Recruit, Recruit, Recruit!

Recruit, Recruit, Recruit!

I have mentioned the coming talent crisis and how to hire. However, talking to clients and others, many are seeing a huge uptick in business during the first quarter of Q1, not only compared to Q4 2020 but compared to Q1 2020. As a result, these companies are in a rush to hire to meet this surge in demand. What amazes me is how many are so unprepared.

All business owners know that they and their team need to be selling continuously. As Estée Lauder put it, “I have never worked a day in my life without selling. If I believe in something, I sell it, and I sell it hard.” While many small and midsized companies seek to live up to this statement, they fail to see recruiting through the same lens.

Continual recruiting is key to the survival of a company, and it is not something that is left to chance and a time when you have a position to fill. Doing so often results, to paraphrase Barry Deutsch, “When looking for basketball talent, you get to pick the tallest pigmy.”

All companies need to be continuously recruiting. By that, I don’t mean hiring, but recruiting. It’s building a pipeline of people that you would hire if you needed someone to fill a position, or someone you would hire regardless of the position if they were available.

Recruiting doesn’t just fall on HR and the CEO, but the entire organization. To succeed, as Jim Collins says, you need “The right people in the right seats doing the right things.” Well, where do you get the right people? Here are some suggestions.

Develop your recruiting flywheel

In Good to Great, Jim Collins refers to the Flywheel Effect concept as:

“No matter how dramatic the end result, good-to-great transformations never happen in one fell swoop. In building a great company or social sector enterprise, there is no single defining action, no grand program, no one killer innovation, no solitary lucky break, no miracle moment. Rather, the process resembles relentlessly pushing a giant, heavy flywheel, turn upon turn, building momentum until a point of breakthrough, and beyond.”

I think organizations with great hiring abilities have developed a hiring flywheel where they have a process and pursue the process relentlessly until it operates with its own momentum. At that point, all others look at the organization and wonder how it does it and what is the magical change. There isn’t any, just a continual pushing for the flywheel process.

A Strategic HR person

Many organizations have a Human Resources manager. However, that role is typically a person how manages payroll, benefits, and compliance. They sit “under” Finance and ensure that employees get paid, get their benefits, and are in compliance with a myriad of rules. This role is crucial whether you have internally or outsource it.

However, few companies have a “Strategic” Human Resources person who sits in the “C” Suite. This person needs to ensure that the organization’s resources are aligned with its strategy. As the organization moves through its 13-Week plans and 3HAG, they know when additional talent is going to be needed. Hence, they are ahead of the curve, ensure that the requisite talent is hired, assimilated into the culture, and onboarded in time for their needs.

Backfilling as fast as you can when in growth mode is difficult, as everyone in the company is too stretched thin. New employee hiring decisions are often made with the thought process, “Let’s just hire someone to fill this need; if it doesn’t work out, we can get someone else.” Such a process is time-wasting and very expensive. Also, new employees are thrown into the tumult without proper onboarding, an understanding of what is expected, and an understanding of the culture. They’re thrown in because the organization needs bodies, and this can all be done later. Still, it never is, and the good employees leave.

Talent folder

Everyone on the Leadership Team must have a Talent folder. It should contain the names of anyone they have met that they believe would be a great addition to the team. They need to follow these people on LinkedIn and make sure they know where they are, what they are doing, and most importantly, keep in touch. When a position in the organization opens up, that member of the leadership team can reach out to them to see if they would be interested in joining the company. The leadership team should review their collective talent folders in each quarterly meeting. They look at the next 13-Week Sprint and the resource limitations they face, either through insufficient resources or talent.

Ask Employees for Referrals

All industries are incestuous; everyone knows people in the industry in similar roles because they all attend the same conferences, often previously worked for the same companies, or did some training together. It must be part of your culture to get your employees to nominate great people they meet as potential hires. By emphasizing behaviors and culture, your employees will know what types of people would fit. There is no better recruiting tool than a very happy and excited employee working to attract you to their firm. These people should be vetted and added to someone’s Talent Folder. If an employee nomination is hired, reward your employee. However, it is best if they are not involved in the hiring process beyond the nomination, and the nominees have to remain for a period of time.

Ask Customers and Suppliers for Talent

Your customers and suppliers know you, your company, your vision, and your culture. Ask them for people that they think would be a good fit. Especially if there is a position that you want to fill, and they know more specifically what you are looking for. If they like working with you and believe in what you stand for, they are far more likely to refer someone to you than if the opposite is true. However, this requires a great relationship with your customers and supplies. You don’t just want to ask when you need someone, but you need to make it reciprocal as well.

