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Sure, let’s get married, we’ve known each other at least 60 minutes

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Hiring new staff has always puzzled me. You spend an hour, maybe two, maybe even three to get to know each other. Then you say “I do”, lift the veil, consummate the relationship with a handshake and that’s that. Signed, sealed and delivered.

But, imagine… just imagine you told your mother (or your best friend) that you were about to marry someone after knowing them for only a couple of hours. And, imagine telling them that you didn’t just meet this person randomly. You prepped them on exactly what you were looking for and were truly surprised when they said things that made you happy.

married

I hear you. Yes, there’s a big difference between employment and marriage. Sure, you see your husband/wife at least three hours a day, while you see your employees only between 10 and 12 hours a day. Agreed; big difference.

So, I’m thinking, all of the wisdom you hear about getting to know someone before marriage should also apply to employment. Moving in with them, enduring their habits, arguing with them, making up with them (hey, hey)… all of the stuff that is prattled on about by older learned folk. Of course by this I mean you should trial them.

Now, I don’t mean put them on probation, so if they kill someone or defraud you for a billion franc you’ll fire them. I mean put them on a fixed contract for a month with the intent that they’ll only be hired temporarily. Naturally, you’ll mention the potential to land a full-time gig, but you’ll also explain the uncertainty. Don’t even give them a title; call them a consultant or executive or something equally vague.

During this period, you can work them into the ground, enjoy a warm ale with them, put them in front of intimidating clients, have at least one heated argument with them and if you’re lucky, you’ll be able to tell if they really have what it takes to work in your esteemed organisation. Sure they can put on an act for a month, but that’s much harder than for just 60 minutes.

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Posted in Dealmaking, Theories & Ideas

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  • Analyst
    Shibumi: I entirely agree. The way I currently got my job (in a small mid-market PE fund) was by proposing a 3 month 'fixed contract' to try me out - because we both knew the fit might not exist.

    A month in, I'm making sure to prove myself indispensable to the team, they've already ordered me a BB and laptop and they send me on my own to deal with some of the portfolio firm management.

    So all in all, a successful integration - but I am not looking forwards to the difficult salary negotiation in under 2 month's time - because I certainly expect more than I got in for!

    ---
    The Private Equiteer: I think hiring the initial management on those sort of terms is quite hard, however I've observed a number of ways to get around that in the longer-term:

    + Hiring some guys in as consultants/advisors, as you suggested - but they don't sit at the C-level. The PE fund kinda evaluates them along a separate channel, and a few months later, promotes them to C-suite. This seems to be particularly useful for ongoing porfolio firms where you aren't happy with management - or succession plans - but want to make it a smooth changeover (without the target noticing).

    + Keeping in touch with the best guys. Sure, every initial hiring is basically a punt, but once in a while you find a star - and you keep using them for new portfolio firms...etc. We've got 2-3 turnaround experts like that: they get sent in the first 3-9 months after an acquisition. Though their salaries are paid by the portfolio firms, they are really employees of the PE fund...
  • Shibumi
    Another analogy is that this recession has also been like a marriage, except worse, since not only do you lose half your assets but you get to keep your wife....
  • Shibumi
    I have used this device twice in my career to "get in the door". After a trial period (wherein I demonstrated outstanding commercial adroitness and a certain boyish charm...:)) I remained in place for extended periods of time.
    The difficult part is negotiating a good rem package after 3 months, since, for instance, if their view is pay median and your view is that your a rockstar who should be at the 99th percentile - then this divergence should be settled sooner rather than later.
  • Thanks for the note Glenn. And you bring up a good point about the interviewee needing to do their own DD.

    I think that especially when you have options (as the interviewee), you need to consider the soft value aspects of each potential role. The company with the biggest profile may be a real bore to work at. Anyway, food for thought.
  • Glenn
    I recently interviewed with a firm that does this. It is a small (10 person) consulting shop. It makes total sense to me, especially given the size of his firm. He told me that he looks for people who, in addition to having the right degree and relevant experience, are currently unemployed and living in the area. This way, he can staff them on a project (typically 4-6 weeks) and both parties can decide whether there is a fit. As long as there is fair compensation that considers your time as well as the opportunity cost of not being able to look for a job during the project, I think this is a great method of hiring for employer and employee.
  • Good point, especially if you're looking to hire someone in existing employment.

    Maybe there's a happy medium; maybe they can contract for you on weekends. Although, that could be seen as deceitful to the existing employer.

    I'm sure someone has a solution, but either way, I still think it's crazy to hire key staff after a couple of short interviews that they've practised for ad nauseam.
  • Lauren
    Sure, but most likely they will be going to other job interviews, where the prospective employer will give them a proper title, who will give them the comfort of a full-time gig and pay etc etc.

    When it comes down to it, only few people take that risk of 1 month employment than full-time. But these are probably the people you're after in the first place... Still you may lose a few good ones to the competition as everyone works harder when they're rewarded.
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