guidance counselor 2.0 · episode 68
how to hire
key takeaways
- recruiters find talent; companies are responsible for keeping them long-term
- contract-to-hire works better for culture fit and reducing bad hires than direct hire
- use contract-to-hire for six month evaluation periods instead of demanding guarantees
- complete direct hire in two interviews within two weeks or risk losing candidates
- spend first 15-20 minutes of interviews selling your opportunity, then 40-45 minutes on candidate
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about this episode
how to structure hiring processes and when to use contract-to-hire versus direct placement
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full transcript
auto-generated from the audio, so expect a few typos. the audio is the source of truth.
I'm just going to dive into the show. So the biggest thing I'm seeing working with clients and countries across clients and companies across the country a little slow today. We're talking about just how people hire, right? So I have a lot of people calling me like, hey Taylor, I want to do direct tires. Like great, why do you want to do direct tires? Like well, that's just what we've always done. We've always done direct tire, perm placement salary. This sounds great. So talking a little bit. But the one thing I'm starting here from a lot of my clients across the country is that they talk about, hey, like we need a six month guarantee.
A six month guarantee. And so I tell them, I said, hey, I hear you. But it's not mine or recruiters' responsibilities to keep the talent at your company for six months. The whole point to engage a recruiting firm is to find good talent, to send that talent to you. And now, and then for that person to work out long term with you, not a lot of people probably ask, well, Taylor, you so like do you have a guaranteed, oh, well, we do. We have a three month guarantee. Because the reason why we have three month guarantees is because you really figure out if that person technically is good within those three months.
And so from my perspective, if you want six month guarantee, then you probably need to do contract to hire. So we'll get into that now, Pia, what's up? Good morning. So yeah, so that's what we move into contract. And that's what I'm talking about. And I'm just like, listen, if you want this six month guarantee that person's going to work out, you need to do contract to hire. Because the market's so crazy. Like I tell my clients, I cannot keep your person at your company for six months. That is your responsibility. Because the market right now, I have developers giving offers for thousands and thousands of dollars more than they got the offer for it at the company that I got them, I offer at.
And not through us, we're not responsible for that. Right, they did that on their own. Like the market's crazy. Like people are getting pinged in, I mean, I'm not talking about this. People are getting pinged left and right. Right, I got friends, not even on the jobs or so get through your four emails, DM's a week, viable DM's on LinkedIn. And so again, that's not my responsibility. The reason why I would do contract to hire is if that's what you're concerned about. As a hiring manager, as a company, if you are concerned about culture fit and to be totally honest with you, to be totally honest with you, if you're up to me, if culture was the number one important thing for your organization, I would absolutely do contract to hire.
But like a true contract to hire, right? Come in, working interview for six months, we cut down the interview process, we bring you on faster, we basically work, it's like a working interview for six months and then we bring you on full time. Right, we agree on the salary on the front end. Right, obviously, we work through that with companies, but that is why contract hire is so important. Right, and I get it. From a can of perspective, contract to hire, isn't great, like, you know, all that stuff, I get the arguments. I get the arguments, I'm not saying, but I think companies on the other side of it, because I always want to talk to companies and I want to talk to candidates.
On a company side, it's like the best way to reduce long term duds. Because if you can get the person to the door for six months and hang out with them for six months, you really get to know who they are. You can't know who they are in an interview. I will tell you this, I will tell you this. I have had more candidates not work out on a direct hire basis from the get go than a contract to hire basis long term. Does that make sense? So like, I've had cats flame out faster in the direct hire side of things when they hire direct hire from the get go, than I do from a contract to hire perspective.
The reason for that is because the candidate and the client can figure out what they want after six months. Right, that's why it's such a good retention tool. So if you're an organization, if you want to do direct hire, that's fine. There's not the wrong direct hire, but we need to move through it fast, which we're going to get to in a second. If you're going to do contract to hire, then short short in the interview process, get that person started, evaluate them over six months and better body of work than just a daggam two hour interview. Right, and then convert them. Now let's talk about contracting consulting.
There's a difference. Right, consulting, I guess this is quite, Clay just tuned in, our job is to find the talent. There's this to provide an inclusive environment with support and growth potential to keep that talent. Absolutely. Again, right. Our job is just to find the good talent, the company's job is to keep that talent. So then let's talk about contracting and consulting and why those are different. The contracting side of things, the contracting side of things is specifically around if you have some holes within your organization that you need to build on project. Oh, we just had a senior developer leave. We need someone to fill that person immediately or oh, we have three projects running right now.
