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Are You Hiring for the Now - or the Future?
Written by: Vera Tsolaridou
In today's rapidly evolving business landscape, the traditional emphasis on hiring candidates with extensive experience is being reevaluated.
A study by the Society for Human Resource Management (SHRM) found that 84% of recruiters prioritise years of experience during initial applicant evaluations. While this approach has been the norm, it may not fully address the dynamic needs of modern organisations. Claudio Fernández-Aráoz, a senior adviser at Egon Zehnder, advocates for a shift in focus, stating, ‘In addition to competence, I believe we should shift our focus on potential.’ He defines potential as ‘someone’s ability to fundamentally change and grow.’ By prioritising potential, companies can identify individuals who are not only capable today but also adaptable and ready to meet the challenges of tomorrow.
Assessing Creativity and Innovation:
- Give me an example from your previous jobs where you had to think and act outside the box.
- Would you say you are more or less creative than the average person? Can you give me an example?
Evaluating Problem-Solving and Initiative:
- Tell me about a time you recognised a problem or area to improve that was outside of your job duties and solved it without being asked to. What was it, and how did you do it?
- What was the best mistake you made on the job? Why was it the best?
Determining Risk-Taking and Rule-Breaking Propensity:
- What's an example of a risk you took in a previous job? What was the outcome?
- When was the last time you broke the rules or policy to get the job done?
By integrating such questions into your interview process, you can better identify candidates who not only possess the necessary skills but also embody the innovative and adaptable mindset that can drive your company forward.
Costco Wholesale: Investing in Employee Development
Costco has a strong culture of promoting from within, filling management positions by advancing current employees rather than hiring externally. The company offers a variety of training and development initiatives designed to prepare employees for leadership roles and enhance their professional skills. One notable program is the Supervisor in Training program, which provides employees with the necessary tools and knowledge to assume supervisory positions. This approach motivates employees to perform well, knowing that hard work can lead to career advancement. By investing in their development, Costco recognises and nurtures the potential of its workforce, allowing individuals to grow into roles of greater responsibility.
Southwest Airlines: Prioritising Cultural Fit
Southwest Airlines prioritises hiring individuals who embody the 'Southwest Spirit'—characterised by warmth, a sense of humor, and a passion for customer service—over traditional experience. This approach suggests that cultural alignment and attitude can be more indicative of a candidate's potential than their prior experience. As Greg Muccio, former director of talent acquisition, told Business Insider, ‘The company may still consider a candidate even if they don't meet all the preferred requirements, but the company doesn't waver on hiring those who meet the values the company stands for, like how employees treat their fellow coworkers or committing to keeping costs low.’
By focusing on individuals with high potential and investing in their development, both Costco and Southwest Airlines have built workforces that are committed, skilled, and aligned with their respective company values, contributing to their overall success.
Identifying High-Potential Candidates
So, how do you spot potential in a candidate? Four key pillars can help you in recognising such individuals.Motivation
High-potential candidates exhibit a strong drive to succeed, balanced with humility. They are ambitious yet open to learning and growth, focusing on contributing to the team and company rather than seeking personal accolades. Their intrinsic motivation often leads them to take initiative and pursue excellence in their roles.
Curiosity
These individuals demonstrate a genuine interest in learning and exploring new challenges. Their curiosity keeps them engaged, adaptable, and eager to contribute fresh ideas. They proactively seek opportunities to expand their knowledge and skills, ensuring they remain valuable assets as the company evolves.Insight
High-potential employees possess the ability to see beyond immediate tasks and recognise broader trends. They can provide strategic insights and bring new perspectives to the table, often identifying opportunities for improvement or innovation that others might overlook. This foresight enables them to navigate complex situations effectively.Determination
Persistence is a hallmark of high-potential candidates. They are resilient in the face of setbacks, learn from mistakes, and consistently strive to meet their goals. Their determination ensures they remain focused and driven, even when encountering obstacles, making them reliable contributors to long-term projects.How to Shift Your Hiring Approach
Making the shift to hiring for potential isn’t as hard as it sounds. Here’s how you can do it:Redefine Job Descriptions
Rather than focusing on ‘years of experience,’ highlight qualities that matter today: adaptability, empathy, and resilience. These traits ensure your team remains flexible, innovative, and able to meet customer needs in a fast-paced world.Use Scenario-Based Interviews
Move beyond traditional questions about past roles. Present real-world challenges. How does the candidate approach problems? How do they handle pressure? Scenario-based interviews reveal a candidate’s problem-solving abilities, creativity, and adaptability to change.Look for Growth Mindset Indicators
Seek candidates who have a hunger for learning. Ask them about how they respond to feedback, handle setbacks, and work on self-improvement. People with a growth mindset are actively seeking opportunities to grow—and they’ll bring that drive to your company.Invest in Onboarding and Continuous Development
Hiring for potential is just the first step. To ensure success, invest in robust onboarding and continuous development. Training, mentorship, and ongoing skills development help new hires reach their full potential and contribute meaningfully to your team’s success.
