Hooked on Happy, Listening, Looking - Issue 36
Market dynamics consistently influence talent migrations between big tech and startups. But talent cycles are always at play in the background. And your ability as a founder to navigate these cycles requires a strategy of its own.
What's going on?
If you've ever found yourself excited to interview a candidate only to find out they are entertaining multiple offers, congratulations! You're getting involved with someone at the end of their job search cycle. And because of this, your chances of making a hire just took a nosedive. All talent sits in one of three stages in the job search cycle: happy, listening, and looking. Each stage yields different actions and behaviors.
Happy. This is the honeymoon phase of an individual's relationship with their job, usually lasting 6 to 18 months. They are working long days, totally immersed and either in love or terrified, but "all in," nevertheless. It's hard to establish a new relationship with someone you want to recruit for the future during this time, but it's a perfect time to check in and wish them luck, offer to be a sounding board, etc. The happy phase is when a relationship can flourish because there is nothing at stake, guards are down, and trust is high. Remember those candidates who declined your offers? They are now happy or listening, and you shouldn't neglect them. Quite the opposite — you should double down.
Listening. When someone has a great relationship with their job, they are in team building, networking, and problem-solving mode and only subconsciously thinking about how to build the next phase of their career journey. This phase is the longest, lasting from 12 months to 5 years+. Someone might be at various stages of listening throughout this timeframe, sometimes describing themselves as "passively looking" or "open to new things." If you play your cards right, a candidate never advances from the listening to the looking stage in a public manner but instead gives you a signal, the fit is validated, an offer is made, and they join your company without ever hitting the market.
Looking. This is the most transactional, intense, confusing, and emotional phase of anyone's career, and it typically lasts two weeks to 3 months. It's also the absolute worst time to make a first connection to someone you hope to hire. You are a few years too late to have a competitive advantage (the listening phase is when you have a chance to build a relationship and recruit them before they even hit the looking phase). If you get lucky and hire someone during this phase, that's wonderful! If not, follow the instructions for the "happy" and "listening" stages to have a chance at them next time.
Why it matters?
The most challenging thing about talent cycles is that they're always in flux. Plus, the points at which a candidate is happy, listening, or even looking are all driven by different variables entirely out of your control. But you can still control your talent strategy and how you approach talent in each stage. There's often a temptation to only build relationships during the transitional phase (the looking phase) because that's what you and everyone else has been conditioned to do. I have a need; I start a process. But this transactional mindset will have you playing the game at a massive disadvantage.
What do others think?
"Given the highly competitive and demanding war for talent, there's a temptation and tendency for founders to approach hiring in a very transactional way. Yet long-term success ultimately hinges upon effective relationship building. Treat every interaction as an opportunity to build trust and credibility with candidates — a simple offer to help outside of the context of any specific opportunity goes a long way. This will pay dividends down the line because oftentimes, the best candidates never make it to the “Looking” stage and you always want access before they hit the open market.” - Chase Whittingham, Founder and Partner at Artisanal Talent
What do we think?
It’s important to note that candidates don't always have complete control over their cycle. Someone who is otherwise happy may suddenly be thrown into an active looking mode due to RIFs, acquisitions, or other personal factors. These unforeseen shifts can promote behaviors born from the need to survive versus thrive. In this scenario, candidates often make concessions or deprioritize things on their must-have list, such as career growth, cultural alignment, and even two-way fit. Consciously deprioritized or not, there is only one way this story will end, and it's not happy for either party. Your role as a founder is more than convincing talent to join your startup journey; it is also sometimes convincing them not to. Know the difference.
What do YOU think?
TAKE ACTION
Build connection now. The more connective fibers you build now, the higher the probability of reaching talent before they are on the move. Share your founder story, build your brand, showcase your team and your mission. Network and build rapport. Plant the seeds today to harvest later.
Identify the career problem. Every candidate along the talent cycle has a career problem they are working to solve — the delta between where they are and where they want to be. Are they running away from their current role? Are they running toward a goal? If they are not running (actively looking), understanding this delta can activate them to consider your role. Make sure to avoid having career conversations during the transactional-looking stage. You won’t have enough time to build the level of trust and rapport required to get real information.
Career problem "pushes." Aspects of the current job that the candidate is dissatisfied with. Example -- Hit a ceiling for career growth, lousy culture fit, change in management, lack of confidence in the company's direction. If money is the big push, this could be a red flag. On the other hand, if this person is highly skilled and a great performer but making 25-50% percentile of the market, that's a legitimate push.
Career problem "pulls" Aspects a candidate seeks. Example — A desire for intellectual stimulation, growth opportunities, and enthusiasm for the company mission. Again, if money comes up early and often as the main pull, this is a red flag. One way to address this is by asking, "All money being equal..."
Separate signal from noise. Because you are often in selling mode to lure happy and listening talent into the net, you can mistake merely window shopping as ready to buy. You think you've got someone on the hook when, in fact, they're just using your offer to gain leverage at their current company. Sometimes, talent may think they want to join a startup, but their risk profile is out of whack. Make sure you understand what's really being said. Ask candidates about their timeline and stay on top of other interviews and offers in motion. Dig deep to understand motivations and identify and address red flags. Avoid costly miss-hires by believing red flag issues will resolve on their own.
Always be closing. Leadership candidates may refrain from openly discussing pushes (aspects of their current job that they are dissatisfied with) but listening carefully may give you a good sense as to what these are. On an ongoing basis, uncover all their questions and concerns about joining your company from the first conversation to offer. Constantly ask yourself: Is this leadership candidate closable?
Tools, Events, Resources
Hey! Entrepreneurs —> Take the Leap!
LinkedIn → The Disadvantage of Transactional Recruiting
This can also be applied to B2B sales.... Seen this in action by the masters of snagging that customer from a competitor.