Hiring for “add”, not “fit”
Another important consideration is the partner asset managers choose for the recruitment process. Collaboration with external recruitment agencies and headhunters may be necessary, especially when it comes to filling senior positions.
When working with such firms, asset managers should apply the same rigour as they do when engaging with the boards of the companies they invest in. Just as they carry out due diligence on investee firms to ensure they are meeting certain financial or environmental, social and governance criteria, asset managers should choose recruitment partners that share the same values, as reflected in their D&I and hiring policies. Headhunters will often refer to rolodexes of candidates with whom they have existing relationships, for example, and should be encouraged to look beyond the usual faces in assembling a diverse longlist.
Once candidates have been identified, it can be helpful for managers to reach out and engage with them about the role before interviews begin. In a recent hiring process, we found many highly qualified minorities, including female candidates, dropped out early on, due to a sense of loyalty to their current employer and concerns about the difficulties of changing jobs during the pandemic, for both personal and professional reasons. (This is not surprising, given working mothers have taken on more additional childcare responsibilities than fathers during COVID-related lockdowns.) Taking the time to speak with potential hires to explain the opportunity is one way to ensure they feel comfortable in moving forward.
When it comes to the formal interview stage, the panel should be as diverse as possible. Consciously or not, hiring panels often look for a “cultural fit”, which prioritises conformity over difference, and a diverse panel helps to mitigate this bias. Rather than “fit”, we should really be looking for “cultural add” – a skill, quality, or perspective the team is currently missing.
A strength-based interview process is also helpful in this regard. Unlike past experience-based interviews, strength-based interviews encourage candidates to speak about their skills, interests and motivations. When done well, this opens up a discussion that gives both parties a better sense of the talents, values and perspectives the candidate could bring to the company. Further adjustments to the format can make interviews even more inclusive: providing questions in advance can be beneficial for neurodiverse candidates, for example.
