Smart Hiring: How a savvy manager finds great hires (Part 2)

In the June 3, 2014 Ask The Headhunter Newsletter, a manager tells how she finds great hires.

Last week we heard from Annie, a manager whose approach to interviewing and hiring reflects how she likes to be treated as a job applicant. She doesn’t rely on job boards. She treats applicants respectfully and always gets back to them. She explains interviewing procedures clearly in advance. She doesn’t waste applicants’ time. And she doesn’t demand their salary history.

find-hiresSo far, so good — but does this work? Does it help her hire great people?

Annie and I have kept up an e-mail conversation, and she has generously shared the process and outcome of her hiring efforts. You can review the story to date — and we’ll pick up where we left off last week.

From Annie

I don’t ask for salary history

Hi, Nick! It’s exciting to see the story up and people engaging with it. Our top candidate just accepted our offer today, so I’m able (and delighted) to say that our search process has been a success.

We suspected (but didn’t confirm) that the candidate was probably under-paid at his current position. I had to campaign pretty vigorously to pay him what he’s worth instead of some calculation based on his current number. He was such a promising candidate that he likely wouldn’t take less, and I wouldn’t feel right offering it to him. After we had finished our internal budget negotiations and arrived at a range, I simply asked him what he was hoping to make. Luckily, the numbers worked out!

Nick Replies

Annie, good for you for making the case to pay the candidate what you think he’s worth. Asking what he wanted to make is the honest way to come to terms on salary. A good alternative would have been to quote your budget range for the job. Kudos to you for not falling back on a request for his salary history. Job applicants should keep their salary under wraps.

Someone on the blog (Eddie) asked this question:

It is good to hear that hiring managers are attending networking events. But how do I find these?

Can you share with us how you network to recruit?

From Annie

Where I network to find great job candidates

Your commenter Dave is spot-on: Meetup groups are the way to go. The position I was hiring for is a technical one (and I’m in a technical role myself), so most of my networking was at groups focused on programming languages, technology stacks, etc. These aren’t (on the surface) career/hiring events. These are places where people in the industry get together and discuss their craft. So, if you are deliberate about hiring, it’s the sweet spot: places to form relationships with people who already have good jobs in the area, who know their stuff, and who might want a job someday. [Don’t say, “I don’t know anybody!” -Nick]

Making friends at meetups

The tricky thing about relying on a network is, you have to start building it before you need it. I’ve been going to most of these groups for years. They give me the opportunity to make friends, pair-code with people, toss around project ideas, and share answers to problems. In other words, to demonstrate my interest and involvement in our field, and get enough face time that people can safely conclude I’m probably not a terrible, awful person to work with.

Really, I can’t stress enough how important this kind of interaction (again, on your advice) has been in my career. I’ve gotten jobs based on the recommendation of people I’ve pair-coded with at meetups. I’ve got job leads in my pocket because of it. And I found the young man that we eventually hired the same way: a personal recommendation from someone I trust, who knows both of us through meetup groups.

Diversity in recruiting

Following on the recent news of Google releasing their demographics data, I think this is also the perfect (and possibly only?) way to go about recruiting a diverse staff. I make sure to contribute in groups targeting women and other minorities in engineering, in part so that I can be sure to know diverse candidates in order to include them in my hiring process. You know, everybody says, “We need more women / African Americans / Latinos / etc. in computers,” but it seems like companies make next to no effort to go out and recruit them. Unfortunately, they won’t just fall into your lap. As with everything, it takes work.

Nick Replies

Annie: You’ve made an eloquent case for real networking. Your method of making friends to find great hires is the flip-side of making friends to get referred to great jobs. (I cover this in detail in How Can I Change Careers?, in the section titled “A Good Network Is a Circle of Friends.”)

Thanks for acknowledging that “networking” — as some people practice it — can be “icky.” By investing the time to demonstrate your genuine interest in talking shop, you help people judge that you’re a good person to talk with and get to know. This is the essence of making friends and getting introduced to jobs.

Thanks again for showing us how you actually recruit and hire using the ideas we discuss here every day. Some managers respect job applicants and go out of their way to make good hires intelligently and with care. My advice to job seekers: A manager like Annie doesn’t need many great applicants, and you don’t need more than just one good manager to hire you. Don’t lower your standards. Go where managers like Annie will find you.

Where do you find great managers? How do you network effectively to find great jobs? There is nothing easy or quick about investing time in your professional community to get ahead. If it were easy, everyone would be doing it. Since they’re not, it means you have less competition. Does this shake up your world?

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Smart Hiring: A manager who respects applicants (Part 1)

In the May 27, 2014 Ask The Headhunter Newsletter, a manager explains how she hires by respecting job applicants:

I’m a longtime reader. Your advice has helped me in my job searches and salary negotiations. I recently landed a great job with a great salary, where I have done very well. Well enough, in fact, that I’m now the one in charge of my team, and we are hiring! So now I’m on the other side of the job-search equation.

