Browse by Tags

  • An Argument to Resist the Shining Star

    It is very tempting to want to pry a star performer from a competitor, but Michael J. Mauboussin argues, at Harvard Business Review , that can be a foolish approach: [T]here is a tendency to prize a few standout individuals while ignoring how much they draw on their surrounding systems for support. For instance, many companies, sports teams, and entertainment businesses hire a star when they want to quickly improve the organization’s results. More often than not, however, newly transplanted stars fail to deliver, because they’re separated from the people, structures, and norms that helped make them great in the first place. In one study, professors from Harvard Business School tracked more than 1,000 acclaimed equity analysts over a decade and monitored how their performance changed when they switched firms. The dour conclusion of the research: “When a company hires a star, the star’s performance plunges, there is a sharp decline in the functioning of the group or team the person works with, and the company’s market value falls.” Read When Individuals Don’t Matter here . (H/t Henry Abbott )
  • Cherry-Picking Best Employees in a Recession

    Jobless claims may have dropped last week , but another the US economy still managed to shed another 565,000 jobs last week. There are few, if any, silver linings in the climbing unemployment statistics, but it does mean that small businesses that do have the resources to hire have a lot of choices and leverage. Mirela Iverac writes in Forbes that the trick is "figuring out which of those left behind were victims of the economy, and which deserved to go." Iverac cites advice from Barry Deutsch , CEO of Impact Hiring Solution s, who says that small businesses frequently hire what he calls "mismatches." How to avoid all those mismatches? As with most things, some smart work up front does the trick. First, specifically define the job you are looking to fill--generic titles are useless, says Deutsch--and quantify your expectations. Say you need a marketing director. You might require that she, within the first 30 days, assess the division, identify gaps and come up with a personal development plan for each team member; within 60 days, come up with a detailed list of potential product extensions; and within 120 days, execute a new product launch. The power of defining goals up front is that it serves as a road map for the interview, making it easier to predict whether a candidate has relevant experience and the chances she'll thrive in the new environment. Once you know what you're looking for, you have to let the world know you're looking for it. There's an art to Want Ads. One that lists a dry set of qualifications--five years of this skill, 10 years of that skill--won't cut it, says Deutsch. Read Hiring The Best Of The Left-Behind here .
  • Bleak Graduation Season News for MBAs

    New data released by the Graduate Management Admission Council shows hiring of people with MBAs is dropping off considerably this year. According to the 2009 GMAC Corporate Recruiters Survey , recruiters hired, on average, 12 new MBAs in 2008. This year they expect to hire six. And the total number of firms planning on hiring MBAs has dropped 9%. The good news: companies that hire MBAs plan on paying them nearly double what they pay new employees without graduate management degrees. As a result of the down jobs market, a lot of business school grads are choosing to go back into the fields they worked in before grad school, rather than use B-School as a stepping stone into new fields, according to the Wall Street Journal : With firms like Lehman Brothers and Bear Stearns -- which used to bring on upward of 800 M.B.A.s combined every year -- now defunct, and fewer finance jobs around, more business-school graduates are leaning on their experience to get them in the door. For example, the University of Chicago's Booth School of Business has typically placed 50% of its M.B.A. alumni in finance, most at large investment banks. This year, students in all majors have been turning back to their previous fields to find work, says Char Bennington, Chicago's senior associate director of career management. Ms. Bennington says other industries, like consulting and marketing, are also hiring fewer people and looking for experience. Read With Jobs Tight, M.B.A.s Head for Home here .
  • Hiring A-Players in a Downturn

