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Raiders of the rival's ark

Where Not to Look for Top Talent

By Russ Riendeau (PhD), Vistage Member, June 2007

Topic: Recruitment

The number one challenge facing business leaders today: securing and retaining human capital. Record high employment rates; demographic shifts in an aging workforce and reduction in potential workers all contribute to the challenge. When you're looking for a candidate who already knows your business and can "hit the street running," it's tempting to look toward your competitor's employees as a prime source. Why not raid your rival's ark?

It might work … but it probably won't.

Here's why:

It's difficult to identify the talent, even when you have a company in mind.
The competition may have a non-compete agreement in place.
The rival might counter your offer – and these tactics work, just long enough to deflect defectors from leaving.
The potential candidate may not want to leave due to emotional ties, fear of change, bonus money due, concerns with customer credibility issues, traitor-labels, or guilt.
Reference checking is near impossible to secure accurate insights to character and skill sets.
If you're looking forward to new client business following a sales candidate, know that less than 15% of businesses survive the journey in the first 12-18 months.
You may sour your reputation with the rival or with clients.
It’s expensive. Your compensation plans will have to be stronger than the rival's to entice superstars.

Instead of raiding your rival's ark, it might be more efficient and effective to give your hiring procedure a leg up.

Here's a checklist to get you started:

Before the Search

Be proactive. Don’t wait till someone quits or is stolen to start a search.
Create specific initiatives and goals that this job must fulfill that are measurable and critical. Now require candidates to document they have achieved similar results in the past. This allows the measuring of consistent patterns of behavior and success.
Create written job descriptions including core competencies and personality traits required for each sales and management position.
Install an incentive program that is performance-based.
Consider realigning existing people in your organization to fit the position.

Interviewing

Use a validated psychometric instrument to benchmark existing employees and use with each viable applicant.
Conduct three interviews minimum with different interviewers; one interview should take place during a public meal, one interview should be by phone to check energy and articulation.
Check references.
Request a written case study and a strategic plan for first 90 days from the applicant.
Hiring manager is accountable for final selection, not the group.
Put a detailed and positive offer in writing that is void after 24 hours. Meet candidate after offer is accepted to seal the deal and protect against the ever-looming counteroffer.

Training

Design or purchase a thorough, consistent and implementable sales training/product training program for every new employee. The better the initial training, the better the odds of success.
Don’t abandon this new kid. Monitor, encourage, listen, train, and measure performance.

Incentives

Reward activity that leads to accomplishment. Create incentives for proactive behaviors that will lead to sales. This approach also provides management with feedback on process, learning, habits, intellect, drive and motivation.

Applying these analytics and systems to evaluate and train top talent from the surrounding industries, you widen the talent pool, invite new ideas, increase the odds of top performers staying longer and reduce costly turnover.

Russ Riendeau, PhD, is Sr. Partner of The East Wing Search Group and a Vistage Speaker on Effective Interviewing Strategies & Retaining Top Professionals.

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