Check your reputation on GlassDoor

It might be easy to dismiss negative statements from unhappy employees; however, like client reviews, statements on GlassDoor matter. All prospective employees now look at GlassDoor to see how you rank and what people say about you. If there are negative statements that make the organization look bad, you can expect many “A” players to wonder if it is worth applying for your position or moving on to an organization with a better reputation. You can expect questions from GlassDoor statements to be raised in interviews, at least from “A” players. Thus, it is in your interest to ensure that you work to maintain a good profile like you would from your clients.

Have Employee Testimonials on Your Website

Most organizations have a link on their website about job openings or career inquiries. However, few have employee testimonials that reinforce the company’s culture, commitment to its employees, and great stories of how it has helped its employees achieve their goals. These testimonials can do more to recruit people who are aligned with the organization than some CEO/owner statement as it shows how the organization is “Walking the Talk.”

Good luck developing your flywheel and attracting the talent you need. If you need help, reach out, we are here to help our clients succeed.

 

Copyright © 2021, Marc A. Borrelli

Recent Posts

Do You Truly Know Your Core Customer?

Do You Truly Know Your Core Customer?

Knowing the profit of your core customers is key to building a growth model. Many companies have identified core customers that are generating a sub-optimal profit and so they cannot realize the profits they seek. Identifying the correct core customer allows you to generate profits and often operate in “Blue Ocean.”

The Greatest Own Goal or the Greatest Collapse

The Greatest Own Goal or the Greatest Collapse

The European Super League collapsed within days of launch due to hubris and the founder forgetting the key parts of their business model, value creation, sales, and value delivery. The collapse might bring a high price.

Does Your Financial Model Drive Growth?

Does Your Financial Model Drive Growth?

Working with many companies looking to grow, I am always surprised how many have not built a financial model that drives growth. I have mentioned before a financial model that drives growth? Here I am basing on Jim Collin's Profit/X, which he laid out in Good to...

COVID = Caught Inside

COVID = Caught Inside

As we emerge from COVID, the current employment environment makes me think of a surfing concept: “Being Caught Inside When a Big Set Comes Through.” Basically, the phrase refers to when you paddle like crazy to escape the crash of one wave, only to find that the next wave in the set is even bigger—and you’re exhausted. 2020 was the first wave, leaving us tired and low. But looking forward, there are major challenges looming on the horizon as business picks up in 2021. You are already asking a lot of your employees, who are working flat out and dealing with stress until you are able to hire more. But everyone is looking for employees right now, and hiring and retention for your organization is growing more difficult.

Why is there not MORE common sense

Why is there not MORE common sense

“Why don’t they use common sense?!” You may have said this phrase yourself, or heard it with your managers, when discussing an employee’s actions. However, the frustrated appeal to “common sense” doesn’t actually make any meaningful change in your organization. We all make decisions based on the information we have and the guides we have to use. So if the wrong decisions are being made in your organization, it’s time to examine the tools you give decision-makers.

Do You Understand Your Costs to Ensure Profitability?

Do You Understand Your Costs to Ensure Profitability?

You can only determine profitability when you know your costs. I’ve discussed before that you should price according to value, not hours. However, you still need to know your costs to understand the minimum pricing and how it is performing. Do you consider each jobs’ profitability when you price new jobs? Do you know what you should be charging to ensure you hit your profit targets? These discussions about a company’s profitability, and what measure drives profit, are critical for your organization.

Sunk Costs Are Just That, Sunk!

Sunk Costs Are Just That, Sunk!

If you were starting your business today, what would you do differently? This thought-provoking question is a valuable exercise, especially when it brings up the idea of “sunk costs” and how they limit us. A sunk cost is a payment or investment that has already been made. Since it is unrecoverable no matter what, a sunk cost shouldn’t be factored into any future decisions. However, we’re all familiar with the sunk cost fallacy: behavior driven by a past expenditure that isn’t recoupable, regardless of future actions.

Do You REALLY Know Your Business Model?

Do You REALLY Know Your Business Model?

