Wednesday, February 10, 2010

Is industry experience really a deal breaker?

From my time spent in the recruiting field and as a job seeker, I often came across open positions that REQUIRED a certain number of years is a specific industry. For example a software sales position would require 5 years experience in a software sales role. This often left me scratching my head. I can understand there are certainly some jobs where this is very relevant (think Surgeons), but is industry related experience really a deal breaker? Yes, I see the logic here, someone from the industry might have a shorter learning curve, they might bring relevant best practices, and they will speak the lingo—but does that automatically make them a better candidate? This logic is especially concerning to me in the realm of business, sales and marketing.

Here are some reasons why someone without industry experience might actually be a better candidate. This list assumes the candidate is otherwise qualified, meaning they understand how to build a brand, write copy, make a sale, or manage a team (depending on the specific needs of the hiring company)

1. Varied experience brings varied ideas: Sure, it takes some time to learn an industry, but that guy from consumer goods, might just have some incredible cross over ideas for your non-profit.

2. Industry Recycling: This is when the same people jump from company to company inside a certain industry. This is especially prevalent inside smaller markets and smaller industries. Recycling can lead to burn-out, failure to innovate, and just plain poor hiring decisions. Loyalty becomes a serious issue as well.

3. Sometimes it’s time to get out: In my experience, a good portion of active and passive job seekers and not only looking for a new desk, they are looking for a new challenge—often that means a new industry, but they are stuck in a catch 22. People inside the industry can’t get out because they don’t have experience elsewhere, and people who want to get in can’t for the same reason. As a result, people often take jobs out of desperation or because they feel like they don’t have other options—not exactly an ideal situation for employee or employer.

4. They come from the competition: In many cases this can be good, but only if the competition is beating you and you need their ideas to succeed. If a company is seeking competitive parity with its competition, using their ideas is a good strategy, if the company wants competitive advantage it might want to look elsewhere.

We hear a lot of terms being thrown around with 2.0 tacked on the end, Web 2.0, Enterprise 2.0, Sales 2.0 etc. How about recruiting 2.0? I am not just talking about the tools companies use to recruit, I am talking about the way companies think about recruiting. Innovation towards greater efficiency and results should be a goal of every department—including HR/recruiting. Making a shift in thinking like this would be hard, it might be risky, and it would require change; but I am pretty sure I heard somewhere a time or two that great companies do that kind of thing.

Did I miss anything? I would love to hear your arguments for and against the industry experience requirement.

1 comment:

  1. Industry experience is relevant in a few cases, but not all. For example, if your company builds Bikes, it would seem relevant you have experience as a welder or engineer in the Bike industry. It's probably not a bad idea that you are into biking.

    Now let's look at a restaurant. I want someone who can cook. I don't need a short order cook, nor do I need a baker, I need a Cook. Someone who has varied skills cooking lots of different foods. I don't think I would care if they have Seafood or Italian background.

    Technology positions are much the same. A programmer in Aerospace isn't much different than a programmer in an Automotive company. I can write software, I just need to write software that works for your customers.

    I think industry experience can be good, but can also taint innovation. If I've only worked in the Medical field, I am biased to what customers are always getting, and tend not to break the mold. Brining in someone with varied experience can have influence when it comes to new designes and production.

    Never dismiss someone just because they don't come from your industry, you might be surprised what they can bring to the table.

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