View

The New Dictionary of Hiring

Licensed under CC BY 4.0: use these terms freely, with credit to James Ellis, Employer Brand Labs.

Hiring inherited the language of HR.

That explains a lot.

Absence Burn

Category
Economics
Definition
Absence Burn is the rate at which a missing capability costs the business value, measured per week or month.
Replaces
Vacancy age without economic context.
Question to ask
What is this unresolved gap costing us every week?
What it means

Some open jobs are an inconvenience. Others are quietly burning $100,000 a month. Treating them as equivalent because they both have an ATS record isn't prioritization.

‍

Estimate what the missing capability costs each week. Once the meter is running, “Let's look for another month” has a price attached. Cost of Absence tells you the total exposure; Absence Burn tells you how fast it's accumulating.

Example

Without a particular capability, a team loses a week's worth of productive work every month and has to pay for temporary support. The cost keeps growing while the requisition sits open.

How to use it

Estimate the ongoing weekly or monthly cost of the missing capability. Put that rate next to the search timeline so a delay is treated as a financial decision rather than a calendar inconvenience.

Say it to leadership
Every month this capability is missing has a cost. We should know roughly how much we're burning before deciding another month of waiting is acceptable.
Not to be confused with
Cost of Absence: Absence Burn is the loss as a rate, per week or month; Cost of Absence is the total.

Acquisition Risk

Category
Risk
Definition
Acquisition Risk is the chance that a business won't secure a necessary capability before the date its strategy requires it.
Replaces
Hard-to-fill role or hiring difficulty.
Question to ask
How confident are we that this capability will arrive before the business needs it?
What it means

“Hard to fill” tells you how recruiting feels about a job. Acquisition Risk tells you how much the business is betting on finding someone in time.

‍

A scarce skill, an impossible location requirement, an offer nobody wants or six weeks of approvals can all make the bet worse. Say which conditions are putting the plan at risk. Then leadership can decide whether to change the offer, the search, the deadline or the plan itself.

Example

The business needs an expert by July. The market is small, the location rule eliminates most prospects and the proposed pay is well below the offers those people already receive.

How to use it

For critical hires, assess whether the required talent is reachable, interested and realistically attainable by the deadline. Surface the conditions that make success unlikely while leadership still has options.

Say it to leadership
We can keep this requirement exactly as written, but the odds of hiring in time are poor. Which can we change: the offer, the location, the deadline or the plan?
Not to be confused with
Talent Risk: Acquisition Risk is about bringing a specific capability in on time; Talent Risk is the broader exposure, including losing people you already have.

Capability Ceiling

Category
Strategy
Definition
The Capability Ceiling is the limit on what a business can deliver with the people and capabilities it currently has.
Replaces
Treating headcount only as cost.
Question to ask
Where is our current capability ceiling limiting growth?
What it means

Every company has a Capability Ceiling. You can sell beyond it, forecast beyond it and make spectacular PowerPoint promises beyond it. You just can't sustainably operate beyond it.

‍

Instead of asking only how many people you're allowed to hire, ask what's backing up, what the business is turning away and which missing skill could raise the ceiling. Another approved requisition isn't the achievement. Being able to do more is.

Example

Every team is busy, delivery times are slipping and leaders keep raising targets. One missing skill is preventing the business from taking on more work without breaking something.

How to use it

Ask operating leaders what is backing up, what they are declining and where teams are at their limit. Identify the capability setting that limit and model how raising it would change capacity.

Say it to leadership
We can raise the target again, but the capacity won't appear by PowerPoint. Here's the capability setting our current ceiling, and the investment that could raise it.
Not to be confused with
Capability Gap: the Capability Ceiling is how much the business can do in total; a Capability Gap is a specific thing it can't do yet.

Capability Gap

Category
Essentials
Definition
A Capability Gap is something the business needs to be able to do but cannot yet do with the people it has.
Replaces
Open requisition or vacancy.
Question to ask
What can't the business do until this person arrives?
What it means

An empty box on the org chart tells you there's a vacancy. It doesn't tell you what the vacancy is costing the business.

‍

Nobody on the executive team is losing sleep over req #008742 being open for 67 days. They may care a great deal that the company still can't commission the plant, enter France or serve another customer. That's the Capability Gap. Talk about that, and you're finally talking about the same problem leadership is.

Example

Customers want a service the company is ready to sell. The team lacks the expertise to deliver it. The open job is the symptom. The missed business is the problem.

How to use it

For every priority hire, ask the business owner what the company cannot do today. Record that outcome beside the requisition and use it to decide what gets attention first.

Say it to leadership
We can tell you the role has been open for 62 days. The more useful fact is that we still can't deliver the work it was meant to enable. That's the gap I want us to solve.
Not to be confused with
Capability Ceiling: a Capability Gap is a specific thing the business can't do yet; the Capability Ceiling is how much it can do in total with the people it has.

Capability Market

Category
The Talent Market
Definition
The Capability Market is everyone who has a skill or experience the business needs, whether or not they're looking for a job.
Replaces
Talent pool.
Question to ask
Where does the capability actually live, not just where are the applicants?
What it means

Your applicants are not the market. They're the people who happened to show up.

‍

For scarce or important skills, many of the best people are employed, successful and nowhere near your careers site. Start with where the expertise actually lives, not who clicked Apply. You'll study different competitors, tell a different story and probably realize you should have started much earlier.

Example

The applicant pool has 14 names. The capability the business needs is held by hundreds of people working elsewhere, including some in jobs with completely different titles.

How to use it

Map where the required skill actually exists, including adjacent roles and other sectors. Build your sourcing, positioning and market assumptions around that population instead of the people who happen to apply.

Say it to leadership
Fourteen applicants tells us who responded to our job ad. It doesn't tell us how many capable people exist or what it would take to win them over.
Not to be confused with

Capability Unlock

Category
Strategy
Definition
A Capability Unlock is a person or capability whose arrival makes a previously constrained business outcome possible.
Replaces
Measuring every hire by the seat they occupy.
Question to ask
What becomes possible once this person is here?
What it means

One hire can let a company bid on a project, open a territory, launch a service or free ten other people from a bottleneck. Calling that a “filled vacancy” is technically correct and economically useless.

