Do Companies Overvalue External Talent
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As a case in point, I can tell you about my experience working for an organization that was initially excited about recruiting an external talent. We conducted interviews, reviewed resumes, and interviewed prospective hires — and there was an immediate and positive response. We were thrilled. The hires were great. But as time passed, things started to unravel. The hires themselves were a mixed bag. Some were great, with natural talent. But others seemed out of place. link The interviews and initial onboarding didn’t go well.
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I used to think this was a no-brainer: a few years in my company, I could get a promotion or a raise just by showing up on time. It was an early example of how I had bought into the old adage “Clients are everything”: You have to provide great service to be treated like a valuable asset. But then the company started to take on a new challenge, and I found myself feeling less and less like an asset. The work environment was too chaotic, the management style too focused on maximizing profits at any cost. I
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I have been involved with overvaluing or undervaluing external talent for over a decade now. I am a consultant with extensive experience in the industry. I will provide the reader with an example of an overvalued external talent. The marketing department of a company recently launched an employee search for a senior vice president. The market was saturated, and the company had a plethora of options to choose from. However, after reviewing the CVs, it was clear that only a few of them had any experience in this market.
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Ever wondered how a company can justify paying a high salary for a “internal” employee or hiring an “external” expert in your field? It all comes down to the company’s perspective. In 2018, a report published by LinkedIn found that 37% of global CEOs said they were interested in hiring a “guru”, meaning a highly experienced professional in a particular field, or someone who has won awards for their work. see this At the same time, 61% of employees surveyed admitted that the
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During the last 20 years I’ve seen how “outsourcing” turned into a business and investment strategy, and how companies overvalued external talent as the solution to every problem. The main reason why “outsourcing” started as a business concept was that it allowed companies to cut costs and improve their service level. But it also led to the overvaluation of external talent, because it’s hard to spot the skills and experience that a new employee will have, compared to the skills and experience that an existing employee has. As a result, when I
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The author was working at a big corporate firm and the company was struggling to find internal talent. He had to train them and ensure they had a solid foundation, so they could step into a higher-level position. One day he came across a brilliant, highly trained individual, someone with extensive experience. He had been trained at Harvard Business School, but was now working at a competitor. To keep the company in competition, the new hire was being treated with a salary and benefits package comparable to those of a top corporate executive, which had the potential to d