BYRON LEONARD
INTERNATIONAL, INC.

A Description of Recruitment Options and Methods

In either case, there are four components in the selection process: identifying, evaluating, attracting and integrating the candidate. Exhibit 1 provides an overview of this selection process. In practice, each phase should be executed sequentially, to the degree that is practical. Mistakes result, for example, from moving too quickly to the evaluating or attracting phase before enough work has been done to identify a suitable pool of acceptable candidates.

Of the two strategies, succession is simpler, more natural, and often preferable. It is not always feasible and when technically feasible, succession may not be in the company's best interest.

You should recognize that you actually have as many as five options to consider:

1. Succession.

2. Recruitment.

3. Sequential Approach: Consider succession first, with recruitment as a second possibility, if inside candidates do not meet the standards.

4. Different Sequential Approach: Try recruitment first, with succession as an option, only if suitable candidates cannot be attracted from outside the company.

5. Concurrent Approach: Consider succession and recruitment together, in effect permitting inside and outside candidates to compete directly for the position.

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CANDIDATE IDENTIFICATION:

In the succession mode, identifying candidates involves, at most, comparing a few obvious possibilities. But if the company opts for recruitment, it has to establish a strategy, first for candidate identification, and then to manage the analysis and digestion of information on a range of prospective candidates.

Position Specification:

With either succession or recruitment, effective management of the candidate identification process requires that you establish an objective set of standards which are best outlined in a position specification.

It is not exclusively a personnel document and should also be distinguished from the longer, more detailed position description. The purpose of the specification is to define the position responsibilities, goals and objectives succinctly; to define the position in the larger context of the organization and to outline the current corporate situation; and the future career should be used, first, to assure that key participants in the selection process are in agreement on the basics. Second, the position specification is used as the nucleus of the more detailed position description, which is used to get the attention and interest of individuals who may become candidates, or who may act as sources of information by referring candidates.

Position Description:

When the recruitment option is selected, development of a position description is essential. Managerial positions are created, perpetuated or changed as an integral component of the process of managing an enterprise and are, therefore, results of conscious decision making to deal with a specific business problem. Furthermore, the decision to select a candidate, either through succession or recruitment usually occurs as a derivative of an intentional organizational strategy; this strategy can be traced to one of these categories of perceived need:

• As a result of growth (or consolidation);
• To institute business change; or
• To foster an entrepreneurial environment.

Exhibit 2 further delineates these categories into ten unique position charters.

To effectively develop a position description there is a need to proceed beyond the position specification and define a much broader context of the position, the company and the culture in explicit terms. This can often be a difficult and challenging task and enlisting the services of an executive search consultant can be very productive.

There are two concepts that enter into this process: "can do" skills and "will do" skills. "Can do" applies a set of criteria for seperating candidates based upon whether they can or cannot perform in the style and with the quality required. "Will do" applies a set of standards to select those candidates who will perform in the style and with the quality required. This is a very subjective process, often referred to as "chemistry", but objective terminology can be developed to aid in the articulation of desired "will do" skills. There are three major factors that influence the "will do" criteria.

1. Position Charter, discussed previously, and defined in Exhibit 1.

2. State of Organizational Growth, as developed in the 1970's, and shown in Exhibit 2 .

3. The Character of the Organization, as typified by the management environment and organizational culture of your company, as illustrated in Exhibit 3.

Each management position has a hierarchy of criteria that extends beyond the obvious duties, responsibilities, experience and knowledge factors. When the selection mode opts for succession the "will do" skills are usually understood in implicit terms. When the recruitment option is selected, the need to articulate the "will do" skills affects the candidate identification and candidate evaluation phase. Since the resume typically is restricted to "can do" information, discontinuities in the process are not typically discovered until the evaluation phase, and then are typified by feelings that certain candidates are "not right". This phenomenon often is obvious, but difficult to correct.

Each selection situation will, therefore, call for identifying the special skill sets needed for candidates to meet the requirements of the position. These characteristics should be segregated into "can do" and "will do" skills. An attempt to objectively describe the temperament of the ideal candidate will be instrumental to moving effectively through the evaluation phase. This involves understanding the organizational character and the current climate of key senior management and then evaluating characteristics of the various candidates with respect to the organizational situation and needs. Exhibit 4 unifies the elements that must be articulated to arrive at an effective position description.

