Five Lessons for Upgrading Talent with Outside Superstars
Thinking of Upgrading Talent by Hiring a Superstar?
Today’s economy gives smart companies a chance to upgrade their talent. We are seeing some companies continue to hire while others are looking to upgrade their current workforce. Several clients are seizing this opportunity to bring superstars on board. We have learned from our clients’ experiences, and we have summarized five key lessons to help optimize the upgrade process.
Identify your current and future internal stars first.
Align your hiring decisions with your need for current and future talent.
Temper your expectations; high performance isn’t always portable.
Don’t let eagerness short circuit your selection process.
Under promise and over deliver.
Identify Your Current and Future Internal Stars First
The answer to your needs could be right under your nose.
Promoting from within is usually less expensive and a lot less risky than hiring from the outside. Studies show that external hires cost about 20%-30% more than internal hires.
External hires for management positions also present a greater risk of failure in the new role than internal promotions. The higher the organization level of the position that is filled from the outside, the greater the risk of failure. There are three reasons for this:
The new hire doesn’t fit the organization’s culture.
The new hire lacks relationships and internal networks to get things done.
The new hire doesn’t fit the job he or she has been hired to do.
Internal hiring reduces these risks, and promotions from within are more likely to succeed than external hires.
So, before committing to hiring outside superstars, organizations should use their performance management processes to identify strong employees. Future potential is based on accumulated skills and experience as evidenced by past achievement, ability to learn new skills, and willingness to tackle larger and more complex assignments.
Know your people; make informed decisions
Companies that conduct disciplined, merit based assessments of performance and potential are better prepared to make good personnel decisions. Selectively promoting from within sends a motivating message to others in the company that by doing the right things and getting the right results, they can build prosperous careers in the organization.
2. Align Your Hiring Decisions with Your Need for Current and Future Talent
Beware of that “star struck” feeling!
Don’t buy a Porsche when you only need a Camry, and don’t buy a Porsche when you need a minivan. Just as it is easy to get enamored with a high-performance automobile, it is easy to get enamored with a superstar because of his/her reputation or employment history. The bottom line is that you need to understand your current and future needs first and then fill those roles with the right people at the right pay levels.
Don’t forget basic supply and demand.
Start by assessing the types of talent that drive business value today and those that will drive it three years from now, as well as those talent segments that are currently available and those that will be available in the future. Keep in mind, for example, that groups such as new MBA’s will be just as available in two years as they are now. Also consider the type of talent that it takes years to either replace or develop. This might include, for instance, skilled electric utility engineers in an environment in which requirements are dramatically reducing supply.
Performance management that is informed by key strategic questions can minimize the negative cultural impact of downsizing, improve the bottom line and help identify people that the company should try to retain. It also allows the company to determine which positions should be filled with outside superstars.
3. Temper Your Expectations; High Performance Isn’t Always Portable
When star power doesn’t transfer.
Harvard professor Boris Graysberg investigated factors affecting a star performer’s chances or replicating their successes in a new environment.
His team discovered that portability of high performance occurs in some instances but not in others. Stars whose positions require consistent cooperation and collaboration with others have a tough time maintaining their high performance in a new organization.
If a company chooses to hire such individuals, management must provide sufficient time for them to develop relationships, and management should ensure that the new hires are mentored as they adapt to new circumstances. The more a position depends on organizational systems, process knowledge, and internal relationship, the more likely it is that an internal employee will outperform the outside star.
Star performers require high-quality support.
Graysberg also discovered that top performers rely on high-quality colleagues in their organizations to improve the quality of their own work.
It is imperative that hiring organizations understand that stars are not self-contained silos. Producing top-quality results requires collaboration and flows of information among a network of top performers. That means that any one decision about hiring, and retention can impact the performance of top employees entirely in different parts of the firm. It also means that it is not enough to have a few star performers here and there within the organization. If these stars lack high-quality support and information-sharing opportunities with other star colleagues, they will have a harder time maintaining their star performance.
4. Don’t Let Eagerness Short Circuit Your Selection Process
Avoid Ready, Fire, Aim….
It can be tempting to go in for the kill when a potential superstar gives the impression that he or she is interested in joining your organization. Take heed! When you are about to make a big investment, it is more important than ever to maintain the integrity of your selection process.
Assessments can help you uncover important information
about the candidate that is much less likely to surface during an interview, especially if the interviewer is “star struck”
Consistency helps reduce legal risk
Leaders might view reference and/or background checks as a bother when they “know” someone is right for a position. But employment experts estimate that nearly one-half of all resumes contain false or exaggerated information. A recent Forbes article says that 70% of applicants lie on their resume. You are about to make a big investment - don’t eliminate this step.
Not only is utilizing a fair and consistent process the right thing to do, but legal challenges to employee selection standards are expensive and can create considerable negative PR for an organization.
The best employee selection process ensures that selection standards are job-related, validated and standardized. An ounce of prevention will be worth a pound of cure in the future.
5. Under Promise and Over Deliver.
Don’t create “package envy”
If you land a big fish, don’t expect everyone to be thrilled. Some people will not only be unenthused, but they might even go out of their way to sabotage the star just to prove a point.
When you gloat about hiring the next savior, it won’t be long before you hear the first rumors about the compensation package, and the special perks and concessions that were made to woo the star to join the team. We see this often in professional sports when the superstar signs for superdollars, the rest of the team decides that it is time to renegotiate contracts, hold out of training camp or demand a trade.
Nobody needs these distractions. Temper your enthusiasm, encourage the superstar to be humble and keep all details of the deal strictly confidential.
Get some quick wins to build credibility and trust.
Once the new star hire and members of his/her team come aboard, they must be willing to re-earn credibility regardless of their prior accomplishments and no matter how hard the organization courted them. Expect them to prove their value and gain the trust of their colleagues and always communicate that expectation.
There’s a saying that money talks and BS walks. It is crucial that your new superstar deliver successful results and contribute to the organization to build credibility. Expect everyone to earn credibility in a new organization, regardless of their past accomplishments or reputations. If you can help them build momentum with some quick wins, then consider this to be a part of the on-boarding effort.