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From the Desk of Brad Smart: Many CEOs Don’t Trust Search Firms - Here’s a Solution

AI Resume resume keywords Applicant Tracking System Oct 11, 2024 12:00:00 AM Topgrading Team %

The (Surface) Problem We’ve known executive search consultants who are very competent, honest, and professional, and highly respected by CEOs. But … for the most recent four (out of seven) books published on hiring, I’ve asked 200 CEOs: “When you use an executive search firm, what percentage of the time do you feel you’ve gotten your money’s worth?” The averages: 20%, 19%, 21%, and 20%.  When asked what search firms do well, clients typically mention creating thorough job descriptions and conducting detailed chronological interviews, including questions about strengths and accomplishments in each role. However, when asked about their biggest complaint, the vast majority of clients say, “whitewash reports.” The industry claims to provide intelligent candidate sourcing, data-driven hiring recommendations, thorough skills-gap analysis, and highly personalized talent management. These help efficiency, but the result is MOSTLY quicker, cheaper bad hires. Despite these “advantages,” CEOs collectively shake their heads and say, “… but they send me whitewash reports.” Can AI Help? Some, But Not a Lot Artificial Intelligence (AI) is being promoted as though ChatGPT offers genius solutions. The above-listed advantages of executive search are now touted as being enhanced by AI, with additional claims including:
  • Enhanced Matching Accuracy
  • Bias Reduction
  • Predictive Analytics
  • Efficiency in Screening
  • Real-Time Market Insights
  • Personalized Candidate Engagement
Our clients acknowledge that AI does help improve efficiency of hiring but, again, it fails to improve Quality of Hire. The Wall Street Journal (October 5-6 weekend issue) published an article discussing how AI-powered products like NotebookLM can write impressive reports, with bots that sound remarkably human. Great! But what can a human executive search consultant offer that AI can’t? They argue (and we agree) that humans are better at determining “fit” across different teams and cultures. Search firms also are good at identifying candidates who will report to the CEO because they understand the CEO’s unique personality and the company’s strategy.  So what’s the problem? The (Real) Problem: Candidate Dishonesty To be blunt, too many search executives are thorough when interviewing candidates to uncover their strengths but are lackadaisical in probing for weaknesses. Hence: “whitewash reports.” In Foolproof Hiring, we present research showing that 50%+ of resumes contain lies, and AI cannot effectively identify hype or dishonesty. Despite the promise of AI improving the hiring process (efficiency), clients report that AI is doing more harm than good. Candidates can use ChatGPT to produce dozens of “perfect” resumes in an hour, filled with hype and falsehoods, and companies - overwhelmed by these AI-generated resumes - use bots to screen them, with NO WAY to discern which ones are truthful. The Solution: Only Interview Honest Candidate Some effective executive search firms, embracing Topgrading, inform potential candidates that a final step in the hiring process, when a job offer is presented, involves arranging calls with the executives they’ve reported to in the past. This acts as the “Truth Motivator.” Candidates who agree tend to be honest and are often high performers. We developed the PreScreen Snapshot, an applicant screening tool that incorporates this “Truth Motivator” in its instructions. A refreshing result is that every interview is “real,” as candidates understand you will be talking with their managers. No more interviews where the interviewer feels “gamed.” Eliminating the 50% “fakers” saves time, money, and stress, and most importantly, improves the percentage of A Players you hire. Topgrading can help you hire honest, high performers. Call: 847-244-5544 / Email: info@topgrading.com / Contact us
Dr. Brad Smart is Founder and CEO of Topgrading, Inc. Topgrading is dedicated to helping companies of all sizes maximize the hiring of high performers. Topgrading assesses candidates for senior positions (where the costs of mis-hires are high) and trains all managers to create teams of almost all high performers. Brad has seven published books on hiring; the most recent three (the first, second, and third editions of Topgrading) were all best sellers. Brad, and President Chris Mursau’s new book, Foolproof Hiring (Forbes Books), is available for purchase by clicking here. After just six weeks,  Foolproof Hiring, achieved Amazon Best Seller status. Brad can be reached at www.Topgrading.com To learn more, download our free eGuide or attend our next Topgrading Webinar. Our webinar explains the most effective recruitment methods, how to immediately identify the most honest, high performing applicants, and how to (finally!) verify what candidates tell you (since reference calls are usually worthless).

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