How to Hire the Best People in the World
Summary
TLDRThe transcript emphasizes the significance of high-performing employees, who can be up to eight times more productive than average ones. It details the author's journey in learning to attract top talent, illustrating how superior talent can outpace competitors regardless of strategy. The narrative underscores the importance of a talent attraction strategy, which includes an employee value proposition addressing compensation, benefits, career, work environment, and culture. The speaker shares a five-step 'T' strategy for talent acquisition, targeting the right talent, identifying top qualities, optimizing touch points, and tracking results to enhance a company's ability to attract and retain the best employees.
Takeaways
- đ High-performing employees can be 4 to 8 times more productive than average employees, significantly impacting a company's speed and effectiveness.
- â° Talent is more critical than strategy; a company with better talent will outperform competitors, regardless of the strategy's brilliance.
- đĄ The speaker emphasizes the importance of understanding what top talent seeks in an employer, akin to focusing on customer needs when building a product.
- đ Two out of three company strategies fail due to talent-related issues, highlighting the need for effective talent management.
- đ€ The speaker shares personal experience, illustrating the challenges of attracting and retaining top talent, especially in the early stages of a business.
- đ The concept of 'company-talent match' is introduced as a critical factor for attracting and retaining top talent, similar to achieving product-market fit.
- đ« The education industry is cited as an example where the lack of a company-talent match leads to high turnover and dissatisfaction among teachers.
- đŒ The speaker discusses the evolution of their talent strategy, moving from hiring anyone to focusing on attracting high-quality talent to drive business growth.
- đ The importance of an employee value proposition (EVP) is highlighted as a key tool for attracting top talent, similar to a marketing offer for customers.
- đ The 'five T's of talent strategy' are introduced as a framework for building an effective talent attraction strategy: Targeting, Top Qualities, Touch Points, Tracking, and Talent.
Q & A
How much more productive are high-performing employees compared to average ones?
-High-performing employees are four to eight times as productive as average employees.
What is the significance of having top talent in a company?
-Top talent can execute strategies faster and better, which can significantly outpace competitors regardless of the strategy's quality.
Why do many strategies fail in companies?
-Two out of every three strategies fail due to talent-related issues, as the talent in a company dictates how well and how quickly strategies are executed.
What is the role of an employee value proposition in attracting top talent?
-An employee value proposition is a strategy to present an offer to potential employees, similar to a market offer for customers, which should answer why someone should work for the company over others.
What are the five components of an employee value proposition?
-The five components are compensation, benefits, career, work environment, and culture.
What does the 'Talent match' concept refer to?
-Talent match refers to the degree to which a company's infrastructure satisfies the demands and desires of the talent it seeks to attract.
Why is it crucial for companies to understand what top talent wants?
-Understanding what top talent wants helps companies to create a compelling employee value proposition that can attract and retain the best employees.
What is the 'five T's' strategy mentioned in the script for building a talent strategy?
-The 'five T's' strategy includes targeting talent, top qualities, touch points, tracking results, and talent match.
How can a company improve its talent acquisition funnel?
-A company can improve its talent acquisition funnel by identifying bottlenecks, expanding outreach channels, and creating targeted messaging to attract the right applicants.
What is the importance of transparency in compensation for attracting talent?
-Transparency in compensation helps build trust with potential employees and is a key component of an attractive compensation package that can draw top talent.
How can a company ensure it has a strong 'company-talent match'?
-A company can ensure a strong 'company-talent match' by understanding the needs and desires of its target talent and aligning its employee value proposition and work environment to meet those expectations.
Outlines
đ The Power of High-Performing Talent
The speaker emphasizes the significant productivity gap between high-performing employees and the average, suggesting that top talent can execute strategies faster and more effectively than their mediocre counterparts. They recount a personal experience where they struggled with a team of underqualified individuals, leading to a realization that attracting and retaining top talent is crucial for business success. The speaker introduces the concept of 'talent attraction machine' and the importance of understanding what top talent seeks in an employer, drawing parallels to product-market fit and the necessity for a 'company-talent match'. They also discuss the common failure of strategies due to inadequate talent execution and the need for a talent strategy that goes beyond just hiring anyone available.
