The Challenge
Why Top Performers Slip Through the Funnel
Why do the SaaS/IT organisations’ HR, Talent and headhunter teams rarely progress the top 20%?
One argument is that non-top performers have shorter sales cycles and higher conversion rates; therefore, less selling is required from the recruiter. More importantly, however, this is primarily due to lack of sufficient skills and experience related to the specific recruitment target (and their current job) in relation to the specific job offer – that makes the top performer qualify hard, fast and out of the recruitment funnel.
Research show that often there is an ”information asymmetry” between the recruiter and recruitment target, which allows the candidate to control both the dialogue (they know how to sell..) and the narrative (often referred to as ”impression management” in literature).
All this allows too many non-top performers through the recruitment funnel. An even bigger problem is that when top performers test fast (they are busy), hard (they are skilled) in order to qualify out the job opportunity, recruiters often lack the credibility or skill to identify and probe deeply enough into the ”pains” of the current job and contrast them convincingly with the motivational triggers of the new role. As a result, the candiate senses risk in the answers and opts out of the recruitment funnel.
Top 20% of go-to-market teams deliver more than 50% of the results!
Top performers are very, very difficult to hire (their retention rate is 92%!)
HR & headhunter teams in SaaS/IT organisations rarely progress the top 20%
Go-to-Market Leaders Try To Fix It Themselves
- Spend too much time on non-top performers ("false negatives") from HR/Talent and recruiters
- Try to leverage their own network getting top performers into the recruitment funnel
Time Is Not on Their Side…
- Top performers require more time/selling (longer sales cycle)
- Go-to-market leaders are short of time (running the business)
- In SaaS/IT there is high pressure for results, growth, progression
Pressure Leads To Hiring "Good Enough"
- Hiring defaults to “good enough” instead of top performers
- Sub-optimal performance, efforts to correct and culture decline
This Becomes a Vicious Circle
- Research shows that each mis-hire costs around $1M (x5 OTE)
- And it’s bad for culture