Bringing clarity to your organization is a common theme on The Disruption! blog. Defining your business model is a worthwhile exercise for any leadership team. But how do you even begin to bring clarity into your operations? If you’re looking for a place to start, Josh Kaufman’s “Five Parts of Every Business” offers an excellent framework. Kaufman defines five parts of every business model that all flow into the next, breaking it down into Value Creation, Marketing, Sales, Value Delivery, and Finance.

CEO, Try Thy Hiring System

CEO, Try Thy Hiring System

Over lunch this week with an ex-colleague, she described the trials and tribulations of her job search. Her frustration was not that she was looking. Rather, she had received a verbal offer from the company but was now dealing with the HR Manager who was playing “bad cop,” contradicting her boss-to-be and backtracking on items that had been agreed upon.

This discussion brought to mind the many horrible hiring experiences I had been through in my career.

Many companies forget that hiring is like going on dates, because you will be married at the end. When we are in the dating world (for those of you who remember), it is an exciting and frustrating time. We are looking for someone who excites us; we wish to excite, be compatible with, and believe together can be more significant than just two individuals. It is the same in the job search. We are looking for organizations that excite us, whose mission motivates us, whose employees impress us, and where we can add value.

In many organizations, those hiring and those in the HR (Human Remains) Department forget this. They don’t realize that perception is reality. Their behavior kills the “dating” process, drives away the “A” candidates, and destroys a successful long-term relationship with those who stay. Things that kill the dating or long-term relationship are:

  • Not treating the applicant with Respect.
  • Not keeping appointments or to the schedule.
  • Bad communication.
  • The offer differs from what you were told.
  • Probation periods.
  • The First Day

One of the common refrains I hear from CEOs is that they struggle to find good people to hire. As I thought of the hiring process trials, I wonder how many good people have driven away because of the process. Given the cost of bad hires and the entire hiring process, how much is wasted because the hiring and onboarding process is so damaging? Remember, Every system is perfectly designed to get the results it gets.” So what is your organization’s hiring system designed to do?

 

Respect!

Like Aretha Franklin, everyone wants Respect! From my job searching experience, at some point, the applicant is called in for a day of “interviews” where the applicant gets interviewed by four or more people that they will be working with, including their prospective boss. Usually, this day is where the lack of Respect starts.

Some who are doing interviewing feel put upon to interview candidates and come across as either superior or just jerks. During one interview I had, the World Series was on, and the person supposedly interviewing me was watching the game from a small TV that only he could see. As a result, he never heard my answers to his questions, there were long pauses in the discussion while the game absorbed him, and the interview ended early at my suggestion. I declined a second round.  

Now I realize that people have things come up, and some crises have to be dealt with; however, Respect is still required. One company that I interviewed with canceled three separate interviews while I was sitting in the lobby waiting for the interview with the CEO. When on the fourth attempt, I finally did meet the CEO, he was abrupt. He didn’t acknowledge the canceled meetings and the imposition on me. Now, most will say, you are an applicant; why should he. But you never know where the applicant will end up, and one day they might be a customer. In this instance, while I didn’t get a job at the company, its reputation was tarnished in my mind forever, and where I could, I avoided doing business with them. The fact the CEO treated people like that meant to me that they treated everyone like that, and that was not the type of organization with which I wanted a relationship.

 

Keeping your promises

Once you have been through a few job search rodeos, you know to ask, “What is your process?” Applicants want to know how many interviews they can expect, how long the process should take, where the decision points are, and for “A” players – how they manage competing offers to ensure they get the best one. Unfortunately, many companies forget that their answers create expectations that can drive excellent applicants away or kill any long-term relationship if not met.

My lunch companion complaining that the HR person she was dealing with had failed to make any of the appointments they scheduled, without explanation or reason, but had called out of the blue at other times. This behavior creates the impression that the hiring company is chaotic at best and cannot be trusted worse, so the applicant is likely to question where they are being misled.

Once, interviewing for a VP of International M&A position with a Fortune 100 company, my prospective boss laid out how he saw the department going forward. We spend time discussing my role in creating his vision and the challenges he wanted me to tackle once I started, which he emphasized he wanted as soon as possible. However, he noted that I needed to have interviews with the head of legal and HR before they would send me an offer. Those interviews did occur, and at the end of the interview with the head of HR, she informed me that I would hear back within a week. Three months later, I received a call from someone in HR whom I never met or heard of, offering me a Manager’s role in a different department, which I respectfully declined. I already had another job by then, but again I had lost all Respect for that organization. Interestingly enough, in the 18 years since then, its market capitalization has fallen by 67%.

