10 March 2020
The Hiring Funnel is dead. This is how to build your Hiring Loop.
The Hiring Funnel. You could define the hiring funnel as the process starting from identifying potential candidates up to hiring the best-fit candidate. This hiring funnel is job-oriented, purely focused on execution and ‘ends’ when you hired a new colleague. Moreover, it’s a legacy product of the last 25 years in which hiring didn’t manage to get a proper seat at the table.
Now that hiring strategies are becoming more and more part of the ‘C-level strategic sessions’, we should also transform the hiring funnel into a workflow that serves this strategic purpose.
In this blog I will introduce The Hiring Loop, a new hiring mindset focused on strategic role that hiring has achieved nowadays.
The traditional Hiring Funnel
Before diving into this brand-new hiring mindset, let’s first start taking a closer look at the traditional Hiring Funnel.
Hiring Funnel stages
The traditional hiring funnel consists of the following stages:
- Awareness. Creating awareness to get on the candidate’s radar.
- Attraction. Promoting the job to achieve interest and consideration.
- Interest: Candidates now show interest in your company (follows, website visits, etc.).
- Application. Candidates decide to apply.
- Interview. Candidates are now in the official application procedure.
- Hire. The best-fit candidate is hired.
If we want to combine different stages, we can roughly categorise these stages into three main stages:
- Generating traction;
- Receiving job applications;
- Hiring decision making process.
The missing link
What this Hiring Funnel is missing in terms of strategic implementation is the stages before and after hiring a new colleague – from determining the job profile up to evaluating the actual fit of your brand-new team member.
Hiring strategies, however, should be about more than just the ‘practical’ hiring part. Execution is important, but at the same time also useless if this execution is based on the wrong plans.
And those ‘plans’ is what I referred to in the introduction of this blogs – that’s your seat at the table.
Introducing The Hiring Loop
The Hiring Loop helps you align all different components of your hiring strategy to prevent yourself from putting all your effort in the actual hiring procedure while the stages prior to and after this stage aren’t structured well, resulting in poor hiring results after all.
So the picture shown above represents The Hiring Loop. Let’s now take a closer look at the three different stages of this loop.
Stage I. Identify
After finishing this stage you should have created a crystal clear overview of the ideal profile of your next hire for a specific team.
This first stage is all about identifying your team’s needs in order to determine your ideal next hire for this team. Creating an accurate overview of your current team should provide you with a clear overview of:
- Current skills;
- Current personalities;
- Team strengths;
- Team weaknesses.
We call this a team benchmark (which is also a brand-new feature in our platform, click here to read more). With our platform we conduct this benchmark by letting our customer’s clients play our gamified assessments. However, in case you don’t work with assessments, there’s no need to worry. Especially for people working at your company for a longer time I believe you should have a solid impression of your team members in terms of skills and personalities.
The outcome of this team benchmark should provide you with the following information:
- A ‘baseline’ for certain skills (in other words: for skill X you need to have a minimum level Y to be able to keep up with your team).
- Skill opportunities as a result of your weaknesses. After all, once you’re aware of your team’s weaknesses (for instance a low average level of skill X), you now know that it’s useful to hire someone who masters skill X in order to improve this average level.
- A solid understanding of your way of working.
- And last bot not least, an overview of missing personalities in your team. For instance, if you are building a sales team and you do both inbound and outbound sales, it is important to not only hire people who like the adrenaline kick of scheduling meeting, but also people who like to help inbound leads assessing the fit with your solution in a more consultative setting.
Finally, this information can be used to create a profile of your ideal next hire. After all, not every Business Developer or Engineer should have the same profile, because each new team member changes your team composition and that should be reflected to hiring needs as well.
Stage II. Hire
After finishing this stage you should have hired the best-fit candidate for your open position.
This stage doesn’t require that much of an explanation, because this is basically the traditional Hiring Funnel-stage. This means that during this stage you will be focusing on both attracting candidates as well as receiving job applications and ultimately hiring the best-fit candidate.
Stage III. Reflect
After finishing this stage you should have gained a solid overview of the success of your new hire as well as the impact of this hire on the team composition.
This might even be the most important stage in your Hiring Loop, because this stage ensures that hiring efforts will be properly evaluated and reflected on.
Now that you have hired a new colleague during stage II, based on the output of stage I, in stage III it’s key to reflect on the success of this new hire, or in other words: the accuracy of stage I and stage II. So how successful is this hire in practice? And how well does this hire fit into the company’s culture?
And finally, this hire should of course be added to the team benchmark in order to ensure that your team benchmark stays up-to-date.
So where The Hiring Funnel is all about the reactive hiring process, The Hiring Loop helps you turn your HR practices into a proactive and predictive process in which all the dots are connected.
The result: a continuous hiring workflow focused on proactively translating team compositions into data-driven hiring execution rather than reactive, assumption-bases hiring execution.
Keen to see how Equalture’s tool can help you turning your hiring funnel into a hiring loop? Feel free to schedule a chat with us!