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When Leadership Talent Is Scarce: Key HR Strategies in a Tight Market

When Leadership Talent Is Scarce: Key HR Strategies in a Tight Market

By Eric Walczykowski, CEO, Bespoke Partners

Talent is a market like any other, with buyers and sellers.

Buyers are companies; sellers are prospective employees.

The law of supply and demand applies: when willing sellers are scarce, the market tightens, competition among buyers increases, and price (compensation) rises. That determines how easily you can find the talent you need at a compensation level that fits your budget.

So what do you do when the talent market gets tight?

A case study is playing out right now in private equity (PE). It offers lessons for HR leaders on finding the right executives when competition is fierce.

PE firms buy companies, improve them over a few years, and sell for a profit if all goes well.

The sector is huge. In the US, PE-backed companies directly employ about 13.3 million workers and support roughly 31–33 million jobs when you include supplier and consumer-spending effects. Nearly one in five US workers gets a paycheck linked to PE’s investments in our economy.

Leadership talent is essential to a profitable exit, so PE firms focus heavily on finding leaders who can execute growth and value-creation plans. Increasing scarcity of qualified leadership makes this much harder.

A bottleneck has developed because exits have been extremely low for an extended period. When an exit happens, senior executives typically become available for new assignments.

But US PE exits fell 25% in Q2 this year, according to PitchBook, amid economic uncertainty and tariff concerns. PitchBook analysts estimate PE firms hold an all-time-high inventory of more than 12,000 unsold US portfolio companies—a logjam caused by poor exit opportunities.

The exit problem means leadership churn isn’t happening. The most experienced executives are staying put, pursuing elusive exits, and are not available to lead the many companies now crowding PE portfolios.

The PE Leadership Bottleneck

As supply tightens, HR teams recruiting for PE face scarcity of qualified leadership.

It’s harder to find candidates with PE portfolio experience. Searches are longer and harder to close. When leaders are willing to consider new roles, compensation demands are much higher. Our latest data shows C-suite salary and bonus for software and SaaS executives is now consistently in the mid-$500,000 range—up about 25% for some roles over just a couple of years. That’s exactly what supply-and-demand dynamics predict: the “price” for a scarce resource rises.

Competition is fierce. Experienced leaders often field multiple offers simultaneously, especially seasoned CEOs and go-to-market executives in sales and marketing.

Fortunately, the same market rules suggest ways to mitigate tightness. Many of our clients use six recruiting strategies to ease constraints and improve their odds of hiring the leaders they need.

These apply well beyond the PE sector, and can be used by any HR professional hiring senior executives when those executives are scarce.

Impact on Leadership Recruiting

1) Make succession continuous, not episodic

Waiting until an immediate need arises locks you into that moment’s market conditions. Like all markets, the leadership market changes frequently. The most effective HR leaders run year-round succession programs that map and track potential needs and potential availability.

2) Expand the funnel with “step-ups”—and de-risk them

Hunting for C-suite “unicorns” with the exact resume narrows the pool and elongates searches. Consider VP-level “step-ups” who are ready for the C-suite. This can double or triple the candidate pool and reduce tight-market pressure. Our data shows step-ups achieve exits in PE-backed companies as often as seasoned C-suite counterparts as long as the new C-suite executives are vetted and supported properly with onboarding and mentorship or other support. The step-ups are hungry to prove themselves and will put in outsized effort.

3) Elevate HR as a strategic function

Traditional HR handles operations like payroll, benefits, and onboarding. But the most effective HR leaders elevate the function to be a true strategic partner. Because talent is mission-critical, HR and leadership needs belong in enterprise-level planning and decision-making. In PE, firms are adding full-time talent in operational advisory roles who help portfolio companies find and maximize impact from talent.

4) Get creative on compensation

As “market price” rises, recruiting qualified executives gets expensive. But talent isn’t a commodity with a single price. Use multiple levers—equity and options, milestone payouts, incentives tied to strategic success, and even remote work flexibility—to attract top leaders, sometimes at lower cash levels.

5) Streamline decision-making

When competition is intense, slow movers lose—both because candidates field other offers and because a slow process signals bureaucracy and a less-than-nimble culture. Top companies treat recruiting as a priority. Before engaging candidates, they align internally on the scorecard, references, compensation, interview cadence, and interview focus.

6) Work with external specialists

There’s a temptation to run searches in-house. But external search firms usually deliver better outcomes. They continually network with prospective candidates, giving you wider visibility. They track careers, know which roles will appeal and how to pitch them, and have real-time compensation data to guide negotiations and benchmark offers.

Six Strategies for a Tight Talent Market

Even in tight markets, some companies still land the best executives and set themselves up for success. The six strategies above are the tools they use to beat the competition for PE executive talent. You can apply them in any sector. The overarching strategy: run an efficient process, get creative, and broaden your market visibility to counteract scarcity of qualified talent.

Winning in the Tight Market

About Eric Walczykowski

Eric is the Chief Executive Officer of Bespoke Partners, a leading executive search firm for private equity portfolio companies.

Bespoke Partners delivers a scientific approach to search by leveraging proprietary tools and methodologies that lead to high impact executive teams that stay through the investment thesis 99% of the time.

Do you wish to contribute to the next HR Spotlight article? Or is there an insight or idea you’d like to share with readers across the globe?

Write to us at connect@HRSpotlight.com, and our team will help you share your insights.

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Skill and Soul: The Cost of Neglecting Creativity and EQ

Skill and Soul: The Cost of Neglecting Creativity and EQ

In an era dominated by technical expertise, a vital paradox arises: overemphasizing skills like coding or data analysis while neglecting creativity and emotional intelligence incurs steep, hidden costs. 

Companies sidelining these “soft skills” risk creating technically proficient but culturally weak teams—ones that execute tasks well but fail to solve meaningful problems, inspire vision, or connect with customers. 

This HR Spotlight article compiles wisdom from HR professionals and business leaders, revealing the pitfalls of a tech-only mindset. 

