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Studies have shown that in many companies, a handful of people generate the most value, and yet many companies operate with a “hire to grow” mentality, believing that increasing headcount drives growth. Instead, they should be looking for existing employees and new hires who are force multipliers — whose skills and energy make everyone around them more productive — an approach the author calls “talent density.” Three strategies can help organizations become more talent dense: 1) Rethinking the recruiting function so that recruiters encourage managers to consider how new hires will enhance overall team productivity; 2) Move people into jobs that leverage their strengths and support employee skill development; and 3) Pay people at market rates or above.
When interviewed by the Smithsonian Institution in 1993 about the early days of his company, Microsoft co-founder Bill Gates didn’t stress the role of software engineering in the company’s growth. Instead, he talked about the decisive impact of a key HR decision: hiring one of his old school friends — a shy fellow called Steve Ballmer.
