You’ve heard the old adage: “A bird in the hand is worth two in the bush.” The idea is that a known quantity is just as good as something else which may (or may not) be better. The phrase is also the origin of what’s called the “bird in the hand fallacy” in investing. This fallacy weighs dividends received now as being greater than capital gains sometime in the future, which can hinder the growth of an investment portfolio.
It’s not as enticing or advantageous as you might think.
The same is true when the time comes to “invest” in an applicant to fill a position. Employers may be tempted to eschew searching for job candidates from somewhere else in favor of a person that is right on their doorstep.
Why Internal Hiring Isn’t Always Wise
This tenet is displayed when companies place too much emphasis on internal hiring. To be sure, this practice has some advantages. Candidates are easier to assess because more information is available, company morale may improve because of the possibility of promotions, and onboarding costs and training hours are less for people who are already part of the company.
However, companies often fail to see the drawbacks of this approach. First and foremost, promoting internally is difficult to do during periods of rapid growth at a company. Generally, promoting an employee into a new position requires additional training and a learning curve which may not be necessary from an outside candidate who already has the requisite skills. Also, current employees may already be trapped in the mindset of “it’s always been done this way” and less likely to bring in new ideas. Finally, these types of hires are often based on personal relationships within the company rather than objective assessment of ability.
Looks like this newly-hired employee is in over his head.
Why Combing the Local Market Isn’t Effective
Other companies prefer the traditional method of searching for job candidates in their current market. After all, local candidates already know the area and can likely commute to the office easily on day one. They likely share the same views on issues and viewpoints of their peers who also live in the area. And employers appreciate the knowledge that the workers can be reached more easily at a moment’s notice.
However, these benefits tend to be outweighed by the significant limitations in the size of the talent pool. For instance, the educational institutions in the area may not be teaching the proper skills that are needed at a specific company. Because the candidate pool is relatively small, applicants are often hired because of “who they know” rather than “what they know,” which may lead to long-term problems. Finally, this situation usually results in numerous companies seeking out a small number of qualified applicants – which can drive salary costs higher.
Why Extending Your Focus Globally Is Smart
Here’s a fresh idea: why not expand your list of job applicants so that it spans the globe?
He may not be local, but he’s the answer to your job search prayers.
Obviously, this will exponentially increase the number of potential candidates that are actually qualified for the open position at your company. Given today’s technology, this remote worker can still remain in constant contact with your company just as much as employees who are based in-house. They’re less likely to be impacted by adversity of a local nature, such as weather delays, office politics, or widespread illness (i.e., flu season). Finally, remote workers are still as permanent as any other full-time worker – although the salary costs are often much less.
If you’re finally deciding to widen your job search to the worldwide talent pool, you’ll need an experienced remote recruiting company to partner with. DistantJob has access to countless markets and skilled professionals, with global IT Speicalists as recruiters, who know how to properly vet, assess, test and evaluate the core skills of applicants to ensure that they are an ideal fit for your company’s needs and culture. For more information on how DistantJob can help you find the right job candidate for your company, visit DistantJob.com today.