đ Transforming a Struggling Business with Talent Strategy
In this section, the speaker shares their journey of transforming a struggling business by focusing on talent acquisition. They recount a moment of desperation that led to a pivotal realization: instead of working harder, they needed to work smarter by attracting better talent. The speaker then delves into the concept of an 'employee value proposition', which is essential for attracting top talent. They outline the five components of an effective employee value proposition: compensation, benefits, career, work environment, and culture. Each component is explored in detail, providing insights into how they contribute to attracting and retaining high-performing employees. The speaker also discusses the importance of understanding and articulating what makes a company an attractive place to work for top talent.
đ Crafting a Talent Strategy with the Five T's
The speaker outlines a strategic approach to building a talent strategy, focusing on the 'five T's': targeting talent, top qualities, touch points, and tracking results. They discuss the importance of identifying the right talent goals, such as increasing the number or quality of applicants, and crafting a candidate persona that aligns with the company's needs. The speaker also emphasizes the need to identify and leverage key touch points where potential talent interacts with the company, such as online searches and social media, to effectively promote the employee value proposition. Lastly, they stress the importance of tracking and measuring the effectiveness of talent acquisition strategies to continuously improve and adapt the approach to attracting top talent.
Mindmap
Keywords
đĄProductivity
đĄTalent Attraction
đĄEmployee Value Proposition (EVP)
đĄProduct-Market Fit
đĄCompensation
đĄBenefits
đĄCareer Development
đĄWork Environment
đĄCulture
đĄTalent Strategy
Highlights
High-performing employees can be four to eight times as productive as average employees.
Productivity of employees can significantly affect the time it takes to execute a company's strategy.
Attracting top talent is crucial for companies to outperform their competitors.
Talent is more important than strategy because it dictates how well a strategy is executed.
Many strategies fail due to a lack of suitable talent within a company.
To attract top talent, companies need to focus on what top talent wants from an employer.
Product Market Fit is crucial for a product's success, and Company Talent Match is equally important for attracting talent.
Understanding the needs and wants of top talent is key to creating an attractive employee value proposition.
Compensation, benefits, career, work environment, and culture are the five key components of an employee value proposition.
Compensation includes salary, raises, promotions, and pay transparency.
Benefits can range from time off to flexible work schedules and insurance.
Career development opportunities are essential for attracting top talent.
Work environment includes factors like autonomy, recognition, and challenge.
Company culture is the internal branding that reflects the mission, goals, and values of the organization.
Targeting talent involves identifying the type of talent a company needs and the current constraints in attracting them.
Top qualities help define the ideal candidate persona for a company's open positions.
Touch points are the various interactions where talent engages with a company and can be influenced by its employee value proposition.
Tracking results is essential to measure the effectiveness of a talent attraction strategy.
Even small or inexperienced companies can develop a competitive talent attraction strategy.
