The Seduction of the Signal
In the first article of this series, I noted that while every organisation claims to seek agile, curious minds, their hiring systems remain tragically devoted to job descriptions and familiar logos—as if true potential could only be certified by prior branding and task déjà vu.
This paradox—valuing potential in theory but not in practice—isn't an accident. It's the outcome of over-reliance on proxy signals: the company worked at, the specific certification acquired, the exact title fit of their previous role. These signals, we're told, offer shortcuts to talent identification. In reality, they often obscure what matters most—what the candidate will need to accomplish at their new organisation.
Ethnographic studies of elite professional service firms often find that hiring decisions tend to reflect cultural matching rather than actual skills—think similar to the hiring manager in terms of leisure pursuits, experiences, and self-presentation styles. Candidates were judged not for what they could do but for how comfortably they fit into existing norms and expectations. It's not so much a war for talent as a search for sameness.
In this article, I build on that challenge and argue hiring processes that make a break from the common signal-based approach to substance-based formation—investing in what people can become, not just what they are—gain a long-term strategic advantage. But first, I need to unpack why signalling is so deeply embedded and why substance is so frequently missed.
The Tyranny of Pedigree
At its most flattering, signalling is efficiency. Hiring Managers and Talent Teams receive hundreds—sometimes thousands—of applications. Shortlisting by recognisable names—exact job title, company name, certifications—appears to reduce noise. Or as rejection letters would have it 'surface candidates more closely aligned to the role'. The trouble is, it also reduces diversity, breadth, depth, and ultimately, potential.
Consider the so-called 'talent shortage' in emerging tech platforms like Workday or Salesforce. Organisations routinely bemoan the absence of qualified candidates. Yet, as ThunderLabs reports, there are dozens of adjacent-skilled professionals capable of upskilling quickly. The real shortage is not talent—it's imagination in the hiring team.