Sample Interview Questions at Zappos
Drawing inspiration from Tony Hsieh's ‘Delivering Happiness,’ you can enhance your hiring process by incorporating interview questions that assess candidates' creativity, problem-solving abilities, and willingness to take risks.Assessing Creativity and Innovation:
- Give me an example from your previous jobs where you had to think and act outside the box.
- Would you say you are more or less creative than the average person? Can you give me an example?
Evaluating Problem-Solving and Initiative:
- Tell me about a time you recognised a problem or area to improve that was outside of your job duties and solved it without being asked to. What was it, and how did you do it?
- What was the best mistake you made on the job? Why was it the best?
Determining Risk-Taking and Rule-Breaking Propensity:
- What's an example of a risk you took in a previous job? What was the outcome?
- When was the last time you broke the rules or policy to get the job done?
By integrating such questions into your interview process, you can better identify candidates who not only possess the necessary skills but also embody the innovative and adaptable mindset that can drive your company forward.
The Cases of Costco and Southwest Airlines
Costco and Southwest Airlines exemplify the practice of hiring for potential by focusing on internal promotion and cultural alignment, respectively.Costco Wholesale: Investing in Employee Development
Costco has a strong culture of promoting from within, filling management positions by advancing current employees rather than hiring externally. The company offers a variety of training and development initiatives designed to prepare employees for leadership roles and enhance their professional skills. One notable program is the Supervisor in Training program, which provides employees with the necessary tools and knowledge to assume supervisory positions. This approach motivates employees to perform well, knowing that hard work can lead to career advancement. By investing in their development, Costco recognises and nurtures the potential of its workforce, allowing individuals to grow into roles of greater responsibility.
Southwest Airlines: Prioritising Cultural Fit
Southwest Airlines prioritises hiring individuals who embody the 'Southwest Spirit'—characterised by warmth, a sense of humor, and a passion for customer service—over traditional experience. This approach suggests that cultural alignment and attitude can be more indicative of a candidate's potential than their prior experience. As Greg Muccio, former director of talent acquisition, told Business Insider, ‘The company may still consider a candidate even if they don't meet all the preferred requirements, but the company doesn't waver on hiring those who meet the values the company stands for, like how employees treat their fellow coworkers or committing to keeping costs low.’
By focusing on individuals with high potential and investing in their development, both Costco and Southwest Airlines have built workforces that are committed, skilled, and aligned with their respective company values, contributing to their overall success.
The Takeaway: Don’t Just Fill Positions - Build Your Future Team
Hiring for potential isn’t just a strategy - it’s a competitive advantage. By focusing on candidates who bring energy, curiosity, and a drive to evolve, you’re laying the foundation for long-term success.Companies that invest in potential today are positioning themselves to be the industry leaders of tomorrow. This shift in hiring mindset involves looking beyond experience to find candidates who are adaptable, eager to learn, and aligned with your values. The best hires aren’t necessarily those with the longest experience - they’re the ones with the passion and potential to help your company grow and innovate.
So, the next time you review a resume, ask yourself: Are you hiring for today’s needs, or are you investing in tomorrow’s success?
Credits:
Credits:
- Harvard Business Review
- Business Insider
- Society for Human Resource Management (SHRM)
- Delivering Happiness by Tony Hsieh