Tuesday, September 22, 2015

Don't hire the perfect candidate


Everyone dreams of hiring the perfect candidate – someone who’s already a star performer, who has the ideal background, qualities and qualifications for the job.  Job descriptions tend to be explicitly based around perfect candidate descriptions, and ATS systems filter candidates based on how well they match this keyword summary of perfection.

There’s only one problem: hiring the perfect candidate never works out. 

Here’s why…

Not every kind of perfect matters

One of the biggest mistakes in hiring is looking at too many factors.  Not only is it hugely complex and time-consuming to pull together different sorts of data, but much of the information commonly gathered in the search for a perfect candidate is actually destructive to your chances of ending up with a high-performing employee.

It’s all about relevance.  If you base your hiring decisions on irrelevant data, you may as well write each candidate’s name on a piece of paper, drop them all into a glass bowl and pick one at random, Hunger Games style.  Letting in any irrelevant data will weaken the reliability of your candidate selection, skewing your results further towards the chancy end of the predictive scale.

Let’s look at an example.  Most recruiters salivate if the résumé of a candidate who has already done the job in question lands on their desk.  But when you look at the research into high performance, you’ll find that prior experience of the job is a pretty weak performance predictor, with a correlation of only 0.13 with future success .  It’s better than using graphology (the correlation coefficient there is 0.02) but it’s nothing like as high as the 0.71 or better correlation you get if you focus on the most highly predictive factors.  

No wonder nearly half of all new hires are gone within eighteen months, if their recruitment was based around such weakly predictive selection methods.

But some other common selection tools are even worse than the résumé.  How relevant to someone’s job performance do you honestly think their Facebook photos are going to be?  How relevant is their height or hair color?  Their face shape?  Their answer to a question asking them to describe their closet?  

There’s worrying evidence that these sort of obviously irrelevant things are often taken into account in candidate selection, but there’s not a single research study out there that shows any link between these factors and genuine high performance.

We’re all biased

Why, then, do we continue using these random factors when we’re choosing future employees?

Because we’re human, and humans aren’t always logical.

We all have treasured values and beliefs, some of them so deep we hardly know how to put them into words.  But we have no problem putting them into action.  Malcolm Gladwell tells a lovely story about a screened orchestra audition where the head of the Munich Symphony was so enraptured by the performance of a French Horn player that he leapt up and yelled out “We’re hiring that man!”, only to nearly faint from shock when the screen was removed to reveal a woman. 

The whole reason the Munch Symphony was conducting screened auditions was because the head of the orchestra wanted to make sure there was no gender bias in hiring.  I’m sure if you had asked him in advance whether a woman could be as strong a French Horn player as a man, he would have agreed vigorously.  Yet when it came down to it, he heard an excellent French Horn player and immediately associated a bunch of other qualities with that individual, including the possession of a Y chromosome.

It’s easy to laugh at such anecdotes, but we are all biased.  If you think you are not, just take one or two of these short tests which reveal the implicit prejudices many of us have on a whole range of issues.  Choose the tests that focus on areas where you are sure you are not prejudiced, for maximum impact.

How come we’re all so prejudiced?  It’s not – usually – because we’re terrible people.  Many scientists suspect instead that many common prejudices simply reflect outdated thinking.  Back in the Stone Age, for instance, it might have made sense to choose the biggest person in the tribe to be the leader.  But as the nature of leadership challenges morphed from “Kill the saber-toothed cat before it eats the baby” to “Improve shareholder value”, height simply became less relevant.  Maybe in another few thousand years our instinctive reactions to leaders will have changed, by which time perhaps leadership itself will demand very different qualities.

We also develop biases based on the information we receive.  Most of the stories we hear about salespeople feature charming, back-slapping characters, the type of fun and energizing person whom everyone likes to be around, the life and soul of the party.

The thing is, evidence from high performing salespeople in real jobs shows exactly the opposite.

It turns out that great salespeople, particularly for high-value sales, tend to be introverts.  They listen more than they talk.  They get their energy not from being in the thick of social interactions but from reflecting and planning alone.  Glad-handing does not result in higher sales.

