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Poor Corporate Hiring Strategies in SMB
Posted: 5:22 pm
April 4th, 2008
Post a comment
IT Business, IT Culture

I knew there would come a day when I would have to categorically disagree with Karl on virtually every piece of advice he has offered. Take a look at this post on Hiring the Best Employee.

The basic flaw in Karl’s process, and process of hiring in virtually every corporate institution, is that the focus is on finding the right fit for the role, not the right individual for the company. Have you ever heard the following words:

You are just not a good fit.

Yeah, you’re just a fantastic person, very talented, exactly what we are looking for except you didn’t fit the role of the imaginary employee we came up with while circling the lines of the resume of the last two people that didn’t leave this company in a quadruple-fatality shootout.

Criteria hiring works OK in very large companies both because HR department has limited time/money and the employees are not really meant to be very fluid in their capacities. They post a list of qualifications, people with time to rearrange their resume send in their applications, the most apt liars that can repeat them back to HR meet the hiring manager who is really looking for someone that can read and think at the same time. This is an awesome way to hire a burger assembler at McDonalds or a data entry person in a hospitality industry.

It is a horrible way to hire in SMB, and the reason why most one man shops that do hire someone end up firing them on a very short schedule. How is it that someone that fit every one of your criteria, that you really liked, that could do everything that was expected turned out so horribly - as a matter of fact, most turn out so horribly bad that many one man shops never want to hire another person again or be someone’s manager?

Flexible Prospect, Desperate Candidate, Fired Employee

The traditional hiring process falls apart at the mere premise that there are people out there so unfulfilled with their jobs that they have the time to spend on full-day interviews, three lunches and two application appointments. Unless you are offering a LOT of money, or seeking an executive with commensurate pay, you are statistically less likely to find a good candidate and more likely to just find someone that is unemployed for a number of very good reasons.

Think about the desperation for a second. If you are finding a candidate that is willing to put up with such a huge hassle not to work for a brand name company with global visibility (IBM, Google, Microsoft) after which they can go to another big company and claim global experience, how desperate are they for employment now?

Desperation brings out the worst in people. They will lie. They will tailor the right resume. They will subject to every test, interview, assessment and application you give them.

Then as soon as something better, something they really wanted, becomes available they will leave you.

What went wrong? You hired the wrong person. Right role, right fit,  wrong person.

The truth about SMB is that we look for flexible people, ambitious and knowledgeable, that want to work well with other people. But at the same time we want to subject them to baselining, assessments, comparative metrics and treat them as business assets that will constantly learn and evolve just not to the point that they figure out that they can make more money elsewhere for far less work. This is the underlying theory of “Human Resources” — treating people like movable objects, hiring them based on a list of credentials, bullet points, and percentage based compatibility with the set of criteria in the Kit with folders Step 1, Step 2, Step 3.

Then the business owner sits back in dismay when the employee leaves under the most unpleasant of circumstances… seriously, should you ever expect any better?

The Right Hiring Process

Hire people. Not roles.

If you hire the right person, they will find a way to fit the role you give them now. They will be able to adjust as your business adjusts. They will be capable of being promoted, of teaching, managing, nurturing and growing other employees that your company gets as it grows.

If you hire the right role, that employee will be gone with the first sudden shift in your business strategy (read Erick’s book on Managed Services) and you will be stuck at square one of looking for a fit for a hole that will change shape with a business that must change in order to grow and survive.

You can either adjust your business hiring practices to fit your changing business and the rapidly changing IT market… or you can franchise a Subway hole in a wall sandwich shop.

The process of finding, qualifying, and hiring people is NOT bullet point or KIT based. It can’t be downloaded online, it can’t be ran through a computer, it is not something you can process. If you want to see how well the process-based hiring works, go to Target. Look at all the drones there. Not an ounce of passion. Not a cent of personality. Just drones running around doing what the master told them.

But you don’t want that. You want an adaptable, flexible, skilled, creative passionate employee that is going to have your best interest at heart and do as they are told (hopefully for less than market value). Good luck with that.

The process of hiring, qualifying, nurturing, leading, empowering, enabling and growing a creative sales force that can work in a rapidly changing business is at a core of business leadership and being able to work with people and treat them like people.