 

Bad Communication

Once upon a time, after a day of interviews, I received an email from the company addressed to someone else telling me that they were not interested in pursuing the discussions any further. I replied, thanking them but asking if the email was meant for the other person and sent to me by mistake or meant for me, but they had typed in the wrong name. The response was, “Both.” Such errors don’t impress people.

However, as is my MO, I reached out to the senior HR executive that I had met during my day of interviews, asking for feedback on why I had not progressed through their process. He responded with shock to say that I was still in the process and wanted me to come the next week to see the CEO.

After this great start, one has to once more question the organization.

 

The Offer Differs from What You Were Told

Often in the process, your potential boss will tell you that some conditions you ask for are acceptable, e.g., start date, vacation, options, etc., only later to be contradicted by HR. HR informs you that this is the firm’s policy, and it is non-negotiable. Managing situations like this are difficult and cause more mistrust because sometimes your potential boss cannot deliver what they promised. As a result, you question their power within the organization, or worse, it creates further doubt about the organization’s core values and ability. In such situations, you begin to wonder if you are dealing with the Job Enthusiasm Killer Department and soon to be working in some Kafka nightmare.

 

Probation

I know many firms like a probation period to determine if the employee is a good fit; however, remember most employees start a new job full of excitement about what they will achieve at their new company. It is like getting married, and they are waiting at the altar for this wonderful new life when the other party says, “Yes, you are committing to the marriage, and it’s our vows, but me, I am not committing for a few months or so until I am sure.” In such cases, by the time the probation period has passed, the employee has lost their enthusiasm, they are now looking for their next gig, and the company is wondering why they can’t keep good people.

If you have a probation period, inform the applicant upfront, so this doesn’t surprise them. Not only that, but if you do, go all-in with commitment. The more the organization holds back, the less likely there will be a long term relationship.

I once joined an organization, and there was no mention of probation during the hiring process. However, as I logged into my computer on my first day, I could not access the network. I was informed that during probation, they kept you off the system. Thus, any files I needed had to be copied onto a disk (Yes, a bygone era) and brought to me, or I had to give them to whoever needed them on a disk. This event was the first I had heard about any probation, and the message was welcome to the team, you second-class citizen. Nonproductive and soul-destroying!

At the end of the first week, my boss asked me to go to Japan, Taiwan, Hong Kong, and Thailand on a Business Development trip. When I asked when I could expect my business cards, I was told that new hires could not get business cards until they had finished their probation. Since I now knew I was on some form of probation, I tried to explain to HR that in Asia, business cards are essential; however, the person would not yield. As a result, I traveled with some I printed up myself, which looked like it and I am sure did lots to promote the organization’s standing in the Far East. Once more, perception is reality, and I am sure the HR person was “following orders” given by someone who had never traveled internationally.

 

The First Day

Data shows that over 50 percent of new employees regret the decision on their first day, and after three weeks, it is closer to 70 percent. Suppose you accept Richard Branson’s view that happy employees make happy customers. In that case, you will realize that if your organization is one where 50 percent of your new employees regret their decision to join you the first day, you have a huge uphill task to build customer satisfaction.

I have been among the 50% because the first day was so demoralizing. As I have said above, you arrive at the new job full of excitement only to be sent to HR hell to fill out a massive pile of forms. Surely these could have been sent beforehand, and you could bring them completed. There is nothing in them that I have ever seen that is so sacred it could not be shared outside the organization.

After this beautiful ritual, you are shown to your desk, whether in an office or cubicle. For some reason unknown to me, in every new job I have had, my boss has not been there my first day to meet with me and show me what I need to tackle. As a result, you arrive to a note saying, “Welcome and make yourself comfortable.” They may have scheduled some meetings for you with other people, but it usually mentions a name and not who they are and how you will be working with them.

A colleague once told me that she went to the stationery cupboard on her first day to get some supplies, only to be berated by a PA who informed her that her department could not access that cupboard. Again, thanks, great to be on the team.

If you are lucky, some of your workers may invite you to lunch on your first day. Indeed this is the least that they could do to make you feel welcome. So, after a wasted day trying to figure out what the unwritten rules are, where the political minefields lie, and whom you can trust, you head home wondering, “What the hell have I done?”

As I have asked before, is your onboarding process more akin to waterboarding?

