How to win the war for talent (serious advice)

I frequently receive calls from recruiters I worked with in the past asking me to help win the war for talent by referring refer someone I worked with.   These recruiters helped me build world-class organizations and know that the right person joining the organization in a critical role is literally everything and more.

Last week, I received a call from a recruiter (his name is “D”) that I don’t know.   “D” was looking for VP of Engineering and expressed frustration with an ever-increasing shortage of great talent.   One of my former colleagues would be a great fit so I decided to help.

Before I start, what does war for talent really mean? Why is there such a shortage of great people?

Although it’s difficult to identify one prevailing reason for talent shortage (there are many), one reason nevertheless stands out as the most important one to address before any other.

Dysfunctional organizations that refuse to improve are the main reason why there is a fundamental disconnect between demand and supply in the talent market.

• Demand: companies often fail to create an organization where employees want to stay for reasons other than compensation: clear mission, leaders with vision, budgets which make sense, managers who serve, and a team of colleagues which feels like a real team.   Sounds like utopia? It’s not.  The best measure of what these companies have accomplished is the number of unsolicited resumes received every month. My former colleague works at one such company and he receives quite a few resumes from people who would love to join his organization.

• Supply: So when great people join dysfunctional organizations and exit, they promise to themselves “never again” and become very cautious when presented with new opportunities.   That’s precisely what recruiters are frustrated with. How can a candidate be attracted to a new opportunity?

Repeat the above cycle thousands of times and a clear picture emerges. Top talent will keep migrating until reaching the right organization where they can succeed and grow. Attracting top talent then becomes more and more difficult.

Returning to my conversation with a recruiter whose name was “D”.

“D” was looking for a stellar (top 2% of the talent pool) VP of Engineering. I asked more about the organizational structure. The answer was puzzling at best.

“This position reports to Director of Engineering. The title is Manager Level N (pick a high number). But the client wants VP of Engineering level leader. The salary will be close to Director level compensation”.

Interesting. Why would a stellar VP of Engineering even consider this opportunity?

My advice to companies: build the right organization, which will act as a natural magnet for top talent.   Better yet – get leaders at every level (from VP to Directors and Managers) who can do it because they believe in it.   Top talent will begin to listen and that’s a start.

My advice to recruiters: decline to work with companies who fail to build the right organization, or help them build it instead.   Otherwise, you will waste your time and the time of stellar candidates who will decline to listen.