We look for good people. There is always plenty of business to go around and plenty of things to get people to work on. There is not always a ready supply of people that are motivated, willing and capable of working on what we have. But we also aren’t installing a revolving door in our office.

Hire the right person. Get them to build up your company in the same way you have built it to the point of being able to allocate a salary.

Only then do you get someone who has your company on their mind, not just themselves. 

6 Comments

AllenS |

Jim Collins said pretty much the same thing in his book _Good to Great_. He even takes it a step further and says that you begin with “who,” rather than “what.” Take a look at this web page for more: http://www.jimcollins.com/lab/firstWho/p2.html
And “First Who, Then What” is not just a business principle, but it is a life principle: This audio track worthy content for any Vladcast:
http://www.jimcollins.com/audio/firstWhoB2a.mp3
(Not a RickRoll, I promise.)



karlp |

I’ve read Good to Great and it’s a great book. Get the right people on the bus and then decide where you’re going.

But Vlad overstates the degree to which I push a process over a person. I think my post makes clear that we work hard to make sure the person will work well with our team.

If you disagree with my process, there seem to be two obvious alternatives. Either you disagree with having a process, or you disagree with _this_ process.

I think everyone should have some process. It certainly doesn’t have to be the same as mine.

If you have no process, what do you do?

What does a hiring non-process look like?



More on SMB hiring… « SMB Thoughts by Brian Williams |

[...] we’d just prefer to stay in our protective shells. In reading Vlad’s recent post, http://www.vladville.com/2008/04/poor-corporate-hiring-strategies-in-smb.html, I felt like he was talking to me, probably because Vlad knows enough us that he’s heard the [...]



Stuart Crawford |

We have had our share of duds at IT Matters, I think in our 7 year history we have had 60 employees work for us or continue to work for us.

SMB IT Consulting is a stressful, low reward and time consuming business. We have had people work for us for 3 or so years then go to an Oil company that doubled their salary - How could we compete.

After all, life goes on.

I must agree with Vlad on his comment, not being an overly big fan of a tonne of processes and rather shoot from the hip and lets see how things go.

The right person is the key to the puzzle, we have great people with us now that are in roles we never even imagined when we hired them. On of our junior techs moved up to being our service manager, my purchaser is now my logistics manager…direction occurs when you have the right people on the bus and the bus starts to move, only after they find the right seat.

You have to get them on the bus first, and then the true talents show. By the way, good talent show just as fast as the crappy talents. Just ask the 30 or so people that don’t work us any longer.

Cheers from Snowy Calgary

Stuart

http://www.stuartcrawford.com
http://www.thewealthyprofessional.ca



DeLuca |

I came across this site because I was frustrated with interviewers telling me recruiter that I don’t fit the role” they are looking for. I felt I needed to find out why. Reading this blog somehow made me felt that maybe it’s not me and perhaps it’s their lost not mine.

I have 7 years of experience in a major organization and decided I needed new experience, new challenges. I came from the Healthcare field and want to try the Financial Industry. I am an experienced Executive Assistant. I have gone to 3 interviews this month. All of them gave me great comments about my qualifications. One even praised me for knowing how to do pivot tables on Excel. In all 3 instances, I was interviewed by Administrative Staff (HR generalist, Admins). They were all women.

I also noticed that each of them seemed unprepared to interview me. There was no structure nor criteria. Except for the HR generalist, the other two did not take notes. No behavioral or situational questions. Not even questions about my skills or examples I can give. Almost all of them talked about themselves and the people they worked with.

I also realized that these folks have less skills (the interviewer didn’t know if she’s using Lotus Notes version 2 or 6) than I have.

The right fit for them has nothing to do if I’m the right person for the job but only if I look and talk the way they do. My husband even goes on to say that they might have been intimated by the fact that I know a lot more.

Maybe because I look young or maybe it’s because I’m short and Asian. Maybe I just didn’t look like trendy enough. Ah, the power of cliques. I thought we over that in high school. As a woman, it hurts a bit that other women cannot see the impications of hiring someone just like them or think like them rather than hiring someone who is different, confident, skilled, and can adjust to change.

Thank You =>



Employee Hiring « Andys Techie Blog |

[...] So while the post Vlad made about hiring strategies is now a couple of weeks old I’ve only just got around to blogging about it because I’ve been preparing for our new starter! [...]



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