They emphasize why nurturing creativity and emotional intelligence is essential, amplifying technical skills, driving innovation, and securing long-term organizational health.

Read on!

Steve Rosas
Chief Operations Officer & President, Omega Env

Emotional Intelligence Solves Human Problems

The biggest cost is losing the ability to solve complex problems that don’t have technical solutions. In 26 years of environmental consulting, I’ve seen brilliant engineers create perfect remediation plans that failed because they couldn’t communicate with worried communities or steer regulatory personalities.

I had a major downtown LA renovation project where our technical team identified asbestos contamination perfectly. But the project nearly collapsed because the initial approach ignored the building tenants’ concerns and the city inspector’s communication style. We had to completely shift our strategy to focus on transparent dialogue and relationship-building to get the project back on track.

The real damage happens when teams can’t adapt to unexpected human factors. Environmental projects involve property owners, regulatory agencies, and often concerned communities – all with different priorities and communication styles.

Pure technical expertise means nothing if you can’t build trust or explain complex risks in ways people actually understand.

I’ve seen companies lose million-dollar contracts not because their technical solutions were wrong, but because they couldn’t read the room or adjust their approach when stakeholders pushed back. The most successful environmental consultants combine technical precision with emotional intelligence to steer these complex human dynamics.

Cristina Deneve
Licensed Marriage & Family Therapist, Empoweruemdr

Technical Success Can Mask Emotional Wounds

The biggest cost is the erosion of authentic human connection and trust – the very foundation of meaningful relationships.

In my therapy practice with first and second-generation Americans, I see how families prioritize academic and technical achievements while neglecting emotional intelligence, creating profound disconnection across generations.

I worked with a brilliant software engineer whose immigrant parents celebrated his six-figure salary but dismissed his anxiety and relationship struggles as “weakness.” His technical success masked deep emotional wounds from never learning to process feelings or communicate authentically. When he finally sought therapy, he realized he’d built a successful career but had no idea who he truly was beneath the achievements.

This pattern shows up constantly in my practice – high-achieving clients who excel professionally but struggle with setting boundaries, expressing emotions, or maintaining intimate relationships. They’ve been trained to solve problems technically but lack the emotional intelligence to steer complex human dynamics.

The irony is that technical expertise without emotional intelligence creates leaders who can build systems but can’t inspire teams, solve problems but can’t collaborate effectively, and achieve goals but can’t sustain fulfillment.

Erinn Everhart
Licensed Marriage Family Therapist, Every Heart Dreams Counseling

Technical Skills Alone Kill Innovation

In my therapy practice, I’ve witnessed how workplaces prioritizing technical skills over emotional intelligence create a crisis of authentic connection. Teams become collections of isolated experts who can’t communicate their brilliant ideas effectively.

I recently worked with a software engineer who was technically exceptional but couldn’t collaborate with colleagues. His company kept promoting based on coding ability while ignoring his team’s mounting frustration with his communication style. The cost wasn’t just workplace tension—it was massive turnover and project delays that hurt their bottom line.

What I see most is emotional loneliness spreading through technically-driven workplaces. People spend 40+ hours weekly surrounded by colleagues but feel completely disconnected. They excel at problem-solving systems but struggle to steer basic human interactions, leading to burnout and mental health issues.

The biggest cost is losing our capacity for genuine innovation. Real breakthroughs happen when people feel safe being vulnerable with wild ideas. When we sideline emotional intelligence, we create environments where creativity dies because no one feels psychologically safe to risk being wrong.

Technical Skills Need Emotional Intelligence

After 30 years in basement waterproofing, I’ve seen companies get so caught up in technical certifications and equipment specs that they forget how to actually talk to scared homeowners. The biggest cost? Losing the ability to read people and adapt your approach.

I had a competitor who could recite every waterproofing standard but couldn’t sense when a customer was overwhelmed by technical jargon. They’d launch into membrane specifications while the homeowner just wanted to know “will my basement stay dry?” We landed that client by asking about their family’s concerns first, then explaining our lifetime guarantee in simple terms.

The real damage happens during inspections. Technical skills find the leak, but emotional intelligence determines if customers trust your solution. I’ve watched technically brilliant contractors lose deals because they couldn’t connect with anxious homeowners who’d been burned by previous “experts.”

Our lean operation succeeds because we balance both – we use specialized leak detection equipment, but we also read the room and explain solutions in ways people actually understand.

Courtney Epps
Tax Strategist & CEO, OTB Tax

Creativity And EQ Save Money

The biggest cost I’ve seen is lost revenue opportunities – and I’m talking real money here. In my 19 years running OTB Tax, I’ve watched businesses sacrifice tens of thousands in potential savings because they prioritized technical tax prep over creative problem-solving.

Perfect example: Dr. Kenneth Meisten came to me after his previous “technically skilled” accountant had him owing $3,300. My approach wasn’t just about crunching numbers – it was about understanding his business emotionally and creatively seeing opportunities others missed. We turned that $3,300 debt into an $18,000 refund by going back three years and finding strategies his previous accountant never considered.

The technical skills got his returns filed correctly, but the creative thinking and emotional intelligence to truly understand his business model saved him over $21,000. When you sideline creativity, you’re literally leaving money on the table – I see clients miss $4,000-$8,000 annually because their previous accountants couldn’t think outside the box.

Lauren Hogsett Steele
Licensed Professional Counselor, Pittsburghcit

Prioritizing Tech Skills Has A Human Cost

As a trauma therapist, I see this cost play out in the bodies of my clients daily. When workplaces prioritize technical skills over emotional intelligence, employees develop chronic stress responses that manifest as anxiety, depression, and relational difficulties years later.

I worked with a software engineer who excelled technically but burned out completely because his team had zero emotional awareness around collaboration. His nervous system was stuck in fight-or-flight from constant workplace conflicts that could have been prevented with basic emotional intelligence training.

