Hiring people is a lot like picking stocks. It’s all about the narrative. We begin by asking “what kind of stock is this?” Is it best-in-class, with strong positioning in the market and consistently solid results; a turnaround story, where there have been struggles but better days are on the horizon; a cash cow, where revenue is flat but the business will pay out dividends for the foreseeable future; or a growth story, with potential for accelerating revenue and expanding margins?
Why Hiring Is a Lot Like Picking Stocks
Think about how to build a portfolio of high-value employees.
November 12, 2019
Summary.
Hiring people is a lot like picking stocks. How can you think like a stock picker and build a portfolio of high-growth individuals for your company, selecting people with the potential to keep going up? The author offers three suggestions: 1) Buy low. Hire people on the launch point of their learning curve. 2) Articulate the investment thesis: Be clear on why you are hiring this person and what value they will create for your organization. Just as every stock has a story, so do people. Is this person best-in-class — in the sweet spot and ready to take on a critical role? 3) Sell high. Encourage your people to jump to new assignments inside your organization once they reach the top of their learning curve.
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New!
HBR Learning
Attracting and Cultivating Talent Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Attracting and Cultivating Talent. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Discover how to attract, hire, develop, and keep talented people who will grow and thrive throughout their employee journey.