When external recruitment is selected, there are four basic alternatives (with variations, this expands further) for developing the pool of acceptable candidates:

1. Referral by an employee.

2. Referral by a business associate or contact.

3. Advertisement in local or national media.

4. Use of an executive search consultant.

Should you select the recruitment option, use of an executive search firm will most likely yield the broadest, most well equipped pool of candidates.

When you consider use of an executive search consultant, you must carefully and consciously select from a range of practitioners grouped into two distinct camps; contingency firms and retainer firms. Exhibit 5 characterizes the similarities and differences between these types of management consultants.

The ability of the firm to both understand your specification and to identify a range of acceptable candidates from appropriate selected industry segments, will be a major factor in the success or failure of the recruiting process.

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EVALUATION OF IDENTIFIED CANDIDATES:

Evaluating prospective candidates can be relatively straight forward in the case of succession; candidates are typically well known as to style and accomplishments. In recruitment, detailed biographic and evaluative data must be compiled on all candidates.

The candidates should then be compared through interviews and backgrounds inquires. This can be a demanding process, but a variety of methods are available for appraising the personal and professional qualities, as well as the accomplishments of candidates.

The evaluation interview itself has been the subject of numerous books and articles. While most managers have the experience and judgement to conduct the interviews with some finesse, three suggestions are in order to improve the process:

1. The interviewer should plan the meeting carefully. He/she should know precisely what information is needed from each candidate and the points that must be made to present the opportunity to the candidate to generate interest.

2. A relaxed fluid interview in which the interviewer asks open-ended questions and does alot of listening is preferable. The best results come from a frank and practical conversation between two peers in business. A presumption of dominance and subordination is very unproductive.

3. Every effort should be made to stimulate a reciprocal exchange of information and opinions. A two-way indication of strong interest and high regard is essential if the selection process is to proceed beyond the interview.

To choose between interviewed candidates, an assessment procedure should be implemented which involves background inquires, also called "reference checks". These investigations should be beyond simple validation of information provided by the candidate. Background inquires should be conducted with utmost care, in order to obtain objective opinions of peers, subordinates and supervisors who have seen the candidate functioning in a variety of situations. The inquiry should follow a written script and should be designed to elicit, probe and confirm details of the candidate's strengths in the relevant areas of activity. Any focus on weakness should be avoided because this tends to encourage the reference to defend or attack the candidate, or worse, to withhold information. The dialogue should be aimed at limitations, which is less judgemental and reflects the intended thrust of the discussion. The focus of the inquiry is not to determine negative qualities or to seek moral judgements, but rather to determine whether there is a congruity of capability between the candidate and the company. Resolution of this issue is crucial.

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ATTRACTING THE PREFERRED CANDIDATE:

When recruitment is used, the process of attracting a new manager is usually the most challenging part of the selection process. Communication and negotiation often are very delicate at this stage, and the assistance of an executive search consultant (or other detached advisor) can be particularly useful in gauging the candidate's true level of interest, capturability and negotiating stance.

In part, the increasing difficult of attracting the "right" candidate has been due to societal changes that go beyond the business system. In past periods of intense concentration on career progress, such as the 1950's and 1960's, prospective executives would often go anywhere, anytime, to obtain the next opportunity for professional growth or advancement. In the 1980's, there was a decided tendency to give greater weight to external factors, such as, spouse's career, children's schools, preferred lifestyles and the housing market. The hiring manager and the Human Resource advisers should be prepared for these and related issues when recruiting at any level of corporate responsibility. In many cities, relocation services are available that specialize in personalized treatment to acquaint the candidate and their family to the area, to provide detailed information to resolve mobility obstacles and to provide special introductions to organizations of interest, special schools, medical specialists, etc.; thereby easing the decision making process and smoothing the potential transition. Whatever a company can do to obtain a competitive edge in attracting a desired employee at this phase of the selection process is well worth the investment of time and expense.

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RISKS AND ADVANTAGES OF SELECTION ALTERNATIVES:

In deciding whether to promote from within or to recruit, the company management should recognize that each strategy carries its own risks, costs and advantages.