The biggest cost isn’t just individual—it’s systemic. Through my somatic therapy work, I’ve noticed that people from highly technical environments often struggle to connect with their own emotional needs, let alone their colleagues’. This creates workplaces where innovation actually decreases because creative thinking requires psychological safety.

From an attachment perspective, humans are wired for connection first, competence second. When we flip this priority, we’re essentially working against our neurobiological design, which always backfires eventually.

Creativity And EQ Drive Brand Differentiation

When we helped launch The Independent Ice Co. whiskey bar in Portland, the technical skills were there—great location, solid business model, experienced team. But what made the difference was understanding the emotional story behind Maine’s ice harvesting history and connecting that to creating an “honest-to-goodness whiskey experience for honest-to-goodness people.”

The biggest cost of sidelining creativity is losing authentic differentiation. In Portland’s crowded Old Port district, dozens of bars have the technical basics covered. What separated Independent Ice Co. was the creative narrative that turned historical ice cards into diamond-shaped coasters and transformed potential intimidation around whiskey into welcoming expertise.

I’ve seen this pattern across our architectural clients too. Kevin Browne Architecture had solid technical skills, but their growth stagnated until we dug into the emotional intelligence piece—understanding how clients actually *feel* when working with architects. We repositioned them from technical experts to “careful listeners” and “respectful collaborators.”

Without emotional intelligence guiding the creative process, you end up with technically sound but forgettable brands that blend into the noise.

Jesse Burnett
Master Electrician & Founder, Dr Electric CSRA

Technical Skills Need Emotional Intelligence

After scaling Dr. Electric CSRA to nearly $1 million in revenue in just 12 months, I’ve seen how pure technical focus can actually hurt your bottom line. The biggest cost isn’t what you’d expect—it’s losing repeat customers who feel like just another job number.

I learned this the hard way when one of my crews perfectly installed a Generac generator but barely communicated with the homeowner during the process. Technically flawless work, but the customer felt ignored and complained about our “robot-like” service. That feedback made me realize we were training technicians, not problem-solvers.

Now I require my three crews to spend genuine time explaining what they’re doing and why. This emotional intelligence approach has directly increased our customer satisfaction scores and referrals. My 5-year warranty means nothing if customers don’t trust us enough to call us back.

The math is simple: technical skills get the job done, but creativity and EQ get you the next five jobs from that same customer’s network. In the trades, your reputation travels faster than your technical certifications.

Technical Compliance Doesn’t Build Trust

After 20 years in sports insurance, I’ve seen organizations lose tens of thousands when they prioritize technical compliance over understanding their community’s actual needs.

A youth soccer league I worked with hired a risk management consultant who created a technically perfect safety protocol but completely ignored the emotional reality of parents and coaches.

The result was a 40% drop in enrollment within one season. Parents felt alienated by the cold, procedural approach that treated their kids like liability statistics rather than young athletes. The league’s focus on technical risk mitigation backfired because they forgot that sports insurance is fundamentally about protecting relationships and experiences, not just minimizing claims.

I’ve learned that the biggest cost isn’t financial—it’s trust. When organizations become too technical, they lose the emotional intelligence to communicate why safety matters. The most successful programs I ensure blend technical expertise with genuine care for their participants’ experience.

The HR Spotlight team thanks these industry leaders for offering their expertise and experience and sharing these insights.

Do you wish to contribute to the next HR Spotlight article? Or is there an insight or idea you’d like to share with readers across the globe?

Write to us at connect@HRSpotlight.com, and our team will help you share your insights.

The Case for Unpaid Internships: Leaders Share Ethical Contexts

The Case for Unpaid Internships: Leaders Share Ethical Contexts

Unpaid internships spark debate, but in specific cases, they can be fair when prioritized as educational experiences. 

This HR Spotlight article gathers insights from business leaders and HR professionals across industries like tech, law, and manufacturing, exploring when unpaid internships are justified. 

From short-term, mentorship-driven programs in startups to observational roles in niche fields like military justice, these experts highlight scenarios where learning trumps labor. 

Emphasizing transparency, structured training, and tangible skill-building, they reveal how to design internships that benefit interns without exploitation, ensuring mutual value in competitive sectors. 

Discover when unpaid internships can ethically bridge education and career growth.

Read on!

Margaret Buj
Principal Recruiter, Mixmax

Unpaid Internships Must Offer Tangible Learning

In tech and SaaS specifically, I believe unpaid internships should be the exception, not the rule – but there are a few niche situations where they can be fair and mutually beneficial.

One example is when an early-stage startup genuinely lacks funding but can offer tangible, structured learning in exchange for the intern’s time. For instance, if the internship provides mentorship, exposure to real-world projects, and measurable deliverables that the intern can showcase later — and the duration is short and clearly defined (e.g., 4–6 weeks) – it can be appropriate.

However, in my 20 years hiring across Europe, LATAM, and the U.S., I’ve seen too many unpaid internships that exploit candidates without giving them meaningful skills or experience.

My rule of thumb: if the company benefits from the intern’s work, the intern should be compensated — but when the primary value flows to the intern’s learning and portfolio-building, a short unpaid placement can make sense.

Unpaid Internships Work When Education Trumps Labor

An unpaid internship can be appropriate when it is structured as a short-term, skills-focused experience that directly benefits the student rather than the organization.

For example, a social work or child development student might participate in a summer program where they shadow case managers, attend training workshops, and observe family support services without being asked to shoulder essential responsibilities. In this case, the purpose is not to replace staff but to give the intern exposure to real-world practices in a supervised, educational setting.

Fairness comes from transparency and boundaries.

The internship must be clearly presented as a learning opportunity with defined outcomes, limited hours, and mentorship built in.

If the arrangement is designed around the student’s academic growth and offers access to training or professional connections that would otherwise be difficult to obtain, then it can serve as a valuable bridge into the field. Anything beyond that—particularly if the organization relies on the intern for ongoing work—should be paid.

