Inverted Yield Curves & Recruiting
The goal in an executive search isn’t to find the best talent currently looking for work, or at least it shouldn’t be. What it should be: finding the best talent, period. And herein lies the recruiting challenge: the best talent isn’t looking for work. They already have jobs – good jobs.
In the “War for Talent” perceived downturns in the economy present the smart CEO with an opportunity to cull market intelligence and strengthen their team. In other words, there are specific steps you can take today to help your company and hurt your competitors. Rather, with or without a specific vacancy, the watchword for the CEO is to be prepared when the need does arise and leverage economic circumstances to build your company and protect it form competitors.
NOT taking immediate advantage of an Inverted Yield Curve, which is a traditional indicator of a pending economic recession, to build your executive team is a sign of weakness and general fiduciary stupidity. Don’t delay.
Here are eight activities to take advantage of an Inverted Yield Curve. I warn you this is not for the faint of heart.
Actively Work to Build A Contact Network
The smart CEO actively thinks about the composition of his/her management team, and its strengths and weaknesses. At every appropriate event, particularly at industry meetings, a conscious effort is made to build upon one’s network. Potential candidates spotted should be systematically noted and tracked. Conference, trade show and industry event rosters of attendees should be saved for future referral.
Continuously Work to Develop A Following
A highly regarded CEO will receive a steady stream of unsolicited resumes. You should operate to cultivate the positive attitudes of others. Having a competitors’ senior people believing “the grass is greener” in your company can be a decided plus in recruiting. Obviously, even more so when an Inverted Yield Curve pops its ugly head up and threaten your very existence.
Track the Better People In The Industry
As part of competitive data gathering, have your people identify and track the better people in your industry. Be sensitive to when your competitors’ top people are ripe for a change.
Use Your Human Resources Department
A skilled human resources group can save big dollars by having a proactive attitude on recruiting. A priority should be training the Human Resource people in good recruiting techniques. The head of Human Resources should be aware of alternative resources to identify senior management talent.
Leverage one’s personal industry network and network among Attorneys, Investment Bankers, Accountants, Venture Capital groups, etc., can oftentimes be a prime source of people to contact. Take the time to ask. These people are usually more than happy to help when you have a need. At the executive level, advertising generally does not produce the desired result. If you are curious, try it and then monitor the results. If you find it works for your company, use it.
Search Research Firms
Search Research firms target an industry and provide listings of people to call as potential candidates. They may take the process through the candidate contact and interviewing stage, if so directed. These services can be of value and be very cost effective. A shortcoming is that typically no one in the company takes ownership for the necessary follow-up. Also, the listings produced may be lengthy, but may result in no qualified candidates being developed. If it works, use it, but be prepared for a considerable amount of work on your part.
These firms are paid for making a “placement.” The advantage is no up-front financial commitment on your part. The downside is that their incentive is to make a sale, without considering in any depth the true needs of your company. When a recruiting effort looks as if it will take along time, there is no incentive for these firms to “work the problem.” So, understand your time constraints to insure you’re able to use them effectively.
Executive Search Firms
Executive Search firms operate on a financial retainer to undertake the search process from beginning to end. Their services are most effective where they have the time and attention of the key decision makers. (Without the commitment of your time, don’t bother spending the money.) The value of a search firm is found in the knowledge, judgment, efficiency and objectivity it can bring to the whole recruiting process. The better firms have a very high success ratio, and will guarantee to work on your project until completion.
Business leaders know that companies with great executive talent significantly outperform their competitors. So, it should come as no surprise that the competition for talent is fierce. Additionally, globalization, attrition, and changing demographics have led to a scarcity of talent. All this to say that effective recruiting is now at the core of what builds competitive advantage.
The Inside-Out Approach™ helps organizations to successfully address the recruiting challenge. With the system, an organization will be able to find the very best, engage their interest, hire them, and ensure they stick around. The Inside-Out Approach™ is helping organizations turn recruiting into a competitive advantage generator.