‍

Name the thing that becomes possible once the person arrives. That's the Capability Unlock, and it's what the business was buying in the first place. It also gives recruiting a better result to report than another closed requisition.

Example

One experienced hire can establish a new offering. Another can remove an approval bottleneck that has slowed three teams. The gain isn't one more employee. It's what the business can now do.

How to use it

Before opening a priority role, name the business outcome it should unlock. After the person is effective, report whether that outcome actually became possible.

Say it to leadership
When this person arrives and becomes effective, we can do work we can't do today. That's the return on the hire I want us to track.
Not to be confused with
The Capability Receipt: a Capability Unlock is what a hire makes possible; the Capability Receipt is the one-line test that names it.

Choice Friction

Category
Choice
Definition
Choice Friction is any unnecessary obstacle an employer creates between a candidate's interest and a confident yes.
Replaces
Treating candidate drop-off as mysterious.
Question to ask
Where are we making a yes unnecessarily difficult?
What it means

Seven interviews. A disappearing recruiter. A job description written by committee. An offer nobody can explain. A hiring manager whose favorite answer is “it depends.”

‍

Any one of those might be survivable. Together, they make choosing you exhausting. Switching Burden is what a person gives up by leaving their current job. Choice Friction is all the unnecessary difficulty your own process adds. You control much more of the second than you think.

Example

A candidate likes the job until the fourth interview is rescheduled, the salary changes and nobody can explain who they'll report to. The candidate withdraws. The team calls them 'not committed.'

How to use it

Walk the actual path from first interest to accepted offer. Remove unnecessary steps, slow decisions, contradictory messages and avoidable uncertainty. Watch where good candidates abandon the process.

Say it to leadership
We're losing people after we've already earned their interest. Some of that loss is entirely self-inflicted. Let's fix the parts of the process that make saying yes harder than it should be.
Not to be confused with
Switching Burden: Choice Friction is difficulty the employer adds; the Switching Burden is what the candidate gives up by moving, which exists before you do anything.

Choice Problem

Category
Choice
Definition
A Choice Problem is a hiring problem in which qualified people can be found but don't see enough reason to choose your company.
Replaces
Treating every hiring problem as a sourcing problem.
Question to ask
Are we struggling to find these people, or struggling to make them choose us?
What it means

Companies often respond to a Choice Problem by sourcing harder. The result is a larger pipeline of people who eventually take someone else's offer.

‍

If the capable people exist, you can reach them and they still don't want the job, supply isn't the issue. More outreach may produce more rejections, but it won't change what those people think of the opportunity. Figure out what they're choosing instead and why.

Example

The company reaches plenty of qualified people. They take the call, ask sensible questions and then choose to stay put or join somebody else. Recruiting responds by sending more messages.

How to use it

Look at where capable candidates decline, disengage or reject offers. Find out which alternatives win and why before increasing the volume of sourcing.

Say it to leadership
We can find the talent. We're losing them at the decision. More outreach won't fix what they think of the opportunity, so I'd like to work on the reasons they say no.
Not to be confused with
Talent Scarcity: a Choice Problem means enough people have the capability but aren't choosing you; Talent Scarcity means too few people have it. A Proof Problem is one common cause of a Choice Problem.

Choosability

Category
Choice
Definition
Choosability is the measure of how easily the right person can understand what a company offers, believe it, compare it against their alternatives, and say yes with confidence.
Replaces
Trying to be attractive to everybody.
Question to ask
Why should the particular people we need choose us?
What it means

The goal of employer brand isn't to be attractive to everybody. That would be impossible and, frankly, suspicious.

‍

The useful goal is to be choosable to the people the business actually needs. Can they see what they'll get, what they'll have to give, who does well there and what makes this opportunity worth choosing? Good employer branding makes those answers clear. It helps the right people say yes, and lets the wrong people say no before anyone wastes six interviews.

Example

A candidate can explain exactly what they'd get from one employer, what the work demands and why the offer fits their ambitions. Another employer just says 'great culture' and hopes that's enough.

How to use it

Check whether the people you need can see credible reasons to choose you over their real alternatives. Make those reasons specific in the careers site, outreach, interviews and offers.

Say it to leadership
We don't need everyone to think we're wonderful. We need the people our plan depends on to understand why working here would be worth choosing.
Not to be confused with

Compensation Substitution

Category
Economics
Definition
Compensation Substitution is paying extra to offset weak nonfinancial reasons for someone to choose your opportunity.
Replaces
Compensation problem. Assuming compensation is always the root cause of hiring difficulty.
Question to ask
Are we paying for scarcity, or paying because people don't prefer the opportunity?
What it means

Sometimes you pay a premium because the expertise is genuinely rare. Sometimes you pay it because the other employer offers a more appealing job.

‍

Those are different problems. If you keep winning candidates only by adding money to an otherwise forgettable opportunity, you're practicing Compensation Substitution. You may fill the role. You'll also have to write the same bigger check next time.

Example

Two employers want the same people. One can show unusual responsibility and clear advancement. The other offers the same vague promises as everybody else and has to keep increasing the salary.

How to use it

Review lost candidates and compensation exceptions. Separate genuine market scarcity from cases where people want more money because the rest of the opportunity feels weaker.

Say it to leadership
Before we raise the offer again, I'd like to know what we're paying for. Is the skill scarce, or are we paying extra because the job gives people too few other reasons to choose us?
Not to be confused with

Cost of Absence

Category
Essentials
Definition
Cost of Absence is the total business value lost or put at risk because a needed person or capability isn't there on time.
Replaces
Cost per hire as the only financial conversation.
Question to ask
What does another month without this person cost us?
What it means

Cost per hire tells you what recruiting spent to get somebody. Cost of Absence looks at what the business spent waiting: revenue delayed, work turned away, teams stretched, contractors brought in and opportunities missed.

‍

The numbers won't always be exact. They don't have to be imaginary, either. Before deciding that a hire is too expensive, work out what another three months without that capability might cost.

Example

A role costs $15,000 more to fill than budgeted. Leaving it open another quarter may delay $200,000 worth of work and force the team to buy temporary support.

