What's a Hiring Bubble? A hiring bubble occurs when a factor in the recruiting process is valued beyond the return it can possibly yield. Like a tech or stock market bubble, when you see a hiring bubble occurring, you know the results aren't going to be as positve as promised.
Case in point: I tweeted out last week a nifty automated tool I found called the Job Change Notifier. Just link your LinkedIn account, provide your email addresss, and the tool gives you an email every time that someone shows a new company in LinkedIn, which obviously means they have a new job.
I signed up a week ago. Got my first notification today, here it is with the name withheld:
From: Job Change Notifier [mailto:email@example.com]
Sent: Saturday, July 16, 2011 4:57 PM
To: Kris Dunn
Subject: 1 of your connections has changed jobs
<name withheld> has an updated position.
National Account Manager at eSuccessFactors
Worldwide Sales Rep at <company name withheld>
This reminded me of a type of common hiring bubble, namely the kind that overvalues experience with a specific company in a hiring process. Last year, I was running a search for AEs in the Bay Area, and, of course, I heard, "we'd really like to steal a rep from Salesforce".
Of course you would. It's SALESFORCE. If they're there, they have to be good. SuccessFactors is another company that SaaS companies have targeted over the last couple of years for AE's, especially those in the Human Capital/HR Services space.
What makes REALLY wanting a rep from a certain company a hiring bubble? You're valuing a brand over what the rep can do. The mere fact that you're really hot for someone from Salesforce/SuccessFactors means you're going to overestimate what the average rep from either one of those companies can do for you. There are some great people at both companies. There are some weak ones. Don't be like Biz Markie and sniff The Vapors....
My client in that search forwarded me a profile of a Salesforce candidate from LinkedIn. "Have you talked to this guy?". I looked at the candidate, which remember, was for a hunting sales pro. 43 contacts in LinkedIn.
43 Contacts. For a hunting sales pro. I could hear "I need some leads if I'm going to close business" in the background. Your cost of customer acquisition just tripled by hiring that guy.
aka: Hiring Bubble.
Buy Low, Sell High my friends. Don't get suckered by a logo.