The Business Case for Abandoning the Hiring “Process” and Going with Your Gut
I find it intriguing that while the Bureau of Labor Statistics projects that over 60% of jobs in the next 10 years will only require the SKILLS of a High School degree, 27% of Employers have actually INCREASED education requirements for jobs over the last five years (CareerBuilder survey).
We all know that schools have been doing a poor job in preparing young people for the work world which is probably why businesses have responded by increasing education requirements for even the most basic of positions, what I term education inflation. Currently, there are robust debates about education reform, but this piece does not intend to take a position on the pros or cons of any particular curriculum or reform.
Rather, I would like to speak to the business person who has the opportunity to make a change now, a paradigm shift, an embrace of “old school” mentality of nurturing and “bringing up” a workforce. What if we started hiring for potential talent, not just matching skills listed on a resume to requirements on a job posting? In the end, there is both a strong business case and civic responsibility for rethinking your hiring strategy.
CASE STUDY:
IBM, the old school pinnacle of corporate ingenuity and still the backbone of countless new technologies, is going back to traditional values by going back to school. They are the major collaborators in a new school initiative in Brooklyn which is driving a new campaign throughout New York: P-Tech.
IBM realized there was a major gap in what they termed “middle-skills” areas of their prospective employees and their employee pipeline. So what did the innovation pioneer do? They went back to an old school idea: mentoring and training young people and putting them on a career track to fill their employee pipeline for the long term health of their company.
With NO cash on the line, IBM provided assistance with business-relevant curriculum development to a school in Brooklyn and provided mentors to help guide and direct these young people into future jobs in technology. They decided to invest their TIME into their future workforce. In short, IBM created a modern apprenticeship program.
Today there are thousands of “overqualified” college graduates floundering in the basements of their parent’s homes working at Starbucks or waiting tables, digging their way out of college debt while struggling to find that one job that will give them a break into ANY career path.
Behind these college grads are thousands of “underqualified” high school graduates wandering, seeking some direction toward a future, a goal, a purpose, but lack a skillset, knowledgebase, or even a toolkit to get started.
Businesses need to take a chance on these young people. Hire the “overqualified” college grad and give her that well-earned break, hire that “underqualified” high-school grad and give them a direction. It can pay dividends to both them and your business.
What are the upsides to hiring “off process”? Here are a few key points:
◾Lower initial costs: less educated, less “qualified” or “inexperienced” employees cost less in wages.
◾Employee loyalty: don’t underestimate the dedication and loyalty giving a person their first opportunity can engender – and a dedicated, loyal employee is priceless.
◾Company knowledge: starting a person at ground zero and guiding them along a career path through your organization provides them, and your company, a depth and breadth of knowledge and understanding of the organization that can be invaluable over the course of the person’s career.
◾ Succession planning: having a broad base of knowledgeable employees provides your company a wealth of resources for succession planning as your company grows and ages.
There was a time in this Country when a company took in young people and gave them a toolbox, gave them a direction and set them on a career path. It is not just the education system that has lost its purpose, and it is not just the youth that lack direction, but business lost its sense of obligation. We have failed to engage in the nurturing and training of the workforce. We need to return to the old school values, take a chance on that kid out of school and help them to find their way in the world.
Are there risks to hiring a young person? Of course, but every hire has risks regardless of the demographics of the person you are hiring. But what is the worst that can happen? You fire them. (ok, so here’s the shameless pandering…hire them as a temp and there’s even less risk!!) But you might also breathe new life into your company, your community, and a person.
Madison Approach 