Transcripts
High performing employees are four to
eight times as productive as a normal
average employee meaning there are also
four to eight times as fast I want to
share with you how I learned this lesson
the hard way and how I've taken those
lessons and turned them into a talent
attraction machine so that you can
figure out how to attract the top one
percent of talent into your company how
that works is let's say company a has
mediocre talent and they set out a
strategy and it's going to take them
three years while Company B who happens
to be their competitor sets out with the
same strategy but because their
workplace is 800 percent more productive
it takes them one year obviously no
matter the strategy no matter how smart
you are with it if you have better
Talent you will beat your competitors
Talent beat strategy why because Talent
executes on the strategy talent you have
in the company dictates how the strategy
gets executed how fast it gets executed
how well it gets executed ultimately at
the end of the day if you look at the
statistics two out of every three
strategies that are set to be completed
by a company actually fail due to the
talent but here's the thing people
always say you've got to get the right
people in the right seats the reason
that you're struggling is you don't have
the people okay go get good people cool
how do I do that what does that look
like what do I need to attract those
people just like if you tell somebody
who's overweight hey you need to go lose
20 pounds they're like wonderful I've
been told that for the last five years
but how do I lose the 20 pounds tell me
what to do step by step it's not like
people with mediocre Talent don't know
that oftentimes people know that their
team isn't competent for the task at
hand they just don't know how to go get
people who are more competent and the
reason I know this is because I've
worked with thousands and thousands of
business owners and I can tell you they
don't know how to attract that Talent OR
to figure out how to attract top talent
we need to stop thinking about what do
we want as a business and we need to
start thinking about what does top
talent want out of an employer that's
like when you're trying to build a
product you're not thinking what would I
like it's what would my customer like
and in this sense your customer is the
top talent you're trying to attract
companies who are trying to achieve
product Market fit often fail because
it's very difficult and they can't
figure out what the product Market fit
is companies also fail because they
don't have a company Talent match
example of like failed product Market
fit is in the beginning of Instagram it
was called something to the extent of
like bourbon
b-u-r-b-n burb n it was like when you go
meet up with people and you're at a
meet-up place you post pictures of it it
just wasn't what people wanted and so
for a long time they struggled until
eventually the Founder's wife suggested
hey I think people just want pictures
and they want to be able to post
pictures and edit them and do all the
stuff and on a whim this guy changed the
app because it was going down and he
thought that he was going to be out of
business he changed it he achieved
product Market fit and here we go
billion dollar company how important
product Market fit is to a company like
Instagram is just how important it is
when it comes to attracting talent you
have to get the match Right company
Talent match is the degree to which the
infrastructure of the company satisfies
the demand the talent has so an example
where there's not a company Talent match
is in the education industry I'm sure
you've seen that there was the great
resignation and one of the industries
that was greatly affected was education
now why is that let's look at why people
fail to have a company Talent match
teachers are not paid well they don't
have good benefits they have to work
very hard and they don't have a good
workplace culture so if you look at it
the benefits of working in a Traditional
School System actually tend to be less
than the cons so if you feel like you
can kind of relate to this like you're
like Layla I know I need more talent but
I don't know how just keep listening
when I started my first company gym
launch I did not understand Talent match
I didn't understand that you needed a
talent strategy I knew that you needed
talented people I didn't really know
what they looked like I didn't know how
to attract them I think I vaguely kind
of understood conceptually but I didn't
know enough to be able to execute it I
hired literally anybody that had a pulse
and applied for the job I was just so
grateful that people wanted to work for
us I continued to hire that way for the
first year and a half a lot of times
companies can afford to do that because
in the first year and a half there's
typically not some explosion in a
company right two three years into it
that you really need to level up your
talent and who you're hiring for us it
was actually the opposite we absolutely
exploded six months into the new model
that we had for Denmark we had been
essentially flying people out to gyms
and then we turned into a licensing
model where we would teach people how to
execute that on their own in their gym
and when we did that the company
exploded but my skill set to attract
Talent did not explode and so what I
ended up doing is hiring all these
underqualified people promoting under
qualified people and having a very large
team that I felt the burden of the goal
is that if you have a large team that
the founder feels relief enough so that
they can lead the business neither
myself nor Alex felt that way at all it
felt like it was this huge burden like
we were carrying people I felt like
things weren't getting done I didn't
feel like it was efficient and I felt
like I didn't know what to do one I was
kind of scared I was like I'm
inexperienced I'm young like how am I
going to get these people right like why