Since I take your advice to heart, as I conduct my candidate search I am:

  • respectNot relying on job boards. I am pursuing local networking opportunities.
  • Treating my applicants with courtesy by replying promptly and keeping them updated.
  • Communicating clearly about our interviewing procedures.
  • Trying to be respectful of my applicants’ time, and not requiring multi-day interview processes.

The one place where I’m a little stuck is about salary history. As an applicant, I would never give away my current or past salary. When pressed about my expectations, I hedge with statements like, “I hope to be paid a market salary commensurate with my skills.”

But as a hiring manager working with a limited budget, it seems it’s my responsibility to play hardball and try to get the best candidate within our price range.

Do you consider it unethical to press for salary history? Is there any happy medium? Is there any way I can determine quickly if someone is out of my range, without asking them to compromise themselves? Do you have any advice for a well-intentioned member of “the other side?”

Best regards,
Annie

Nick’s Reply

Your four bulleted hiring techniques speak for themselves. Unfortunately, too many managers and companies fail to follow your simple rules. That means you have less competition — good applicants will recognize a good manager.

I’m glad to hear my salary strategy (Keep Your Salary Under Wraps) has been helpful to you as a job hunter. I think it can be just as helpful now that you’re hiring. Please consider approaching this the same way.

If you have a budget for a job, what’s wrong with stating a compensation range to your serious candidates? (That is, the ones you’re going to interview.) It’s easy enough to say, “Just to be clear, our comp range is $X to $Y, and if we’re going to go to $Y, you’d have to demonstrate how you’re going to contribute to our profitability to justify it.”

You don’t need to announce this in advance, but I’d make a phone call to each of your best candidates when you have identified them. I think they will appreciate it. “I’m disclosing this to you because I don’t want you to interview unless you’d be happy with an offer in that range. I like to be above board.”

As long as you stay within your budget, I don’t think you’ll have a problem. You have a clear obligation to your company to stay within budget – and I think this accomplishes that.

“Hardball” is actually just honest ball. I don’t think you’re going to lose a great candidate by being honest. Anyone outside your range is, well, outside your range. And if someone outside your range is honestly willing to interview for less than they’re making or have been making, that’s up to them.

Make sense? Of course, knowing someone’s salary history doesn’t help you decide what to offer them. What other employers paid is their judgment, within their business. Value is relative, and you must make your own judgment for your own business. It seems to me you’re already okay with this, and that gives you an edge over your competitors.

I think it’s always best for employer and applicant to agree on the general salary range they’re both comfortable with before they start talking seriously. The best way to ensure this is for the employer to state the range of salary for the job. This does not mean you must let yourself be swayed to the high end if you don’t think the candidate is worth that much — which is why I suggest making that clear from the outset. (Job applicants can make their case by following the methods in Fearless Job Hunting, Book 9: Be The Master of Job Offers.) Of course, you should phrase this in a way that’s right for you — my words are mine, not yours!

My highest compliments for demonstrating such high standards in your hiring practices. You’re a manager who respects job applicants. I wish more managers would follow your simple rules.

The manager follows up

Hi, Nick,

Thank you so much for taking the time to respond. I think your suggested script is a good one. As with all aspects of salary negotiations, I’ll just have to practice saying it out loud about a hundred times, until I don’t cringe anymore when it comes out of my mouth. Never was there a thing more uncomfortable than talking salaries!

It’s nice to hear that you think I’m on a good track. I’m absolutely convinced that this approach is getting me better candidates than LinkedIn and Craigslist have gotten us. But it has also given me a new respect for HR departments and recruiters! This process takes an incredible amount of work! I’m so focused on “people” stuff right now that I couldn’t write a decent line of code if I tried.

Thank you again, I was very touched to hear back from you.

Annie

Nick’s Reply

It makes my day when I hear from a manager as thoughtful as you. I’m happy to help if I can.

I know recruiting and hiring are incredibly time consuming. It’s why I tell managers, expect to invest at least 30% of your time doing it — or you’re not being a good manager. Done right, this investment pays off handsomely. You’ll never be as productive as you can be if you don’t have great employees doing the work. A manager’s #1 task is hiring great people to get the job done. If more managers approached it this way, I think turnover would be much lower, productivity higher, attendance higher, and promotion from within a better bet. (To further enhance your success rate, hand-walk the offer once you’ve made it.) Good hiring makes strong companies.

Please let me know how this works out for you..

Coming next week…

Manager Annie tells us how this all turned out!

What can managers do to show respect to job applicants? If you’re on the hiring side, what do you do? What does it mean to hire smart today?

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Big Data, Big Problems for Job Seekers?

In the January 21, 2014 Ask The Headhunter Newsletter, Nick asks readers for help with an upcoming TV news interview:

There’s no question from a reader this week. Instead, I’m asking all of you readers a question. May I have your help?