I could cite multiple examples from other fields of work that prove the same point: when it comes to looking for perfect, most of us see only what we want to see.  Our gut feel in hiring is often (even usually) wrong.

Perfect candidate ≠perfect employee

There’s another reason why you should never set out to hire the perfect candidate, even if you focus only on factors with proven relevance to performance and rigorously take steps to eliminate your own biases. 

It’s because the perfect candidate is very, very rarely the perfect employee.

Of course every business wants great employees.  But the way to get them is not to look for perfection in a candidate, even if you are only considering the factors whichare proven-relevant to performance on the job.

The reason you don’t need perfection is that two different types of factor predict job performance.  The first group are Baselines, the second Differentiators.

Baselines: pass/fail courses

Baselines are the technical skills, knowledge or qualifications that a candidate has to have to be credible in a specific job – a clean driver’s license for a chauffeur, knowledge of HTML for a website programmer, Series 7 and Series 63 qualifications for a stock broker.  Every job has its own specific baselines, and in many jobs if you don’t have the baselines, you can’t even get your foot in the door.

But baselines only take you so far.  When researchers looked at the differences between top performers and the rest, they found very little evidence that superior baseline mastery predicts superior work performance.  Some top performers have high-level baseline skills, it’s true, but others scraped through at the third or fourth attempt.  It seems that baselines work like pass/fail courses in college – what matters is covering the ground, not whether or not you excel.

Differentiators: what it says on the can

Differentiators are, well, different.  They tend to be more complex constructs than Baselines – behavioral and thinking competencies such as Strategic Thinking, for example, rather than a Baseline like passing the GMAT.  They encompass not just an individual’s capabilities but also his or her preferences and motivations.  They dig beneath the surface of technical skills to profound truths about how people solve problems, how they work with others, how they get things done.

Differentiators genuinely do differentiate performance.  Research over decades has shown strong correlations between the level of mastery of a particular Differentiator and success in at work.  Each job has its own set of predictive Differentiators, corresponding to the consistent differences research has found between the best and the rest.  The more proactive and decisive a salesperson is at work, for example, the better his or her results. 

While different things matter for different jobs, there are three broad Differentiators that are highly predictive of performance:
  • Cognitive ability – how you process information and solve problems
  • Competencies – the ways of working that lead to high performance
  • Culture fit – how well the working environment engages and motivates individuals

Every job will draw on a different mix of these three Differentiators.  Some have high requirements in terms of cognitive ability, for instance, while in others success is driven much more by competencies.  There is no reliable way to guess these requirements; you have to look at real data from high performers, or use assessment methods which have already incorporated such data.

The real trick is to know what is a baseline and what is a differentiator, and measure them differently.  If a factor is a baseline, just make sure your candidate checks the box.  If it’s a differentiator, look for depth of mastery and make sure it is relevant for your particular job. 

Check your perfect

So, instead of hiring an all-round perfect candidate, focus on just two things: the baseline requirements and the specific differentiators for that particular job, and measure them differently as outlined above.  This doesn’t add up to many factors – maybe ten in total.  Most can be easily and accurately measured by assessments and a half-hour focused interview.  Using this approach will cut the time and effort that goes into hiring, and get you, if not the perfect candidate, then as-close-as-you-can-get-to-perfect employees.

The trick is to resist the temptation of perfection.  It’s tempting to think that we should consider all the factors, that we should trust our gut feel, that we should always look for more and more data.  This only leads to more work for worse results.  Don’t do it.

Also, remember that people can change.  You aren’t going to get a perfect future employee.  You’re going to get someone who has great potential strengths, but might need to develop more competence in a couple of areas.  Then it’s a matter of what the person wants to do – are they willing to develop the mismatched characteristics, do they genuinely want the job and are they ready to start work?  So long as you get someone with good potential in the most important drivers of performance in the job, and with the motivation to work hard to be really good, you can work on the details.  You will probably increase their engagement by doing so – high performers usually want to learn from each job, and what better learning than increasing their capability to do well?

Nobody’s perfect, and in the end that’s a very good thing for employers and employees.