Introduction
In today's rapidly evolving business landscape, finding and hiring the right talent has become more crucial than ever before. Jerome Ternynck's book "Hiring Success" offers a comprehensive guide to navigating the complex world of recruitment and building a successful team. Drawing from over 30 years of experience in the field, Ternynck provides valuable insights and practical strategies for every stage of the hiring process.
This summary will explore the key ideas presented in "Hiring Success," offering a detailed look at why hiring matters, how to approach it effectively, and the best practices for attracting, evaluating, and securing top talent. Whether you're a seasoned CEO or a startup founder, this book provides essential knowledge for anyone looking to build a winning team in the new world of work.
The Importance of Hiring in Today's Business World
The Scarcity of Talent
In the modern business landscape, three key ingredients are necessary for success: a great idea, sufficient funding, and talented employees. While ideas and money seem to be in abundance, finding the right talent has become increasingly challenging. This scarcity is primarily due to the specialized nature of today's jobs, particularly in the knowledge economy.
Unlike the industrial era, where most jobs were straightforward and could be filled by anyone willing to work, today's positions require specific skill sets that are hard to learn and even harder to master. The tech sector, in particular, is experiencing rapid growth, leading to a rising demand for highly skilled workers. A report by McKinsey estimates that by 2030, there will be over 85 million high-skill positions to fill, with a shortage of college-educated workers to meet this demand.
The Competitive Landscape
The scarcity of talent has led to fierce competition among companies to attract the best employees. This competition is evident across various industries, from sports to technology. For example, in 2018, the Italian football club Juventus took a significant risk by offering Cristiano Ronaldo a contract worth $112 million, four times more than any other player. This gamble paid off, as Ronaldo's presence not only improved the team's performance but also doubled the club's share price by the end of the year.
In the tech world, companies like Google are investing heavily in recruitment. Google's ratio of recruiters to employees – 16 for every 1,000 – is nearly ten times higher than any other Fortune 500 business. This level of investment demonstrates the critical importance of hiring in today's competitive business environment.
The Need for a Strategic Approach
Given the challenges and competition in the hiring landscape, companies need to make recruitment a top priority and invest in the process. However, throwing money at the problem isn't enough. A smart, strategic approach to hiring is essential for success.
The following sections will delve into the various aspects of an effective hiring strategy, from setting the right metrics to creating a robust hiring team.
Developing Smart Hiring Metrics
Beyond Speed and Cost
Traditionally, companies have measured the success of their recruitment process using two primary metrics: how quickly a role was filled and how little was spent in the process. However, these metrics can lead to poor hiring decisions by incentivizing cutting corners.
A fast hire often means settling for the first person who seems to fit the role, rather than waiting to find the best candidate. Similarly, a cheap hire suggests that not enough resources were invested in broadcasting the vacancy to a broad pool of potential applicants.
The Net Hiring Score (NHS)
To improve the hiring process, Ternynck introduces the concept of the Net Hiring Score (NHS). This metric focuses on whether the job applicants attracted are truly suited for the open position. To calculate the NHS, managers should follow these steps:
- Create a list of desired qualities for the new hire, including experience, skills, attitudes, and growth potential.
- Use this list to evaluate candidates, assigning scores on a scale of 1 to 10 for each quality.
- Aim for the majority of candidates to score in the 9 to 10 range in most categories before making a hiring decision.
Collaboration and Time Investment
Implementing the NHS framework requires time and collaboration between all stakeholders connected to the open position. This collaborative approach is essential to ensure that the hired talent can meet everyone's needs.
By focusing on the quality of candidates rather than just speed and cost, companies can make more informed hiring decisions and increase their chances of finding the right fit for their team.
Thinking Like a Marketer
The Job as a Product
To attract the right applicants, it's crucial to approach hiring with a marketing mindset. Just as a retail store needs customers to thrive, a company needs qualified applicants to fill its open positions. In this analogy, the job opening is the product, and potential job applicants are the customers.
Segmentation and Targeting
Like any good marketing strategy, effective hiring begins with understanding your audience. This involves segmenting jobs based on two key qualities:
- Impact: How important the role is to the business's success
- Scarcity: How rare the necessary skills are
Using these classifications, companies can choose appropriate marketing strategies for different types of jobs:
- Low-impact, low-scarcity jobs (e.g., secretary, office clerk) can be marketed through general advertising campaigns.
