Hiring: How to Cope with A Low Candidate Supply

 

 

Diane Amos, CPC

Amos & Associates, Inc.

633-B Chapel Hill Road

Burlington, North Carolina  27215

336-222-0231    Fax:  336-222-1214

Email:  diane@amosassociates.com

 

 

 

On the eve of the Year 2000, hiring in the IT field has reach an all time high.  Supply of qualified and available candidates has reached an all time low.  Why is this and what can we do about it?  This is what we’ll be talking about today.

 

To begin with, we will look at the statistics and see what the future workforce looks like, and set our hypothesis.  Then we will discuss the whole interview process quickly pointing out the “Do’s” and “Don’ts” for successful hiring.  This will help you to perhaps distinguish your company from your competition.  Finally, we will take a closer look at our future workforce, the Generation Xers, and discuss the complaints, their core values, and motivators.

 

Here are the statistics that you need to know.

 

·        70% of the 79M baby boomers will be sixty by 2005

·        there are 32M born in the next generation to replace them

·        in 1999 there are 500,000 unfilled software job openings in the US

·        in 2003 there will be 1,150,000 unfilled software job openings

 

Of the 10 fastest-growing occupations the top three are:

1.     Database Administrators, Computer Support Specialist

2.     Computer Engineers

3.     System Analysts

 

 

The standard search in today’s IT market is for a 3-5 year experienced candidate, meaning ages 25-30.

 

With these statistics in hand, it is an easy hypothesis to project a continuation of an already difficult hiring market that will only get more difficult.  The demand is for the group with the lowest supply, and possibly even more important, it is for the Generation-X group, which thinks and acts differently than the hiring managers.

 

 

What can we do about it?

 

1.     Let’s first of all take a look at our own hiring process and ask ourselves these critical questions.  Are we creating an interviewing environment that impresses candidates and makes them seek us out?  Are we showing candidates that we have a professional organization with clear direction or only interrogating them for their skill match?  Are we taking the time to “sell” our assets to our candidates or just giving a cursory interview?  Are we showing top notch candidates that we want them or showing a poker face?

 

2.     The following interview practices are being done by those visionary companies who want to set themselves apart from their competition, and are succeeding in attracting and hiring the best candidates.  They are not “buying” these candidates with unreasonable salaries, but presenting a whole package which the candidate cannot resist.

 

Phone Interview

 

 

The successful company begins with a thorough phone interview which starts the “selling” process for the company.

 

1-     They give a good overview of the company, its products or services;  and they highlight the future direction.

2-     A discussion about the “company culture” helps to paint a visual picture for the candidate.

3-     Appropriate questions about the candidate’s motivation, interest, and goals are asked.

4-     Detailed questions that are critical to the company whether specific technical qualifications or management ability are also asked.

5-     Finally, a thorough job description detailing specific functions and duties as well as future challenges is discussed.

6-     They target specific questions relating to this job description in order to determine a match.

 

On the other side of the coin, some companies have failed to attract candidates because of poorly conducted phone interviews such as:

 

1-     Unexpected phone call with no introduction of who’s calling or 

      information about the company.

2-     Interrogation or grilling of candidates skills or why they’re wanting 

      to leave present company.

3-     Short, one-sided conversation of questioning only with no “selling”

     of company.

4-     Long winded, one-sided monologue about the company with no real questioning of candidate to see if there is a match.

5-     Negative sell about environment to “see if candidate is up to it”

6-     No description of the position, functions or duties, challenges to be had.      

 

If any of these hit home, it’s likely that you’ll have a hard time getting a candidate interested in pursuing this interview to the next step.  The phone interview is a serious interview step and an opportunity for you to evaluate the candidate while also creating interest in the position.

 

Face to face interview

 

If you’ve made it to second base, you now have an opportunity to differentiate your company from your competition.  Successful companies are doing the following:

 

1-     For long distance interviews, arranging all logistics at no expense or

     trouble to the candidate, allowing ample time to scout out the area,

     arranging realtor for information gathering and tours.

2-     Taking candidate to dinner or breakfast in order to break down the

      barriers, allowing candidate to see beyond the interview façade.

3-     Giving candidate a well organized itinerary with names and titles, and keeping to the schedule.  No interruptions are allowed, thereby

     demonstrating to the candidate that their interview time is important

     and critical to the company.

