Article #28
Gaining a competitive advantage
through increasing the Speed of Hire

By Dr. John Sullivan, Head and Professor of Human Resource Management College of Business, San Francisco State University
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Prologue:

I am constantly amazed at the number of hires that are lost due to dinosaur hiring practices. Increasing your speed of hire will get you higher quality hires. Most great candidates are on the market for days not weeks. If you can't make a "speed hire" you are destined to get candidates that no one else wants! If you are one of the many HR professionals trying to do everything faster, cheaper and better read on.

Dr. John Sullivan

Gaining a competitive advantage
through increasing the Speed of Hire

"Want to achieve extraordinary results? Set unreasonable timetables! "

John Patrick, IBM Strategist

What is speed of hire?

A deliberate strategy for improving the quality of our hires by decreasing the cycle time for making a hiring decision. It is not the same as trying to cut a few days off of "time to fill", where quality of the hire is not part of the equation.

Our goal is to hire the very best and brightest but the competitors have the same goals. How is one to gain a competitive advantage if we use the same tools and strategies as our competitors? Consider using "flash or speed" hiring, which is where the candidate is hired before the competitor even responds to their resume with the standard acknowledgment postcard!

Normally the quality the people hired is the key metric for measuring the effectiveness of the employment function but in certain circumstances, the speed of hire may actually be the most significant contributor to a quality hire.

Let's start with an illustration.

A star player (i.e.,. Michael Jordan) begins to look for a job. How long would a star be on the market? A month, a week or a day? What are your chances of snagging this star if your selection decision takes 60 days?

A major computer firm found this out when it examined the number of superstar candidates it was hiring. When they found the number of star hires to be unacceptably low they identified an astonishing fact. Superstars are only on the market for a brief time (usually less than two weeks and sometimes as little as a day). The firms hiring process was so slow that by the time a decision could be made the star candidates were lost to the faster moving competitors and only above average candidates were left to choose from. The premise of speed hiring is that if you can build a decision process that responds to a hire opportunity in a day or a week you will capture these superstars before the competitor can even schedule an interview!

Possible advantages of speeding up the time to hire.

Why do hiring decisions take so long?

Steps that tend to delay a hiring decision the most include :

  1. Time to issue the requisition/ job descriptions.
  2. Advertising delays.
  3. Approvals (head count approval, salary range decisions).
  4. Resumes sitting on desks prior waiting for review.
  5. Resumes that can't be sent electronically to managers.
  6. Getting hiring managers to make hiring (and scheduling interviews) a high Priority.
  7. Travel time and delays in scheduling multiple interviews.
  8. Management indecision on hiring criteria and who is the best "fit."

Possible tools and techniques to
reduce Time to Hire cycle times

Possible problems with increasing the Speed of Hire

Companies who have, in some cases, increased their speed to hire

Possible Non-HR models to follow

© November, 1998

by Dr. John Sullivan

Click here to email Dr. Sullivan
Head and Professor of Human Resource Management
College of Business, San Francisco State University

Click here to go to Dr. Sullivan's Index Page

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