I’ve been asked to appear on a TV news show to discuss how HR is using Big Data to watch you at work — and to process your job application without interviewing you. I’d like your input on the topic so I can frame my comments with your interests in mind. I’ll share a link to the program after it airs, and we can discuss it further then.

[UPDATE: Here’s the link that includes video from the TV program: Big HR Data: Why Internet Explorer users aren’t worth hiring]

Nick’s Question for You

Big-Data-KittyAre you frustrated because employers reject your job application out of hand without even talking to you? Tired of online application forms kicking you out of consideration because you took too long to answer questions, or because you failed to disclose your salary history?

Wait — America’s employment system is getting even more automated and algorithm-ized. According to a new report in The Atlantic, the vice president of recruiting at Xerox Services warns that:

“We’re getting to the point where some of our hiring managers don’t even want to interview anymore.” According to the article, “they just want to hire the people with the highest scores.”

The subtitle of that Atlantic column (They’re Watching You At Work by Don Peck) reads: “The emerging practice of ‘people analytics’ is already transforming how employers hire, fire, and promote.”

Does that worry you?

If all goes according to plan (hey, this is TV — all schedules are subject to change), Atlantic columnist Don Peck and I will talk about the rise of Big Data in the service of HR — and I want your input in advance, because I’m worried about the conclusions Peck draws in his article. It’s a very long one (8,600+ words), but it illuminates some of the technology that’s frustrating your job search. Please have a look at it, and post your suggestions to help me frame my comments for this TV program.

Here are the Big Problems I see with this Big Data approach to assessing people for jobs and on the job:

The metrics are indirect.

The vendors behind these “tools” don’t directly assess whether a person can do a job. Instead, they look at other things — indirect assessments of a person’s fit to a job. For example, they have you play a game and they measure your response times. From this, they try to predict success on the job. That determines whether you get interviewed.

The problem is that we’ve known for decades that this approach doesn’t work. Wharton researcher Peter Cappelli throws cold water on indirect assessments:

“Nothing in the science of prediction and selection beats observing actual performance in an equivalent role.”

All that’s being thrown into the mix by these “assessment” vendors is Big Data. But more data doesn’t change anything. In fact, it makes things worse if the data are not valid predictors of success. It’s worse because indirect assessment leads to false negatives (employers reject potentially good candidates) and to false positives (they hire the wrong people for the wrong reasons).

The conclusions are based on correlations.

These tools predict success based on whether certain characteristics of a person are similar to characteristics of a target sample of people. For example, Peck’s article says that “one solid predictor of strong coding [programming] is an affinity for a particular Japanese manga site.” (Manga are Japanese comics.)

Gild, the company behind this claim, says it’s just one correlation of many. But Gild admits there’s “no causal relationship” between all the Big Data it gathers about you and how you perform on the job.

In what can only be called a scientific non sequitur, Gild’s “chief scientist” says “the correlation, even if inexplicable, is quite clear.”

The problem: A basic tenet of empirical research is that a correlation does not imply causality, or even an explanation of anything. Data tell us that people die in hospitals, and that correlates highly with the presence of doctors in hospitals. All jokes aside, that correlation doesn’t mean doctors kill people. Except, perhaps, in the world of Big HR Data: If you’re selling “people analytics,” then playing a game a certain way means you’ll work a certain way.

When we pile specious correlations on top of indirect assessments (What animal would you be if you could be any animal?), we wind up with no good reasons to make hiring decisions, and with no basis for judgments of employees.


INTERMISSION: There’s a hidden lesson for recruiters in Big Data.

Hanging out at a manga site doesn’t improve anyone’s ability to write good code — nor does it predict their success at work. But, it might mean that a recruiter can find some good coders on that manga site — the one reasonable conclusion and recruiting tactic that none of the people Peck interviewed seem to have thought of!


I don’t think Peck wrote this article to promote “people analytics” as the solution to the challenges that American companies face when hiring, but he does seem to think the Kool-Aid tastes pretty good. I think Peck over-reaches when he confuses useful data that employers collect about employee behavior to improve that behavior, with predictions based on silly Big Data assumptions.

To entice you to read the article and post your comments, I’ll share a couple of highlights in the article that kinda blinded me. Well, the assumptions behind them were blinding, anyway:

Spying tells us a lot.

In further support of indirect assessments of employees and job applicants, Peck cites the work of MIT researcher Sandy Pentland, who’s been putting electronic badges on employees to gather data about their daily interactions. In other words, Pentland follows them around electronically to see what they do.

“The badges capture all sorts of information about formal and informal conversations: their length; the tone of voice and gestures of the people involved; how much those people talk, listen, and interrupt; the degree to which they demonstrate empathy and extroversion; and more. Each badge generates about 100 data points a minute.”

Peck notes that these badges are not in routine use at any company.

It’s just a game.

A lot of the “breakthroughs” Peck writes about come from start-up test vendors like an outfit called Knack, which creates games “to suss out human potential.” Knack continues to seek venture funding, and the only Knack client mentioned in the article is Palo Alto High School, which is using Knack games to help students think about careers.