would they come and work for me I also
thought to myself like I'm afraid what
if I make these investments in these
people and then they leave they don't
like it they think the companies this
big pile of burning and so they
don't want to be here anyways on the
other hand is you know I felt really
guilty that I had all these people I put
in these roles and I kept thinking maybe
it's me maybe it's my fault and
obviously to a degree it is but I kept
thinking I just need to train these
people more I need to make sure they
have better skills I need to pour more
of myself into them and it really all
came to a head in 2019 when I had a
moment where we had had our biggest
month ever we've done like 4.5 million I
was just so anxious and stressed and
overwhelmed I looked at Alex in a moment
of just desperation I was like I don't
want to do this anymore it feels awful
you know I quickly was like listen I
don't actually want to end the business
but I need to do something about this I
remember I contacted this woman who was
a coach I was hoping that she could help
me figure out how to get out of this
hole like I felt like I built myself
into which was essentially a company
that was just full of underqualified
people and I remember I met with her and
she said well what do you think the
problem is I feel like everyone's
underqualified you know I feel like I've
been pouring myself into it I've gotten
really good at training skill transfer
and a lot of these things but it's just
not it's just not cutting it it's just
not going fast enough for the rate that
we're growing what if your job is not to
work harder but to get better talent to
work harder on your behalf I was like
oh and at first it felt weird because I
was like I so pride myself or did on
working hard and it was really hard for
me to accept that in that moment I
realized that working hard wasn't going
to get this company to where it needed
to be I needed to get other people to
work hard as well at least work as hard
as me I've been trying so hard to bring
this team along but at the same time
like in my gut I knew it I'd read enough
times in enough books that eventually
when the company has matured to a
certain point you need to make sure that
you start up leveling the talent you
need to make sure you're getting high
performers in there so from that point
on I really dedicated myself to
understanding what makes great talent
how do companies attract great talent
how do you keep great talent how do you
get it when you're new in experienced
and have no idea what you're doing over
the next year and a half I went from
having a team that I felt overwhelmed by
I didn't want to be on the meetings I
didn't want to talk to people because I
felt so resentful that I was doing so
much work on others behalfs to going to
have a team where I was not involved in
the day today I didn't have to be there
all the time I could take a vacation and
things wouldn't fall apart and it all
came down to understanding a company
Talent match and then a talent
attraction strategy if you don't have a
talent attraction strategy what you end
up doing is you end uploading the
organization diluting the culture
decreasing the efficiency of the team
and not ultimately being able to carry
out any strategy that you set for the
business so how do you attract top
talent you attract top talent with an
employee value proposition just like you
put an offer into the marketplace to get
people to buy something you put an offer
into the talent Marketplace to get
people to come and work for you so just
like you put together an offer stack in
terms of what somebody's going to get if
they sign up with your company if they
buy your product Etc you put together an
employee value stack that shows them
everything they're going to get while
joining your organization and so what an
employee value proposition should do is
it should answer the question why should
I work here and not somewhere else there
are five pieces to an employee value
proposition I want you to follow along
and understand these five pieces so I
can explain to you how to put these into
action the first piece should be fairly
common which is compensation but
compensation doesn't come down to just
salary and what you're paying in person
compensation comes down to a few things
there's salary there's how do you raise
and promote people within the
organization there's fairness in terms
of evaluating people for raises and
promotions there's paid transparency
which is are you being transparent with
the people in the organization about how
and when they're paid all that together
is compensation the second piece that
follows compensation is benefits
benefits is time off flexible work
schedule remote work versus in-person
work education retirement plans and
things like insurance now on the other
end of the spectrum the other three
pieces of an employee value proposition
are career work environment and culture
so career is does this person in their
role have the ability to progress top
talent wants opportunity do you provide
training do you provide Career
Development do you talk about Career
Development you talk about their career
path do you ask them questions of what
they want in the organization do you
evaluate them and give them feedback
those all go into Career Development
work environment what kind of
environment are they working are they
autonomous or are they micromanaged are
they recognized or are they punished do
they have clear expectations or do they
have no idea what's going on and are
they challenged or are they just
clocking in clocking out every day and
then lastly there's culture culture
really comes down to understanding the
mission and the goals of the company why
are we here why do we do the work we do
and then how do we do the work we do
which is the value piece culture of a
company is really the internal branding
so just like externally there's a brand
of company and that's what the customers