How to use it

Before debating the price of a difficult hire, estimate what the business loses or puts at risk while the capability is missing. Use a reasonable range, show your assumptions and compare the cost of waiting with the cost of acting.

Say it to leadership
We're spending a lot of time debating what this person will cost. What will another 90 days without them cost? I'd like that number on the table before we decide.
Not to be confused with
Absence Burn: Cost of Absence is the total loss; Absence Burn is the same loss as a rate, per week or month. Opportunity Leakage is business never pursued at all, rather than lost while waiting for a specific hire.

Employed Capability

Category
Essentials
Definition
Employed Capability is talent already creating value for another employer, not a passive candidate waiting to be activated.
Replaces
Passive candidate.
Question to ask
Why would somebody successfully creating value somewhere else interrupt their career for us?
What it means

Recruiting calls these people “passive candidates,” which is a remarkable way to describe someone succeeding at a full-time job. They're not passive. They're busy.

‍

They're also not sitting around hoping your recruiter discovers them. They have a manager, colleagues, a reputation, momentum and perfectly good reasons to stay. Forget the question of how to get them to answer an InMail for a moment. Why should someone who's doing valuable work elsewhere interrupt their career for you? There's the real assignment.

Example

The person you need already has good work, a trusted manager and influence in another company. A generic 'exciting opportunity' message gives them very little reason to interrupt any of that.

How to use it

When targeting hard-to-find talent, research what successful people already have and value. Build the outreach around a credible reason to move, then make sure the job actually delivers it.

Say it to leadership
The people we most need are already creating value somewhere else. Our challenge isn't simply finding them. We have to give them a compelling reason to consider leaving.
Not to be confused with

Employer Distinctiveness

Category
Employer Brand
Definition
Employer Distinctiveness is how easily the right people can recognize a relevant, believable difference between you and alternatives.
Replaces
Employer differentiation. Trying merely to sound attractive.
Question to ask
What can candidates say about us that they could not honestly say about the five employers next to us?
What it means

Distinctive doesn't mean quirky. It means specific enough to recognize, relevant enough to matter and credible enough to believe.

‍

Try the copy-and-paste test. Could your promise sit on a competitor's careers site without anyone noticing? If so, you may have written something attractive, but you haven't helped anyone choose between you. That's the job of Employer Distinctiveness.

Example

Three employers all promise purpose, career growth and good colleagues. One can also show that new hires own consequential decisions within their first months. Suddenly there's something to compare.

How to use it

Put your employer claims next to the real talent competitors' claims. Keep only differences that are true, relevant to the people you want and supported by proof.

Say it to leadership
We sound a lot like the companies we're trying to beat for talent. What can we say that's both useful to candidates and difficult for those employers to say honestly?
Not to be confused with

Employer Sameness

Category
Employer Brand
Definition
Employer Sameness is the condition in which different companies describe working for them with essentially interchangeable promises.
Replaces
Assuming truth automatically creates differentiation.
Question to ask
What are we saying that our competitors cannot say just as easily?
What it means

Everyone is innovative. Everyone collaborates. Everyone makes an impact. Everyone values their people. Everyone, apparently, is changing the world.

‍

One begins to wonder how the world has survived all this change.

‍

Here's the problem: most of those claims may be true. But when a candidate can't tell which company said what, the claims have stopped helping anyone decide. Employer Sameness turns a potentially good workplace into one more forgettable option.

Example

Remove the logos from five careers pages. Nobody on the team can tell which company is which. Every page promises meaningful work, supportive people and opportunities to grow.

How to use it

Run a blind comparison of your careers copy, job ads and outreach against talent competitors. Find the interchangeable claims and replace them with meaningful truths only you can prove in that way.

Say it to leadership
When every employer sounds like us, candidates have no reason to remember us. That turns hiring into a contest over salary, convenience and who shouts loudest.
Not to be confused with
Sameness Tax: Employer Sameness is the condition; the Sameness Tax is what it costs.

Indifference Tax

Category
Essentials
Definition
The Indifference Tax is the extra time, money and effort required to hire people who have little reason to prefer your company.
Replaces
Assuming weak employer preference has no financial consequence.
Question to ask
How much recruiting spend exists because we haven't created preference in advance?
What it means

Indifference isn't free. You pay for it with more sourcing, more ads, more agencies, more recruiter time, longer searches and, eventually, bigger offers.

‍

When the people you want don't have a reason to prefer you, the cost doesn't disappear. It lands somewhere else in the hiring budget. Employer brand looks expensive when nobody remembers to count what it costs to be ignored.

Example

A team spends heavily on ads, agencies and repeated outreach just to get qualified people to take a first conversation. Candidates who already know and prefer another employer answer them immediately.

How to use it

Track the extra sourcing effort, advertising and agency dependence required in markets where people have no reason to choose you. Use those costs to make the case for building preference before the search.

Say it to leadership
We're paying more every time we hire because too many of the people we need are indifferent to us. That's a cost we can reduce, but it won't be fixed with another job ad.
Not to be confused with
Sameness Tax: the Sameness Tax is one cause of the Indifference Tax. When candidates can't tell employers apart, they decide on pay and convenience. The Indifference Tax is the total extra cost of not being preferred.

Message-Market Fit

Category
Choice
Definition
Message-Market Fit is how well an employer's actual message answers the questions and priorities of the people it needs.
Replaces
Judging employer messaging primarily through internal approval.
Question to ask
Does this message matter enough to influence the people we're trying to hire?
What it means

An employer message can be true, beautifully written, warmly received by leadership and completely irrelevant to the people you're trying to hire.

‍

Congratulations on the alignment.

‍

Now ask whether it changes how those people understand the opportunity. Does it answer something they care about? Does it give them a reason to consider you over an actual alternative? If not, the message may have achieved consensus inside the company without making a dent in the market.

Example

Leadership loves a campaign about being 'innovative and collaborative.' The people the company needs most want to know how much authority they'll have and what they'll actually get to build.

How to use it

Test messages with a specific talent group against the decisions that matter to them. Keep what changes understanding or preference; stop defending copy because an internal committee likes it.

