At the end of 2011, Betterment was at a crossroads. Founder and CEO Jonathan Stein had successfully shepherded his firm through the start-up phase and a successful round of Series A financing. Yet the company had entered what Stein sensed was a shifting tide in its hiring—where its appeal to talented software engineers appeared to be waning. This two-part case explores the HR issues Stein believed to be at the root of this hiring problem, asking students in Case A to brainstorm solutions, followed by a discussion of the steps the company actually took to solve the problem and reflections on management's "lessons learned" in Case B.

Case id: 140309