Determining and Measuring “Business-Critical” Talent:  Using Lead Indictors to Recruit the Right Talent

Talent management is becoming an increasingly critical component to ensuring sustainability and competitive advantage.  Unfortunately, the leadership in many organizations still views human resource functions as a cost center instead of a strategy driver.

A theory put forth in an article published by Booz Allen Hamilton[1] to raise the view of talent as a strategic asset is to identify “business-critical” job functions or roles, categorized by the “value impact” on an organization.

As distinguished by the author, organizational roles differ in value impact and cost impact to the organization.  From the author’s perspective the ability to classify job roles by value allows an organization to employ different talent-management approaches for attraction and retention.  The author continues with the thought that basic management processes such as sourcing, development and training, compensation, retention, and separation are conceptually the same for all job roles.  However, the tools used in applying the processes will differ.  The difference in the tools used will be evident in compensation practices, training procedures, and recruiting methods.

We agree with the article’s premise that talent management is not being leveraged by senior organizational leaders and also concur with job classification by value impact on the organization.  As the author notes, it enables the organization to implement the appropriate talent-management strategy and tactics.  

Our contribution to this theory extends the methodology of developing various talent management strategies based on the value-impact of the job role.  We believe that this difference should incorporate lead indicators as a metric used in the recruitment process for high-value roles.  Lead indicators can be drawn from non-traditional behavioral interviews, job simulations, and pre-employment testing.   

As an example we will examine the recruiting of a sales professional and the importance of measuring lead indicators as a source of competitive advantage.                                       

According to the above theory, sales professionals would fit into an Ambassador role, meaning that they provide a high degree of organizational value, thus a point of competitive differentiation in the marketplace.  Studies indicate that 80 percent[2] of all sales people fail to complete their first year because of sale prospecting distress stemming from Sales Call Reluctance®.  Measuring an applicant’s Sales Call Reluctance®, as a lead indicator of performance in a sales role, provides another layer of assurance in the candidate and helps define and establish what training and education curriculum are needed to get the most out of a new hire.  

Click here for more detail on Call Reluctance Types

Through a pre-employment assessment, called the SPQ*GOLD, employers can assess perspective sales people on their likelihood of effective performance in a business development or sales role.  The SPQ*GOLD also can be used as a training and development tool for existing sales people.  The assessment and follow-up training help individuals to initiate more contacts with prospective clients to increase sales.  In addition, the SPQ*Gold and follow-up training enable sales people to initiate more contacts with current customers to increase customer retention.  

Most organizations are driven by goals that depend on sustainable and consistent growth, which cannot be obtained without a talented and effective sales force.  Applying leading-edge measures to the recruiting practice heightens the awareness of talent management as a strategic driver and enables a more in-depth look into the competencies of your sales force.  

A human resources department that uses tools such as leading metrics begins to transcend from a purely transactional department to an area of strategic importance to the organization.  It is these types of human resources departments that are looked upon to not only hire new people but to plan and model workforce and recruiting initiatives that support the overall goals of the organization.  A company can become highly competitive because it is not only hiring people to fill job vacancies, but it can develop forward-looking training based on the at-hire knowledge it obtained using the leading indicators.  

For more info rmation about sales call reluctance and SPQ*GOLD please contact:  

Jamie Bongiorno
412-722-1111
jbongiorno@hillgroupinc.com

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These materials have been prepared for educational and information purposes only. They are not consulting advice or opinions on any specific matters. Transmission of the information is not intended to create, and receipt does not constitute, a consultant-client relationship between The Hill Group, Inc. and any recipient of this material. Readers should not act upon this information without seeking professional advice.