- High-impact, high-scarcity jobs (e.g., neurosurgeon, CEO) may require more targeted efforts, such as attending industry events or posting in specialized newsletters.
- For the most critical and rare positions, word-of-mouth or recruitment specialists may be necessary.
Clear Messaging and Smooth Application Process
Regardless of the marketing approach, two key principles should be kept in mind:
- The message should be clear and concise, ensuring that each applicant understands exactly what the company is looking for.
- The application process should be simple and friction-free, making it easy for interested candidates to apply.
By treating job openings as products and potential applicants as customers, companies can more effectively attract the right talent for their needs.
Creative Approaches to Hiring
Going Viral
In today's digital age, creative hiring strategies can help companies stand out and attract a large pool of potential candidates. For example, in 2019, McDonald's Canada launched their "Snapplications" campaign, allowing workers to apply through Snapchat. This novel approach generated significant media buzz and resulted in 10,000 applications within just 48 hours.
While not every company can rely on Snapchat for hiring success, thinking outside the box can yield impressive results.
Pipelining
Once a company has attracted a broad audience, the next step is to cultivate a pool of suitable applicants through a process known as pipelining. This approach involves:
- Setting up a filter to exclude unqualified candidates (e.g., a quick questionnaire about credentials and experience)
- Nurturing connections with qualified candidates through emails, events, and other engagement strategies
- Announcing job openings to this select group when ready to hire
Pipelining helps companies build a ready pool of potential hires, making it easier to fill positions quickly with qualified candidates.
Leveraging Employee Networks
Another effective strategy is to tap into the social networks of existing employees. Companies like Google and GoDaddy have implemented successful referral programs that offer small bonuses to employees who recommend candidates who are ultimately hired. This approach not only helps find qualified candidates but also ensures that new hires are more likely to fit well with the company culture.
Candidate Experience
Regardless of the specific strategies employed, it's crucial to consider the candidate's experience throughout the hiring process. Keeping things fun, easy, and engaging can help ensure that top candidates remain interested and excited about the opportunity to join the company.
Evaluating Candidates: Potential Over Credentials
The Danger of Focusing Solely on Credentials
Traditionally, companies have hired based on specific credentials, such as degrees or years of experience. However, this approach can lead to missed opportunities, as illustrated by the case of Brian Acton and Jan Koum, who were rejected by Facebook in 2009 but went on to create WhatsApp, which Facebook later acquired for $19 billion.
Balancing Aptitude and Attitude
While aptitude (skills and experience) is important, it's only half of the equation. A good worker also needs the right attitude – the right mindset, work ethic, and personality traits. These less tangible qualities are often more crucial to an employee's performance than any diploma or degree.
Creating a Comprehensive Scorecard
To evaluate candidates more effectively, create a scorecard that assesses both aptitude and attitude. Consider how an applicant will act once they're hired:
- Will they carry the values of your company?
- Will they be proactive?
- Will they communicate clearly and consistently?
Instead of asking, "Can you do this job?" focus on "How will you do this job?"
Structured Interviews and Personality Tests
To get the information needed to make informed hiring decisions:
- Prepare a list of 10 to 15 precise questions to ask each candidate during interviews.
- Consider supplementing interviews with personality tests, such as the Myers-Briggs Type Indicator, to gain additional insights into how a person thinks and reasons.
By evaluating candidates based on their potential rather than just their past accomplishments, companies can make more informed hiring decisions and potentially uncover hidden talent.
Making an Irresistible Job Offer
The Importance of Closing the Deal
After investing time and resources into finding the right candidate, it's crucial to ensure they accept the job offer. In competitive markets, job acceptance rates can be as low as 70 percent, making it essential to craft an offer that stands out.
Personal Touch and Creativity
To increase the chances of acceptance, make your job offer meaningful and memorable. Some creative approaches include:
- Spotify's custom "We Need You" playlists for selected hires
- Special gift packages with carefully selected items, such as concert tickets or favorite foods
These personal touches can help make candidates feel valued and excited about joining the company.