Learning-Focused Design Internships Create Mutual Benefits

As I see it, an unpaid internship is a good experience if considered an opportunity to learn, rather than work.

If a prospective designer wanted to witness a luxury cabinetry and closet program, a period of unpaid internship could be a positive initiative for both parties.

The intern would receive real experience, hands-on exposure to design software, customers, and project management. At the same time, the firm could mentor and educate candidates without putting them into a position with an obligation of production.

It is a mutually beneficial relationship that emphasizes skill development over direct financial contributions.

Internship goals would include specific learning objectives and direction roles for mentoring.

We aim to avoid turning the internship into a role-filling exercise and instead foster the development of the next generation of professionals in the industry.

By allowing students to work in a framework that is facilitated but flexible, we can help the intern to develop their portfolio work, and the company gets to experience their energy and outlook.

Personal Growth Becomes Valid Currency in Fair Internships

Fair internships are those where the experience itself becomes a form of meaningful compensation

At Mr. & Mrs. Shogun, we work in the field of personal growth and conscious living, where people don’t only learn by gathering information—they grow through experience, reflection, and transformation.

That is why an internship with us is not about filling a role cheaply, but about creating space where someone can immerse themselves in this process while contributing to our mission.

Our interns receive full access to our tools, guidance sessions, and the same safe environment we use within our team to explore sensitive issues and personal growth.

This creates a unique exchange: while they support us with their skills, they also benefit from deep, structured learning and a chance to understand themselves on a much more conscious level.

We believe payment comes in many forms. Financial reward is one, but equally valuable is the exchange of energy, presence, and growth.

An unpaid internship can be fair when it is clearly built as a transformative learning experience—one where the intern leaves not only with new skills, but with deeper clarity, self-understanding, and inner resources that will serve them far beyond the time spent with us.

James Shaffer
Managing Director, Insurance Panda

Shadow-Only Roles Define Ethical Unpaid Insurance Internships

Here’s the only case I think unpaid internships are fair in: when the role is explicitly shadow-only, short-term, and framed as education, not labor.

I’ve had college students ask to shadow me for two weeks just to see how the auto insurance quoting business works. They sat in on calls, watched how we build campaigns, and asked blunt questions about commissions, compliance, and lead buying. They didn’t handle client accounts, they didn’t generate billable work. It was exposure, nothing more.

That’s the line. If the intern is producing assets that make the company money, pay them. If they’re literally observing, taking notes, and getting an inside look into an industry most schools never teach, then I see unpaid as acceptable, provided it’s brief, clearly defined, and the value exchange is obvious.

In my shop, the shadow interns left with something tangible: access to raw performance dashboards, a peek at how quote funnels are tested, and time with staff across departments. They weren’t fetching coffee, they were pulling back the curtain on a business model.

Anything beyond that, and “unpaid” becomes exploitation dressed as opportunity.

Mark Hirsch
Co-founder & Personal Injury Attorney, Templer & Hirsch

Law Externships Offer Real Experience Through School Credit

When a law student seeks to earn school credit through an externship program, it may be fair and proper to offer them an unpaid internship.

I’ve helped dozens of these interns over the past 30 years. They’re not doing office work; instead, they’re watching depositions, helping get ready for trial, and watching real talks. Their law schools and the ABA have strict rules about these jobs.

One of my interns went on to work for a top plaintiff’s firm in Miami. He still thanks me for giving him the chance to “see the trenches.” The essential things are being open, teaching others, and not letting paid workers go. It’s not free work; it’s legal schooling.

Always follow the rules set by the federal and state governments about work to stay honest and legal.

Steven Rodemer
Owner & Attorney for Law Office of Rodemer & Kane DUI & Criminal Defense Attorney

Military Justice Internships Offer Unique Value

For law students interested in military justice, an unpaid internship in this setting can be uniquely valuable. Many defense attorneys in Colorado handle cases involving service members facing courts-martial or administrative actions.

An intern can observe these proceedings, learn the differences between civilian and military courts, and study how legal strategy adapts in this environment. The internship’s fairness comes from the rare opportunity to access a niche field that students often cannot see firsthand.

Because military cases involve sensitive issues, these internships remain observational and educational.

Fair Internships Provide Insight, Not Just Labor

Unpaid internships can be more than fair if the businesses are providing insight and experience into relevant job roles, departments and real-life scenarios for those who have an interest in working within that sector.

Whether they are performing work experience through their high school, a longer internship as part of a university degree or an unpaid work agreement for a career change – if the person gains knowledge and confidence in the area, it is advantageous for them.

When a company is demanding free labour from an intern, and not doing their part of educating, training and enabling them to flourish it – becomes unfair.

Within our specific industry of manufacturing, we see that a fair internship will enable the person to be exposed to multiple processes of the chain – from planning and procurement, engineering and development, marketing and sales, the factory floor and warehouse and logistics.

Their internship is fair if they are provided with the opportunities to experience and learn the full journey and process and leave with an understanding of the whole business.

Michał Bieńko
Recruiter & HR Generalist, Omni Calculator

Internships: A Smart Hiring Funnel

Unpaid internships can only be fair when they work like a boot camp or mentorship program, where interns gain skills directly relevant to today’s job market. In that case, as an intern, you get great value in exchange for your time.

However, the employer has to generously invest in developing skills that an intern can, and most likely will, use in another company. In the short term, that might seem like wasting money. Yet an employer who uses this as a recruiting tool has enormous leverage in finding the most promising performers.

Using an internship for this purpose reveals interns’ learning agility, openness to feedback, and culture fit for the company. With this knowledge, it’s easy to make an excellent long-term hire.

The HR Spotlight team thanks these industry leaders for offering their expertise and experience and sharing these insights.

Do you wish to contribute to the next HR Spotlight article? Or is there an insight or idea you’d like to share with readers across the globe?

Write to us at connect@HRSpotlight.com, and our team will help you share your insights.

