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In an increasingly volatile economy with a changing HR landscape, there is a trend toward seeking veteran professionals who have ‘proven experience’ and less of an appetite to invest in and grow employees with potential. This creates a number of challenges both for the business and for recruitment.

For recruitment, the challenge is to find someone who has achieved similar results in a ‘comparable industry’ who is willing to try to replicate the same success in a similar environment – limiting their opportunities for career growth and personal development. Restricting a talent pool in this manner often results in an extended time to hire and may require additional remuneration to recruit the preferred candidate, as this may be the only motivating factor - particularly if they are happy in their current role.

For the business, although hiring on potential does pose a risk, with the right leadership and organisational structure, the risk is minimal in comparison to the reward. Developing an employee within the company creates a strong psychological contract and increases the likelihood that the employee will continue to pursue opportunities within the organisation rather than seeking opportunities outside of the organisation.

When hiring on potential the most important factor to consider is cultural fit, although ‘hard skills’ can generally be taught, it is essential that the employee has the ‘soft skills’ to flourish in the environment and the intellectual capacity and motivation to fill the gaps in their skillset. Employees who have a strong alignment with their company’s culture have been found to be more committed and likely to remain with their company in addition to greater job satisfaction and superior performance.

The benefits of hiring for potential are clear. Increased engagement is more important now than ever, and in a market where the talent pool is constantly getting tighter, targeting potential is a great way to find the needle in the haystack that you’ve been looking for.