“Play one of [Knack’s games] for just 20 minutes, says Guy Halfteck, Knack’s founder, and you’ll generate several megabytes of data, exponentially more than what’s collected by the SAT or a personality test.”

The big dbig-dataata gathered, writes Peck,

“are used to analyze your creativity, your persistence, your capacity to learn quickly from mistakes, your ability to prioritize, and even your social intelligence and personality. The end result, Halfteck says, is a high-resolution portrait of your psyche and intellect, and an assessment of your potential as a leader or an innovator.”

Let’s draw a comparison in the world of medicine; it’s an easy and apt one: If more megabytes of game data can be used to generate more correlations, could doctors diagnose patients more effectively by collecting bigger urine samples? Because that’s the logic.

No sale.

I don’t buy it. I want to know, can you do the job?

Some Big Data about employee behavior can be analyzed to good effect. For example, Peck reports that Microsoft employees with mentors are less likely to leave their jobs, so Microsoft gets mentors for them. But he seems to easily confuse legitimate metrics with goofy games of correlation. And the start-up companies he profiles don’t seem to be on any leading edge — they’re mostly trying to sell the idea that Big Data in the service of questionable correlations makes those correlations worth money.

(To learn the ins and outs of legitimate employment testing, see Erica Klein’s excellent book, Employment Tests: Get The Edge.)

Big Deal.

We know that what Peter Cappelli says about the science of prediction is correct. But I think Arnold Glass, a leading researcher in cognitive psychology at Rutgers University, says it best:

“It has been known since Alfred Binet and Victor Henri constructed the original IQ test in 1905 that the best predictor of job (or academic) performance is a test composed of the tasks that will be performed on the job. Therefore, the idea that collecting tons of extraneous facts about a person (Big Data!) and including them in some monster regression equation will improve its predictive value is laughable.”

It seems to me that HR should be putting its money into teaching HR workers and hiring managers to hang out where the people they want to hire hang out, and into teaching them how to get to know these people — and how good they are at their work.

In the meantime, is it any surprise to any job seeker today that employers mostly suck at recruiting the right people and at conducting effective interviews?

If you have questions or thoughts you’d like me to raise in this forthcoming TV program, please post them. I’ll try to use the best of the bunch. I wish I could tell you that hanging out on my blog causes employers to hire you. Thanks!

[UPDATE: Here’s the link that includes video from the TV program: Big HR Data: Why Internet Explorer users aren’t worth hiring]

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Why HR should get out of the hiring business

In the April 2, 2013 Ask The Headhunter Newsletter, a job hunter complains about HR:

Throughout my career I have gotten new jobs by meeting and talking to managers who would be my bosses. Now I keep running into the Human Resources roadblock in companies where I’d like to talk to a manager about a job. Honestly, I just don’t see the reason for silly online application forms or for “screeners” who don’t understand the work I do, when companies complain they cannot find the right talent. I really don’t get it. Why do companies even have HR departments involved in hiring?

Nick’s Reply

Good question. Better question: Should Human Resources (HR) be in the recruiting and hiring business? My answer is an emphatic NO for three main reasons, though there are many others.

this_way_outFirst, HR is qualified to recruit and hire only other HR workers. HR is not expert in marketing, engineering, manufacturing, accounting, or any other function. HR is thus not the best manager of recruiting, candidate selection, interviewing, or hiring for any of those corporate departments.

Second, HR takes recruiting and hiring out of the hands of managers who should be handling these critical tasks. Finding and hiring good people are two of the most crucial jobs managers have. I offer employers three simple suggestions for improving recruiting:

  • Don’t send a Human Resources clerk to do a manager’s job,
  • Put your managers in the game from the start, and
  • Deliver value to the candidate throughout the job application process.

I think companies suffer when they subject applicants to the impersonal and bureaucratic experience of dealing with HR.

Which brings me to the third reason HR should be taken out of the recruiting and hiring business: HR has no skin in the game. It virtually doesn’t matter who is recruited, processed, or hired because HR isn’t held accountable. It’s hardly HR’s fault, but it’s a rare company that rewards or blames HR for the quality of hiring. HR is typically insulated as a “necessary overhead function.”

Don’t get me wrong: There are some very good people working in HR, and there may be a legitimate role for HR in many companies. But HR’s domination of recruiting and hiring has led to a disaster of staggering magnitude in our economy. In the middle of one of the biggest talent gluts in American history, employers complain they can’t fill jobs.


Don’t miss Harvard Webinar Audio: Can I stand out in the talent glut?


 

talent_shortageAccording to PBS NewsHour estimates, there are over 27 million Americans looking for work, either because they are unemployed or under-employed. (The U. S. Bureau of Labor Statistics reports there are 12 million unemployed.) I prefer the NewsHour figure because it tells us just how big the pool of available talent is. Concurrently, BLS also reports there are 3.7 million jobs vacant.

