Hire smart: Use the 80-20 rule

Thinking outside the box is essential when talent shortages hinder the recruiting process. Using the 80-20 rule can be a good way to make things a little easier.

So, what is the 80-20 rule? Lauren Karan, director at Karan and Co, explained the concept to HR Leader: “You should be looking to get 80 per cent of what you want and hire and develop and grow that extra 20 per cent.”

“Every company should be doing that regardless of the market. You should be going to the market first with that 80 per cent. And if you can’t get it, then you’ve got to come back to the drawing board and hit up the role design again and go, right, we can’t find anyone. What’s our next strategy?”

Being adaptable and open to negotiation is crucial, said Ms Karan. While talent is scarce in many industries, companies can’t afford to be picky and hope for the perfect candidate.

“It’s a different market now. There are huge challenges around who you can and can’t find. And you need to know where you can be negotiable,” she explained.

This is where being smart about hiring comes in. If traditional hiring methods aren’t working, rethinking strategy and shaking things up may be what you need to stay efficient.

Ms Karan continued: “Do we go to an adjacent market? Do we take out a couple of these responsibilities and give them to somebody else on the team because we can’t find that in that role? That’s hiring smart. And you’d be surprised, a lot of companies aren’t doing that.”

“They’re hitting their head up against a brick wall for six months trying to fill this role where they haven’t actually looked at how to tailor it and adjust it to meet the market.”

Putting more thought into how you approach recruitment is key. Gone are the days of a bunch of skilled potential candidates, for the moment anyway.

“Recruitment can become very reactive when people are looking to hire a position and they don’t put a lot of thought into all the little pillars that are involved to make sure that you hire smart and that you’ve got the right hire,” said Ms Karan.

One strategy that may be effective is role redesign. Instead of hiring someone to fill a position, consider what the individual can bring to the business and design roles around their skill set.

Ms Karan explained: “Have you really outlined what the non-negotiables are for the role for experience? Do you know what you can negotiate on in a skill shortage? Because those are important questions you need to ask on the outset, because we all know you’re not going to 100 per cent get that ideal candidate that you’re looking for every time, especially not in this market.”

“When you hire smart, you really know what it is from that role that generates revenue that has the biggest impact on your business, and then you focus on those skill sets first and foremost, and then you design the role from the outset.”

These techniques can turn the tide on talent shortages, said Ms Karan: “People say to me a lot of the time, I can’t find anyone, like there’s no one out there. Talent is everywhere, if you know where to look.”