Press Coverage
We keep hiring the wrong people
Recruitment International - 2001-07-01
Q: We have always hired Consultants on the basis of culture fit, rather than experience. We have grown rapidly but have started to lose some of the new people quite quickly after they start. They seemed great at interview but don't seem to fit in when they get here. How do we define who is the right type for us at this stage in our growth?
A: At least you are admitting that you have a problem. When you started the business, it was relatively easy to build your teams. You hired people that you got on with then they hired others, usually on the basis that if you could spend a long train journey or evening in the pub with them, then you could work with them too. This is fine. The trouble is, (leaving aside all that Belpin team-building stuff), as businesses grow it is easy to lose track of what defines you all in the first place. "One of us" becomes difficult to measure, particularly if you are trying to pass this down through your organisation. Hiring criteria become muddled and mistakes happen but it can be difficult to pinpoint why.
The best way to re-align yourselves is to revisit, and if necessary, re-define, your core values. Culture fit is based on shared values, not backgrounds, universities, sports, hometowns, personalities or interests. When these values drift, then teams and whole organisations or interests. When these values drift, then teams and whole organisations go wrong. (Look at Marks and Spencers for example. They became complacent, ignored their customers, dumped on loyal suppliers and ditched all the high ideals we associated with them. The result has cost them dearly.) In a recruitment environment we can lose sight of who we are and hire people whose value system just doesn't match ours, particularly in tougher times. What is acceptable behaviour in one organisation may not be ethical in another. So, that great New Business Consultant may have the oomph and drive you need at the moment but he may also tell those little white lies that will eventually damage your reputation. Your tough talking new Manager may produce short-term results but these may not be compatible with your vision or the reason why your staff has stayed loyal so far.
So, you need to define your organisational values. Not with waffley "value statements" - (those silly lists of words that don't mean anything). Identify those characteristics you like about the best people in your business (starting from the top). What is it about your behaviour, attitude and performance that makes you successful, respected and valuable. This should get you a list of about twenty adjectives. Then get a group of (again, ideally your best) people to define what the most important ones and what they mean in practice (e.g. empowerment means taking responsibility when things go wrong, learning means we really will sponsor an MBA).
Then the fun bit is putting this into practice. You have something to benchmark new joiners against ("if our core value is integrity how do we accept him working with X client?", "if we are looking at taking responsibility, how come he blames everyone else when his figures dropped?"). You also have a way of defining who you are and how you are the best at what you do. These will build a sense of belonging for your existing people and give you a defined identity to attract the right new ones. This is how to transform yourself into a strong recruitment brand which naturally attracts the right individuals rather than a weaker also-ran who constantly compromises to get fee-earners on board.
Why should I stay with my firm if I can get a better deal elsewhere?
Q: Last year I billed about £200,000 and earned about £40,000 in total. Some of our competitors pay up to 40% commission. I like this company but am I being ripped off?
A: This is a very common salesperson's complaint, in an industry where rewards are often so transparently related to individual performance. It is the reason why many Consultants get into this business to start with. Often firms lure consultants to work for them with well above average remuneration schemes. (I know one that pays up to 70% for instance. 70%)
However, things aren't always what they seem and you need a stiff reality check before you launch yourself into greener pastures. For a start, at lower billings levels, well-run businesses (I mean those that have been around a while and intend to stay profitable, call me old-fashioned) can't afford to give too much away. The higher you bill of course, the more fat there is to cream off - i.e. the more payout there is available. Does your company provide you with resourcing support, admin help, a decent database or an advertising budget? These all contribute to your success and if removed may affect your output. Do you work in a team, where other people may bring in vacancies which you fill, or where your candidate networking skills reward you with generous split fees? Could you win and fill all the business yourself if you moved? As a general rule, the higher the payout the more likely you are to move into what's termed the alchemy environments: where you have to create everything yourself. Find out what really goes on in your competitors before making the wrong move: how much do other people bill there, top, middle and average, and what tools do you get to do the job.
Of course, you shouldn't just be moving for money anyway. If everything else is good about your company, then talk to your boss about a more generous scheme that rewards you for being over target. You bill more and earn a higher percentage as a result. Find out if you can start to build a team. Now everyone wins.
