The importance of talent spotting

The importance of talent spotting

Separating the awesome candidates from the also-rans is part-and-parcel of recruiting. This week we look at how to spot talent more effectively, and we share some articles, podcasts and pearls of wisdom to help you identify those elusive A-players.

Intrro at HRtechX

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(Above: Nasser speaks at HRtechX in London, June 2022)

First, we’d like to say what a pleasure it was to attend HRtechX – Europe’s largest HR conference – in London. I was delighted to address some of the 2,000 attendees and explain how Intrro works.

With 800+ companies in attendance, it was great to rub shoulders and share ideas with other hiring leaders. In particular, I enjoyed listening to Mads Faurholt, the prolific entrepreneur and author, who identified some common recruiting mistakes. These included:

  • Losing focus on what actually drives success
  • Forgetting the importance of culture and fit
  • Looking for someone who’s like yourself
  • Lack of forward-thinking about what you want the candidate to grow into
  • At the same time, making ‘bad hires’ who can’t do the current job
  • Looking for the ‘unicorn’ who can do everything
  • Focusing too much on experience, or ‘toolbox’, and not enough on what actually drives success (talent and behaviour).

While this might feel like a tick-list, it only takes one or two mistakes for the best-laid recruitment plans to unravel. In the words of Mads: “Leaders spend 10% of their time recruiting and 90% of their time making up for recruiting mistakes.”

For those who weren’t at HRtechX, it’s well worth checking out what Mads has to say – here is his TEDx talk on ‘how to master recruiting’.

Why talent spotting matters

In the excellent Conversations with Tyler podcast , Tyler Cohen and Daniel Gross, authors of the book , ‘Talent: How to Identify Energizers, Creatives, and Winners Around the World’, claim that the world is failing at “identifying talent”, and discuss how hiring leaders can do better. Daniel is an angel investor with a track record of talent spotting by investing early in companies like Stripe, Instacart and SpaceX, while Tyler not only hosts the podcast, but is an economist, writer and academic in his own right.

Their discussion covers a range of themes, and we’ve covered some of the highlights below:

Don’t fret about dark horses

Daniel states: “In the venture business – much more so than, I think, almost any other business – you live in constant paranoia of missing out on great talent…some type of different market or some type of different person becoming really big and really important. In venture, of course, your errors are errors of omission, not commission…You’re deeply thinking about dark horses.”

Daniel goes on to underline the value of “learning to appreciate the humility” in not knowing where the next big thing may appear from, and points to the Dunning-Kruger effect , which posits that people are often ignorant of their own ignorance. In the recruiting world, this can lead to bad hiring outcomes.

Get the interview process right

Tyler references a recently published book on SpaceX’s launch, which “indicates that Elon personally interviewed the first few thousand people hired at SpaceX to make sure they would get the right people. That is a radical, drastic move. You know how much time that involves, and energy and attention”.

The pair also share some ideas on good interview questions to ask. Tyler reveals that he’s had success with an interview question used by PayPal co-founder Peter Thiel:

“It’s simply to ask the person, ‘How ambitious are you?’ A yes-or-no answer, actually, is fine. If they say no because they think you mean something bland and a little mainstream – they say, ‘No, I’m not ambitious, but I want to do this.’ They say it with great passion and charisma – that’s excellent. If they’re just stumped by the question, they have no idea what they actually want to do – that, to me, is a negative.”

In praise of neuroticism

Neuroticism, or “the degree to which a person experiences the world as distressing, threatening, and unsafe” (Encyclopedia Britannica), is often construed as a negative. But Tyler and Daniel aren’t so sure.

“I think for the very highest level of top creative achievers, you want to look for some neuroticism,” Tyler says, with evidence to back it up. “You see this most clearly in musicians and artists, the very greatest ones.”

“That said, for most jobs, you want it in some kind of check, but there’s a whole host of jobs where neuroticism is just a positive.”

As you can see, there are lots of great insights in the book and podcast, and we’re far from the only fans – check out Angular Venture Weekly’s write-up on Tyler and Daniel’s talent-spotting travails.

Things you might have missed

In our busy, helter skelter lives, you probably find it as hard as we do to keep up with every tech tidbit. But here are a couple of developments that caught our eye this week:

  • The battle of the AI code generator continued apace, with the launch of both Amazon CodeWhisperer and Github’s Copilot. Read more on TechCrunch .
  • The eighth annual Okta Businesses at Work report has been published, covering the top (and fastest-growing) SaaS applications (see below).

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Recruiting fails

It seems that scammers and spammers are getting lazier, if this Reddit post is anything to go by. We wish [LAST NAME] the best of luck with their application.

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See you next time

Thanks for reading. Share this newsletter with anyone interested in your network, and we’ll be back with a bang next week!

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