"If you recruit the wrong person, you end up paying for it twice"
The current situation, including the economic crisis, the possibility of down rounds, and budget cuts, will likely have an impact on the recruitment of new employees. Companies may need to optimize their operations and make changes in personnel to navigate through the crisis. Some companies might struggle to find room for optimization and may have to reduce their workforce.
However, the recruitment process itself is expected to become more focused and better. Companies will likely be more cautious and selective in their hiring decisions to avoid the costs and risks associated with recruiting the wrong person. The process of recruiting, training, and onboarding employees typically takes around six months, so it's crucial to make informed choices during the selection process.
In terms of the philosophy of recruitment, Ian Amit emphasizes the importance of bringing in versatile employees who can adapt to different tasks and responsibilities. He also believes in purchasing services from external companies to save money and free up internal resources from repetitive tasks.
On the other hand, Arkadiy Goykhberg emphasizes the complexity of the recruitment process and the need to carefully evaluate candidates' abilities. While larger teams may have the flexibility to move people around, smaller teams require more careful consideration in selecting the right individuals.
Looking ahead to the new fiscal year, managers' thoughts are driven by a need to evaluate and optimize processes within the company. They consider identifying and addressing problems, whether through hiring additional personnel or optimizing existing processes to build synergies between departments. Feedback from the team and others is crucial in this evaluation process.
Regarding the dialogue between management and boards, the crisis has likely brought discussions around immediate profits to the forefront. CEOs may find themselves educating the board about topics like cybersecurity and explaining the changing world and its effects. While the focus on profitability may remain, discussions may become more budget-sensitive, centering around backup plans in case of budget cuts.
The nature of these discussions between management and boards depends on the relationship between the two entities. Conversations usually revolve around strategic-level considerations, such as the level of risk the company is willing to take to achieve its plans. All dimensions of risks need to be carefully assessed, and it's acceptable to take calculated risks when their implications are well understood.
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