Build with Leila Hormozi: Episode 243 – 5 Hiring Strategies To Attract Top Talent FASTER

In Episode 243 of Build with Leila Hormozi, host Leila Hormozi delves deep into the intricacies of attracting top-tier talent to build an unshakeable business. Drawing from her extensive experience scaling businesses to a $100M milestone by age 28 and expanding acquisition.com into a billion-dollar portfolio, Leila shares actionable strategies that transform businesses into magnets for elite employees. This comprehensive summary captures the essence of her discussions, enriched with notable quotes and structured insights.

1. The Critical Importance of Strategic Hiring

Leila begins the episode by reflecting on her early experiences with hiring, emphasizing that bringing on underqualified individuals can stymie business growth rather than facilitate it.

[00:00] "Have you ever hired somebody to make your life easier? And what happened is that your life did not get easier, but your work actually doubled."

She acknowledges that while her initial hiring approach—accepting anyone willing to work—worked for her small startup, rapid scaling revealed the pitfalls of this method. This realization drives her focus on attracting top talent as a cornerstone for business expansion.

2. Understanding the Employee Value Proposition (EVP)

Leila introduces the concept of an Employee Value Proposition (EVP), a multifaceted framework that answers the pivotal question: "Why should I work at your company?" She underscores that a compelling EVP must balance what the company seeks with what top-performing employees desire, a synergy she terms a "company talent match."

3. Compensation: More Than Just a Salary

Compensation forms the bedrock of the EVP. Leila breaks it down beyond mere salary, encompassing:

• Annual Salary
• Promotion and Raise Cycles
• Pay Equity and Transparency

[03:00] "Compensation is the foundation of the talent strategy. Because often this is the thing that's going to get somebody to even click on the job requisite that you've posted."

She illustrates the importance of aligning compensation with market expectations to attract elite talent. For instance, offering a competitive on-target earnings (OTE) structure for executives ensures their potential earnings are tied directly to company and personal performance, fostering a mutually beneficial growth environment.

[10:30] "The more you want to attract top performers, you have to configure your pay for top performers."

Leila advises businesses to design compensation packages that reward excellence and provide ample growth opportunities, thereby attracting individuals who are motivated by performance-based rewards rather than fixed salaries.

4. Benefits: Reflecting Company Values and Lifestyle Support

The next pillar of EVP, Benefits, transcends traditional offerings to mirror the company's values and the lifestyle aspirations of potential employees.

a. Paid Time Off (PTO)

Leila emphasizes the importance of flexible PTO policies, which signal trust and autonomy to employees.

[15:45] "If you have really terrible PTO policies, then people are thinking, do you not trust me to regulate myself?"

b. Flexibility

Flexibility in work arrangements, such as remote work options and adaptable schedules, is crucial for attracting high performers who value autonomy.

[20:10] "Top performers want to work somewhere that focuses on values rather than rules."

c. Ongoing Education

Investing in employees' professional growth through education and training opportunities not only attracts talent but also aids in retention.

[25:50] "Our number one value proposition is growth. The amount of growth that people have personally and professionally within our company is absolutely our competitive advantage."

Leila shares how acquisition.com offers diverse opportunities, allowing employees to engage with various portfolio companies, thus facilitating continuous learning and skill development.

5. Career Development: Charting Clear Growth Paths

Career Development is pivotal for retaining top talent. Leila outlines a structured approach to managing professional growth:

• Identifying Career Goals
• Providing Necessary Skills and Education
• Offering Opportunities to Apply New Skills

[35:20] "High performers want to evolve, they want to grow, they want to learn, they want to be challenged."

She stresses the necessity of creating a "career talent fit", ensuring that employees see a clear path forward within the company's vision. Regular check-ins and providing feedback are essential in maintaining engagement and preventing stagnation.

6. Work Environment: Cultivating the Right Vibe

The Work Environment encompasses the physical, social, and cultural settings where employees operate. Leila differentiates between various workplace vibes and their impact on attracting suitable talent.

[45:15] "Top talent thrives in an environment where they have the freedom to make their own decisions and own their outcomes."

She compares different industries, noting how environments in software companies versus customer-centric businesses like makeup brands vary in intensity and collaboration. For remote settings, the emphasis is on maintaining a cohesive vibe through communication styles and cultural consistency.

Leila advocates for an environment that aligns with the company's mission and the expectations of top performers, ensuring that the vibe attracts the right individuals while deterring mismatched candidates.

7. Culture: Building a Strong Organizational Identity

Culture is the amalgamation of an organization's beliefs, values, and behaviors. Leila highlights its critical role in attracting top talent, noting that prospective employees extensively research a company’s culture before applying.

[55:40] "Top talent is going to do their homework on your culture before they join a company."

She advises maintaining consistency between the internal culture and its external portrayal. Mismatched signals can repel potential high performers. Leila also discusses managing online reputations, emphasizing that authentic, positive representations of company culture can significantly enhance attractiveness to top talent.

8. Implementing Strategic Hiring Practices

Drawing from her experiences, Leila outlines a strategic approach to hiring:

1. Stop Hiring Out of Desperation: Avoid making hires based solely on urgent needs without considering long-term fit.

2. Define Clear Criteria: Use objective measures to assess performance and potential rather than arbitrary metrics like tenure.

3. Align Compensation with Performance: Ensure that reward structures motivate and reflect the contributions of top performers.

4. Foster Growth Opportunities: Prioritize career development to retain ambitious employees.

5. Cultivate the Right Environment and Culture: Maintain a work setting and cultural ethos that resonate with high achievers.

[1:10:00] "Attracting top talent is not about being the biggest or even the most profitable company. It's about understanding what the talent that you want wants and then delivering on that better than anybody else."

Leila concludes by reinforcing that a well-crafted EVP, tailored to the desires and aspirations of top talent, is paramount in building a resilient and high-performing organization.

Conclusion

In this episode, Leila Hormozi provides a robust framework for businesses aiming to attract and retain top talent. By meticulously addressing compensation, benefits, career development, work environment, and culture, companies can construct a compelling Employee Value Proposition that not only attracts elite performers but also fosters their growth and satisfaction within the organization. Leila’s insights serve as a valuable guide for entrepreneurs and business leaders striving to build unshakeable and thriving enterprises.