Four ways to hire better, from Airwallex’s head of growth

As 2020 drew to a close, pulling down unemployment levels was the priority for markets and policymakers. Fast forward 12 months, and the tables turned.

There’s no two ways about it, it’s a jobseekers market out there and this creates real challenges for employers around recruitment and retention.

Anyone involved in recruiting this year will know the struggle. Recent research Findex showed a quarter of SMEs in Australia are already finding recruitment more challenging than the year before.

But it doesn’t matter whether you’ve entering 2022 on a record high or in recovery mode to rebuild post-pandemic — a high quality and well-staffed team is imperative to future success.

There’s no need to fear a world where the scales are tipped in favour of employees. Building a business and a brand that is an attractive, enjoyable and fulfilling place to work should be as big a priority as any other business objective.

Four ways to find tech talent

1. Make a Dhandho bet

   The temptation when hiring is to stick to what you know. And, while you can rely on and trust prior experience with a competitor, university qualifications or a glowing reference from a peer, we need to start thinking outside the box.

   Enter the Dhandho bet, an approach in business that aims to minimise risk while maximising the reward for the undertaker.

   Dhandho translates to ‘endeavour that creates wealth’, and making a Dhandho bet isn’t about taking on a wild card, but rather considering opportunities or candidates who break the mould or could have a significant upside. Investor Mohnish Pabrai defines a Dhandho as “Heads, I win; tails, I don’t lose much!”

   A Dhandho bet can be made on an idea, opportunity, an investment or a person — it’s a conscious decision aimed to generate tremendous advantage to the business overall.

   Startups are often fortunate in the way they can bring people into the fold without recruitment blockades, such as a demand for ‘5+ years of experience’, which is often the case. While on paper, they may not seem as compelling as other candidates in terms of hard skills or experience, it is important to ask yourself whether they possess other qualities that could indicate they could be a future superstar — such as determination, curiosity, or creativity.

   These important soft skills are often overlooked. You can always teach staff how to ‘do’ things; it’s much harder to influence ‘who’ they are and how their uniqueness can add value to your business.

2. Top up the trust battery

   One of my favourite business philosophies was coined by Shopify’s Tobias Lütke: the trust battery. The trust battery assumes that everyone is charged at 50% when they’re hired. Every interaction someone has at work either charges or drains the battery. As a practical example, we often talk about the trust battery in one-on-ones to make sure we’re on the same page about how our batteries are tracking.

   Lütke’s mantra is to never let the battery enter power saving mode — charged teams make for happy teams.

   Boost your team’s battery by delivering on what you promise, creating environments that make them feel listened to and appreciated, and recognising their hard work and achievements.

3. Don’t sell a dream

   Be realistic about the job from the beginning — don’t sell on a dream you can’t deliver. If expectations don’t meet reality, new starters may decide to find employment elsewhere.

   Again, let this be a challenge you set yourself to define why someone would want to work for you. No job is perfect, so what’s the trade off?

4. Leverage your network

   There’s no such thing as a quick fix to hire better. Instead, it’s a tale as old as time: by the time the jobs ads go out, the pinch is already being felt. But whether it’s your first or your thousandth hire, be deliberate and considered about who you welcome to your team. A speedy recruitment fix can leave a gaping hole down the line.

   Use LinkedIn as a way to proactively build relationships with potential candidates (even before you’ve had a defined vacancy to fill). As a result, candidates you’ve spoken to previously may decide to join even months down the track.