HR has a special term for this 7:1 ratio of available talent to vacant jobs. HR departments and employers call this 7:1 job-market advantage “The Great Talent Shortage!”

While the economy has put massive numbers of talented workers on the street, HR nonetheless complains it can’t find the workers it needs. That’s no surprise when HR’s idea of finding talent is to resort to database searches and keyword filtering, which are disastrously inadequate methods for finding and attracting the best hires.

The typical HR process of recruiting and hiring is most generously described as hiring who comes along via job boards and advertisements. It’s a rare (and precious) HR worker who gets up from behind the computer display to actually go find, meet, and bring home good candidates.

“The typical explanation for why HR recruiters have no time to recruit actively is that they have too many resumes to sort. This very real problem is solved easily: Stop soliciting and accepting resumes.”

Go recruit!

I could write pages about corporate maladies that arise from employers’ over-reliance on HR to recruit and hire. Instead, I’m just going to list some of the ways HR can kill any company’s competitive edge by interfering with these management functions:

Wasting money
Last year, almost a billion dollars was sucked up by just one online “job board,” Monster.com, which was reported as the “source of hires” only 1.3% of the time by employers surveyed. HR could be advocating for the personal touch in recruiting, but blows massive recruiting budgets on job boards with little to show in return.

Hiring who comes along
Job boards and similar advertisements — the high-volume, passive recruiting tools HR relies on — yield only applicants who come along, not those a company should be pursuing.

Wasting good hires
Good candidates are lost because database algorithms and keyword filters miss indicators of quality that are not captured by software. And highly qualified technical applicants are rejected because they are screened not by other technical experts, but by HR, which is too far removed from business units that need to select the best candidates.

Mistaking quantity for quality
HR has turned recruiting into a volume operation — the more applicants, the better. This results in impersonal, superficial reviews of candidates and quick, high-volume yes/no decisions that are prone to error.

Excusing unprofessional behavior
Soliciting far more applicants than HR can process properly results in unprofessional HR behavior, angry applicants and damage to corporate reputations. HR routinely suggests that the high volume of applicants it must process explains its rude no-time-for-thank-yous-or-follow-ups behavior — while it expects job applicants to adhere to strict rules of professional conduct.

Failing to be accountable
Because HR does not report to the departments it recruits for, it tends to behave inefficiently and unaccountably with impunity. The bureaucracy grows without checks and balances, and the hiring process becomes dull, rather than honed to a true competitive edge.

Marginalizing professional networks
HR tends to isolate managers from the initial recruiting and screening process, further deteriorating the already weak links between managers and the professional communities they need to recruit from.

Bureaucratizing a strategic function
The complexity of corporate HR infrastructure encourages isolation and siloing. Evidence of this is HR’s over-emphasis of legal risks in recruiting and its administrative domination of this top-level business function.

Wasting time
With recruiting and hiring relegated to an often cumbersome HR process, managers cannot hire in a timely way. Good candidates are frequently lost to the competition. (HR doesn’t have to deal with the consequences, but when a good sales candidate is lost to a competitor, the sales department loses twice.)

Killing a company’s competitive edge
HR owns two competing interests, further dulling a company’s competitive edge: the hiring process and legal/compliance functions. Because hiring is a strategic, competitive function, it deserves its own advocate. If business units and managers took full responsibility for recruiting and hiring (while HR handled compliance) the daily abrasion of these competing interests would strengthen a company’s edge.

take_a_hikeThis catastrophe didn’t occur overnight. It crept up on business in the form of a smothering shroud of red tape. Today this HR bureaucracy is propped up by an industry of “consultants,” “professionals,” and “experts” who advise corporate HR departments about how to maintain their administrative stranglehold over the key differentiator that defines any company — its people. And in turn, HR funds the database-induced job-board stupor and online-application-form addiction that’s killing employers and job hunters alike.

It’s time for HR to get out of the recruiting and hiring business, and to give this strategic function back to business units and managers who design, build, manufacture, market and sell a company’s products. Who better to decide who’s worth hiring? Who better to aggressively go find the people who will give the company an edge?

In the meantime, job hunters have no choice but to outsmart the employment system.

Should HR relinquish its recruiting and hiring functions? Have you experienced related problems with HR, either as a hiring manager or as a job applicant? What do you think should be done about it? (And if you think I’m wrong, please tell me why.)

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Should I give equity to entice a new hire?

In the March 13, 2012 Ask The Headhunter Newsletter, the owner of a start-up business asks whether it’s smart to give equity to a new hire:

After years of frustration with the way many professional services firms treat their clients, I decided to launch my own business. I have had modest success in my first six months and I am considering adding an employee. The individual that I am interested in has expressed concern about the added risk of working for a small company. He wants me to give him an equity stake to offset the risk, but I don’t want to give away too much too early, considering the competitive nature of the marketplace and my own business vision. What would you recommend?

