Trust but Verify (Who You Hire)!
“With the advent of LinkedIn and many other smart recruitment tools, finding resumes of candidates is not an issue anymore.” This was the conclusion that the head of a top Human Capital Management Venture Accelerator shared with me recently. He is right.
Matching the right candidate to the job and company — that’s the key job right now. There are lots of filters that can be applied to do proper matching, and machines can be really useful at reading hundreds of resumes, picking up keywords and concepts and narrowing a big list to a handful of candidates. Of course, good recruiters perform the same function, usually better than machines.
This is where Reachable can help. The firsts to notice (and tell us) were Talent Acquisition Partners in PE and VC firms. VCs and PE firms have Talent Acquisition Partners because subpar portfolio talent leads to subpar IRR. No need to explain to a PE or VC partner what subpar IRR will do to their lifestyle…
At some point in the recruitment workflow, you will receive a list of candidates. You will then need to check references. It always starts with the 5 references you asked for. But these volunteered references are always good.
So, you need to come up with your own references. It’s hard, time consuming and really, really important!
You (if you are the Talent Partner) could post the resumes of all your candidates on a secure web site and ask every single one of your partners, LPs, portfolio CEOs and friends to check them out and give you a “like” or “don’t like” vote. And if you do that, may be they will respond “hey, do your job and let me do mine, OK?” You’d be left thinking that leveraging your firm’s network as a selection filter would be really valuable. Isn’t there a way to use it without looking like you are off-loading work on everyone?
Reachable is being used by Talent Acquisition Partners to do just that. Reachable will reveal who in your firm and its extended network has a professional connection to the candidates you are vetting. Reach out to them and reduce the risk of a bad hire and protect your IRR. Sure, you say, our recruiters will refund their fee or do a new search for no money. Really? Wouldn’t mitigating the risk with Reachable be better than relying on a refund? And look at the math: Cost of Reachable < Lost Carried Interest income for VC / PE (and lost profits, market share, etc for every other company.). You just can’t afford to make a bad senior hire. Period.