I spent 6 years as CIO of an investment bank, followed by 3 years as CEO of a company selling software-as-a-service to hedge funds, investment banks and brokerage houses. Two terms you hear often in the world of high finance are buy-side and sell-side. Buy-side analysts usually work for mutual fund companies and help decide what stocks to buy for their fund’s portfolios. Sell-side analysts usually work for brokerage houses and make recommendations on what stocks individuals should buy, hold or sell. Sell-side analysts are peddling stocks. Buy-side analysts are accumulating stocks.

Many of us are trying to assemble great teams. We fill our teams via recruiting, which has many steps:

* Candidate sourcing
* Preliminary candidate screening
* Interviews
* Hire/no-hire decisions
* Offers
* Negotiations
* Start of employment

In my opinion, the reason good companies are good at recruiting is because they treat the process as a sell-side transaction. Companies filled with mediocre talent treat the recruiting process as a buy-side transaction. The basis for my opinion is that really talented individuals have their choice of opportunities. They pick where they want to work. Who among us wouldn’t jump at the opportunity if an awesome engineer called and said “I’m thinking of changing companies and love what you’re doing. Can I come in to see if there’s a potential fit?”

Crappy companies look at recruiting like buying produce at the grocery store. Thump, squeeze and sniff to find the best canteloupe or avocado. Throw it in a plastic sack, set it in the cart and off you go. Good companies look at recruiting like finding a soul mate. Court, woo, wine & dine to find the best mate. Now let’s assume you’re a great employee. Would you rather be hastily thumped, squeezed, sniffed and sacked or patiently courted, wooed, wined & dined? Would you rather be thought of as perishable produce or a soul mate?

There you have it. The first step in recruiting a great team is to change your orientation from buying to selling.