Here’s the short version of my advice:

(For the entire column, you need to subscribe to the free newsletter. Don’t miss another edition!)

My Advice

There are two kinds of people in your start-up world, other than clients: employees and investors. You can’t fill a job with an investor. You must fill it with an employee.

Now, I’m a big believer in sharing profits with good employees. And I think it’s a great idea to make employees owners to a reasonable extent, commensurate with their commitment to the business. That’s what profit-sharing plans are about.

But employees must earn their way into ownership of the business. It’s simply not good management practice to give away ownership of your company before you know what you’re getting in return. If this individual were bringing you new clients or some kind of intellectual property to enhance the value of your company, then and only then would I consider giving him equity from the outset.

If you hire an employee whose contributions become a true investment and a key part of your business, then at some point sharing some equity may be a key to your long-term success.

You can test this candidate’s motivations. Try this:

How to Say It
…(Sorry, this part is only in the newsletter… Don’t miss next week’s edition. Sign up now. It’s free!)…

…This person is clearly looking for security and potential riches without making a solid investment.

I’d find another candidate, or someone who wants to invest in your business as a partner. Take a look around: Even jobs with big, stable companies are risky. There is no such thing as job security.

In the future, I would look for candidates who want to add value to your business and to make you more successful — not ones that want you to protect them from risk. Talk about jobs and salary to potential employees. Talk about investment and risk to investors. But don’t confuse the two.

Does your company offer equity to new hires? Have you ever accepted equity to join a start-up? How did it work out? I’d like to hear what you have to say about the risks of start-ups — and the joys of taking risks!

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Employer Fined for Stupid Recruiting

New Jersey is the only state where it’s illegal to publish job ads that exclude unemployed people. Is that because New Jersey has especially stupid employers, or because New Jersey is the first state to recognize that there are too many employers everywhere that behave stupidly?

Does it matter? Here’s what matters: The company that took the first bust under this new law reveals a lot about Stupid Recruiting.

CEO J. Michael Goodson explained Crestek’s recruiting strategy. The job posting for a service manager included the requirement, “Must be currently employed” because Crestek wanted someone “at the top of their game and not people who have been unemployed for 18 months.”

Now for the punchline: According to the Star-Ledger, Goodson “spent three years seeking the right person and sifting through resumes was time-consuming…” [Emphasis added.]

Recruiting is hard work: You have to sit and wait an awfully long time.

This $185 million company spent three years trying to fill a position so important that the CEO waited leisurely for a resume to come along and nibble on his job-ad line. Translation: Hiring what comes along. Gee — I wonder how much it cost Crestek to leave that job unfilled for three years while Goodson sifted incoming resumes. Did it ever occur to Goodson to go out and find, cultivate, cajole, steal and otherwise recruit the person he needed?

The Talent-Shortage Brain Fart

Waiting for job ads to deliver a top candidate to your front door is like waiting for customers to show up. Doesn’t Crestek have a sales force that goes out to find customers? Then why doesn’t Goodson get out there to find top talent? Why is this company banking its future on want ads? I can see Goodson’s next initiative: Fire the sales force and run more ads!

Why did this company resort to warning jobless applicants away? “This was the only time we ever advertised that way and we only ran it when the other ads failed to produce any viable candidates.”

Ahhh… this was an experimental, state-of-the-art job ad. A new way address the talent shortage. A brain fart.

Remember the talent shortage? 4.2 million Americans are out of work, and almost half a million of them in New Jersey. Not one qualified applicant came along while Crestek was dipping its line in the water. Must be the talent shortage at play — or poor management?

Stupid Recruiting: A sign of lousy management

Says Goodson: “For this job, I wanted somebody that’s in the service business and is employed. If someone is out of work for 18 months, my concern would be that their last job was in a bakery or pumping gas.”

If I were looking for a job at a good company, my concern would be that the service manager’s job at Crestek was empty for three years because the CEO didn’t know how to fill it. I’d wonder whether the the company might be better off if the CEO would go pump gas.

Running ads and waiting for Mr. or Ms. Right to show up at your company is passive recruiting and poor management. Now that the CEO has tripped over his tangled recruiting line, Crestek’s corporate resume has been updated with a rap sheet for violating New Jersey employment law. But no state in the union fines companies for Stupid Recruiting.

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How to manage gang-up interviews

In the October 18, 2011 Ask The Headhunter Newsletter, a manager indicts “panel” interviews and says he’d never consent to one — or conduct one. Are panel interviews a bad idea?

I was taken aback recently when my HR department scheduled me as a part of a panel interview. When I queried our hiring team, they claimed this was the “latest thing” and it provided a “challenging atmosphere for the candidate while minimizing expenditure of company resources.”

I was on my way to register my discontent with the HR VP when my Blackberry indicated the interview had been cancelled because the candidate had accepted another offer. That didn’t shock me—I wouldn’t accept a panel interview, either. Shortly thereafter, the HR VP “innovator” left to “pursue other career opportunities.” Good riddance!