Say it to leadership
We've agreed on the message internally. Now we need to find out whether it helps the people we need make a decision. If it doesn't, alignment hasn't bought us much.
Not to be confused with

Movement Premium

Category
Economics
Definition
The Movement Premium is the added value a person needs to see before leaving a good job for an uncertain new one.
Replaces
Assuming everyone has a price and you've simply guessed it incorrectly.
Question to ask
What would have to become meaningfully better for this person to leave what they already have?
What it means

Your vacancy isn't competing with unemployment. It's competing with someone's manager, colleagues, flexibility, reputation, seniority, commute, stock, momentum and the comforting fact that Tuesday is predictable.

‍

A 7% raise might not be the irresistible adventure you imagine. What would make leaving genuinely worthwhile? More money, perhaps. Or bigger problems, more trust, better work, greater scope. That's the Movement Premium you have to earn.

Example

A qualified person likes the manager, team and flexibility they already have. Your offer adds a slightly bigger title and a modest raise. They stay, to nobody's great surprise.

How to use it

Before building an offer or outreach message, understand what a successful person would have to gain to justify leaving. Test whether the opportunity offers enough of that gain.

Say it to leadership
We're asking people with good jobs to take a risk on us. What are we offering that's genuinely worth the move? 'It's a great opportunity' isn't an answer.
Not to be confused with
Movement Threshold and Switching Burden: the Switching Burden is what a person gives up by moving; the Movement Threshold is the point where moving becomes worth it; the Movement Premium is the extra value you must offer to get them past that point.

Movement Threshold

Category
Choice
Definition
The Movement Threshold is the point at which a new opportunity becomes worth the risk and disruption of leaving a current job.
Replaces
Assuming interest in your role is independent of someone's current situation.
Question to ask
What would make moving worth the disruption?
What it means

Someone who hates their job may need very little encouragement to leave. Someone with a great manager, flexibility, strong colleagues and a bonus due in March will take more convincing.

‍

“Good opportunity” isn't an objective standard. Your offer has to beat the life that particular person already has. The Movement Threshold belongs to the candidate. You don't get to set it by putting “exciting role” in an InMail subject line.

Example

A candidate with a supportive manager and flexible schedule turns down a raise. Another candidate in a stagnant role takes the same offer. Neither decision is irrational.

How to use it

Use conversations with candidates to learn what would make a move worthwhile for different talent groups. Adjust the opportunity and offer around what they actually value, not what you assume everybody wants.

Say it to leadership
The offer looks attractive from our side of the table. That doesn't mean it's enough to make someone leave a good job. We need to understand what makes the move worth it to them.
Not to be confused with
Movement Premium and Switching Burden: the Switching Burden is what a person gives up by moving; the Movement Threshold is the point where moving becomes worth it; the Movement Premium is the extra value you must offer to get them past that point.

Opportunity Leakage

Category
Economics
Definition
Opportunity Leakage is business a company never pursues or wins because it lacks the people needed to deliver it.
Replaces
Treating unpursued opportunity as unrelated to talent.
Question to ask
What business are we not even attempting because we cannot staff it?
What it means

Companies track revenue won. They're much worse at tracking the bids they never made, customers they never approached and markets they never entered because they couldn't staff the work.

‍

That business is gone before it becomes a lost deal. It doesn't appear on the recruiting dashboard, either. Opportunity Leakage is what happens when a company lacks the people to pursue an opportunity in the first place. The fact that nobody recorded it doesn't mean it cost nothing.

Example

A sales team stops pursuing a promising class of customers because delivery can't support them. Those deals never become lost opportunities in the CRM. They simply never happen.

How to use it

Ask business leaders what work they're declining, delaying or no longer pursuing because people or skills are unavailable. Connect those missed opportunities to specific capability gaps.

Say it to leadership
Our reports show the business we lost after competing for it. What about the business we never pursued because we knew we couldn't staff it?
Not to be confused with
Cost of Absence: Opportunity Leakage is business never pursued because the capacity wasn't there; Cost of Absence is the loss while you wait for a specific hire.

Preference Debt

Category
Essentials
Definition
Preference Debt is future hiring difficulty accumulated by failing to give tomorrow's critical talent a reason to choose you today.
Replaces
Switching employer brand on only when hiring becomes urgent.
Question to ask
When we need these people next year, will we already mean something to them?
What it means

Preference Debt is wonderfully invisible when nobody's hiring. The engineers, operators and executives you'll need next year are getting on with their lives, with no particular reason to think about you.

‍

Then the strategy changes, the requisitions open and recruiting discovers that every important relationship has to begin from zero. Nothing broke overnight. The debt was building all along. The vacancy just made it visible.

Example

Leadership knows a hard-to-find team will be needed next spring. Nobody talks to that talent market until the openings go live. Recruiting starts the clock with no reputation and no relationships.

How to use it

Look at the capabilities the business will need six to twelve months out. Identify where the right people don't know or consider you, and start building evidence and relationships before the roles open.

Say it to leadership
We can already see what we'll need to hire next year. If we leave those people cold until the jobs open, we're choosing a slower, more expensive search.
Not to be confused with
Preference Infrastructure: Preference Debt builds up when you don't invest in Preference Infrastructure; the Preference Dividend is what you collect when you do. Talent Debt is about missing people, not missing reasons to choose you.

Preference Dividend

Category
Economics
Definition
The Preference Dividend is the recurring hiring advantage gained when the right people already know, trust and prefer an employer.
Replaces
Measuring employer brand only through reach and impressions.
Question to ask
What becomes cheaper, faster or easier because the right people already prefer us?
What it means

When people already understand why they'd choose you, recruiters spend less time manufacturing interest. Calls get returned. Conversations go somewhere. Offers have a better chance of being accepted. There may be less need for agencies or ever-higher salary offers.

‍

That's a business return from work done long before the vacancy opened. Count those effects, not just the number of people who saw a post. A good employer brand should improve the economics of hiring.

Example

A hard-to-find candidate already knows the company, has seen credible stories about the work and respects its people. The first recruiting conversation starts with interest instead of suspicion.

How to use it

Compare response rates, qualified interest, offer acceptance and agency reliance in talent markets where preference is stronger. Look for the savings and speed created before a requisition opened.

