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Creating A New Position Needs Thought

BY: MICHAEL STERN January 27, 2003

For those who have given up reading tea leaves, here’s a promising new economic indicator: more companies are starting to hire people for newly created positions.

There’s a retailer who is looking for a hotshot to manage a line of products that they’ve never focused on before. A national marketer looking for its first expert in market research. A not-for-profit that’s investing in its first solid, experienced executive director. And companies seeking seasoned pros who can manage acquisitions.

Expansions such as these are a product of economic optimism. Companies create new positions only when they start sensing opportunities in new markets and new products – or that they have been inadequately managing the opportunities they have. And they only take such chances when they believe the economy is ready to support them.

Still, this new confidence comes at a price. Many employers aren’t very good at creating a new position. By definition, they’re getting into something they haven’t done before. And the process is not always pleasant.

Too often, companies don’t know where to find the new talent and experience they need. They don’t know how to evaluate it. And they don’t know where to slot it into the old organizational charts.

As management consultants in executive search, our firm has been called into quite a few such deals lately. Here’s what we’ve learned in the process.

1. You have to do your research before talking to candidates. Know what expertise you need. It’s amazing how many companies think they know what they want, but have spent no time thinking it through. Plus, do enough of a market assessment to figure out where your top candidates are likely to come from.

2. Understand what you’ll have to pay these people. Experts in new fields commonly cost more than you are used to paying your traditional staff. And since it’s a new position, you may have to ante up a little more as an incentive or risk premium.

3. Know where (and how) the newcomer will fit into your organization. How senior will the new executive be? Who will they report to? Does that person understand the challenges your new hire will face?

4. Be prepared for lots of questions from the best candidates. What is your plan for exploiting this new market opportunity? How seriously are your pursing it? For how long? How much freedom of action will the new position entail?

5. Think through your measurement process. How ill you judge the new recruit’s performance? How will they know if they are doing the right things?

6. Finally, when you find candidates you like, don’t neglect to “sell” them on both the position and your organization. Your candidate may never have heard of you, or might have qualms about betting their career on your new initiative.

You may need outside help in planning your search. If you don’t have consultants who can help you, do your own primary research. Speak to contacts in your industry to find out how they have incorporated similar people into their own hierarchy. And find people who understand the discipline you are hiring for in order to understand what motivates these candidates, and how they think and act.

And be prepared for the search to take time. Talent is tough to find at the best of times. Searching for it in a new field is that much harder.

Hiring for new positions represents growth and challenge. It’s also a serious initiative that will demonstrate your business savvy and planning abilities – or lack of same.