What to Look For When Hiring the Right People
May 18, 2020
by a searcher from California State University, Los Angeles in Beverly Hills, CA, USA
I went to a social distancing birthday party today for one of my daughter's friends. The father and I talked for a couple of hours about business. He is a president of a major global lifestyle clothing brand. We got on the subject of my recently launched search fund. I explained to him my absolute biggest weakness is hiring people as a whole. He began to explain to me what he had done over the past few weeks.
It occurred to him that during this lockdown, it was a slower time to get to know his directors. They are going through a very hard time, to say the least, as JC Penny and Neiman Marcus are filing for bankruptcy protection (Restructuring). So, he is taking the opportunity to get to know his directors and figuring out what makes them tick. When hiring them, he found various qualities that he loved about them, but never gave them thought. But, the overwhelming coincidence of each of them came apparent when they were speaking up on their Zoom calls recently. These are the three qualities all must possess:
1. Enthusiasm for the job. He is the president of a lifestyle clothing brand. He told me of the 31-year old director who worked their ass off from a small little boutique fashion shop in York England to become one of their youngest directors ever. Why did this happen? Because she has enthusiasm and energy for what she does. She absolutely loved the brand, absolutely enjoys what she does, and embodies the company in every bit of her life.
2. Integrity. The company, unfortunately, had to layoff many people. Moreover, the executives had to take a huge pay cut to keep the company alive. He noticed on his paycheck that the pay cut hadn't taken effect and he wrote an email to the board about it. They appreciated his honesty so much that they didn't make his pay cut retroactive. This is something that every one of his directors also had. Integrity is doing the right thing when nobody is looking.
3. A hard work ethic. Lets face it - This is something that not everyone has. Sometimes we want to be with the family, sometimes we want to travel, or sometimes we just don't feel motivated. However, the best don't get that way by putting work aside. They find time to do these things, but also find time to work. My friend (by way of my daughter) explained to me he is working 80 hour weeks now with furloughs, layoffs, and more... And so are each and everyone of his directors. Moreover, no one is complaining about it. It is this kind of attitude that is needed to be an amazing employee.
This has been digesting in me since we talked a few hours ago and it has helped me realize that a warm body in the seat can be just as much of a liability as an asset. As he explained, he has someone in London that is AMAZING. However, he has someone that does the same job duty for the USA, but doesn't get 1/10th the work done. Why? Because of the 3 aforementioned qualities. He explained that, on a go forward basis, these are three qualities he will always be looking for.
I'm curious your thoughts. Are there any good books you would recommend on reading that highlight qualities of great employees? The best book I've read in this regard is, "From Good to Great". However, this is more of business entities and groups - not individuals. So, I am happy to read your thoughts and experiences through this.
from University of Canberra in Perth WA 6000, Australia
When I graduated university many years back I was hired by IBM as a graduate. It was a process that included 4 x 1:1 interviews with execs as well as some serious psychometric testing etc. The intake of grads that year was one of the biggest in Australia and now, nearly 4 decades on some of my closest friends are from that cohort. On my first day in the office - at the beginning of our 6 month long induction program - I asked a manager "so why us? what made you select us as the successful grads?"
The answer surprised me - "When we recruit we ask ourselves, "could this person become CEO and would I be delighted to be led by him/her?" If the answer is 'yes' then you got short listed etc.
So the qualities of leadership are at play here. What leadership means for you and for your company and where it is going is important. Is every recruit your potential succession plan? if not then don't hire them. If you are in the Search Fund stage of your acquisition cycle, then is the person you are interviewing someone you'd take with you to the new co? (even if you don't/can't at least it is a benchmark you are setting).
In my world it is less about a person having the tools and skills (which can all be acquired or learned) - but the mindset. How do they see the world? How do they respond to it? What is their relationship with change? with challenge? with conflict? What does 'Trust' mean to them and does that align with my view of how we hold 'trust' in our business? etc.
^redacted my business partner and co-founder at Second Squared and I constantly talk about these issues, and how to identify the difference between a great recruit, a good recruit or a dud one. We think it mirrors what we know makes a great entrepreneur. Last year we took 20+ entrepreneurs out to lunch to pick their brains on it all and were able to surmise that the following also need to be taken into consideration:
1. Able to do the hard work when the hard work needs doing
2. Get stuff done even when its hard or unclear (or even wrong - because by making mistakes you learn what is right)
3. In Australia we call it "mateship." The ability to be a friend, be vulnerable, ask for help and value connections, networks and relationships. Being a mate also means being able to have some pretty tough conversations without taking it personally
4. Know when to take risks - understand your personal risk profile and that of the business/owners etc.
5. Clarity of vision - know what success looks like
6. Be on purpose and with principle: know what drives you and also able to articulate your values and what that means for you
7. Open. Learn every day. Listen and observe and interpret. Share.
from University of Pennsylvania in Chicago, IL, USA
- Does the job represent a great opportunity for the person in question (from their perspective of course, not mine)? If it isn't a great opportunity, then it is a bad idea. It should enable the person to grow/achieve their goals - more money, learn a new function, more family time, whatever the case may be. If it is a great opportunity, people take the job seriously and are excited about the work and they stick around!
- Modeling. Excellence can be learned from those who have achieved it. I apply this to the person in question. If I know what qualities are needed to be an exceptional XYZ... then I ask myself, does this person possess the raw materials to become an exceptional XYZ or at least a competent, effective XYZ. Be willing to take some risks here. I want to see track record in the quality/skill but it isn't necessary that the experience is in the same function/industry. Beware of convincing "stories" though. I find that senior decision makers can be easily swayed by emotional story-telling, myself included. Hedge against this by not overruling subordinates on your team that have more experience in the particular job function.
- Hiring process as a culture screen. How people write emails, talk on the phone, etc. reveal a ton about who they are and how they operate. I notice everything and use it to gauge "fit". E.g., for me, responsiveness is perhaps the #1 quality I want in sales people and customer service managers. If I don't see it in the hiring process, I just move on. For each company, things like that are going to be different.
Good luck!