as an interviewer. Need to bring on someone in customer service? Have the candidate respond to an irate fictional customer. Check for their empathy and problem solving skills. Give the same simulation to all your candidates and measure them against each other.
The key is to make this standardized and measurable. Written tests, for example, are 4x as effective as interviews at predicting job performance. Tech-enabled and adaptive work-simulation tests can be 10x as effective. The impact is huge!
Most hiring managers do not have a way to do this simply. Developing an in-house solution is a lot of work. That changes now with Interviewed, a platform that does the hard work for you. It is also my latest investment.
Seed Investment in Interviewed
An automated solution is great news for employers. The benefit of making the right hire is enormous. Bad hires are said to cost several multiples of their salary by the time they are fired.
The Interviewed team understands the challenge of doing interviews effectively. Founders Darren, Chris, Daniel, and Jono developed an approach similar to Interviewed to identify stronger candidates at their last company. I was paying attention to Interviewed and knew Darren was a fellow McKinsey alum. I’d heard great things and saw the product was gaining quick traction. Listening to the team, they had a clear sense of how to build a leading company in a big market.
What I love is that this is a product I would have used for teams I built. And I’d pay for it—no question about it. The difference between good and bad hires is enormous. In fact, I would have paid *a lot* to have this.
Interviewed is building job simulations for many roles. After six months, they have given almost 100,000 job assessments, with that number growing from 240 assessments the first month to 43,500 assessments last month. It’s a solid trajectory.
Their job simulation platform assures quality, time savings, and quantified results that most organizations couldn’t achieve otherwise.
We are participating in a competitive $2 million seed round. Co-investors include Y Combinator, Red Swan Ventures, Jason Calacanis, and SV Angel.