4-     Leaving HR interviews, application completion, and drug test till the     end of the interview.

5-  Giving a thorough tour of the facility and actual work place.

6-  Allowing interviews with peer levels to discuss the “true work

      environment” hopefully adding to the “sell”.

 

Again, here are some candidate horror stories that can cause an offer to be turned down.

 

1-     Airline tickets not waiting at counter, necessitating personal     purchase

2-  Wrong directions given to interview

3-  Housed at flea bag hotel with compact rental car off-site from     

airport

4-     Greeted at interview with “take this cup and …” for your drug test

5-      Interviewer doesn’t know why candidate is there or hasn’t read

      resume

6-     No itinerary given and interview is disorganized and chaotic with

      multiple interruptions

7-  A one-on-one interview with hiring manager only which lasts 1 hour

8-  One sided interview with grilling of technical questions given by

      arrogant technician who has something to prove

9-  Candidate hears no feedback only to find out later that company was  

     really interested – duh!

 

 

 

The Offer

 

You’ve rounded third base and you’re heading for home.  The offer stage is the most critical one because this is when things can fall apart, get sticky, get misinterpreted or misperceived.

 

Successful companies know how and when to make an offer and they do the following:

 

1.     They put their best offer on the table.  They do not try to get the candidate as cheap as possible, but instead make a competitive offer that will make accepting their offer an easy and quick decision.

2.     They don’t drag their feet increasing the chance of losing their valuable candidate.  They move quickly after the interview and if interested, give immediate positive feedback.  A verbal offer follows within 2-3 days confirmed in writing via FED-X.  This is crucial in this marketplace!  The early bird truly does get the worm.

3.     They address any concerns with tact and caring, knowing that this is probably a big decision for the candidate to make.  All questions are answered in a timely manner to the satisfaction of the candidate.

4.     The offer includes full disclosure of benefits, vacation time, and other information deemed important by the candidate.

5.     The relocation package is designed to be “cost neutral” to the candidate, thereby not causing them any expense to move from their company to yours.  This may include closing costs, extended temporary living, and a sign-on bonus to cover miscellaneous expenses not included in the relocation package.

6.     The offer is extended by the hiring manager portraying sincere interest in having the candidate join the team, followed by HR for any benefit information deemed important.

 

 

What companies do that cause rejected offers:

 

1.     Wait 3-4 weeks before making an offer, losing candidate interest or losing candidate to another offer.

2.     Playing “how low can we go” with the offer, hoping to save some money on the budget.

3.     Getting angry with candidate who wants further information in order to make a decision.  Company takes attitude of “take it or leave it”.

4.     Offer is given as a salary figure only, with no discussion of benefits, bonuses, vacation, relocation package, etc.

5.     Company expects candidate to move themselves.

6.     Offer is extended by a cold, HR type, without welcoming feeling by future boss.

 

 

Now, just when you think you’ve got it all figured out and will diligently follow the examples of the successful companies we’ve discussed, let’s introduce an element in today’s marketplace that is creating uncertainty, chaos, despair, and confusion.  How do we attract and hire the group that fits our 3-5 year experience profile: the Generation X employee?  All the rules have changed, and the values that you and I have found important may not be the values of this group.  So let’s examine what this group wants, what they don’t want, and once we hire them, how to motivate them to stay.

 

Dr. Jim Toole, writes an excellent book called “Xtreme Leadership” from which I’ve taken this information.  For point of reference the Generation X employee is the generation born between 1965 and 1983.  Currently, that means employees aged 16 to 34.  Let’s first take a look at all the complaints we have heard about this generation, and try to understand the reasons behind some of this behavior.

 

1.     “They are unpredictable”.  Jim reminds us that this generation grew up in an unpredictable environment.  The changes that occurred from 1961 to 1981 took place at quantum speed.  Every area of society underwent unpredictable and unprecedented change.

 

2.     “They are slackers”.  It has been estimated that two thirds of all Xers came from single parent homes.  These Xers know first hand what a slacker is.  They watched one parent walk away from the responsibilities of the home, leaving the other to make ends meet.  Divorce, neglect, and abandonment was the norm making the Xer feel unimportant.  The resulting philosophy was: Why try?  They need a reason to try harder.