Say it to leadership
Some hires are easier because the people we want already have a reason to choose us. That's an operating advantage. We should be able to show where it pays off.
Not to be confused with
Preference Infrastructure: Preference Infrastructure is what you build; the Preference Dividend is the return it pays. Preference Debt is what builds up when you don't invest.

Preference Infrastructure

Category
Essentials
Definition
Preference Infrastructure is the reputation, evidence and presence built in advance so critical talent has a reason to choose you later.
Replaces
Employer brand as careers-site content and campaigns.
Question to ask
What are we building today that makes tomorrow's critical hires easier?
What it means

Because employer brand produces words, pictures and campaigns, it's easy to mistake it for a communications expense. Its real value is closer to infrastructure. You build it before you need to rely on it.

‍

Nobody proposes building the bridge once the trucks arrive. Yet companies routinely wait until a critical requisition opens to start giving scarce talent a reason to choose them. The stories, proof, reputation and repeated exposure should have been doing that work for months.

Example

A company has credible employee stories, a known point of view and recruiters who stay in touch with the right talent. When a critical role opens, the conversation doesn't begin with 'Who are you?'

How to use it

Build a repeatable system for collecting proof, publishing useful stories and keeping relationships warm in priority talent markets. Judge it by how much easier future searches become.

Say it to leadership
I'd rather build reasons for the right people to know and trust us now than keep buying their attention from scratch every time we need a hire.
Not to be confused with

Proof Bank

Category
Employer Brand
Definition
A Proof Bank is an organized collection of real evidence that shows candidates what an employer's promises look like in practice.
Replaces
Repeating unsupported brand claims.
Question to ask
What happened here that proves this is true?
What it means

Every employer promise should come with receipts. “We empower people” is a claim. “An engineer six months out of school stopped a production release because she spotted a risk” is a story someone can actually evaluate.

‍

A Proof Bank collects those examples: decisions, experiences, outcomes, numbers and moments that reveal how work really happens. Give recruiters and hiring managers something more useful than another paragraph about your collaborative culture.

Example

A recruiter says people get serious responsibility early. Instead of pointing to a vague values page, they share two real examples of newer employees making decisions that mattered.

How to use it

Collect concrete stories, decisions and outcomes from employees. Organize them by the candidate questions they answer, then give recruiters and hiring managers easy ways to use them.

Say it to leadership
We keep asking recruiters to sell promises they can't substantiate. Let's give them real examples they can put in front of candidates and let the evidence do some of the work.
Not to be confused with

Proof Problem

Category
Choice
Definition
A Proof Problem is a situation in which an employer makes appealing promises but gives candidates too little evidence to believe them.
Replaces
Polishing claims nobody has reason to believe.
Question to ask
What evidence would make this promise credible?
What it means

You say people advance quickly. Show me who did. You say junior employees have a voice. Show me a decision they changed. You say the work matters. Show me what happened because someone did it.

‍

Calling a claim “authentic” doesn't make it believable. A Proof Problem needs receipts: examples a candidate can inspect, question and recognize as real. You don't solve it by making the claim louder.

Example

A company promises rapid growth, but nobody can name a recent employee who actually advanced. Candidates have heard the claim before and keep asking the same skeptical questions.

How to use it

Identify the claims candidates seem least willing to believe. Collect specific examples, people and outcomes that can prove those claims, then put the evidence where decisions are being made.

Say it to leadership
We're making promises that the people we need have no good reason to believe. Before we spend more making those promises louder, let's collect evidence that makes them credible.
Not to be confused with
Choice Problem: a Proof Problem is one cause of a Choice Problem. People don't choose you because they don't believe what you say.

Recruiting Gravity

Category
The Talent Market
Definition
Recruiting Gravity is an employer's ability to draw the right people toward it instead of relying entirely on outbound pursuit.
Replaces
Assuming more outbound effort is the only way to increase hiring.
Question to ask
How much easier would recruiting become if more of the people we wanted already wanted us?
What it means

If nobody has a reason to choose you, recruiting is all push. More outreach, more ads, more follow-ups, more agencies. Create enough preference and some people start coming toward you. They return calls, mention your name and seek out jobs before you've asked them to.

‍

Recruiting Gravity doesn't mean you can fire the recruiters and wait for applications to fall from the sky. It means your recruiters don't have to create every bit of interest themselves.

Example

A recruiter can spend weeks chasing reluctant prospects, or begin a search with people who already follow the company, know its work and have asked to hear about openings.

How to use it

Look at where qualified interest comes from before heavy outbound effort begins. Invest in the stories, relationships and reputation that draw relevant talent toward the company over time.

Say it to leadership
Our recruiters shouldn't have to manufacture all the interest themselves. If we build a reputation the right people care about, every critical search starts a little further ahead.
Not to be confused with
Share of Consideration: Recruiting Gravity is how far the right people come to you on their own; Share of Consideration is how many of them would take your call at all.

Replacement Horizon

Category
Risk
Definition
The Replacement Horizon is the realistic time required to restore a vital capability if the person providing it leaves.
Replaces
Treating all regrettable attrition as equally regrettable.
Question to ask
If this person left tomorrow, how long before the business was whole again?
What it means

Some departures are inconvenient. Others create a nine-month hole that nobody knew existed until the goodbye email arrived.

‍

“We'd really hate to lose her” is a feeling. “It would take nine months to recover this capability” is something you can plan around. The Replacement Horizon turns vague retention anxiety into a specific discussion about succession, knowledge transfer and exposure.

Example

A key employee could leave with two weeks' notice. Recruiting a replacement might take four months, followed by another five months before the new person can work independently.

How to use it

For a handful of hard-to-replace roles, estimate the full recovery time from departure to restored capability. Use it to prioritize succession, retention and knowledge transfer.

Say it to leadership
If this person left tomorrow, we could be nine months away from having the capability back. That's a planning fact, and it should change what we do now.
Not to be confused with
Time to Capability: the Replacement Horizon estimates how long it would take to restore something you'd lose; Time to Capability measures the wait for something you need now.