This doesn’t mean some other “idea person” in our company won’t try to resurrect this sort of thing, but not on my watch. I believe in giving each candidate a chance, as much as possible, to “do the job.” It’s much more productive.

Don’t get me wrong, I’m all for candidates meeting the teams they will work with, just not in a formal interview environment. Is this panel interview approach really creeping into our already dysfunctional job interviewing system?

Kudos for the continuing wisdom emanating from your Ask the Headhunter empire! Your straightforward approach is a win-win for employers and candidates and removes the HR-injected “smoke and mirrors” from the hiring process. It certainly has helped me in many ways. Good luck and keep ‘em coming!

Here’s the short version of my advice: (For the entire column, you need to subscribe to the free newsletter. Don’t miss another edition!)

My Advice

Thanks for the laugh, and for your kind words. No, I don’t see ganging up on a job candidate as a new trend — although in some organizations this has long been routine. Innovative HR VPs… unfortunately, they’re not a trend, either.

It’s refreshing to hear from a manager who doesn’t support contrived methods of assessment. It seems that many HR execs think the more over-defined the interview process is, the better. They’ll accuse me of being a yokel, but whatever happened to just talking with someone and working together, to figure out if there’s a match?

I believe that a simple, engaging, no-tricks, personal interview experience is what gets people’s attention and interest. The more direct and one-on-one the assessment, the better. As you point out, there are good ways for candidates to meet the entire team. Candidates are sick to death of “the process.” They want to work with managers and people who truly want to get to know them. The happiest candidate is one who’s hearing about the work that needs to be done, and who’s being asked how he or she would help do it. I encourage you to go that route at your company.

A thorough assessment can include other activities, but any interview should start with a respectful, “working” meeting — not a confrontation by a gang.

So, what should a job applicant do when the employer schedules a panel interview? Like the candidate who took the other offer and declined the panel interview, the manager who asked this question has the answer: “I wouldn’t accept a panel interview.” What you do, of course, is up to you. (Maybe you like panel interviews!)

While an employer may be taken aback, there’s nothing wrong with saying you’d prefer to meet the hiring manager one on one, and that you’d be glad to meet the rest of the team if that first meeting goes well. Remember — the candidate gets to judge the employer in an interview, too, and doesn’t have to proceed with more discussions unless the experience is satisfactory. Alternately, if you find yourself stuck in a panel interview, try this: How to Beat The Stress Interview.

You can get relief from situations you don’t like by politely and firmly saying no. It’s the sign of a credible job candidate.

Are panel (gang-up) interviews legit? If you’re a manager, do you do panel interviews? What’s your experience been?

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Washington Post: Monster.com is no joke any more!

Gimme a break.

The Washington Post reports: Monster.com finally vindicated.

Say what?

Two reseachers, UC Santa Barbara’s Peter Kuhn and UC Denver’s Hani Mansour, asked this question in a study they conducted: Do job hunters who “use the Internet to look for work” spend less time unemployed than job hunters who don’t use the Internet?

Guess what? People who use the Internet spend less time unemployed. Whoo-wee. How does this study “vindicate” Monster.com or any other job board?

It doesn’t. The researchers mention Monster.com once in their 36-page report, and only in passing. The Post’s reporter, Brad Plumer, makes Monster.com the subject of his story and puts the name in the headline.

There’s no evidence provided by the authors of the study (or by Plumer) about what is the impact of job boards on how long unemployment lasts. The researchers merely speculate and toss out the names of two job boards — Monster.com and CareerBuilder. To suggest that use of the Internet makes finding a job easier due to Monster.com is like suggesting that having a car makes traveling easier — thanks to DeLorean Motor Company. And, by the way, this vindicates the Ford Pinto, too.

The reason more people are finding jobs “via” the Internet is because the Internet is a social venue where people hang out. It’s got little to do with where jobs are advertised, because most jobs continue to be found and filled through — guess what — personal contacts. And the Internet is a great place to make personal contacts.

How about we try a more robust approach to determine how the Internet really contributes to finding a job, eh? What’s up with promoting the idea that a ghost in the machine, like Monster.com, is what shortens anyone’s unemployment time?

A major newspaper like The Washington Post can do better than publish an advertorial for job boards. Well, maybe not. The Post operates a job board for profit. There’s no vindication of Monster.com here; just an indictment of a newspaper.

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Don’t be afraid of a C-level contact

In the September 27, 2011 Ask The Headhunter Newsletter, a job hunter says he’s got personal introductions to two C-level execs at a company where he wants to work. He worries, is it even a good idea to use them?

The CEO of my former company just gave me two of the best contacts that one could ever hope for. It turns out that he worked at the company in which I’m now interested. He gave me the direct numbers of the CEO and CIO there, and his permission to use his name liberally.

The problem is that I wouldn’t be reporting directly to either of these gentlemen. I technically fall under the CIO’s umbrella, but far removed — I want a web developer job that they have available.

