An Abundance of Talent: Strategies To Streamline Hiring In A Talent-Rich Market

The layoff statistics across tech are staggering. Data from Layoff.fyi reports that 1190 tech companies laid off 262,965 employees in 2023 and 45,356 employees were already impacted in 2024. This has created an abundance of technical talent in the market.

While this talent influx is exciting for startups that are actively recruiting, abundance of options can lead to a dangerous trap: interviewing an excessive number of candidates. So, how do startups stay focused, remove bias and effectively hire top talent without drowning in large pools of applications? We'll share some tips!

The Problem With Interviewing Too Many Candidates 

While it might seem like having a lot of choices is a good thing, it may lead to drowning in interviews and damaging your employer brand. Why is interviewing too many candidates bad? Here are some pitfalls to consider:

1. Time is Money: Every unproductive interview consumes valuable time from your hiring team, taking away from their core responsibilities. Per SHRM, the average cost-per-hire in the US rose to $4,700 in 2023. Imagine each new hire having 5 unproductive interviews with a panel of 3 interviewers. This wasted time and investment will directly impact deliverables for your small team.

2. Candidate Experience Matters: A recent study by Glassdoor found that 69% of candidates consider the interview process to be an important indicator of a company's culture. Putting candidates through an endless interview marathon can be overwhelming and create a negative impression of your company, damaging your employer brand. 

3. Decision Fatigue is Real: Evaluating too many candidates can lead to confusion for the hiring committee and leadership team.

4. Candidates Can Disengage: Large candidate pool means long wait times for interview results. According to Talent Rover, the average time to first contact with candidates is a staggering 14 days. This lack of communication can create disengagement and disinterest in candidates.

The Solution: A Strong Interview Plan And Process

To avoid interviewing too many candidates and all the negative impacts it has that we've mentioned above, below are a few guidelines to building an efficient interview process:

• Define Your Ideal Candidate: Other than clearly outlining the specific skills, experience, and cultural fit required, think of what is missing on the team. This can be a skills gap or diversity. This allows you to write a targeted job description and screen out candidates who don't align early on, significantly reducing the pool size. 

• Prioritize Effective Screening: Where ever possible, make use of skills assessments or work samples to quickly identify truly qualified candidates who deserve a deeper dive.

• Perform Focused, Quality Interviews: Create interview guides and share with the interviewers well in advance. Conduct 1-2 in-depth interviews with well-structured questions that assess the candidate's specific suitability for the role and your team dynamics.

• Seek Feedback and Iterate: Regularly evaluate your interview process and gather feedback from the hiring team and candidates alike. Be open to refining your approach based on real-world experiences.Iterate and refine the search regularly

• Set Limits and Communicate: Be upfront about the expected number of interviews, respecting candidates' time and effort. Clearly communicate the process steps and timelines to build trust and manage expectations. Be upfront about equity, flexible work arrangements, and the exciting challenges that await.

The Finish Line - Successfully Closing Top Talent

Now that you've built out an efficient interview process, how do you close the candidate? It can be hard for startups to compete to win talent when they may be less resourced than large companies. Here are a few creative ways I've seen small companies make their offers stand out.

• Hone your unique value proposition: highlight the impact, rapid growth, and exciting challenges in your job descriptions and interviews. Attract those who love adventure!

• Be available for follow up questions: accepting an offer from a startup can be a tough decision for many. Make yourself available and be willing to provide any data or information to help with the decision making process.

• Offer competitive compensation and benefits: Recognize the value of top talent and create an attractive total compensation package.  Base Salary vs Equity, flexible work arrangements, and meaningful work can trump big-company salary and benefits.
  

A go-to-market strategy for talent acquisition is as important as creating a go-to-market strategy for a product or service. A well defined strategy can turn the abundance of talent into a positive force for your company, attracting the best and brightest while optimizing your hiring process for everyone involved and driving your vision and mission forward.

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Aruna Mandulapalli is a seasoned recruiter who worked across industries and has recruited for several reputable companies in the US. She founded her own recruiting company HireSimplified with a mission to bring her expertise to scaling startups. Her passion lies not only in headhunting but in coaching founders about best practices and guiding them to be intentional in their hiring.