Handling Negotiations
Even with a strong offer, candidates may try to negotiate better terms, especially in competitive markets. It's important to:
- Not take offense at negotiations, as they indicate a candidate who knows their value
- Be prepared for counteroffers from the candidate's current employer
- Have some flexibility in your offer to accommodate reasonable requests
Smooth Onboarding
Once a candidate accepts the offer, ensure a smooth transition into the company:
- Automate as much of the onboarding process as possible
- Provide clear, accessible information on administrative details
- Ensure the new hire knows who to ask if they have questions
By focusing on making a strong offer and facilitating a smooth onboarding process, companies can increase their chances of securing top talent and starting the professional relationship on the right foot.
Building a Robust Hiring Team
The Long-Term Competition for Talent
Finding the best talent is an ongoing, long-term competition, similar to fielding a top sports team. To consistently acquire the best talent, companies must prioritize building a strong hiring team.
Investing in Recruitment Resources
Studies show that companies that make a serious commitment to funding employee recruitment see significant benefits:
- 18 percent more revenue
- 30 percent more profit than other organizations
This underscores the importance of dedicating necessary resources to building a robust hiring team.
Components of an Effective Hiring Team
A well-rounded hiring team should include more than just human resources experts. Consider including:
- Seasoned marketers to approach hiring as a sales job
- Staff focused on generating outside interest (filling the hiring pipeline)
- Sourcers dedicated to seeking out and screening potential candidates
- Recruiters tasked with closing the deal and making final offers
Collaboration and Coordination
Ensure that your hiring team works closely with the departments they're hiring for. This collaboration should cover:
- Establishing hiring criteria
- Developing interview approaches
- Coordinating throughout the entire hiring process
Continuous Improvement
Track your team's success and refine processes as necessary to ensure ongoing improvement in your hiring practices.
By investing in a robust hiring team and fostering collaboration across departments, companies can create a sustainable system for attracting and securing top talent.
Embracing Diversity in Hiring
The Value of Diversity
Just as a diverse team is more likely to succeed in a quiz night, a diverse workforce brings numerous benefits to a company:
- Better decision-making
- Faster problem-solving
- Increased likelihood of outperforming homogeneous groups
A study by McKinsey found that companies with significant gender and ethnic diversity were 30 percent more likely to outperform their less diverse counterparts.
Inclusive Hiring Practices
To ensure your team recruits a diverse group of members, implement inclusive practices at every stage of the hiring process:
- Reach out to underrepresented communities through trade organizations or social clubs
- Use inclusive language in job postings to avoid alienating potential applicants
- Get to know candidates as real people, not just stats on a page
- Be willing to accommodate different needs and strengths in the hiring process
Accommodating Different Needs
Some companies have found innovative ways to accommodate diverse candidates:
- Microsoft forgoes traditional interviews for applicants with autism, instead inviting them to work on actual projects as an audition
The Long-Term Benefits
While implementing inclusive hiring practices may require extra effort, the benefits are substantial:
- Access to a wider range of skills, interests, and abilities
- A more innovative and adaptable workforce
- Improved company reputation and ability to attract top talent
By creating an open, inviting, and unbiased hiring process, companies can build a more diverse and capable team, better equipped to face the challenges of today's business world.
Conclusion: The Path to Hiring Success
In "Hiring Success," Jerome Ternynck provides a comprehensive guide to navigating the complex world of talent acquisition in the modern business landscape. The key takeaways from this book include:
- Recognize the critical importance of hiring in today's competitive business environment
- Develop smart hiring metrics that focus on candidate quality rather than just speed and cost
- Approach hiring with a marketing mindset, treating job openings as products and candidates as customers
- Implement creative strategies to attract and engage top talent
- Evaluate candidates based on their potential and attitude, not just their credentials
- Craft irresistible job offers and ensure a smooth onboarding process
- Build a robust hiring team that includes diverse expertise and collaborates across departments
- Embrace diversity in hiring to create a more innovative and adaptable workforce
By implementing these strategies, companies can improve their ability to attract, evaluate, and secure the best talent available. This, in turn, will lead to stronger teams, better decision-making, and ultimately, greater business success.
As the business world continues to evolve, the importance of effective hiring practices will only grow. Companies that prioritize talent acquisition and implement the strategies outlined in "Hiring Success" will be better positioned to thrive in the face of changing market conditions and increasing competition.
The journey to hiring success is ongoing, requiring continuous refinement and adaptation. By staying committed to building a strong, diverse team through smart hiring practices, businesses can create a sustainable competitive advantage and pave the way for long-term growth and success.