Sameness Tax

Category
Economics
Definition
The Sameness Tax is the extra cost of recruiting when candidates can't see a meaningful difference between you and other employers.
Replaces
Treating generic employer messaging as merely boring.
Question to ask
What are we paying because candidates can't see a meaningful difference?
What it means

“Make an impact.” “Grow your career.” “Do meaningful work.” When every company says the same thing, those promises are no help at all.

‍

Candidates turn to what they can compare: salary, title, location and convenience. Those are expensive battlegrounds. The Sameness Tax is what you pay for failing to give people another meaningful basis for choosing you.

Example

Five competitors promise growth, impact and a great culture. A candidate sees no meaningful difference, so they compare salaries and commute times. The employer has helped turn its own job into a commodity.

How to use it

Put your messaging beside the employers that compete for the same people. If the claims are interchangeable, find specific, believable differences that matter to the talent you need.

Say it to leadership
When candidates can't tell our opportunity apart, they choose on the things they can compare. Most of those things cost us money. We should stop making price our only argument.
Not to be confused with
Employer Sameness: Employer Sameness is the condition; the Sameness Tax is what it costs. The Indifference Tax is broader: the total cost of not being preferred, for any reason.

Share of Consideration

Category
The Talent Market
Definition
Share of Consideration is the proportion of a target talent market that would seriously consider working for your company.
Replaces
Employer awareness as the primary brand goal.
Question to ask
Of the people we most need, how many would seriously consider us?
What it means

Awareness asks, “Have they heard of us?” Share of Consideration asks, “Would they seriously consider working here?”

‍

The second question is considerably more useful. You don't need every engineer, nurse or project manager on earth to know your name. You need the particular people your business will depend on to put you on their shortlist. Fame is nice. Consideration is what gives recruiting a chance.

Example

Hundreds of people recognize the company name. Very few would put it on a shortlist of places they'd seriously work. Awareness looks healthy. The hiring problem remains.

How to use it

Ask a defined group of priority talent whether they'd genuinely consider the company, then learn why or why not. Track this among the people who matter instead of relying on general brand awareness.

Say it to leadership
Being known isn't enough. Of the people this plan depends on, how many would actually consider working here? That's a number worth improving.
Not to be confused with
Recruiting Gravity: Share of Consideration measures how many of the right people would take your call; Recruiting Gravity is how far they come to you without being chased.

Single-Person Dependency

Category
Risk
Definition
A Single-Person Dependency is an important business capability that is effectively held by just one employee.
Replaces
Assuming current capability is secure simply because someone currently provides it.
Question to ask
Which important things can only one person here currently do?
What it means

Every business has a few jobs that only one person really knows how to do. Everything is fine until Susan leaves.

‍

Susan, naturally, has just updated LinkedIn.

‍

List the capabilities that would disappear with one resignation. Who else could do the work? Where is the knowledge documented? How long would it take to recover? It's much cheaper to ask Susan now than to reconstruct her job from her inbox later.

Example

Only one employee knows how a vital process works. They're also the only person who can fix it when it fails. Their vacation is now an unofficial business-continuity exercise.

How to use it

Ask leaders which important decisions, systems or relationships rely on one person. Document the exposure and push for cross-training, succession or a second source of capability.

Say it to leadership
We have a part of the business that effectively lives in one person's head. We should build a backup before we learn how expensive that is.
Not to be confused with
Strategic Dependency: a Single-Person Dependency is a capability you already have, held by only one person; a Strategic Dependency is any capability the plan relies on, whether or not you have it yet.

Strategic Dependency

Category
Essentials
Definition
A Strategic Dependency is a person or capability on which a business objective depends for its timing, scale or success.
Replaces
Critical requisition.
Question to ask
What business outcome depends on this hire?
What it means

Call something a “critical requisition” and leadership hears that recruiting wants it prioritized. Call it a Strategic Dependency and you can explain why.

‍

If a $20 million expansion depends on one specialist, the business has a problem bigger than a hard-to-fill job. The useful question isn't “How's the search going?” It's “What happens to the expansion if we don't find this person?” That's a question the whole leadership team should own.

Example

A planned expansion depends on one person who can put a critical system into operation. Every other part of the plan can be ready, and the opening still slips.

How to use it

Work backward from important business milestones. Identify which depend on a particular hire or capability, and bring that dependency into the same planning conversation as budget and timing.

Say it to leadership
This hire sits on the critical path for the plan you've approved. If we can't secure that capability by the required date, which part of the plan changes?
Not to be confused with
Single-Person Dependency: a Strategic Dependency is a capability the plan needs, whether or not you have it yet; a Single-Person Dependency is one you already have, held by only one person.

Switching Burden

Category
Choice
Definition
The Switching Burden is everything a person risks, loses or must rebuild when changing employers, even when the new job pays more.
Replaces
Evaluating an offer only by what the new company provides.
Question to ask
What does this person have to give up in order to say yes to us?
What it means

Relationships, reputation, influence, flexibility, knowledge, routines and certainty all have value. None appears on a payslip, but candidates know what they're worth.

‍

Recruiters naturally talk about what someone could gain. Someone who's doing well may be thinking just as hard about everything they could lose. Unless you understand that Switching Burden, a perfectly rational no can look like a baffling rejection of your “great opportunity.”

Example

A senior employee would gain money by leaving but lose influence, a trusted team and an arrangement that makes family life work. The salary comparison misses half the decision.

How to use it

List what the people you need would risk or give up by moving. Address the important concerns through honest information, thoughtful offers and a realistic account of the new role.

Say it to leadership
We're asking people to give up more than a paycheck. Until we understand what they'd lose by joining us, we'll keep being surprised when a bigger offer isn't enough.
Not to be confused with
Choice Friction: the Switching Burden is what the candidate gives up, and it exists before you do anything; Choice Friction is difficulty the employer adds.

Talent Competitor

Category
The Talent Market
Definition
A Talent Competitor is any employer the people you need might choose instead, whether or not it sells what you sell.
Replaces
Recruiting competitor. Assuming commercial competitors are automatically talent competitors.
Question to ask
Where else could the people we need plausibly choose to work?
What it means

Your biggest commercial competitor might never hire your engineers. The bank across town might.

