Did you know a bad hire could cost you 30% of their first-year earnings?
Money is not all that you lose when you hire the wrong person. People who aren’t right for your business are disengaged. Disengagement is contagious.
Bad hires lower morale and productivity of other employees, essentially starting a chain reaction that could set you back considerably.
On the other hand, hiring a high performer can take your productivity through the roof. In highly complex roles high performers can be 800 percent more productive than average hires. Yes – EIGHT HUNDRED PERCENT.
Talent was a very different beast just a generation ago. Skills were the main criterion people were evaluated for. If you were good at what you did, no one cared much about you as a person. And it worked for that time. People kept work and life segregated.
That’s not how it is for millennials who are a majority of the workforce today. As seekers of talent, you need to dive in to the millennial mindset.
Millennials are always working, always connected. Work and life are integrated; the boundaries are blurred. It’s hard to separate one’s emotional being from the person that’s doing a certain job. So personalities matter. Attitudes matter. Skills – not so much.
To reflect that change, we need to look at candidates in a different way:
Good Hire – A good hire has the right attitude but not the skill. Why am I calling it a good hire then? Attitude alignment is a stronger trait. “Skill is overrated,” says Jeff Bezos, and I agree. If you have the right attitude, you can learn the skill. A good hire is coachable because they desire to do great things for the company.
Great Hire – Finally a great hire has both – the right attitude and the right skill. They love the company and what it stands for, they resonate with the company vision, and they are coachable. These are your rockstars.
How do you know what category is the person sitting across from you? How do you make the right choice and hire the great people?
You’ve hired some great people, now what? The biggest frustration of entrepreneurs is “I feel like I have hired someone really talented, but they are never able to meet my standards”.
What happens when the people you hire are not able to perform to the level you expect?
Should you not be holding them to your standards? Is it bad setting certain level of standards?
No. Absolutely not. As an entrepreneur, you must never negotiate on your standards.
At the same time, to ensure your standards are met, you need to understand and act on 3 things:
But what are high standards and how do you sustain them in your business?
Jeff Bezos, in an annual letter to Amazon’s shareholders, shared his beliefs on what it takes to maintain consistently high standards.
COMMUNICATION is the most important element of the culture you are trying to build.
If you fail to communicate your vision, your expectations, your feedback, your people will not be able to meet your standards.
If you thought hiring was difficult, think again. Developing and retaining the talent you have takes significant investment too.
In fact, only 7 percent of Fortune 500 companies are able to retain high performers. That’s a shockingly low number.
Over three million Americans voluntarily leave their jobs each month – mostly because 70 percent of the US workers are disengaged from their jobs.
How do you keep your people engaged at work?
Simple, give them what they want.
We are living in the gig economy. Today’s workforce is all about working on their own terms. They need flexibility to work anytime, anywhere. They want a certain level of autonomy in their work. Give them these choices and see productivity and engagement shoot through the roof.
Another surefire way to keep high performers engaged is to challenge them – not to the point of burnout, but enough to give them a nice stretch.
Great talent loves action and the thrill of going after something.
Finally, people today want more from their jobs than just money. High performers especially want to work on things that excite them, things that will change the world, and things that they are passionate about. They want to chase a vision, and change the world.
Millennials are looking for a purpose and if you don’t provide it, they’ll look elsewhere.
It’s critical that you communicate your vision again and again. That you make your people feel a part of a bigger journey. That you make an effort to keep them engaged. When it comes to company culture, there are no quick fixes.
People are critical to the success of your vision. As Jim Collins said in his book Good to Great, “Great vision without great people is irrelevant” . To make your vision come true:
How have you invested in hiring and retaining the right people? We’d love to hear your stories.
Every year we select a few entrepreneurs to work with us to grow their companies while reducing the number of hours they invest working “in” the business. If this year if your year, if this is the year you will love to see extraordinary success for your business, we would be curious to see if we could help.