#27 - The CEO Who Pays Employees to De-Locate From the Bay

Zapier's Delocation Package

Zapier introduced a delocation package in March of 2012, offering $10,000 to new employees in the Bay Area to relocate. The goal was to attract talented individuals who were interested in remote work and wanted to explore opportunities outside of San Francisco. The delocation package generated significant buzz and resulted in a 30% increase in applicants to Zapier. Interestingly, most of the applicants were not from San Francisco, indicating that the offer had raised awareness and attracted talent from various locations. Ultimately, the package helped Zapier hire 15 new employees, with only one person from the Bay Area.

Remote Work Success

Zapier has successfully embraced remote work as its entire team operates remotely. This early adoption of a remote work culture has provided numerous benefits for the company. Starting as a side project where remote work was the norm, Zapier developed a strong organizational muscle for remote collaboration, including effective communication and documentation. This remote work experience has shaped Zapier's success and made it difficult to transition into a traditional office setup. The company has adopted a pragmatic approach to remote work, focusing on key values such as default action, getting things done, transparent communication, and empathy. Regular in-person onboarding sessions for new hires further strengthen the company's remote work culture.

Managing a Growing Remote Team

As a remote team, Zapier faces unique challenges in managing and scaling their organization. They have adopted a thoughtful approach to navigate these challenges. The company implements clear values, including default action, transparency, and empathy, to guide its remote team members. As Zapier grew in size, they established a management structure, adding more managers and clearly defining roles. They prioritize setting organizational values and providing training for managers to ensure consistent leadership. To facilitate communication and alignment, Zapier arranges weekly one-on-one meetings, encourages cross-company interactions, and organizes remote team building activities. Their focus on creating a positive work environment has led to a remarkable 97% employee retention rate and high employee satisfaction.

Fundraising and Building a Billion-Dollar Company

Zapier's approach to fundraising has been pragmatic, considering it as a tool rather than an obligatory step. They initially joined Y Combinator not for the capital, but to tap into the network and connections it offered. While their YC experience provided valuable introductions and opportunities, Zapier ultimately raised a minimal amount of funding. Their ability to generate revenue and achieve healthy growth allowed them to sustain the company without further rounds of funding. They emphasize the importance of focusing on building a great product, attracting happy customers, and working hard rather than solely relying on fundraising. This approach enables founders to choose the path that best aligns with their business model and market dynamics.

Y Combinator Startup Podcast

#27 - The CEO Who Pays Employees to De-Locate From the Bay

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Zapier's Delocation Package

Remote Work Success

Managing a Growing Remote Team

Fundraising and Building a Billion-Dollar Company

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