‍

People choose between employers based on the jobs they could actually do, not the industry codes in a competitive analysis. Study the places your target talent might plausibly work. Otherwise you may spend months comparing yourself to companies that aren't competing with you for people at all.

Example

A candidate rejects an offer to stay at a company that sells entirely different products. That company was a serious talent competitor, even though it never appeared on the commercial competitor list.

How to use it

Ask candidates and employees which other employers they seriously considered. Audit those organizations' opportunities and promises, regardless of their industry, before deciding how to differentiate yours.

Say it to leadership
Our biggest competitors for customers aren't necessarily our biggest competitors for people. We need to know where the talent we want would actually choose to work.
Not to be confused with

Talent Debt

Category
Essentials
Definition
Talent Debt is the accumulation of commitments a business has made without securing the people required to deliver them.
Replaces
Hiring backlog. Treating hiring as something that happens after strategy.
Question to ask
How much of the strategy have we already promised before securing the people required to execute it?
What it means

A company sells the work before it has the team, announces the expansion before it has the expertise and commits to a deadline before it knows whether anyone can deliver. Hiring becomes an emergency. Naturally, it's recruiting's emergency.

‍

Talent Debt is what piles up when a business makes promises against people it hasn't secured. Like most debt, it looks cheap when you take it on. The bill arrives later, usually with “URGENT” in the subject line.

Example

The company promises a bigger offering, faster delivery and a new growth target. None of the needed talent has been secured. Three promises become three urgent searches, all at once.

How to use it

Review commitments already made for the coming quarters. Mark which still depend on unconfirmed hires, then show the combined exposure instead of treating each search as a separate emergency.

Say it to leadership
We have commitments on the books that depend on people we don't have. That debt will come due whether recruiting is ready or not. We should decide now which promises need a different plan.
Not to be confused with
Unstaffed Commitment: an Unstaffed Commitment is one promise made without the people to keep it; Talent Debt is the total of those promises. Preference Debt is different again: missing reasons for talent to choose you, not missing people.

Talent Demand Creation

Category
Employer Brand
Definition
Talent Demand Creation is building genuine interest in working for a company before anyone is asked to apply.
Replaces
Candidate attraction that begins with an open job.
Question to ask
How are we making future candidates interested before we need anything from them?
What it means

Most recruiting systems are built to capture demand from people who are already prepared to consider changing jobs. Employer brand has a chance to do something earlier: make someone interested who wasn't interested before.

‍

If the first time scarce talent hears a good reason to work for you is the day a vacancy opens, you've left a lot of influence unused. Give them something worth noticing now, while the next hard-to-fill job is still a line in a planning document.

Example

A person who wasn't job hunting hears a compelling story about a company's work, follows it for months and later accepts a recruiter's invitation to talk. Interest began long before the requisition.

How to use it

Choose priority future talent markets and publish credible, useful reasons to pay attention now. Keep showing up before there is a job to sell, then track how interest develops.

Say it to leadership
Waiting until a job opens to create interest is making recruiting do the hardest work at the worst possible moment. We can start earning that interest now.
Not to be confused with

Talent-Limited Growth

Category
Strategy
Definition
Talent-Limited Growth is the condition in which demand and opportunity exceed what the business can deliver with the people it has.
Replaces
Calling every hiring shortage a recruiting problem.
Question to ask
Where could the business grow faster if it had access to more of the right capability?
What it means

Sometimes demand isn't the problem. Neither is money. Customers are ready, work is available and the business has room to grow. It just doesn't have enough of the people who can deliver.

‍

That is Talent-Limited Growth. Raising the sales target won't fix it. Finding, developing or retaining the necessary capability might. Hiring belongs in the growth conversation because the business can only sell what it can eventually deliver.

Example

Demand is healthy and the pipeline is growing. The company keeps turning away work because it can't build the team required to deliver more.

How to use it

Pair missed or deferred business opportunities with the capabilities that would make them possible. Use that evidence to show where talent access, development or retention is the binding growth constraint.

Say it to leadership
We're not short of demand. We're short of the capability to serve it. If growth is the priority, these hires deserve to be discussed as part of the growth plan.
Not to be confused with
Capability Ceiling: the Capability Ceiling is the limit itself; Talent-Limited Growth is the condition of hitting that limit while demand is still there.

Talent Risk

Category
Essentials
Definition
Talent Risk is the threat to business results when necessary people may be unavailable, unattainable or lost when they are needed.
Replaces
Treating hard-to-fill hiring as an HR problem.
Question to ask
Which parts of the plan are exposed because we aren't confident we can obtain or retain the people they require?
What it means

Companies keep registers for financial risk, cyber risk, supplier risk and regulatory risk. Then they build the growth plan around five nearly impossible hires and call them “open reqs.”

‍

If the business can't launch, deliver or expand without someone you might never find, there's a business risk to manage. Give it an owner, a deadline and a contingency plan. Moving the requisition to the top of the spreadsheet doesn't do any of those things.

Example

A growth target depends on a scarce skill that takes months to hire. The risk appears nowhere in the executive review because it's listed as an open requisition.

How to use it

Bring the highest-impact hiring and retention exposures into the regular risk review. Give each one a business consequence, likelihood, owner and response.

Say it to leadership
We track the risks that could keep this plan from happening. The possibility that we won't have the people to deliver it belongs on that list.
Not to be confused with
Acquisition Risk: Acquisition Risk is one part of Talent Risk, the chance of failing to bring a specific capability in on time. Talent Risk also covers losing the people you already have.

Talent Scarcity

Category
The Talent Market
Definition
Talent Scarcity is the condition in which too few realistically accessible people have a capability the market urgently needs.
Replaces
Calling every difficult search a talent shortage.
Question to ask
Is the capability truly scarce, or are we simply failing to access the market?
What it means

Four applicants doesn't prove Talent Scarcity. There may be very few people who can do the work. Or your ad may be hopeless, your location rules unrealistic, your reputation invisible or your interview process a museum exhibit.

‍

Before deciding that the people don't exist, find out how many do and why you aren't reaching them. True scarcity calls for one strategy. Making an otherwise accessible market want nothing to do with you calls for another.

