John Pierce is Head of Business Development at Cetera Financial Group, driving Cetera’s financial professional recruiting strategy.
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The hiring environment in most industries continues to be highly competitive. With competition, and the desire for hiring new talent, we have observed an unsettling trend: hiring managers overpromising to win candidates before ultimately underdelivering on their promises. That approach delivers a suboptimal short- and long-term experience for the candidate and can establish a new relationship in an adversarial manner.
Here are five action steps to implement to drive more productive hires and make your organization more referable:
1. Be realistic.
In a fight for talent, hiring managers can stretch reality in their enthusiasm for hiring an optimal candidate. In financial services, as an example, we desire to hire financial professionals to join our company and bring their clients. To do that they need to “transition” to our firm. I see competitors downplaying the effort and pre-work that needs to be done to complete a successful move. Worse, a firm may allow the candidate to drive the process by doing things that are not allowed or that violate industry rules protecting client confidentiality, which can create legal or regulatory issues for the sake of appeasing a new hire.
Transitions are difficult, requiring a significant amount of work, and there will be friction in every move. As you consider your organization, be realistic with candidates and provide a balance of what a move would look like, how it will proceed and what to expect. You will differentiate yourselves from your competition because honesty and reality, however difficult to accept, will be appreciated in the heat of a move.
2. Stop overpromising.
I recently lost a recruit when a competitor told the candidate he could transact business the way he always had. Our firm was realistic and explained that his current business model that used discretion in a brokerage account was no longer allowed from a regulatory perspective. The “winning” firm said they would make an exception. Unfortunately, the recruit is now stuck at a firm for nine years and he has been told that he cannot do what he was told he could do. Desperation leads to overpromising. Don’t be desperate and make promises you can’t keep.
3. Admit mistakes.
Throughout the hiring process, gaps, friction and mistakes can happen. Too often firms try to cover up or minimize gaps that may occur. If you develop a positive and open relationship with your candidate when you encounter challenges, you will work through them. Accept and own mistakes while providing solutions. It is a best practice to look in the mirror when a mistake happens, instead of looking out the window to find an excuse. Your candidate will appreciate your honesty and transparency.
4. Understand the push and pull.
Why is the candidate speaking with you? There are usually two forces at work. The first is a “push" force. Push relates to activities or changes their current firm may be implementing that are pushing them to find a new professional home. Learn what is causing a “push.” The “pull" force may be a service, enhancement, strategy or concept that is not available at their current firm but may be available at yours, which can help the candidate in their goals and dreams. Listen and learn to see what you can offer to “pull” the candidate to your firm. By understanding both “push” and “pull,” you can provide creative solutions to differentiate your firm and hire more optimal candidates.
5. Understand and demonstrate.
In the hiring process, understanding the needs and long-term aspirations of a candidate is critical for creating an attractive value proposition. During the recruiting process, a best practice is to understand, validate and then demonstrate your specific capabilities to help achieve their needs and aspirations. In any industry, some people are check-chasers—money is all that matters to them. Pass on these candidates because they could leave once their term is up to cash the next check. If a candidate shares their growth aspirations—however they envision “growth”—with a new digital approach to attract new clients, for example, you may have discovered a “pull” to attract that person or team. All competitors have “marketing” sleeves. Can they clearly validate and demonstrate what differentiates them from others? Find those differentiators and you are closer to hiring an optimal candidate.
By following this road map, you can build a more sustainable and positive experience with candidates you would like to hire. In the back of your mind always be thinking “how can I deliver an optimal experience to this candidate?” and “how can I replicate this experience with this candidate to earn referrals?” When you hire someone, you want your firm to be their last move. Approaching the relationship with honesty and reality will deliver a positive experience for your candidates that can be scaled and replicated—and will drive better outcomes for your firm and your candidates.
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