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Pennywise

By Esther Derby

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Summary: The go-go days of the '90s are gone, and with them extravagant hiring budgets. Most companies are being more conservative in making offers to candidates. If you're working on a tight hiring budget, how can you make the most of your hiring power? Esther Derby offers some advice on how to increase productivity after the candidate is in the door.


Borland
Back in the late '90s, both demand for qualified people and salaries were high. Hiring managers scrambled to make offers within hours of seeing a promising resume, and bidding for the best people was intense. It was a seller's market and qualified candidates could pick and choose from among the top compensation packages. 
 
Those days are gone, at least for now. 
 
Many companies (and candidates) are taking a more sensible and reasoned approach to finding a good fit between the needs and wants of both company and candidate. 
 
But in some companies, the pendulum has swung in the opposite direction. Instead of an obsessive focus on chasing the top candidates and offering top salaries, some companies are now focusing on hiring at the lowest salary possible. 
 
My friend Roxanne works for such a company, Pennywise Corp. Pennywise immediately eliminates candidates who are asking for the high end of the salary range for a job. Of the candidates who meet minimum skill qualifications, the job goes to the candidate with the lowest salary requirement—not the best qualified within the range Pennywise can afford.  
 
The people Pennywise is bringing in with this strategy aren’t bad people. But as Roxanne points out, “The people the company is hiring don’t have the experience to do the work the company wants to do. With all the inexperienced people we’re hiring, we’re actually falling farther and farther behind.”  
 
Even if you aren’t working with truly silly hiring policies, you’re probably working within a budget and have limits on what you can offer candidates. When you can’t find or can’t afford the perfect candidate, what can you do to enable less-experienced or less-skilled candidates to do the work you need done?  
 
Here are some strategies to keep work moving forward: 
 
Hone Your Hiring Skills 
In good times and bad, you want to hire the very best people you can afford.  
 
Look for value. The fact that a candidate lists a lower salary requirement doesn’t mean that he isn’t competent. It may mean that he has less experience or is willing to take a lower salary to move into an area where his experience and skills are not a perfect fit. These may be just the people you want to find.  
 
When you interview, focus on functional skills and ability to learn. Look for how well the candidate’s work style and personality fits with the group. (For more on hiring, read Johanna Rothman’s forthcoming article, “Ready, Aim… Hire,” which will appear in STQE magazine, March/April 2003.) 
 
Prioritize Relentlessly 
Development managers and test managers are always juggling more work than the staff can handle. If you can’t adequately staff all the projects on your agenda, staff the highest priority projects appropriately. Put the lowest priority projects on hold. You can always pick up low-priority projects again when the more important work is complete. (But check before you start them up again. Sometimes those projects slip from “low priority” to “no priority.”) 
 
Avoid Spreading People Too Thin 
Some people believe that if you move forward a little bit on every project, somehow all the projects will be accomplished. This may work when there is no time frame and no quality criteria specified. For most people, 10 percent time here, 15 percent there, in bits and pieces adds up to much less than 100 percent productivity. To get the most work done most effectively, assign people to only one or two projects. 
 
Manage Coaching Proactively 
Mentoring and coaching are part of the job description for many tech leads, test leads, and team leads. There are limits to how much coaching one person can do and still accomplish their own work. Don’t expect forty hours’ worth of deliverables each week from someone who is coaching other team members. If you have an inexperienced staff of five or six, and one team lead, count on one to two days of coaching time a week for your lead. 
 
Schedule “coaching time” in blocks so that the lead isn’t subject to constant interruptions. An open coaching session can provide a good learning opportunity where all less-experienced team members attend. Each person will learn from the answers to others’ questions as well as their own. 
 
Use Reviews and Walkthroughs 
Reviews are almost always a good practice to consider and they are essential when you’re working with new or inexperienced staff. Technical reviews aren’t just for developers. Any software product can be reviewed: requirements, use cases, designs, test plan, test cases, test scripts, install scripts, and of course, code. 
 
In addition to finding errors, reviews provide passive learning. As with open coaching sessions, each reviewer will learn from the issues they find and from the issues that others bring up in the review.  
 
Walkthroughs focus more on education than on finding defects. Walkthroughs can be an effective way for new people to increase their product knowledge. 
 
The pendulum may have swung the other way for a time, but no matter what the economic conditions, hiring the best people you can afford and managing proactively won’t go out of style.


About the Author
Esther Derby provides high-leverage facilitation to start projects on a solid footing, assess the current state, and capture lessons learned. She also coaches technical people making the transition into management. She and Johanna Rothman cofacilitate two workshops for managers, "Making the Transition to Management" and "Management Practicum." Visit Esther's Web site at www.estherderby.com or email her at derby@estherderby.com.

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StickyMinds.com Weekly Column From 2/17/03 

Member Comments
Add Your CommentExpand Comments
 
Comment:    
by marshall feldman 2/18/2003

How do you feel about the fact that because a lot of companies are outsourcing their IT projects to countries such as China and India where they can hire programmers and developers for one tenth the cost of similar individuals in the USA? The deliverables may not be the same as they would be if produced in the USA but the bottom line is that these deliverables work, and the company saves a lot of money as a result of lower overhead. A lot of companies are going down this path!!!

Author's Response:
2/18/2003    
Marshall – That’s a big topic! It seems like many people are nervous about international outsourcing. I read an article the other day about the globalization of the tech industry. In some ways, it parallels what has happened in other industries. Michael Kanellos on CNet News.com says: “In a sense, the software industry is going through what the hardware manufacturing industry experienced 15 years ago…” -- Esther

 
 
Comment:    
by Erkan Yilmaz 2/18/2003

Quota: Look for value. The fact that a candidate lists a lower salary requirement doesn’t mean that he isn’t competent. It may mean that he has less experience or is willing to take a lower salary to move into an area where his experience and skills are not a perfect fit. These may be just the people you want to find. Comment: Another possibility may be that the candidate did not inform well what he might be worth. If this is so, you can also assume from that that he is doing other stuff also inconsequent. You assume that he is willing to take lower salary. Better would it be if he says: "The actual salaries are but I only want ...Read On

Author's Response:
2/18/2003    
Erkan – Thank for pointing that out. I was writing with the assumption that candidates had done some homework and had a feel for reasonable salary ranges. That’s part a job search. I suspect that going into a salary negotiation without that information is a mistake people don’t make more than once. Your comment reminded me of a problem that Pennywise will run into (if they haven’t already): Suppose a candidate, Julie, agrees to a salary of $50,000. (She had the lowest salary requirement when her job was open.) When Julie finds out that Frieda, who is doing the same job, is being paid $60,000, Julie will probably feel she is being treated unfairly. People don’t do their best work when they feel they are being treated unfairly. Another negative consequence of Pennywise’s shortsighted salary policy. --Esther

 
 
Comment:    
by Srinivasan Desikan 2/17/2003

If you are the person taking the right decision, you would invest on best talent. Time may be gone where companies went behind best talent offereing lucarative salaries, but it is not far away even if the recession remains. These are the people who can make your company survive this recession. It is the time to get your team staffed up with best talents. In future it is going to be difficult. The invented technologies are waiting for the recession to get over. When it is over or not, the demand for people with these technologies would grow. Buying other companies, investing in bonds/funds are not good ideas, and that leave only one...Read On

Author's Response:
2/17/2003    
Srinivasan – I agree that investing in people creates a good return for companies. It’s not enough to hire the best people. Companies need to continue to invest in people by creating an environment that enables people to do good work. -- Esther

 
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