see internally there's the brand of the
company that is what the talent sees
that's a lot of how do we put that
together to figure out employee value
proposition I call it the five T's and
this is the strategy that I follow to
put together a talent strategy so that I
know I'm going to have a strategy it
doesn't need to be all of those things
but I should be very clear on what
things it is and what it is not so the
first of the five T's is targeting
talent that means what are your target
Talent goals do you need more applicants
do you need more qualified applicants
that are applicants do you need a
different kind of applicant what is the
current constraint in terms of getting
people in so for example we had a
portfolio company they had a very hard
time getting coaches in and coaching was
a department that they need to attract
people that had a certain skill set and
they needed a lot of them and so we
looked at their strategy and they were
getting qualified people but they
weren't getting enough of them they
didn't have enough Nets cast to get
enough of them so just like a lot of
people post on indeed or LinkedIn and
then they say I'm not getting enough
talent coming in it's like well why
aren't we posting on indeed LinkedIn
Glassdoor Craigslist I mean like posting
everywhere as well as doing Outreach on
our behalfs to get Talent so you have to
look at where the bottleneck is in
getting the talent and that's your first
piece that you need to identify is do I
need more or do I need better and so for
them they needed more and so on their
website we actually added a second
funnel that was kind of parallel to
their customer funnel that said do you
want to be a coach essentially like a
sales page selling people on why they
could become a coach why it was so great
to become a coach and why it's so great
to work as our company and then we
actually ran paid ads asking would you
like to become a coach here's the
opportunity here's what it looks like
and so now they're able to get unlimited
coaches because they they have a talent
acquisition funnel that gets them more
qualified applicants the second piece in
determining your talent strategy is top
qualities what this means is you want to
identify what is your candidate Persona
that you're looking for who's the
perfect person to work at your company I
have had three companies prior to
acquisition.com I've had gym launch I've
had Prestige labs and I've had Alan and
my talent Persona has looked different
for each one of them the person I'm
going to get to work at gym launch they
might be a great director of customer
success at gym launch but they're not a
great director of customer success at
Allen in gym launch when I'm looking for
a director of customer success I'm
looking for somebody that can talk to
customers all day they can take
escalation calls and they really
understand a customer experience on the
other side with Alan when I'm looking
for a director of customer success that
person doesn't necessarily need to
understand and talk to people as much as
they did on the server side you want to
identify what do current employees love
about working at your company and what
if done more would cause them to love
working there more so typically what
people value in a smaller company tends
to be more of the soft stuff it's the
culture it's the workplace it's the
autonomy whereas if you ask somebody at
that bigger company they're probably
going to say compensation benefits
because bigger companies know that as
they get bigger the soft side is
actually what decreases and so they make
up for that in compensation and benefits
the fourth key to this is touch points
where does Talent interact with your
company so that you can promote your
employee value proposition so just like
you promote your business to get
customers you have to promote your
company to get talent and so the
question you have to ask yourself is
when I put our company out there into
the internet where are people looking at
it and what are they looking for well
typically if somebody sees your company
they're going to Google it that's the
first thing I've recruited thousands of
people for not only my own companies but
our portfolio companies and the first
reason that people won't work at a
company is what they get when they
Google it the best talent they're not
going to not do diligence they're going
to Google your company they're going to
look you up they're going to look at
your customer ratings they're going to
look at anything they can find those
places that they're looking to do due
diligence on your company are exactly
where you put your employee value
proposition and then the fifth T is
tracking results this ties back to
number one are you trying to get more
candidates are you trying to get more
qualified candidates are you trying to
get more brand awareness you have to
find the metric that goes along with it
and then you want to measure it to see
the question is how do you measure to
make sure it's effective when I'm trying
to get more qualified candidates I've
tried different strategies some of it
has been through the content that I make
and talking about interviewing tips and
things like that and then I look at okay
I launched a video for example on top
five interview questions did we get more
qualified candidates during that time
and if we did then I would say it's an
effective strategy I should do more of
that and if we didn't then I would say
it's not effective and we should go back
to what we're doing or try something
else what I want you to understand you
don't need to be the most established
the biggest or the most profitable
company to attract top talent there are
so many other things that you can do to
attract top talent I tell you this as
somebody who has been there no matter
how small you are no matter how
inexperienced you are no matter where
your company is at you can have a
competitive Talent match strategy
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