Hard skills. Technical skills. Soft skills. Teachable skills. Transferable skills. Years of experience. Industry experience. That’s a lot to consider, and when it comes to hiring, companies often face the challenge of deciding whether to prioritize experience or potential. In a competitive environment for talent, our point of view is that placing an emphasis on potential—rather than solely on past experience—can be a game-changing strategy for building a dynamic and resilient team.
Why Focus on Potential?
Prioritizing potential means looking for candidates who may not have an extensive track record in a specific role but possess the qualities and mindset needed to grow and excel within your organization. The benefits of this approach are significant, particularly in industries that are continuously evolving.
• Versatility: Candidates hired for their potential are often more adaptable, able to take on a variety of roles as your company grows and changes.
• Thought Diversity: Bringing in individuals with different backgrounds and experiences fosters thought diversity, which can lead to innovative solutions and fresh perspectives. Hiring for potential rather than a narrow set of experiences can help build a team that approaches challenges creatively and collaboratively.
• Skill Set Expansion: When hiring for potential, consider candidates who bring a skill set that your current team might lack but could be highly valuable when combined with your existing knowledge and expertise. This approach can fill gaps in your team’s capabilities, fostering innovation and giving your company a competitive edge.
• Rapid Learning: Individuals with high potential are typically quick learners, ready to acquire new skills and apply them effectively. This ensures they can keep pace with the changing demands of your business.
• Resilience: Hiring for potential often brings in candidates who are motivated by challenges, able to handle setbacks, and committed to driving towards success.
Assessing Must-Haves vs. Teachable Skills
A crucial aspect of hiring for potential is distinguishing between the absolute must-haves for a role and the skills that can be taught. By making this distinction, companies can open the door to a broader pool of candidates who may lack certain technical skills but possess the underlying attributes necessary for success.
• Must-Haves: These are the non-negotiable skills, experiences, or qualifications that are essential for the role. They often include core competencies or specific knowledge that cannot be easily acquired on the job.
• Teachable Skills: These are the skills that can be developed with time and training. By identifying which skills fall into this category, companies can be more flexible in their hiring criteria, focusing instead on candidates who show strong potential for growth.
The Learning Curve: A Long-Term Investment
It’s important to recognize that hiring for potential may extend a new hire’s learning curve by a month or two longer than someone with more experience. However, we always recommend looking at this as “short-term pain, long-term gain.” Candidates who are hired for their potential often bring fresh perspectives and a strong drive to succeed, which can lead to high-impact contributions in the long run.
Avoiding the “Perfect Resume” Trap
We’ve worked with so many hiring managers over the years, and we often see companies spend too much time searching for the perfect resume, delaying the hiring process by seeking only candidates who tick every box. This approach can be counterproductive, so we recommend considering hiring the best-caliber candidate who may lack a few specific experiences but has the potential to quickly catch up. Often, by the time the “perfect” candidate is found, a high-potential hire could have already been onboarded and already contributing meaningfully to the team.
When to Focus on Potential
Hiring for potential is especially effective in certain scenarios:
• High-Growth Phases: During periods of rapid scaling, you need employees who can quickly adapt and take on new responsibilities as the company evolves.
• Innovative Sectors: In industries where technology and market conditions are constantly shifting, the ability to learn and adapt is often more valuable than years of experience in a more static environment.
• Leadership Development: Focusing on potential can also be a strategic move for developing future leaders who can navigate complex challenges and inspire their teams.
How to Identify High-Potential Candidates
When focusing on potential, it’s important to assess candidates based on core competencies and attributes that go beyond specific job requirements. Key qualities to look for include:
• Problem-Solving Skills: Can the candidate think on their feet and come up with creative solutions to new challenges?
• Growth Mindset: Is the candidate eager to learn and grow? Are they open to feedback and continuously seeking improvement?
• Cultural Fit: Does the candidate align with your company’s values and culture? Can they collaborate effectively with diverse teams?
• Drive and Ambition: Does the candidate show passion and motivation to push themselves and achieve results, even in unfamiliar territory?
Balancing Potential with Experience
While hiring for potential is a powerful strategy, this doesn’t mean that experience should be discounted entirely. The key is finding the right balance. Experienced professionals who also demonstrate the qualities of high potential bring both depth of knowledge and the agility to adapt, making them invaluable assets to your team.
Ultimately, the decision to hire for potential or experience should be guided by your company’s long-term goals. By focusing on potential and distinguishing between must-have skills and those that can be taught, you’re investing in talent that can evolve with your organization. While the learning curve might be a bit longer, the long-term payoff is a team equipped to meet current challenges and seize future opportunities. Avoiding the trap of waiting for the perfect resume and instead hiring the best-caliber candidates ensures you’re not missing out on valuable talent that can drive your company forward. Plus, by prioritizing potential, you’re fostering thought diversity within your team, leading to more innovative solutions and a richer organizational culture. If you need help finding those high-potential candidates, reach out to us. Let’s figure this out together.