Got Talent?

In the competitive world of professional services, the debate between hiring for skills and hiring for talent is ongoing and nuanced. Each approach has its merits, and choosing the right strategy can significantly impact a firm’s success. I find myself rooting for talent and pushing my colleagues to “do the hard thing” and lean in that direction.

Recruiting for specific skills is the easy way. Who wouldn’t want a candidate who can serve a client on their first day? Skills are often measurable, and there is seemingly little risk in the hiring decision. This is equivalent to playing in the free agent market in professional sports. You may know what you are getting, but you are going to pay a pretty high price for that level of ‘certainty.’

On the other hand, hiring for raw talent can be perceived as riskier and requires a larger investment in the development of marketable skills to get a new hire ready to serve clients. The long-term value to the firm, however, can be tremendous. Think of this more as your farm system producing a future all-star. Hiring for talent is less about what candidates can do today, and more about what they could achieve with the right training, guidance, and opportunities.

Give me a team of smart, talented farm kids who worked their way through second-tier schools, and I will build a world-class services firm. Certainly, we need skills, and our recruiting strategy should reflect a balance between short and long-term value propositions, but it is often too tempting to focus on the immediate instead of doing the hard work of building a dynamic and capable team. Take a chance on talent and let’s see what kind of magic we can make.