The first project was to fill the position of a chief credit officer for a bank lender. Initial interviews with the shortlisted candidates were mechanical and impersonal. Viable candidates met with three or four leaders in the bank, many of whom were ill-prepared for the meeting and knew very little about the candidates' backgrounds or motivations. The candidates' impressions of the bank were poor. The bank made a minimal effort to sell itself and failed to build a strong rapport. Three months passed between the first interview and the final offer. And when it arrived, the offer the bank presented amounted to a lateral pay scenario, which the candidates declined. What were the paradigm misses? First off, the process the bank used to benchmark compensation was flawed and severely misjudged the range of compensation needed. In the interviewing process, the bank also neglected to properly sell itself to the candidate, and key management team members fell short of making any sort of personal connection. Lastly, the process proceeded slowly, creating a poor pace and rhythm to close out the deal efficiently and dampening candidate enthusiasm.

The second example demonstrates a much different process with superior results. This project was to recruit a head of sales for a large independent lender. After efficient initial screening and vetting, first-round interviews were conducted with six candidates, two of whom were quickly identified as finalists and slotted for second-round meetings within a week. And then, while the excitement was still in the air, management pulled out the red carpet:  the final candidates met with key senior leaders and board members Interviews included visits to multiple venues, such as office meetings with local management, but also a dinner out where the parties could see each other in a social setting and forge personal connections. After five separate interview meetings with board members, C-Suite executives, and peers, all completed within three weeks, the company crafted an offer that provided a 25% uplift from current fixed compensation and a roadmap reviewed to significant increases over the coming years. The bank extended the offer on a Friday, and over the weekend, while the candidate reviewed it, several key leaders reached out to convey their excitement about the potential acceptance and future alliance together.

This second example highlights selling and screening, but also speed and ultimately a compelling financial structure to close the top candidate. The offer was logical and compelling and ultimately successful: the candidate accepted and no counter offer was considered.

Key to Changing the Paradigm – Alignment

So, what are the key areas for alignment that will bring your processes and approach in lockstep with the current market conditions? There are four areas to consider.

1. Swim in the Big Pool: You need to be thoughtful about how you develop a broad candidate pool for key roles. Everyone in lending now understands the concepts of negative selection in approving credits, so why do the same principles elude leaders when it comes to hiring? The people you want for key roles are not the first applicants to respond to an online job posting. They are typically candidates who are happy where they are, and will require selling and persuading to even consider a change. A big pool is better than a small pool when it comes to selecting. A pool of candidates that require selling is better than a selection pool willing to accept a sub-par offer.
2. It’s Called Recruiting, not Picking: Hiring executives who think their responsibility is merely to pick the candidates, and not to sell them, are missing the best candidates. Recruiting should be a very well organized process that not only selects, but persuades: a strategy engineered to sell candidates on the company and the role, and to build rapport with the ultimate hiring manager.
3. Slow Speed Kills: The market is hot and candidates don’t have two or three months to maintain interest in a slow and meandering interviewing process. In this market, slow speed kills candidates' enthusiasm and diminishes your ability to close top talent. The timeline from the first interview to final offer should not extend beyond 30 to 45 days. Delaying any further increases the risks for a flawed outcome.
4. Money Matters: Top talent will not move easily, and compensation matters. Before you start, align Human Resources, Compensation, and Executive expectations on the financial range needed to land the right candidates. Don’t fall into the often fatal compensation study conundrum. Remember that, according to a compensation study, what a potential candidate makes in a role today is not what it takes to get them to move. If you are looking for a Chief Credit Officer and the compensation study says $350,000 average compensation, that does not mean you can hire a chief risk officer for $350,000. Compensation uplift and additional incentives must be factored in, or you will be hiring below the level. Talk in advance about walkaway money that a potential new recruit must be thinking about; consider unpaid bonuses and unvested stock options. Offering signing bonuses to true-up a candidate on their financial walkaways are the norm, not the exception. 

Your View – Are You Seeing Clearly Enough to Succeed?

Are you operating with a flawed paradigm that does not fit the market, or have your hiring practices evolved to match today’s market conditions? Are you viewing the market through rose-colored lenses or is your vision 20/20 when it comes to hiring key talent? You can land top candidates if you pay attention to the market and engineer a process that is detailed, focused, and expedient — a process that aligns your entire team with the current market conditions.