Hiring in a Dysfunctional Job Market

About the Role

This is a guide for employers on how to approach hiring in a dysfunctional labor market, based on two decades of experience deploying mathematical models in securities markets. It argues that while the labor market is inefficient, this inefficiency can be a reward for those willing to dig deeper than traditional résumé screening.

Core Philosophy

• Treat people as humans, not resources; they have feelings and need to know where they stand.
• Don't require exceptional sales skills or a great-looking résumé; great presenters might not be the best workers in a role focused on doing rather than presenting.
• Don't judge people too early; first impressions are often wrong and can cause you to miss hidden talent.
• Expect to be misunderstood; some candidates may react negatively, but don't get upset or hire them.

Practical Hiring Approach

• Advertise as broadly as possible with a very general description, hoping for a flood of résumés—which are immediately ignored.
• Automatically respond to every applicant with an extensive, honest description of the group, firm, industry, needs, career prospects, location, commute, work hours, and risks, to help candidates eliminate themselves.
• Ask those still interested to write a follow-on letter making their case.
• Read résumés as time permits, sending encouraging notes to exceptional candidates who might not take the next step.
• Hold an open house with beer and pizza for a dozen or more candidates, allowing them to interact and swap leads, which provides insight into how they work with others.

Tips for Evaluation

• Observe candidates learning something; value their ability to learn over prior knowledge.
• Schedule technical interviews weeks in advance, encouraging candidates to learn missing skills in the meantime and providing study materials or formal classes if needed.
• For a finalist group, ask each candidate in a class setting, “If you were me and could only hire one person from this class, and it couldn’t be you, who would it be?” to surface peer-identified top talent.
• Invite top candidates for a full day to follow team members and experience the environment before holding a traditional interview based on shared experience.

Candidate Experience and Follow-Up

• Help candidates reject you early to avoid wasted effort.
• Try to help those you don't hire by referring them to other parts of your firm or your professional network, as paths may cross again.
• Keep the ball in the candidate’s court so they feel more in control and less helpless.