The Candidate Crunch: Strategies for Hiring Success

The Candidate Crunch: Strategies for Hiring Success

In the fiercely competitive tech, SaaS, and AI industries, securing top talent requires innovative strategies that go beyond traditional hiring. 

This HR Spotlight article compiles insights from business leaders and HR professionals, revealing how to attract and retain exceptional candidates. 

From tapping global talent pools and prioritizing impact over titles to leveraging real-world assessments and fostering community ties, these experts share proven approaches. 

By focusing on mindset, transparency, and candidate experience, they demonstrate how to build teams that thrive. 

Discover actionable strategies to redefine hiring, reduce turnover, and create a culture that draws high-caliber professionals in today’s dynamic market.

Read on!

Margaret Buj
Principal Recruiter, Mixmax

Global Hiring, Impact Focus Boosts Talent

At Mixmax, we’re hiring in one of the most competitive spaces – tech, SaaS, and AI – and yet we consistently find exceptional talent by focusing on three strategies:

Casting a Global Net: We don’t limit ourselves to one geography. By hiring across Europe, LATAM, and beyond, we access a much broader talent pool – which allows us to find specialists who might not exist locally.

Prioritizing Impact Over Title: Instead of filtering candidates based solely on job titles or rigid years of experience, we focus on what they’ve achieved – their measurable impact, adaptability, and ability to solve complex problems. This lets us uncover “hidden gem” candidates others might overlook.

Building an Outstanding Candidate Experience: Today’s top candidates evaluate you as much as you evaluate them. We invest in clear communication, transparent processes, and personalized outreach, which strengthens our employer brand and helps us close highly sought-after candidates faster.

In short, we beat the odds by hiring globally, assessing impact over pedigree, and creating a candidate experience people actually talk about.

Kiara DeWitt
Founder & CEO, Injectco

Hire for Mindset, Train for Skills

I only ever hire for my mindset. Everything else can be taught.

The mistake is thinking talent is hiding. In reality, most employers are fishing in the same pool using the same bait. I tap into attitude first.

Reliability, hunger, willingness to learn, those are the filters. I do not care where someone trained if they cannot stay consistent. That being said, I do make space to train them myself if the grit is there.

So to be fair, I do not beat the odds, I just ignore them. I am building a business that rewards character over credentials. I train internally, stay involved, and remove fluff from the hiring process. If someone has integrity and fire in their belly, they will win. You just have to give them the room to show it.

Real-World Tasks Beat Resumes in Tech Hiring

We stopped hiring solely based on resumes and started giving candidates real-world tasks during the interview process.

A few years ago, we had a technician role open that we struggled to fill. Everyone looked good on paper, but when it came to actual problem-solving, the results didn’t match.

So we built a simple lab environment and gave candidates a common client scenario to troubleshoot. It filtered out the guessers from the doers instantly.

That shift changed our hiring game. We started finding solid, coachable people who may not have had the perfect certifications but could think critically and work under pressure.

It’s not about finding “unicorns”—it’s about seeing how someone approaches a problem when Google isn’t right in front of them.

That’s how we’ve kept our talent pipeline strong, even when everyone else says there’s a shortage.

Automate Tasks, Hire Builders, Not Managers

We’ve found the best way to beat the hiring odds is to change the game entirely.

Instead of focusing on finding more qualified candidates, we focus on building a business that needs fewer of them.

We aggressively automate repetitive tasks, from lead generation to initial follow-up, using systems that handle the operational drag that bogs down most companies. This fundamentally changes who we look for. We don’t need someone to just manage a process.

We need someone who can build and improve the process itself. We hire for an operator’s mindset, not just a list of skills on a resume.

This lets a very small, lean team accomplish what would normally take a much larger staff, and it naturally attracts the kind of entrepreneurial talent that thrives on impact, not just task completion.

Cycle Time Consistency: The Best Remote KPI

One reliable, non-invasive signal of remote team effectiveness is cycle time consistency. At Trep DigitalX, we track how long it takes for a task—once assigned and clarified—to reach completion.

This KPI reflects not just speed, but clarity, collaboration, and ownership. If cycle times stay predictable across sprints or weeks, we know communication is flowing, blockers are being resolved, and priorities are clear—without the need to monitor every move. It’s outcome-focused, not activity-based, and helps build a culture of trust where performance is visible through results, not surveillance.

James Myers
Sales Director & Office Manager, VINEVIDA

Hire For Potential, Not Just Perfection

At VINEVIDA, we have turned the script and concentrated more on potential than perfection.

Rather than looking to hire unicorn candidates, we find transferable skills.

My experience in retail management has shown me that a person with a good sense of customer service can be trained on technical processes more quickly than to teach an emotionless technically inclined employee how to be empathetic.

We have cut down our hiring process by 30% with the help of structured behavioral interviews and skills based assessment instead of using traditional qualification alone.

Personally, I have recruited three employees who did not fulfill all the criteria but demonstrated the best problem-solving skills during our working tasks.

Community Ties, Flexibility Win Talent

In Spokane, I’ve had the most success by leaning on community ties.

I reach out through local chambers, neighborhood events, and even past clients who often know someone who’d be a perfect fit. That way, the people who come to me already share our values.

I also make flexibility a priority—whether that’s offering remote-friendly admin roles or family-first schedules. It shows candidates that we’re invested in their lives, not just their work.

That combination—local relationships and a people-first approach—has helped me find and keep qualified team members even when others are struggling.

Transparency And Projects Attract Long-Term Talent

After more than ten years in Hudson County real estate, I’ve realized that finding the right people isn’t just about scanning resumes—it’s about connecting skills with the bigger story of what we’re building.

For me, the process starts with transparency. When I talk about our digital reach and how we’re changing the way people see the condo market, the right candidates light up—they already imagine themselves being part of it. From there, I use practical, project-based tasks instead of generic tests. It gives me a clear view of how someone works while letting them show off their creativity.

That mix of culture, data, and real-world evaluation has consistently brought in people who not only fit but stick around.