Example

A job gets three applications. Leadership calls the skill impossible to find. A market check shows plenty of capable people, but most cannot accept the location requirement or see little reason to consider the company.

How to use it

Check the size and accessibility of the actual capability market before declaring scarcity. Test compensation, geography, requirements, message and hiring friction as alternative explanations.

Say it to leadership
We have low response, but that doesn't yet prove there are too few people. I want to know whether the market is scarce or whether our offer is giving the market a reason to ignore us.
Not to be confused with
Choice Problem: Talent Scarcity means too few people have the capability; a Choice Problem means enough people have it but aren't choosing you.

The Hiring Assumption

Category
Strategy
Definition
The Hiring Assumption is the untested belief that the people needed to execute a strategy will be available when the plan requires them.
Replaces
Assuming people will appear once the plan is approved.
Question to ask
What does this strategy assume we will be able to hire?
What it means

A strategy deck will examine market size, pricing, capital, competition and regulation in exhausting detail. Somewhere near the end, a box appears: “Build team.”

‍

Apparently, that part will take care of itself.

‍

The Hiring Assumption is the miracle tucked inside the business plan. Ask whether those people exist, whether they would choose this company and whether they could arrive before the opportunity passes. If the answer is uncertain, the strategy is uncertain too.

Example

The board approves a plan that requires 30 new specialists by autumn. Nobody has checked whether enough exist locally, whether the offer is competitive or whether the hiring timeline is remotely possible.

How to use it

When a strategy or budget assumes new headcount, test the labor market, the likely hiring timeline and the reasons those people would choose you. Bring the findings back before the plan hardens.

Say it to leadership
The plan assumes we can hire these people on schedule. That's a business assumption worth testing before we attach a revenue target and a deadline to it.
Not to be confused with

The Twelve

Category
Essentials
Definition
The Twelve are the few people or capabilities on which a disproportionate share of the business plan depends.
Replaces
Treating every requisition as roughly equal.
Question to ask
Which twelve people does next year's plan depend on, and where do they work right now?
What it means

Most hiring plans are built in bulk: 42 engineers, 18 salespeople, 11 project managers. Fine for budgets. Not so useful for figuring out which missing person could derail the year.

‍

Buried in that spreadsheet are the people who unlock the plan: the regulatory expert needed to enter a market, the estimator needed to bid the work, the clinical specialist needed to open the service. Those are The Twelve. There might be seven. There might be twenty. The point isn't the number. It's knowing which hires the business cannot afford to treat like all the others.

Example

The hiring plan has 80 openings. Six of them determine whether two major commitments happen on time. The other 74 matter, but those six can change the year.

How to use it

Take the annual plan into a meeting with the business owners. Circle the handful of outside hires that unlock major commitments, then give each one a deadline, a market strategy and an executive owner.

Say it to leadership
We have 80 roles on the hiring plan, but six of them could decide whether we hit the business plan. I'd like us to manage those six as strategic priorities, with the same attention we give the commitments they support.
Not to be confused with
The Twelve Clause: The Twelve are the people the plan depends on; The Twelve Clause is the planning question that finds them.

Time to Capability

Category
Essentials
Definition
Time to Capability is the period from recognizing a business need until people can deliver it, not merely until someone accepts an offer.
Replaces
Time to fill.
Question to ask
When does the business actually become capable?
What it means

Time to fill ends when someone accepts the offer. Unfortunately, the business still has to wait through a notice period, onboarding, training and whatever it takes for that person to become effective.

‍

If you need to open a market, deliver a project or increase production, a signed offer is a milestone, not the finish line. Measure the time from “We need to be able to do this” to “Now we can.”

Example

The candidate accepts in April, starts in June and needs two months to become effective. The dashboard says 'filled' in April. The business gets the capability in August.

How to use it

In workforce planning, add the notice period and expected ramp-up to the search time. Work backward from when the business needs someone contributing, rather than when it wants a signed offer.

Say it to leadership
An accepted offer doesn't deliver the plan. If we need this capability working in August, we have to account for the search, the start date and the time it takes to become effective.
Not to be confused with
Replacement Horizon: Time to Capability measures the wait for something the business needs; the Replacement Horizon estimates the wait to restore something it already has, if the person providing it left.

Unstaffed Commitment

Category
Essentials
Definition
An Unstaffed Commitment is a business promise made before the people needed to fulfill it have been secured.
Replaces
Discovering hiring requirements after the commitment has been made.
Question to ask
Which promises have we already made that depend on people we do not yet employ?
What it means

The company signs the contract, sets the launch date, announces the expansion or approves the growth target. Then somebody says, “Now we just need to hire the team.”

‍

That little word “just” is doing spectacular amounts of work. Name the Unstaffed Commitment while the promise can still be changed. One missing team is a risk you can plan around. A whole portfolio of promises without people behind them becomes Talent Debt.

Example

A new customer promise has a delivery date, a budget and executive approval. The team needed to keep it exists only as three unapproved requisitions.

How to use it

Put a talent-readiness check into the approval process for major launches, expansions and customer commitments. Ask what capability must exist, by when, and how certain the business is that it will.

Say it to leadership
We've committed to the outcome before securing the people who can deliver it. Do we fund the capability now, change the timing or reduce the promise?
Not to be confused with
Talent Debt: an Unstaffed Commitment is one promise made without the people to keep it; Talent Debt is the total of those promises.
Nobody said no.
That's the problem.

Ever had leadership say "makes sense, let's revisit next quarter" about your hiring plan?
Support for TA and employer brand people who keep winning the argument and losing the budget.

Your next budget meeting is already coming.
["Let's Revisit this next quarter" →]
Learn how to manage your leadership

ONE QUESTION TO TAKE WITH YOU

Look at next year's business plan. Ignore total headcount for a moment. Ignore requisition volume, time to fill and cost per hire.

‍

Ask: Which twelve people does this plan depend on—and where do they work right now?

‍

The answer will tell you much more about your hiring strategy than the requisition forecast ever will.

‍

‍

‍

‍

The New Dictionary of Hiring‍

Created by Employer Brand Labs.

Because the business cannot grow faster than it can acquire the capability to grow.