How Small Companies Can Land Big Talent

by Tim Karlen and Jay Sjostrom

With all the news about the stock market and skyrocketing unemployment, the term “oversold” seems appropriate.

The term suggests a likely price rise after an unexpectedly sharp price decline. Today, with multitudes of candidates vying for fewer jobs, it feels like the employee market is oversold as well.

As with investing, savvy employers know it is only a matter of time before a correction occurs. So now is the time for small employers to land performers they may not have been able to otherwise. The trick is to know how to capitalize on the market.

As recruiters sourcing critical employees for small to mid-size companies, we often engage with owners, presidents, and chief executives who are not well-versed in hiring executive-level talent. Inexperience can cause them to fall into one or more “belief traps.” Here are a few biases to avoid in the oversold employment market.

Bias 1: As hiring authorities, we hold all the gold. We are in complete charge of this hire. Candidates should be thrilled to work for us.

Unstable times create bullish and presumptuous hiring authorities. For example, one construction company we spoke with in February received nearly 1,000 resumes for 20 jobs (12 of which were entry-level/college graduate positions). The company screened the 1,000 down to a two-inch stack of qualified candidate resumes. Moreover, the employer claimed to be receiving three to four recruiter calls a day pitching candidates. But does the quantity of candidates mean you have a quality fit for the open position?

The reality:

Don’t assume because you have a large number of candidates that quality is assured. Keep in mind, those resumes are all people who are not happy with their current employer or have no current employer. Receiving a large volume of phone calls and unsolicited resumes can give employers a false sense of security and pride. When it comes to critical hires, particularly those in senior sales, finance, and client management roles, the key performers are never a dime a dozen no matter how many resumes you have.

Bias 2: Due to a tight job market, we can “lowball” the offer. The candidate can take our offer or leave it. We can bargain shop for everyone. We are not negotiating.

Ask yourself, “Am I treating this key leader as an asset or a commodity?” Remember, you are not hiring a seasonal employee or entry-level laborer, but are instead acquiring an asset to provide future dividends. Top performers expect strong, reasoned negotiations, and they should be allowed to make the case for earning their wage. Arbitrary lowballing and “take it or leave it” standoffs can drive people away. If it doesn’t, they are not star candidates—not because they are prima donnas but because they will not tolerate being treated disrespectfully.

The reality:

Good recruiters know money is not the primary reason people accept or leave jobs, and the right employee will not make this decision based solely on money. The number one reason strong performers leave jobs is that they feel unappreciated. Top performers are focused on employment that offers personal growth, a new challenge, and a chance to be part of “something bigger.” If they believe in your mission and vision, money becomes less of an issue.

Bias 3: If they want a job, they prepare for us. We’re not the ones being interviewed.

Everything matters when recruiting a key employee. You are being interviewed as much as they are. Consider your verbal and nonverbal messages. A candidate who perceives that you or your team is unprepared may gain a negative first impression. Here are some things to consider:

The work environment:

• What does your office look like?
• What is the vibe, the tone, the energy?
• How are candidates greeted?

As a small company in tight quarters:

• Does your office have adequate space for privacy, if needed?
• Are your existing employees aware of the recruiting effort? If not, should you communicate with or include affected team members in the hiring process, where appropriate?

Your interview approach:

• Have you reviewed the candidate’s resume and prepared questions in advance?
• Who else is the candidate meeting and are they just as prepared?
• Are the interviewers asking different questions to assure the  doesn’t have to keep repeating him or herself? Or have you considered a group interview?

In an oversold employment market it is easy to believe that as an employer you hold all the cards. It is not that simple. The opportunity does exist today to land a superstar, but you may need to improve your approach to seal the deal.