The Speed of Business

As recruiters, we get the benefit of seeing the road ahead of us.  We see trends develop, we see deficits in the talent pool, and we anticipate the effects of coming trends.  About a year ago, we began cautioning our clients about a rise in compensation and competition.  We saw that many good bankers were retiring as their portfolios recovered, and that not enough new bankers were entering the industry.  I could write an entirely separate post on that, but I will leave this thought with you regarding this shortage: it isn’t just the lack of management trainee programs.  It is that Google, Amazon, and other tech companies  offer more  in terms of pay, flexibility, and a more relaxed environment.  There is more competition for young and eager talent graduating from universities.  But I digress.   The point I am making is that of elementary supply and demand: if there is a shortage of supply and high demand, prices rise.The normal hiring cycle probably averages between four and six weeks.  Especially with bankers.  They are, by large part, a cautious  group of people.   The problem for a hiring manager is that hiring has changed dramatically with the competitiveness of the market place.  A hiring manager that is a cautious and slow mover may miss out on talent if other banks are trying to lure that same lender in more aggressively.  No longer is a hiring manager attempting to land a person with simply a better offer, but rather trying to overcome aggressive counter offers, and multiple offers by neighboring banks.Last week we presented one commercial lender to a bank in California and the Chief Credit Officer immediately scheduled an interview.  They met the next day.  The bank made an offer the following day.  The lender started today.  That candidate was interviewing with a handful of other banks, but he shared with me that the other banks were dragging their feet.  Imagine how attractive it was to our lender that our client was so excited by him that they moved quickly and with decisiveness.  I imagine he was thinking “If they move this fast in credit approval, I know I can accomplish much.”  It should be noted that a competitor in the same market, traded voice mails with us regarding our lender over the same period of time.  We finally connected the day before our candidate was about to start at his new company and was no longer available to interview.My client knew he wanted this candidate and did not waste time with trying to maintain the upper hand for salary bargaining power.  In fact, he got a really good deal on this candidate, because he didn’t leave the lender out in the cold, wondering what was taking so long. He didn’t give the candidate time to start second guessing the bank and raising his own asking price.   A few months ago I saw a lender agree to take an offer at 15% less than she was making immediately after her first interview.  But by the time the offer came out, three weeks later, her price had risen.  The excitement had dissipated and she had considered the risk she was taking.  What was an acceptable offer two weeks ago was then seen as a low ball offer.  She flat out refused any offer, even after it was adjusted to be competitive.  Once there is a gross misstep, whether in timing, terms, or pay, it is difficult to recover.  Especially when there are three other possible employers standing right behind any bank.Our tips for hiring in a candidate short market are as short and direct:1. Move quickly.2. Offer a fair pay.