 

3.     “They are wanderers”.  These “latchkey” kids were always longing for someone to connect with, someone who would listen, learn, and play with them.  They look for a sense of community and hope to find it at work.  If they perceive that management is only in it for the bucks, they may move on to another place where they can fit in.

 

4.     “They are loners, not team players”.  The previously discussed lack of parental supervision or nurture created a generation of loners who grew up taking care of themselves.  They never learned the fine art of playing or working together.  The paradox is what we just said that they want to connect with others and want a “family feel” at work.  This paradox can drive you nuts.  If the Xer is good at one-on-one, then find a way to leverage that skill to the benefit of the team.

 

5.     “They are quitters”.  This generation grew up watching people and institutions quit.  They have been called the “throw away” generation.  Managers will have a difficult time convincing this generation that they are valued and needed.  They will feel that they are unimportant and are only being hired to get something from them and then be discarded.  Strong leadership is needed to lead, manage, and encourage this generation.

 

6.     “They are all complainers”.  Change has been a big part of this generation’s experience.  For the most part, they view changes as positive and needed that will move us toward a better society.  The complaining being heard is mostly due to the fact that Xers want to see fair and consistent management as well as change that makes sense.  How is change managed?  Is it shoved down their throats or are they given an opportunity for input?

 

7.     “They lack motivation”.  Survival was the greatest motivator for most Xer children.  Nothing in the workplace is perceived as life-threatening.  If they lose their job, they can just find another one.  They are not motivated by security.  They are motivated by people, not by things.

 

8.     “They lack common sense”.   Education isn’t what it used to be.  Higher education is more concerned with tenure and publishing than with teaching and preparation, and it is failing.  Therefore, it falls on the corporate world to provide the training to this Xer workforce.  Millions more will need to be invested to bring this workforce up to speed to meet the demands of a global economy.

 

9.     “They feel that everyone owes them”.  Divorce, dual income families, downsizing, etc. have only served to create a you-owe-me attitude.  Environmental issues are a big concern for this generation,  as well as the federal deficit issue which affects their future.  Acknowledge these problems and then challenge the Xers to make a difference.  The you-owe-me attitude is about making things right with the world more than anything else.

 

10.     “They are very impatient”.  Instant gratification is the norm for this generation.  Everything about technology is fast, the Internet allows them to talk to anyone around the world at the speed of light, TV sitcoms are resolved in 22 minutes.  They have learned impatience well.  Baby boomers provided Xers with a hurry-up world, and consequently they grew up as hurried children, never learning the art of being patient.  It will take leadership and patience to empower this workplace. 

 

 

Whether we like it or not, this is the generation we have for our workforce.  So perhaps it would also be helpful to understand what is important to them.  Dr. Toole tells us that the core values of the Generation X employee are as follows:

 

1.     “People matter more than work.” (Describe your company as a family, with management that really cares.)

 

2.     “I’ll work in order to enjoy life more.” (Discuss options like flex time or telecommuting.)

 

3.     “I’m going to look after myself first, then I’ll look after my job”.   (Show the candidate how they can feel a part of the company, with baseball teams, company picnics, etc.)

 

4.     “I enjoy hanging with my friends”.  (Discuss team building seminars and company events they can bring their friends to.)

 

5.     “I really don’t want to grow up”. (Try to make work fun.  It doesn’t have to be serious every minute.  Discuss your mentoring program where employees figure out what they want to do when they grow up.)

 

 

Recruiting these GenX candidates can be a challenge.  They have different “wants” than we have been used to offering, but this is the market we have to draw from.  So let’s explore these “wants”:

 

1.       “Offer me flex-time” (They want to balance their work life and their play life, and have many more opportunities outside of work to explore.)

2.       “Show me how it can lead to a real job or career”.  (These candidates look for promotion and advancement and don’t want to be stuck in the same place for a long time.)

3.       “Ask me questions about me first”.  (This was the “me” generation, and they want you to find out what they like and dislike, and build the relationship first, then they will listen to an offer.)

4.       “Introduce me to the CEO”.   (They want to know the people they will work with and work for.  They like to know who’s in charge.)

