Don’t hire in response to short-term demand
TLDR: Cross-training, floaters, and contractors should be used to absorb short-term demand. Hiring takes too long. Hiring should instead be based on longer-term demand.
I need someone who knows X…
Product Managers ask for another person because they need someone who knows X.
We scramble to find someone. The recruiting process isn’t immediate though, so it takes a while, but we eventually hire.
But, it turns out that by the time we’ve actually hired, the product direction has changed. We don’t need X any more, we need Y.
Short term demand tends to be more volatile than long-term demand. What mechanisms should we use to absorb volatile short-term demand?
Option 1: Hire
Pro:
- Targets the specific need.
Con:
- Lead time to hire is generally too long to satisfy short-term demand.
Option 2: Contractors
Pro:
- Targets the specific need.
- Short lead time to hire.
Con:
- Generally expensive.
- Lead time to familiarise with culture and technology ← this can be reduced over time if the same contractors are used for multiple engagements.
Option 3: Cross-training
AKA T-shaped people.
Pro:
- Fastest response time (after cross-training has occurred).
- Keeps ownership in-house.
Con:
- Takes time to develop.
Option 4: Floaters
A floater is someone who moves between teams as needed to address changing needs.
Pro:
- Fastest response time.
- Less time to setup than cross-training.
- Keeps ownership in-house.
Con:
- Less capacity for changing demand than cross-training.
Summary
Respond to short-term demand with floaters, cross-training, and contractors. Don’t respond to short-term demand with hiring. Hire based on long-term demand instead.