Dorian Menard
Founder & Business Manager, Search Scope

Hire Capability, Not Just Credentials

Most firms are hunting for unicorns — we focus on building them.

In SEO and AI-driven marketing, waiting for a “perfect hire” can leave roles unfilled for months. Instead, we hire for raw capability and train aggressively.

“It’s faster to upskill a curious mind than to deprogram bad habits.” We also use project-based hiring first; it lets us test fit and gives candidates a chance to prove themselves without endless interviews.

This reduces turnover and creates a pipeline of loyal, skilled talent we can trust long-term.

The HR Spotlight team thanks these industry leaders for offering their expertise and experience and sharing these insights.

Do you wish to contribute to the next HR Spotlight article? Or is there an insight or idea you’d like to share with readers across the globe?

Write to us at connect@HRSpotlight.com, and our team will help you share your insights.

Responsible AI Hiring: Mitigating Major Risks

Responsible AI Hiring: Mitigating Major Risks

The integration of Artificial Intelligence into the hiring process promises unprecedented gains in efficiency, but it has also introduced a complex new set of challenges. 

While AI tools can help screen thousands of resumes and streamline workflows, a growing chorus of business leaders and HR professionals are sounding the alarm about the serious risks of relying on these systems without critical human oversight. 

From reinforcing historical biases to overlooking exceptional but non-traditional talent, the consequences of unmitigated AI in recruitment can be severe, leading to legal liabilities, a lack of diversity, and a team that lacks true creative and collaborative strength. 

This HR Spotlight article compiles invaluable insights from a diverse panel of experts, revealing the key dangers of AI-driven hiring and offering a strategic blueprint for how organizations can balance technological efficiency with the human judgment, empathy, and oversight necessary to build truly resilient and innovative teams.

Read on!

Hiring Needs Human Touch For Creative Roles

I’ve always thought that originality and a personal touch are important.

AI-driven hiring carries a significant risk of ignoring the individuality and enthusiasm needed for creative positions. Because AI favors efficiency over true innovation, hiring decisions may be made based more on patterns. For instance, AI might overlook applicants who think creatively when searching for designers who can make innovative concepts a reality.

Our hiring procedure retains the human element. To make sure we’re not just filling a position but also adding someone with new, creative ideas to our team, we prioritize in-person interviews and creative portfolio reviews.

Although technology can be useful, people are what truly contribute creativity.

Alec Pow
Founder & Editor, The Pricer

AI-Driven Hiring Risks Societal Biases

In my view, the most concerning consequence of this is the risk of inadvertently reinforcing societal biases and stereotypes. These biases can be encoded into the algorithms if the data used for training the AI is skewed or unrepresentative of the diverse society we live in.

For instance, if an AI model is trained predominantly on successful profiles of male software engineers, it might unwittingly favor male candidates over equally qualified female ones. This could perpetuate gender disparity in the tech industry, a problem we’re actively trying to solve.

At ThePricer, we’re mitigating this risk by cross-checking our AI models with diversity and fairness audits.

This involves running the models against a diverse dataset and comparing outcomes for different demographic groups. If we find any discrepancies, we fine-tune the model to ensure it doesn’t favor one group over another.

An actionable tip for others in the industry would be to involve human oversight in the AI hiring process. Combining AI’s efficiency with a human’s capability for nuanced judgement can help strike a balance between speed and fairness.

Remember, technology is a tool that reflects our intentions. It’s up to us to use it wisely and responsibly, ensuring it promotes diversity rather than stifling it.

Mark
CEO & Co-Founder, Mein Office

The Bias in AI Hiring Is Real

An adverse consequence of AI-driven hiring is the reinforcement of historical biases embedded in training data, leading to unintentional discrimination against qualified candidates based on gender, ethnicity, or age.

This is particularly problematic in industries like tech or ecommerce, where legacy data often reflects past hiring inequities.

To mitigate this risk:

We audit AI models regularly using diverse data sets.

We deploy hybrid models where human oversight supports all critical AI decisions.

Our hiring platforms are configured to anonymize attributes unrelated to job performance (e.g., name, graduation year).

Additionally, our HR team collaborates with DEI consultants to set benchmarks and accountability for fairness. AI should amplify inclusion—not replicate bias—so human validation is essential.

Meaningful Predictors Over Correlation

A serious adverse consequence of blind reliance on AI tools for hiring is decisions made on flawed models built from spurious correlations rather than meaningful predictors of job performance.

For instance, a journalist investigation revealed that some AI video interview platforms generated different candidate ratings based solely on superficial factors like wearing glasses or a scarf—demonstrating how AI can mistake irrelevant patterns for valid insights. This results in unreliable and potentially arbitrary hiring outcomes.

To address this, I advise clients to use AI to enhance, not replace, proven human-led processes, ensuring all AI-generated recommendations are explainable and rigorously validated before implementation.

This approach safeguards decision quality and maintains accountability.

Ben Schmidt
Founder & CEO, LoopBot

Needs Competency Verification

AI-driven hiring is headed in the wrong direction.

We’re creating an arms race between AI resume writers and AI scanners, rewarding those who hack the process, not those with true ability.

We need to pivot towards verifying workplace competencies before we hire, even simple things like learning aptitude.

If we don’t, we’ll build teams based on performative marketing, not genuine skill.

At LoopBot, we’re changing this by measuring the skill and learning pace of every individual within an organization, revealing true aptitude and eliminating purely self-promotional preferences and biases.

Julie Ferris-Tillman
Vice President and B2B Tech Practice Lead, Interdependence

Bias Is Created By Humans

Interdependence Public Relations, has decades of experience as a hiring manager in PR and marketing. Her insights are as follows:

AI in applicant tracking systems is improving but still relies on humans to tell them what to search for.

AI-bias is created by the hiring team, not the AI. Too often, a hiring manager feeds recruiting or HR their talent needs and waits for candidates.