5.       “Explain how this job will make a difference in the world”.  (They need to know that what they’re doing is something important and significant.)

6.       “Be real!”  (This generation is more skeptical than any previous generation, so they’re already on the alert.  Just tell them the facts, and be honest, sincere, and authentic.  Tell them what you like and dislike about the company.)

7.       “Tell me stories”.  (Stories help them see what you are saying.  They’ve been watching stories (TV) for years, so they’re accustomed to receiving information in this form.)

8.       “Make a personal contact and follow up”.  (A high-touch approach makes them feel important and will get more response.)

9.       “Think and act contemporary”.   (Examine your company, does it need to move into this century?  Show these candidates you are moving forward, and they will move with you.)

 

Once you’ve hired the GenX candidate, what can you do to motivate them to stay?  IT retention is at an all time low, so let’s look at what we can do to retain, excite, and motivate these employees.  Bear in mind, the old way of motivating by guilt or threat no longer works for this generation.   They’ll just walk off the job and go find another one.

 

1.     “Let me be a part of something bigger”.  (Give them cross-training opportunities, show them the whole puzzle, and help them understand how their task impacts the next person.)

2.     “Show me how I can grow”.  (They’re very curious and want to learn how to be better at their job.  Don’t be afraid to share your knowledge.  Teach them what you know, tell them where they need to improve, and show them how to do it.)

3.     “Tell me my options”.  (Show them advancement opportunities, or if there are none, show them how to advance in pay and benefits.  Discuss what kind of future they have in your company.)

4.     “Let me be in control”.  (Give them the ball and let them run with it.  Don’t micro-manage.  If they can find a better way, let them try it.  They want to work hard and reach  the company goals, but they want to do it THEIR way.)

5.     “Tell me everything that’s going on”.  (Empower them by sharing the knowledge you have, and help them understand how to positively impact the bottom line.  Keep them informed of new changes or products.  The more information you share, the more they will trust you and also feel more confident about their work.)

6.     “Give me special assignments”.  (This is a way to demonstrate your trust, plus it gives them the opportunity to learn and grow;  also, special assignments can be fun and motivating.)

7.     “Work ought to be fun”.  (Schedule company fun times, bring humor into meetings, and if you reach your goals, celebrate them!)

8.     “Train me”.  (These people are the information generation.  The more they learn, the happier they are.  They absorb information like a sponge, so don’t cut corners with the training budget.  Offer job related training, but also team building, leadership, and people skills training.)

 9.     “Be realistic”.  (An unattainable goal is a stupid goal.  Challenge them, but set realistic goals.)

10. “Just ask me”.  (Don’t discredit them because of their age, they might be right.  Just ask them and together maybe you can come up with a workable solution.)

11. “Be my mentor”.  (A mentor listens first, is available, is a person of integrity, doesn’t hold something against you, is honest and authentic.)

12.  “Give me some ownership”.  (They want to feel like they are part of the reason your company exists.  Let them participate in the decision making.  Let them be a part of the solution when they have created the problem.)

13.  “Reward what you want repeated”.  (If they have reached the goal, let them know you care.  Ideas:  a pat on the back, a bonus, a promotion, a party to celebrate, tickets to something.)

14.  “Talk to me instead of down to me”.  (Talk to them like you would talk to your manager, not like you talk to your children.  Treat them like a true team member with open, honest, adult communication.  Don’t use vague terminology, but be specific.  Don’t assume that you speak the same language-ask if they understand you.)

15.  “Give me feedback”.  (Tell them when they have made a mistake, but don’t scream and shout.  Just explain the error and how to correct it.  Focus your feedback on their performance, not on them.  Give feedback regularly; daily or weekly at least.  Also give feedback when they have done something right.)

16.  “Give me a good challenge”.  (They love the opportunity to demonstrate that they can do more than you think.  Give them a shot at going above and beyond their comfort zone.)

 

 

In summary, people tend to live up to their labels.  If we focus on the differences and negatives of this generation, we will not succeed.  How we lead and label this generation will determine our comfort in retirement, since this generation will one day put us out to pasture.  On a more immediate note, how you attract, hire, and motivate employees of this generation will determine your success or failure in reaching your own career goals.  I hope that these insights into today’s market will help you be successful.  Thank you for the gift of your time.

 

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