I love Cameron Herold’s attitude of having a new employee party their first day to welcome them to the organization. However, when they leave, there is no going away party because you will no longer add any value to the organization. Furthermore, that night they ask for your bucket list and commit to helping you achieve an item on it during your first year. Now that is a welcome and one which makes you want to die on the hill for that company.

 

What to do?

A CEO friend of mine once told me that he used to call the CEOs of companies that his sales team had targeted. The purpose was to find out how the sales process was going and if his organization was responsive to the potential clients’ needs. He found this process made his sales team far more responsive to potential clients, honest with their targets, and he learned what worked and didn’t in the process.

If you are struggling to find good people, question if your system delivers the results it is designed to provide. Review your hiring process to figure out what is going on. I would suggest sometimes doing surveys with applicants to find out how they found the experience of applying for jobs with your companies and new hires. Remember back to when you started your career with excitement, what tied you to a boss or company, and what drove you away. Make sure your organization is doing the former and not the latter.

 

(c) Copyright 2020, Marc A. Borrelli

Recent Posts

Do You Truly Know Your Core Customer?

Do You Truly Know Your Core Customer?

Knowing the profit of your core customers is key to building a growth model. Many companies have identified core customers that are generating a sub-optimal profit and so they cannot realize the profits they seek. Identifying the correct core customer allows you to generate profits and often operate in “Blue Ocean.”

The Greatest Own Goal or the Greatest Collapse

The Greatest Own Goal or the Greatest Collapse

The European Super League collapsed within days of launch due to hubris and the founder forgetting the key parts of their business model, value creation, sales, and value delivery. The collapse might bring a high price.

Does Your Financial Model Drive Growth?

Does Your Financial Model Drive Growth?

Working with many companies looking to grow, I am always surprised how many have not built a financial model that drives growth. I have mentioned before a financial model that drives growth? Here I am basing on Jim Collin's Profit/X, which he laid out in Good to...

COVID = Caught Inside

COVID = Caught Inside

As we emerge from COVID, the current employment environment makes me think of a surfing concept: “Being Caught Inside When a Big Set Comes Through.” Basically, the phrase refers to when you paddle like crazy to escape the crash of one wave, only to find that the next wave in the set is even bigger—and you’re exhausted. 2020 was the first wave, leaving us tired and low. But looking forward, there are major challenges looming on the horizon as business picks up in 2021. You are already asking a lot of your employees, who are working flat out and dealing with stress until you are able to hire more. But everyone is looking for employees right now, and hiring and retention for your organization is growing more difficult.

Why is there not MORE common sense

Why is there not MORE common sense

“Why don’t they use common sense?!” You may have said this phrase yourself, or heard it with your managers, when discussing an employee’s actions. However, the frustrated appeal to “common sense” doesn’t actually make any meaningful change in your organization. We all make decisions based on the information we have and the guides we have to use. So if the wrong decisions are being made in your organization, it’s time to examine the tools you give decision-makers.

Do You Understand Your Costs to Ensure Profitability?

Do You Understand Your Costs to Ensure Profitability?

You can only determine profitability when you know your costs. I’ve discussed before that you should price according to value, not hours. However, you still need to know your costs to understand the minimum pricing and how it is performing. Do you consider each jobs’ profitability when you price new jobs? Do you know what you should be charging to ensure you hit your profit targets? These discussions about a company’s profitability, and what measure drives profit, are critical for your organization.

Sunk Costs Are Just That, Sunk!

Sunk Costs Are Just That, Sunk!

If you were starting your business today, what would you do differently? This thought-provoking question is a valuable exercise, especially when it brings up the idea of “sunk costs” and how they limit us. A sunk cost is a payment or investment that has already been made. Since it is unrecoverable no matter what, a sunk cost shouldn’t be factored into any future decisions. However, we’re all familiar with the sunk cost fallacy: behavior driven by a past expenditure that isn’t recoupable, regardless of future actions.

Do You REALLY Know Your Business Model?

Do You REALLY Know Your Business Model?

Bringing clarity to your organization is a common theme on The Disruption! blog. Defining your business model is a worthwhile exercise for any leadership team. But how do you even begin to bring clarity into your operations? If you’re looking for a place to start, Josh Kaufman’s “Five Parts of Every Business” offers an excellent framework. Kaufman defines five parts of every business model that all flow into the next, breaking it down into Value Creation, Marketing, Sales, Value Delivery, and Finance.