    With unemployment high and a lot of businesses cutting back on pay for those employees left, this would seem a good time for companies looking to hire. But as Seth Godin says, "if you need cheap bodies, this is your moment. But if you need amazing people, be prepared to work hard to find them." Godin points us to a compelling piece on hiring by Auren Hoffman , CEO of RapLeaf . Hoffman writes that economic downturns can make it more difficult to hire the right people, simply because there are more people looking for work. Hoffman believes in always hiring "A-players." And in the clutter of additional applicants, there are a lot of C-players available who might not look all that different from A-players on paper. So hiring the A-players take extra work. Essentially, Hoffman believes the number of A-players available remains somewhat constant. During big rounds of layoffs, companies shed C-players and B-players in greater proportion (see chart at right). So what's the answer? Hiring managers need to dedicate additional time to screening and testing applicants, or take your chances with B and C-players. Hoffman also says companies that are innovating in times when everyone seems to be playing it safe have an advantage. Some A-players are less likely to be looking to jump ship during tough times due to a risk adverse profile, security, financial reasons, or other reasons. They are happy where they are and more likely to hunker-down in tough times. On the flipside there are A-players that are MORE likely to leave. Tough times often paint companies into a corner and force them into maintenance mode rather than continuing to innovate. Great players love to innovate and usually NEED to innovate. It’s usually very hard to keep these type of A-players caged-up and thus this presents a big opportunity for recruiting. For instance, in the past it was really hard to hire great software engineers out of financial behemoths like Goldman Sachs, Morgan Stanley, and JP Morgan Chase. These companies have outstanding people and pay these people really well (often 50% above the salary at a tech company). Nowadays, even if these people have not been laid off, the great people are going to be leaving in droves. Why? Because in the next two years, it is really doubtful they will be doing anything remotely innovative. Instead they will be maintaining current systems due to the understaffed and underfunded technology departments. No fun there so expect a big exodus out of these companies. Read Hoffman's full post here .
  • Signs of Small Business Hiring

    Yesterday, in announcing the federal government's efforts to increase lending to small business, President Obama touted the resilient nature of small business owners. And there is some data that suggests that there was an uptick in hiring among small businesses last month. Take a look at this graph of the monthly Hiring Activity Index (HAI) figures since the start of 2008: That graph is from Andrew Gelman , professor of statistics and political science at Columbia. He reworked data from an interesting analysis post by Josh Millet , CEO of Criteria Corp. , an employee assessment firm. Criteria started tracking the hiring activity last yea r, and Millet says the 8 point jump is the highest they have seen. It is only one data point, to be sure, but it suggests that for SMBs the hiring picture improved somewhat in February. Could it be an upwards blip in a downward trend? Of course, but the eight point jump in the HAI is the biggest we've seen since we started tracking the index. For those, like me, inclined to think that the current recession, although brutal and severe, will not be as long-lasting as some suppose, the February HAI reading is cause for hope. I don't expect that January's 7.6% figure for the overall unemployment rate is the end of it--we'll almost certainly see it get north of 8% soon. But as big public companies in the worst hit industries (financial services, construction, etc) continue to shed jobs the February HAI reading offers a glimmer of hope for the job market. Small and medium-sized businesses did not lead us into this recession, but they may just lead us out of it--and don't look now, but it may have already started. You can read Millet's full post here . And Gelman's reading of it here .
  • Managing Crisis into Opportunity

    Management guru Jim Collins --he of such bestsellers Built to Last , and Good to Great --certainly knows how to turn crisis into opportunity. He's been working on a book on how successful companies manage turbulent times. He told Fortune some of what he has found in his research. His big takeaway, it appears, is that it is all about people. In downturns and recessions, companies have an opportunity to bring in talent. The businesses that bite the bullet and acquired the key ingredient to success--the right people--will reap the benefits. The right people don't need to be managed. The moment you feel the need to tightly manage someone, you've made a hiring mistake. The right people don't think they have a job: They have responsibilities. If I'm a climber, my job is not [just] to belay. My responsibility is that if we get in trouble, I don't let my partner down. The right people do what they say they will do, which means being really careful about what they say they will do. It's key in difficult times. In difficult environments our results are our responsibility. People who take credit in good times and blame external forces in bad times do not deserve to lead. End of story. You can read the full article here , or watch a short video with Jim Collins here .