The risks in succession tend to be obscure and extend into the future. Succession may also have an opportunity cost expressed in lower potential for innovation, new ideas and increased vigor. However, succession also has the advantage of preserving organizational stability and assuring an orderly transition.

When the recruitment option is selected, the business risks are immediately visible and tend to be concentrated at the beginning of the new executive's tenure. The cost may well include discontinuity in organizational effectiveness, higher anxiety levels and a more difficult transition. Recruitment does, however, offer the opportunity for a healthy change in the way a company or division does business and could influence the quality and profitability of its product.

Integration of the new manager can often be complex because it involves both adaptation to the culture and adaption to the responsibilities of a new position. When the company opts for succession, integration is nearly automatic, as far as the organizational culture is concerned. Adaptation to the higher responsibilities within a familiar setting may be a major problem for the promoted manager. Conversely, in the case of recruitment, the integration challenge of relating to a foreign culture may pose a difficult challenge, but the ability to perform at the appropriate level should be easier. This is particularly true if the recruitment process has stressed the need for an established record of accomplishment in comparable tasks.

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MANAGING THE SELECTION PROCESS:

No matter how conceptually sound the identification, selection, evaluation and attraction effort may be, careful management of the process is crucial. In even the most creative environments, the following five rules should be applied:

First, plan the selection. Every hour devoted to proper planning will save several hours in the execution. All involved should share their assumptions, objectives, strategies and relevant experiences associated with the position. This may begin with wide-ranging discussions, but should be reduced to writing as quickly as possible in the interest of clarity, openness and quantifiable results. Drafting and editing a position specification is a good way to begin.

Second, arrange for cohesive and objective supervision of the selection. Evaluating and attracting a new executive is too sensitive and important to be left to chance and the crises of the interview day.

To provide for this, an individual should be explicity responsible for the management of the interviews: should insure consistency of the subject matter for various candidates; and should collect interviewers responses to simplify comparison between candidates.

Third, limit the number of primary decision makers to avoid a cumbersome and discouraging selection effort. Many promising relationships have floundered because the assessment procedures gave every interviewer an equal voice in the determination.

Bear a cardinal fact in mind: leaders, especially successful ones, tend to be consciously or subconsciously competitive with anyone potentially strong enough to replace them. They may be especially suspicious of outsiders. In addition, a manager's view of the company and its needs is naturally based on his/her awareness and personal experience--which could be rooted in the past and therefore be retrospective--when a vision of the future is judged necessary by the position charter.

Fourth, establish an acceptable pace. Even if there are no serious time constraints, candidates--whether from inside or outside the company--always find the recruitment process anxiety-producing and disrupting to their careers and unsettling to their families. The controllable sector of the anxiety clock starts with the first interview by the company or its representatives and ends when an offer is extended.

If candidates think that the company is being dilatory or unduly deliberative, they often, incorrectly, conclude that there is something wrong with their credentials or with the company decision making process. If too much time passes, interest fades. Remember, candidates are perishable commodities!

Fifth, use advisers and select them carefully and creatively. Management consultants, including specialists in executive search, provide options for obtaining advice, objectivity and a personal level of professional assistance generally not available inside your company. Executive search consultants are more frequently used in recruitment than in succession, but can perform a valuable role in either kind of selection effort.

In accessing the potential of any advisor, it is critical to evaluate his/her qualifications in two major areas:

1. His/her expertise: A thorough and intimate knowledge of the specific company and the industry with an awareness of pertinent historical facts.

2. His/her achievement: An ability to articulate that culture and project the business opportunities involved. Successful experience in helping to evaluate and attract individuals for comparable roles in comparable enterprises.

Qualified advisers will always yeild a net benefit, provided their advice is used as an integrated component of the process outlined here.

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THE CHALLENGE:

Selection of managers and executive leadership is not a science or even a fine art, but rather a business problem requiring systematic attention. The process need not be entirely dependent on intuition and informal networks. Management can respond with their best efforts through awareness of the challenge in all its dimensions; by application of relevant experience, including prior successes and failure; through imaginative use of proven methodologies; and by enlisting the assistance of professional management consultants who can contribute to the success of the process.