An aggressive recruitment campaign in Silicon valley in London provoked an enthusiastic media headlines, but Europe’s largest business center for technology startups, change can be a real disaster.
In recent years, such Internet giants as Google, Facebook and Amazon announced plans to hire in their London offices thousands of new employees. Corporations will lead talent of the most famous startups of the British capital, — which is, for example, poaching employees service service Deliveroo platform solutions user identification Onfido or software for video games Improbable.
At home, American technology companies have to deal with constant inspections, and public discontent pumping out data and regular leaks is only growing. Despite this, London, us business with open arms met the Prime Minister Theresa may, mayor Sadiq Khan and many other politicians.
But for the UK arrival of guests from overseas can turn into a curse. Mark Tłuszcz, partner in the investment Fund Mangrove Capital Partners and head of platform for creating websites with Wix, believes that the massive arrival of players of Silicon valley “does not promise anything good local startups”. In his opinion, the threat is even more serious than Brexit: “They call up all the companies that just come to mind and offering a salary twice as high as you can get in a startup. No problem, just hire 100 or 200 people. But they’re going to make London a major center for their business — in this lies the main danger.”
Google is building a campus on 7 000 people right outside the station king’s Cross and Facebook at the end of 2018, announced that on the same street rents two huge buildings and expands the number of staff in the British capital to 2 300 people. A few kilometers to the East, in the district of Shoreditch, which is the cradle of British startups, the new office in 2017, opened and Amazon, increasing its staff in the United Kingdom up to 5 000.
Mark Tłuszcz, once invested in Skype $2 million and received from them $200 million, admits: “It’s like city officials, and, when viewed in the short term, it’s good that Google and Facebook are in London. However, in the long run they will do more harm than good, so simply use up available here human resources, and new does not appear”.
In Facebook and Amazon declined to comment. In Google on the request of the publisher of Forbes didn’t answer.
Recruiting from the inside
Stevie Buckley, co-founder of Honest Work, the British service to search for vacancies in the field of information technology, says that poaching talent from fast-growing startups is for firms from Silicon valley “standard practice.” He explains: “When the California companies want to expand they go to London and there begin to look for firms like Deliveroo, Monzo, etc., to “get” the most promising employees. It happens all the time. Their goal — as soon as possible to acquire a large number of effective employees. Looking at firms of a similar level, they draw conclusions about the qualifications of a potential employee, especially given how strict selection, he was able to go there”.
Active recruiting, of course, is good news for job seekers, but for the founders of the British and other European companies, this situation only adds to the headache. According to Buckley, in London the process of finding, attracting, interviewing and hiring experienced software developer usually takes from a half to three months.
“Now figure out how difficult and expensive will the entire process if you need to find a programmer or two, but hundreds (as, for example, in the case of Deliveroo). And if it comes to you giant from Silicon valley and takes away a significant part of your staff, this situation could have far-reaching consequences — local companies will not be able to effectively develop and satisfy the needs of investors”, — the expert concludes.
Another recruiter in the technology sector, who requested anonymity, says that their actions in respect of Deliveroo, Improbable and Onfido California Corporation, very harmful for other young start-UPS.
Over the past couple of years Facebook has poached seven developers from startup Qubit, specializing in the production of software and from the online fashion store Lyst. Also, according to anonymous recruiter, Google moved from Qubit three programmers.
In the footsteps of LinkedIn
A little digging in the wilds of LinkedIn, you notice that of startups-“unicorns” (companies to reach capitalization of $1 billion) to corporations in Silicon valley move very much.
In recent years, more than all, seem to have suffered a Improbable firm developing solutions virtual reality with the support of the Japanese holding company SoftBank. The startup, valued today at more than $2 billion, for Google left more than a dozen engineers and recruiters: over the past two years in an American Corporation for the posts of developers went Miran Tabrez, Harry Ragan, bill Cranfield and Sam Corcoran and Roxanne Aliabadi was at the new location Manager for software products.
