A quick overview of the economy, labor markets, and key practices to avoid within 2019 economic space. They key to understand the market dynamics is to incorporate the macro view of the economy into your decision making.

1. 7 Hiring Practices Not To Do
in 2019 Labor Market
March 27, 2019

2. Outline
• Introduction to Banister International
• Key to Our Analysis
• Macro labor conditions
• 7 Ways to Lose a Candidate

3. Banister International
We build Great Companies
Ideal Customers: Companies seeking long term relationship around
transformation with Revenue >$20M with PE, midcap companies
Executive Advisory Services, including Search and Recruitment, Career
Management and Corporate Leadership Transformation

4. Keys To Our Analysis

5. Keys To Our Analysis
Everyone knows nowadays that people “have
complexes.” What is not so well known, though
far more important theoretically, is that
complexes can have us.
Collected Works of C.G. Jung, Volume 8: Structure & Dynamics of
the Psyche (par. 200)

6. Keys To Our Analysis
It was not you who ate the idea, but the
idea that ate you
Dostoyevsky, Бѣсы (Demons)

7. Keys To Our Analysis
The ideas of economists and political philosophers, both when they
are right and when they are wrong, are more powerful than is
commonly understood.
Indeed the world is ruled by little less.
Practical men, who believe themselves to be quite exempt from any
intellectual influence, are usually the slaves of some defunct
economist
John Maynard Keynes, The General Theory of Employment, Interest and Money, ch.
24, p. 383 (1935)

8. My “Defunct Economist”
• Rutgers University (Dr.Russell Harrison)
• NJEDA, NJLWD, Governors Corzine and Christie
• New Institutional Economics
• Virginia School of Economics
• The World Bank (Keefer, Kaufman, Knack) and the Ease of Doing
Business
• GSK, Merck, Barclays
• Milton Friedman, Fredrick von Hayek
• Robert Barro (Harvard University Economics)

9. Drivers of Economic
Wealth Creation
• Short Term
• Productivity
• Number of People
• Midterm
• r-star
• g-star
• Long Term
• Natural Endowment factors do not have much influence
• Government Policy
• Rule of Law (stand-in for “trust”)

10. Current State

11. Unemployment

12. Job Openings

13. Macro View

14. Millennials Are in Charge…

15. …Up To a Point

16. Where Is the Wealth?

17. Wage Growth

18. Productivity

19. General Trends
United States
• Number of companies growing
headcount in US: 117,910 (2.5%)
• >$10M in revenue: 2,166 (39.6%)
• 1,000+ employees: 10,454 (27.6%)
• CEO, CFO, COO in US: 1,533,517
• Job Change in 90 days:34,335
(2.2%)
Greater Philadelphia Area
• Number of companies growing
headcount in PHL: 2,550 (2.6%)
• >$10M in revenue: 55 (39.0%)
• 1,000+ employees: 245 (33.8%)
• CEO, CFO, COO in PHL: 36,129
• Job Change in 90 days: 723 (2.0%)
Source: LinkedIn, Banister International

20. Philadelphia Labor
Movements
Employment What Industries Are Growing?

21. How to Lose a
Candidate in 7 Ways
1. Not Positioning Your Brand
2. Role is Ambiguously Related to Strategy
3. No Clarity on Development Plans
4. Chasing Salary
5. Long Time-to-Hire
6. Chasing the “Right” Talent
7. Not Asking Coordinated Tough Questions

22. Not Positioning Your Brand
• Basic definition of brand: “Story your customers tell about your
company“
• Mission is your Why
• Values is your Who
• Adopting a mindset in which you’re always recruiting
• Treating Hiring as a HR function vs treating as Expression of Your
Values
• Speaking the same language as your website, social media, your web

23. Role is Ambiguously
Related to Strategy
• Not properly positioning the
story of the role within the
organization
• Not fully and clearly articulating
how the role will help strategy
• Not discussing strategy vision
and other broad elements

24. No Clarity on
Development Plans
Understanding the business and the root
problems that have to be solved
Understand that a candidate’s approach
to problem solving was more important
than previous experience

25. Chasing Salary:
Drives of Decision Making
• Coming up with
compensation that suits
the performance you need
and the future you aspire
to
• Aiming for salary
differentiation is like a
price war:
• Unless you are Amazon or
Walmart, it is hard to win
• Average time an employee
stays after a counter offer:
• 1 year
Source: Brookings Institute

26. Chasing the “Right” Talent
• Concentering on very specific, time-based, defunct-economist view
• Making great hires is about recognizing great matches—and often
they’re not what you’d expect.
• Organizations can adapt to many people’s styles
• Demonstrate progress towards a vision
• Be it a contracted prototype or significant business development/traction.

27. Time-to-Hire
• Over 30 days, you will start
losing candidates
• Government takes on average 53
days to hire someone
• Proper resources, procedures,
standards and commitments
are made
• Can boost productivity by several
percentage points
• Increase satisfaction of all parties

28. Not Asking Coordinated
Questions
• Engaging managers in every aspect of hiring
• Not finding a web of relationships
• How and why they took a role?
• How and why they completed their projects?
• How and why are they searching?
• What do they enjoy most about the role? Least?
• What are you leadership philosophy?