7/29/2019 Farolito Description

1/13

Efficientjob-markets,successfulgrowth

January,2013

7/29/2019 Farolito Description

2/13

Problem:

Firmsstruggletofind&retaintalent

Workerslacksoskills

Firmspreferprovenworkers

Poachingbetweenfirms

Increasedwages,highcosttoretaintalent

Firmsunderinvestin

training

7/29/2019 Farolito Description

3/13

Problem:

Job-seekersstruggletofindwork

Inflatedexperience&trainingrequirementslimitpossibiliMesforableworkers.

JobapplicaMonsarecostly:proofofeducaMon,policereport,etc.canaddupto$20for

applicantsinfinalphase.

Evenoutsidecapital,preferenceforexperiencefavorsLimaworkers.

7/29/2019 Farolito Description

4/13

EnterFarolito:

Firmsiden*fyuntappedtalentatlowcostFarolitotesthighlightsimportantprofessionalskillssuchas

A"en%ontoDetail,andSocialComprehension.

Farolitomaintainsdatabaseofworkers,facilitaMngquick

hiringwherenormexceeds6weeks.

Jobseekersincurapplytoseveraljobseasily

JobseekersdemonstratetheirabiliMesthroughFarolitotest,areguidedtowardsjobstheydowell.

OnceintheFarolitodatabase,workerscanapplytoseveral

jobsatnoaddiMonalcost.

7/29/2019 Farolito Description

5/13

TheFarolitoTest

ContenteasurementofskillsetssuchasAbilitytoLearnontheJobor

CriMcalThinkingidenMfiesworkerswithtalentforjobinquesMon.

Assessmentofpreferencessuchasworkinteams,orwork

moMvaMondetermineslikelihoodofquickturnover.

Implementa*on

Testisonline,whichfacilitatesimplementaMonanywhere.

Same-dayscoringallowsfirmstointerviewbestcandidatesquickly.

Applicantscoredependsonjob:algorithmemphasizes

differentskillsetsindifferentposiMons.

7/29/2019 Farolito Description

6/13

Viewofthetest

7/29/2019 Farolito Description

7/13

FarolitocompeMMon:pricier,low

presenceintargetregions

EstablishedHiring

Agencies

PsychometricTes*ng

Centers

Online

JobBoards

Examples anpower,Adecco Reid,Vangent,HoeganBumeran,

Computrabajo

DescripMon OutsourcedhiringTestsscreenforhonesty,

personalityOnlineclassifieds

Recommend

candidates Yes No No

Presenceinthe

provinces

Somewhat Yes Yes

Small,butgrowing.Not

target.

Throughphonecallsto

Lima-basedproviders.

PresenceinTarget

BasicJobsarket

Somewhat Somewhat Yes

PracMcesbeersuitedtomanagerialposiMons TestsmaybeinappropriatefortheseposiMons

AffordableforSEs No No Perpost.$

BoomlineTheycouldbeour

clients.

Wehavelocalizedtestat

lowerprice.

Wedomorefor

marginallyhigher

price.

7/29/2019 Farolito Description

8/13

FarolitohashighprofitpotenMal

UntappedclientmarketSEsoutsidetypicalfull-serviceoperaMonclientelecan

affordFarolito.

Economiesofscale

ulMplesalesofdatacollectedonce.

Two-sidedmarket

Job-seekerswillpurchasepremiumservices.

7/29/2019 Farolito Description

9/13

Eventualadd-onsfurthersupportjob-

marketefficiency.Searchabledatabaseforemployersbytypeofjob/

locaMon.

Premiumop3onforjob-seekersofferstraining

materialsandvideosthroughFarolitowebsite.

Thirdpartylicensedtestersthroughuseofbiometric

recogniMonsowaretoensuretestintegrity.

Skill-specifictes3ngensurescandidateshave

requisiteknowledgesuchasSWord.

TestforilliterateworkersusingvideoinstrucMons

supportshiringcompetentworkersforbasicjobs.

7/29/2019 Farolito Description

10/13

Farolitosavesfirmsmoney

Benefit

Dollarssaved,one-*me

TotalSavingsperyear Explana*on

Adop%onofFarolitoexamforhiringpurposes

Turnoverdecrease1ppper

month$2,308 $27,692

CostofreplacementMmes

salaryMmestwelve

Newworkers8.3%moreproducMve.

$154 $96,923DifferenceinproducMvity,reapedfrommonth3ofnew

hireonthejob

UseofFarolitoexamtoiden%fypoten%almanagersfromlower-levelemployees

PromoMonpossibility

increasesproducMvityby

0.83%

$15 $8,769IncreaseinproducMvity,from

firstmonth

2workerspromoted

manager,8.3%more

producMve

$192 $4,615

ProducMvityimprovementat

manageriallevelovertwelve

months

TotalSavings $138,000

100workers,8monthlyturnover.Fullproduc%vity2xwage.*

*Es%matesdevelopedinconjunc%onwithpoten%alpartnerfirm.

7/29/2019 Farolito Description

11/13

Highgrowth,impactpotenMal

Peruisgrowing Peruadded1.5millionformaljobs20042010(inisteriode

Trabajo)

GDPgrowth20052010,$79.34B-$127.32B(60%growth!)(IADB) NumberofworkerswithterMaryeducaMonincreasedby1.3million,

almostby50%.Allgrowthinprovinces.(inisteriodeTrabajo)

IfFarolitoplaces1%exis*ngworkforceinabeerjob&chooses

beerworkersfor10%ofnewjobsovernext6years

Beerjobsforworkers:350,000workersplacedthroughFarolitoonce.

Beerworkers,beerfirms:$472,500,000insavingsforfirms. HighRevenuePotenMal:$35,000,000inrevenues

7/29/2019 Farolito Description

12/13

InterestinFarolitoissignificant.

250peopleinhavetakenthetest.3firmshavehiredthroughus.2universiMeswilluseustoplacegraduates.4FirmsdiscussingnaMonalpilotwithus.$100,000commiedseedfunding.

7/29/2019 Farolito Description

13/13

Summary

Farolitoresolveslabor-marketinefficienciesbysignallingworkerabiliMes.

Lowcost&speedhelpsFarolitoreachfinanciallyinsecureclientelecomparedtocompeMtors.

Highprofitpoten3alfromeconomiesofscale.Significantdevelopmentimpactbyimproving

jobopportuniMesandloweringfirmexpansioncosts.