Another problem is that I don’t know anyone else in this company of about 500 people. So how do I take advantage of these contacts without having the whole thing blow up in my face? Should I even try contacting them if they’re not going to be the ones to whom I’d be reporting? This might be as bad as trying to contact HR. Please advise.

My Advice

Here’s the short version of my advice: (For the entire column, you need to subscribe to the free newsletter. Don’t miss another edition!)

The best thing you could do is ask your CEO buddy to call one of these people and recommend you. This is very powerful. If your old friend thinks so much of you, he should be willing to make the call.

Alternately, you could call the CIO, since that’s the area you’d be in, and say your old CEO suggested you call him. But: Do not ask for a job.

How to Say It

“Joe Smith, my former CEO at ABC Company, strongly suggested that I get in touch with you. He thinks I should consider a job at your company. I’m a web developer and I’m trying to get a deeper sense of what’s important to your company in its web presence. I don’t believe in interviewing just because there’s a job open — I like to make sure I understand a business first, and to make sure I can offer something useful and profitable. Do you have a few minutes to tell me a bit about your IT philosophy and your organization?”

Don’t ask for a job

The point is to focus on what a CIO is interested in: strategy and philosophy of IT. Then let him (or her) talk. At the end, state clearly that you’re interested in working for his company and ask if he feels you’re someone the company would be interested in.

How to Say It

“If you think it’s a good idea, I’d like to talk with someone on your web development team who can tell me more about the operation.”

If he tries to send you to HR, politely explain that you’re glad to talk with HR, but first you’d like to get more information about the web work being done there. Here’s how to say it:

(This part of my advice is omitted. It’s for newsletter subscribers only. Subscribe to the newsletter  to read all of next week’s Q&A! It’s free! Don’t miss another edition!)

Note that you’re not trying to apply for a job through the CEO or CIO. The goal is to use your old CEO’s personal contacts to help you develop the relevant contacts you need in this company — in the IT department — not just to apply for a job.

Use the contact to make better contacts

Don’t be afraid of a C-level contact, and don’t feel awkward making these calls. You’ve been introduced. Talk shop with these execs, not about applying for a specific job. Use your conversations to learn about them and to expand your circle of contacts. Then ask for referrals to others in the company who can talk shop with you, and you’ll be in the door before you know it.

It’s almost always best, when you’re talking to someone higher up than you, to ask for advice and guidance. Use those exact words:

How to Say It

“I’d like to ask you for a little advice and guidance about how someone with my skills could help your web development team be even more successful.”

Have you ever used an executive contact to get ahead? If you’re an exec, have you given this kind of help? This is a topic that doesn’t get much discussion because many people feel awkward about making that call to an exec. How do you get over the hump?

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Rude Employers: Slam-Bam-Thank-You-Ma’m

Rude employers who don’t bother to follow up with job candidates after interviews, even after promising a hiring decision within X number of days, are a staple topic on Ask The Headhunter. And it’s no wonder — job applicants are fed up with, “Hurry up and submit your application! Hurry up and fill out the forms! Hurry up and show up for an interview! Then hurry up and wait while we contemplate our navels!”

Comments on I really, really want this job, a discussion about frustrated job hunters, turned back to the problem of employers that fail to display the most basic courtesies.

Reader LT commented:

Back when HR was “wages and benefits”, management made darn sure there were hoards of fresh-faced stenographers and typists to crank out correspondence of all types, including but not limited to “We thank you for your interest in XYZ Company, and will have a decision by Friday next.”

But, complains LT, after you do all that HR asks of you, “the next sound you hear is utter, complete rude, deafening silence.”

Were companies better citizens then?  I don’t know.  I do know that, at least form a potential employee’s perspective, their “corporate culture” is so blatantly demeaning that it is beyond comprehension why anyone would care to work there.

LT raises a very good question. What changed?

Is it the lack of support staff to write thank-you notes? I think it’s a far more serious and systemic problem. In many companies, HR doesn’t behave respectfully any more because it has boxed itself in.

As a profession, HR has created a monster. While some HR departments actually recruit, HR on the whole funds job applicant sources like Monster.com, CareerBuilder, HotJobs, TheLadders to the tune of billions of dollars a year. For what? To ensure a massive, untenable, unworkable, impossible-to-process pipeline of incoming job applicants.

When HR got into bed with the databases, its standards slipped, and thoughtful, careful recruitment turned into a mindless, sloppy, “volume” business. Sorry, LT, but there is simply no way for HR to process all the incoming “applicant” crap it pays for, much less send out nice notes to people it interviews. Personnel jockeys are drowning in the drek gushing out of the job board pipe. They have no time to actually deal with candidates.

The good HR folks out there know who they are. They’re selective. They’re respectful. But the rest of HR has made its bed, inviting too many to jump in. Today, Slam-Bam-Thank-You-Ma’m is how HR does it, and don’t expect a call tomorrow.

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