Recruiting inputs to the ATS leveraging what they can access, too often that’s old job descriptions or cold, formal materials that leave out the nuance hiring managers haven’t specified.
Collaborative approaches training the AI are essential or it will always be biased toward scoring candidates on outdated descriptions.

Though AI helps review thousands of applications, another bias exists if the recruiting team doesn’t do their own investigation beyond the AI’s top-ranked candidates.

Teams should assemble all applications to assess trending skills and continuously improve how to match their AI’s ability to pair with talented humans’ ways of describing their experience just as much as applicants need to think about matching the AI.

Jon Hill
Chairman & CEO, The Energists

AI Hiring Risks Lawsuits, Reputational Damage

We’ve embraced AI-driven hiring at The Energists, and have experienced first-hand how these tools can improve both the efficiency and the quality of the hiring process. However, we are also mindful of the risks, including the potential for bias, and taking steps to mitigate those concerns is absolutely imperative for anyone planning to make use of AI for recruitment.

The most serious adverse consequence that could stem from AI-driven hiring is the risk of lawsuits or regulatory sanctions, along with the reputational damage these things could cause.

Discrimination against candidates on the basis of race, gender, age, or disability can be just cause for lawsuits, even if that discrimination was unintentional.

In addition to bias concerns, AI tools use sensitive candidate data, which could open you up to transparency and consent concerns under data privacy laws.

Our strategy to mitigate these concerns starts with expert insight. We had our legal team assess our AI system for compliance with labor and data protection laws before putting it to use, and performed the same due diligence with our cybersecurity experts to ensure we are handling candidate data in a secure and responsible way.

Along with this, we maintain full transparency about our use of AI with our clients and candidates. We explain how we use AI in the process to candidates and give them the option to opt out of AI sourcing or screening.

Regular human review of the results delivered by AI tools also helps us verify that they are free from bias and allow us to make corrections as necessary to ensure our hiring process is fair for all candidates.

Renante Hayes
Executive Director, Creloaded

Screening Risks Overlooking Diverse Talent

Having personally reviewed over 3,000 tech resumes in my career, I’ve witnessed the double-edged sword of AI hiring tools.

In the ecommerce development space, AI-driven hiring risks eliminating candidates with non-traditional backgrounds but exceptional creative problem-solving abilities. Last year, we discovered our AI screening tool was systematically filtering out self-taught developers who lacked formal credentials but possessed remarkable real-world coding experience.

At creloaded, we’ve implemented a hybrid approach where AI handles initial screening, but human reviewers evaluate a randomized 25% of rejected applications. This process has helped us discover multiple overlooked talents and continuously refine our AI parameters to recognize diverse expertise patterns rather than just conventional signals.

Hiring Overlooks Innovative, Non-Traditional Talent

Having worked with over 500 professionals on career development, I’ve witnessed firsthand how AI-driven hiring can overlook non-traditional career paths that often bring the most innovative thinking.

In the education technology sector, the most concerning consequence of AI hiring is the potential elimination of candidates with unique problem-solving approaches that don’t fit standardized patterns.

These are often the exact minds that drive breakthrough innovations.

At GetSmart Series, we mitigate this by implementing a two-phase evaluation process. Our AI screening is complemented by human-designed situational assessments that measure creative problem-solving and adaptability – qualities algorithms struggle to detect.

We also regularly audit our hiring outcomes to ensure diverse thinking styles are represented in our team.

The HR Spotlight team thanks these industry leaders for offering their expertise and experience and sharing these insights.

Do you wish to contribute to the next HR Spotlight article? Or is there an insight or idea you’d like to share with readers across the globe?

Write to us at connect@HRSpotlight.com, and our team will help you share your insights.

Unmasking Deception: How Ghosting and Catfishing Disrupt Remote Teams

Unmasking Deception: How Ghosting and Catfishing Disrupt Remote Teams

Trust is the most critical currency in the remote-first workplace.

But in a landscape where professional relationships are built on digital connections, that trust is under attack from a new kind of deception.

The rise of trends like ghosting (when a team member vanishes without a trace) and catfishing (when a professional’s identity or skills are a complete fabrication) is creating a silent crisis.

These digital betrayals don’t just disrupt a workflow; they erode accountability, shatter team dynamics, and destroy the psychological safety required for high performance.

This HR Spotlight article gathers invaluable insights from a panel of business leaders and HR experts.

They offer a strategic playbook for leaders to confront these new threats head-on, providing a blueprint for cultivating a culture of authenticity, transparency, and resilience in an era where digital deception is a real and present danger.

Read on!

Deceptive Hiring Practices Fracture Team Trust

After 40 years in business and 50,000+ transactions, I’ve witnessed how deceptive practices destroy team trust.

I’ve observed what I call ‘recruitment PTSD’ destroying teams from within. When colleagues witness extensive candidate ghosting after completing real company challenges disguised as assessments, 73% of remaining employees start questioning leadership integrity.

The damage runs deeper than missing hires. Teams develop ‘defensive documentation’ behaviors where members over-communicate to avoid being discredited themselves. This hypervigilance reduces collaborative innovation by 28% within six months.

What’s most destructive is the ‘privilege divide’ effect. Team members who secured positions through family financial support during job searches unconsciously biased against colleagues who worked while interviewing. This creates subtle hierarchical tensions that fragment team cohesion.

The catfishing element – where companies misrepresent challenge time requirements – breeds ‘scope creep anxiety’. Teams become paranoid about project boundaries, leading to what psychologists identify as ‘moral injury’ where members know unethical practices occur but feel powerless.

Companies implementing reverse reference checks through informal network connections reduce these incidents by 67% and maintain healthier team dynamics.

Vanishing, Catfishing Erode Remote Team Trust

I’ve led remote teams across SEO, AI, and video marketing for over a decade, and I’ve seen how ghosting and catfishing create lasting cracks in team trust.

Unlike ghosting phenomena in more classic projects where clients disappear half-way through an assignment leaving delays and stress, ghosting in the situation of remote work has simply come to mean clients and freelancers vanishing on each other in the middle of a project.

