Conventional hiring does not always work….why?

Do people with good grades make good workers? Do people who score high in IQ contribute more to your business? Who is more suited to your environment – the disciplined Gee or the loud opinionated Bob or the IT geek Hans? How does internal culture determine who fits and who does not? Employers often rely on common cv-interview-aptitude test-reference method of people sourcing. It may build teams fast, but doesn’t necessary assembly the right mix of people and talent to suit your people requirement. After all, tertiary education is becoming too accessible, office suits cost a bit more than an a couple of DVDs, English is spoken by anyone who watches Opera and you can Google up anything. College degree, personality ,proficiency and a bit of know how doesn’t make the difference it used to. So, if you need those guys who can sit and think and create and built, if you need brilliant people in all your cubicles, you have to start employing alternative means of assessing and selecting the candidates you need.

You only get what you attract…..

Studies show that there is a natural selection process - people at start-up companies seem to be more involved in the task at hand, resourceful and responsive to the demands of a fast-paced environment while those at mature, long established places are less inclined to drive changes and lead new areas of growth. What you signal to the market determines what type of people you attract. The best talents could have walked past your buildings, but not into it!

…and you have to make sure you have the right environment for these people….

Notice how some businesses seem to hire from the same people pool as others but get those that they hire to perform far superior than the rest. What they could do that others could not is basically create an environment that draws out the thinking and problem solving capabilities from the people it hires by putting in place the right team structures, management policies and reward mechanisms. It is not surprising that thinking-on-the-job is the best way to deliver new fresh ideas and turn them into real outputs….and creative people often yearn for such an environment with flexible systems and non-rigid work processes where they are granted high levels of discretion in how they deliver their work.

… and the right structures..

Pyramid structures worked best in assembly plants and army units because of the uniform skills and standard management protocols. In current settings, an engineering unit could operate 4 different technologies, multiple systems and 50-60 equipments with leverages on different know-how. It could have extensive design and planning teams as well as research people working on emerging technologies. It could have engineering teams working with vendors to develop new solutions. On top of that, it has special teams to deliver weekly and monthly reports and presentations, draw-up budgets, manage approvals and implement risk management procedures. While doing so, each and everyone in the department works extensively with people from all other areas in the within the businesses in a complicated web of communication - leading discussions and organising meetings and managing emails. Will pyramid structure still work in these set up? Technological advancement, emerging complexities and changing corporate culture are demanding far superior and effective ecosystems.

…and finally, make sure you have the right incentive schemes..

It is important to understand that innovative tasks and assignments depend on completely different skill types and competencies – and the major mistake most businesses make is to use measures that are meant for operational type activities for these initiatives. Research units, Developmental Engineering Departments, Strategy and Planning units, Product Development units, Technology Development Departments are examples of areas which require more specific measures which can account, recognize and reward expertise, talent, creativity and innovation thus increasing the flow of ideas and solutions in these areas.

Talent: The link between business and its innovative energy

Unlike in the past, innovations is no longer a one-off moment of miracle. Product, process and strategy innovations have become a constant feature in businesses, regardless of the industry. Technological advancements – whether it’s in resourcing, production,processing, marketing or delivery, are redefining the way businesses are run. In order to stay ahead and keep their products and prices competitive, business have no choice except to continuously update their functional areas with the latest technologies and know-how.

Some businesses achieve this by buying the necessary technologies, equipment and methodologies from common vendors. However, this norm is creating increasing dependency on vendors, with long term cost implications and information leakages that occur when vendors bring the same solutions to everyone else in the market. Having this insight, the leading players in the market are tapping into their internal innovative energies and creating their own research and development capacity and capabilities. Once the capacity is built, process and product improvements become a norm and the market gets to experience a steady flow of new features, new products, new add-on services and new deals. Over time, such businesses build high product competitiveness, increased rate of response to market changes and eventually, become market leaders.

So, it really matters that businesses hire innovative people because eventually, that is the single most powerful factor that determines how far ahead they get.