We need this person to kind of bounce around. Right, it's, it's filled the holes. It's filled the holes, right? That's where contract comes to play. We need a senior resource for a year that bounces around. We got a bunch of, we got 10 projects going on right now. We need that person to kind of just bounce around and help us bet. That's where contracting comes in. Consulting is when you're like, Taylor, I don't have the bandwidth to spin up and hire a whole nother team. And I need someone to manage it. That's where you give us an entire project. That is where you go, all right, Taylor, I don't have the bandwidth to manage at all.
But this project is 911. Can you manage it? And that is what we do. We absolutely do that. Consulting managed services. Where everyone call it. The biggest difference with us, Vaco versus like an Accenture Deloitte, is we don't sign you for like a six, seven year deal, right? It's this project we'll get in, we'll get out. If we suck and you don't want to use us, you don't have to use us again, you're not indebted to us for six years, right? That's the benefit of working with us. And we've successfully done some stuff. Can we get better? Absolutely, we can get better. But we've been able to spin up an entire team in a week and be very successful on project basis.
But that's what you need to keep in mind for, right? If you're a manager watching this, now we're in the future. And you're like, man, you're right. I don't have bandwidth to hire an entire team. I don't have the bandwidth to manage another team. That sounds great. That is where we come in, right? So that's the difference between contracting and consulting. So let's talk about the interview steps and then we'll wrap up here again. I just want this short to the point for hiring managers and leads to kind of get some good, tangible pieces of advice. If you have any questions about hiring and you're watching as a job seeker or whatnot, please ask me, right?
Even if it's not related, just if you have questions, please ask me, that's the point of this live show. I want to be able to obviously answer any questions that anyone has across the country. So let's talk about interview and steps. So I've worked with one company that in my entire career, at least from what I can remember, has done it the right way. And they've done direct hire, direct hire, Sally Perm. They did it within two weeks and they heavily rely on us. What they did is the first interview was an hour phone call, right? This was pre-COVID back in 2013. It was an hour phone call, right?
They dove right into the technical side of things. Now, there's pros and cons to both, right? I think companies right now need to be mindful. They need to sell their opportunity. They need to sell themselves because developers and IT folk have to pick it a little right now. So if you're not getting on the interview, so the companies that dive into technically from the get-go, I'd be weird of that, right? I'd honestly do that. I'd honestly do like the first 15, 20 minutes selling yourself, selling the project, selling what you guys are doing. The next 40 minutes or so, 45 minutes talking about the candidate.
That's what I do on the first round. The second round needs to be an hour to two hour tech screen and judging some culture fit, bringing some people on it that I'd offer. The company out in Raleigh that I recruited for, it was two rounds, phone call, and then they flew you out, right? This is pre-COVID, they flew you out. And it was like a half day thing. They take you to lunch and then there was an offer. They did all their hire in two weeks. And they were absolutely able to staff up an incredible team. I'm friends with most of them at this point.
That I play spec, 2013. They hired 15 people from us. And I think like three or four months. I mean, it was pretty aggressive growth. And they had very little people fall off because they leveraged the recruiting firm. Then they did the phone screen and they did the on-site and then they offered, right? Quick bang bang bang. That is how I would recommend any company to do it. In my opinion, if you, anything passed two interviews in two weeks, you run the risk of losing the candidate. Two interviews, two weeks, you run the risk of losing the candidate. So that's what we might fall off.
All right, y'all, that's it. I just wanted to hang out with you all this morning to talk about interviewing. Hey, a few other housekeeping items, options that just popped into my head. Tailedessan.com. We've spruced it up a little bit. One, I have all my jobs that are available that are fully remote is fully updated on my website. So go check that out. Tailedessan.com. My job boards out there also hiring managers. If you ever wanted to look at our inventory before you engage with us in a project, because let's face it, the traditional way of recruiting is, hey, you work with us, but you don't know how we do things.
There are a body of work for who we have available. Right, I'm trying to change that. Go check out my website, tailedessan.com. I have all of my available cans, no names, no names, but there's summaries and their rates and who they are. All my websites are check that out. Texting community, 615-235-5650. Text me, I would love for you to be a part of my texting community. One text message of the day to your phone on how to elevate your career and your job search. Thanks again for hanging out with me today. And guys, it's Councillor 2.0. I'll see you on tomorrow. Peace.