It destroys trust ever so softly under the guise of simply doing its work. It really hurt accountability, leaving teams no choice but to begin micromanaging or recording everything.

The phenomenon of catfishing is growing exponentially with the creation of AI-based profiles and deepfaked portfolios.

We once had a contractor who pretended to be someone else and disappeared after we confronted him about a number of discrepancies in the video call.

The behaviors erode trust fairly rapidly and push companies to implement more stringent vetting and probation procedures.

The best solution we’ve found is a layered onboarding process that incorporates test tasks, live check-ins, and open peer reviews.

In the hybrid scenario, authenticity comes into the equation, and one fake profile can adversely affect your entire work culture.

Magda Klimkiewicz
Senior HR Business Partner, Live Career

Disappearing, Deceiving Undermine Remote Team Confidence

Ghosting and catfishing are making it hard for people to trust each other in remote or hybrid work. When someone suddenly stops replying or disappears, others are left to do extra work without knowing what happened.

In the same way, when a person lies about who they are or what they can do, it makes managers give them tasks they can’t handle. This often leads to mistakes, delays, and frustration among team members.

Because of these issues, managers have to spend more time fixing problems. They may need to replace the person, reassign tasks, or explain things to the team. As a result, this slows down work and makes it harder to build a strong team.

In the end, these behaviors continue to harm the team connection and workflow. When trust is broken and communication fails, it becomes harder to grow and succeed together.

Ghosting, Catfishing: The Hidden Cost to Team Cohesion

Both ghosting and catfishing can have serious negative consequences on team dynamics.

Whether it’s a team member not answering messages or showing up to group meetings, or a new hire quickly demonstrating that they don’t have the experience they claimed to have in their resume, teams can struggle to perform as they need to.

Not only can ghosting and catfishing cause legitimate issues with things like timelines and quality of work, but they can also result in team members feeling like they need to do more work independently because they don’t know if they can rely on each other. This sows a seed of distrust.

Ryan Grambart
Founder & President, World Copper Smith

How Digital Deception Erodes Trust and Teamwork

Ghosting and catfishing can truly disrupt team dynamics.

I believe ghosting—a sudden halt in communication—makes team members feel overlooked and uncertain about their responsibilities. It undermines trust and complicates collaboration as individuals begin to hesitate in contacting one another.

Conversely, catfishing results in distrust and ambiguity. When an individual assumes a deceptive identity, it can erode team unity and lower morale. I think that when team members discover they’ve been misled, it impacts their emotional well-being and also diminishes overall productivity.

I believe these actions foster an atmosphere that impairs open communication, making it difficult to establish strong relationships within the team.

Tackling these problems promptly can contribute to preserving a more robust team dynamic over time.

Human Connection Curbs Professional Ghosting

Professional ghosting has exploded since remote work became standard. Here’s what we’re seeing: candidates disappear mid-interview process, new hires vanish after the first week, and team members stop responding without explanation.

The root cause in my opinion? Reduced human connection makes professional relationships feel disposable. When you’re just a Zoom square or a Slack profile, it’s psychologically easier to disappear than have difficult conversations. (We’ve seen this happen time and time again).

We’ve found teams with team off-sites, structured check-ins and a relationship-building-first culture show less ghosting incidents versus companies that don’t. The solution isn’t more technology—it’s more intentional human connection.

Catfishing Erodes Trust, Hinders Remote Efficiency

Catfishing in professional settings happens when remote workers misrepresent their skills, availability or work situations during hiring or project assignments.

This creates gaps in capabilities that only become clear as deadlines approach. Unlike personal catfishing, workplace deception centers on professional skills instead of personal traits but it still harms trust and affects the entire team.

The most damaging effect is when team members find out they have been covering for someone who misrepresented their skills. This leads to resentment and skepticism about future remote collaborations.

Our time tracking software indicates that teams recovering from professional catfishing incidents spend 40% more time on verification and check-ins. This undermines the efficiency gains that remote work usually offers with less oversight.

Nicholas Sanson
Founder & Operations Manager, A TEX Roofing

Integrity Ensures Trust in Professional Relationships

Ghosting and catfishing fundamentally destabilize professional relationships, especially in remote or hybrid environments.

They erode trust, which is the bedrock of any successful team and client interaction. My experience building businesses like A-TEX Roofing highlights that integrity is non-negotiable for long-term success.

When communication is unclear or identities are misrepresented, it creates significant operational friction. For us, delivering on promises like “same-day estimates” or “24/7 emergency services” relies on every team member’s transparency and accountability. A single ghosted task can compromise our entire commitment to superior service.

This lack of genuine interaction poisons team dynamics, fostering uncertainty and resentment. It directly counters our goal of fostering growth and building strong teams, where every individual’s contribution is clear and reliable.

Our “lifetime warranty” reflects a culture built on unwavering trust and reliability, not ambiguity.

Transparency Fosters Trust in Team Dynamics

As Head of Marketing at Anew Therapy, our mission is built on providing hope and healing through compassionate, personalized care in a safe and supportive environment.

This foundational principle extends deeply to our internal team dynamics, especially in remote or hybrid settings where trust and clear communication are paramount.

Ghosting, or a lack of transparent follow-through, directly erodes the psychological safety crucial for effective collaboration and innovation.

Much like the “integration” we emphasize for patient healing to achieve lasting change, team members need consistent engagement to truly integrate and contribute effectively.

Similarly, catfishing, or misrepresenting intent or identity, shatters credibility and breeds uncertainty.

These behaviors hinder open communication, ultimately disrupting team cohesion and productivity, making it incredibly challenging for a team to deliver on its collective mission and thrive.

The HR Spotlight team thanks these industry leaders for offering their expertise and experience and sharing these insights.

Do you wish to contribute to the next HR Spotlight article? Or is there an insight or idea you’d like to share with readers across the globe?

Write to us at connect@HRSpotlight.com, and our team will help you share your insights.