In an interesting addendum to the article below, I was speaking with a long-time client last night who told me that all the job postings up in Silicon Valley are not as accurate as one might think in the economic boomlet going on here.
Apparently more hires are being done by headhunters outside the company and internal hires inside. The postings are window dressing to satisfy government requirements and to distract competitors. I can't tell you companies names but he got it verified by insiders at former places where he has worked. I double checked and agree.
Why is all the internal hiring happening? Well it's faster, cheaper and, at least in Silicon Valley, the person has been "test driven". Typically anywhere from 20to 60% new hires are contractors. When an regular hire opening comes up, then the company sources internally from its contractor and consultant pool. That's my best guess on this. The other part of using headhunters for outside, well they control the deal flow so a fire hose of applicants isn't engulfing HR. With so much good talent out there looking, they can cherry pick top candidates with much less hassle than the company's staff can.
Here is an excerpt from Peter Capelli's article. He is using his gut, anecdotal, hunching as well!
HR leaders tend to try to push back against the fetish in their corporations to hire from outside instead of promoting from within. A new study offers some evidence to bolster their case.
My editors always say give away the story early on, so the answer is, "no." But it requires a little more background to make the story interesting.
Probably the most important development in corporate life over the last generation or so has been the decline of lifetime careers and the rise of outside hiring. The situation in many businesses now is that, when there is a vacancy, they automatically think about filling vacancies by looking outside. Internal promotions are something of a rarity.
I don't have any hard evidence for this, but my sense from anecdotes is that the outside hiring trend has been driven by CEOs and other top executives who (a) if they were hired from the outside think that is the way to go for other roles as well or (b) seem to have a "grass is greener" view of external candidates, especially those who come from an admired employer.
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