For greater effect, the American company gone from Improbable and recruiters in the technical fields, finding them by using even more personnel. So, the startup lost Andrew Pickup, high-class recruiting specialist, who in March moved to Google, as well as Francesca Barilo, which since February this year working in Amazon. In the Improbable from commenting on this occasion abstained.
At Deliveroo, by the way, is also not without high-profile departure of some executives at Google and Facebook. For example, Alex Thompson, head of the team for product development working on an application services for drivers-carriers in may last year left his position as a senior leader in software product and joined Facebook as the head of product development, and Giacomo Giussani, specialist service for processing and analysis of data in August of 2018 moved into Google.
With all the predictable diplomacy in Deliveroo, said that the company is pleased in London any global corporations
A press-the Secretary of Deliveroo, said: “Our startup is attracting the most talented employees from around the world, and fixed the capital status of the international center for technology only helps with the recruitment of prospective employees. The strengthening of international companies of their positions in London is a sign of confidence in British technology business. And such initiatives should be encouraged”.
Not everything goes smoothly and Onfido, a startup specializing in the development of solutions for user authentication. Last November Paul Sarbinowski left from the position of safety engineer in a similar position to Google.
Hussein Kassai, co-founder and CEO of the firm, said that between his company and the California corporations bilateral exchange of staff: “the tech giants are always seeking to hire as many staff. But many promising candidates, such a strong corporate culture influence depressing. We often see top managers want to join start-UPS”.
Cassi explains that the current Vice-President of the Onfido on artificial intelligence came to them from Amazon, and the technical Director previously worked at Spotify and Adobe: “If we are someone will gain something from them someone may come to us, the more choice of frames there is much richer”.
Why they can not sit quietly
Money is not everything. However, in a city like London, they solve much, because the average house price here is 480 000 pounds ($610 000), and for a pint of beer on average will have to pay 5.19 lb ($6,58).
According to the web site for job search Glassdoor, in the British capital as a beginner, annually earns an average of 30,000 pounds ($38 000), the senior developer is 62,000 pounds ($79 000), and the annual salary of a technical Director is about 145 000 pounds ($185 000).
In the words of one Headhunter, salaries in the technology sector in the UK simply pales in comparison with offers from major American corporations where the developers middle managers for the year is more than $127 000 (100 000 lb), and salaries in senior or managerial positions and above: “Wages, mainly in the field of design and development is out of control.”
And while companies in Silicon valley pay their employees in the United Kingdom a lot of money, their counterparts in the United States still earn more.
If for the applicant the most important thing is not generous compensation, or stock options, not the last role to play chic canteens, coffee from Barista or some other nice bonuses from the employer.
Silicon valley in Israel
California giants also actively filled tel Aviv. Mark Batory, admits that Google is constantly trying to get him away from employees based there the headquarters of Wix, but the exact number of those who did not disclose. “I think London need to be afraid does not exit from the European Union, and the American companies that come here and do business in their great offices,” he adds.
Some lucky ones are able to hire staff from Silicon valley, offering a share in the company or suggesting some “important mission”.
For the development of investment applications Freetrade, for example, was attracted by a number of former members of the California corporations. Marketing Director Victor Nebehaj was previously head of online operations, Google; Ian fuller, Vice President of Freetrade development, worked at Snap Manager for developments and Milo hill, senior software developer, used user interfaces in the Apple. The head of service customer service Gemma HAPP to Freetrade worked customer service in a Snap, and before that worked at Google.
In addition, there are people who leave the tech giants for launching your own startup. At events Xoogler you can see many former employees of Google who make their first steps as leaders of new companies.
Last week the consulting firm GP Bullhound has published a forecast that by 2021, Europe will have its own technological Titan with a market capitalization of $50 billion However, if Google and Facebook will continue to poach employees from British startups in the same vein, “small island country” have pretty hard work to acquire their own technological giant.
Translation Of Anton Bundina
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