Your Hiring Strategy Is Broken (Here's Why)
Episode
26 min
Read time
2 min
Topics
Career Growth, Health & Wellness, Relationships
AI-Generated Summary
Key Takeaways
- ✓Executive hiring strategy: Source 100% of executive-level roles through personal networks rather than recruiters to avoid costly failures. Wrong executive hires managing major client relationships can destroy millions in revenue, not just waste salary costs.
- ✓Acquisition due diligence metric: Check what percentage of a target company's employees are actively seeking new jobs on LinkedIn. Healthy companies show under 10% open to work, while one European target showed 70% seeking exits despite claiming strong retention.
- ✓B-player compounding decay: Every B-player hire creates a dilution multiplier of 0.88. Hiring just 20 B-players decreases expected organizational output by 91% through compounding negative effects. Recovery requires aggressive cutting, which proves extremely difficult to execute successfully.
- ✓Mid-level recruitment ROI: Job ads and LinkedIn advertising can effectively source director-level and below positions. One company spent only $2,500 on LinkedIn ads and successfully hired two mid-level employees, challenging the assumption that all roles require expensive sourcing.
What It Covers
Marketing School hosts examine why traditional recruiting fails for different role levels, revealing that executive hires require network sourcing while mid-level positions can succeed through job ads and strategic paid recruitment campaigns.
Key Questions Answered
- •Executive hiring strategy: Source 100% of executive-level roles through personal networks rather than recruiters to avoid costly failures. Wrong executive hires managing major client relationships can destroy millions in revenue, not just waste salary costs.
- •Acquisition due diligence metric: Check what percentage of a target company's employees are actively seeking new jobs on LinkedIn. Healthy companies show under 10% open to work, while one European target showed 70% seeking exits despite claiming strong retention.
- •B-player compounding decay: Every B-player hire creates a dilution multiplier of 0.88. Hiring just 20 B-players decreases expected organizational output by 91% through compounding negative effects. Recovery requires aggressive cutting, which proves extremely difficult to execute successfully.
- •Mid-level recruitment ROI: Job ads and LinkedIn advertising can effectively source director-level and below positions. One company spent only $2,500 on LinkedIn ads and successfully hired two mid-level employees, challenging the assumption that all roles require expensive sourcing.
Notable Moment
A founder obsessively audited a startup's marketing without payment, texting teams for conversion data and calling out inconsistencies in their revenue calculations. He demonstrated that top performers cannot stop optimizing even when not formally engaged or compensated.
Episode Transcript
Question for you. So what percent and you might not know this, but what percent of people for MP Digital right now of new hires are sourced versus, you know, coming through a job ad? I have no idea. I'll tell you this. I do know this interesting fact. Okay? So we were going we're recruiting some people right now for some of our tools, Ubersuggest and AnswerThePublic. So then Mike starts hitting up our recruiting team or someone on our team. I don't know who it was. And they were just like, hey. I need help with these roles. And they're like, we don't have the time. And Mike's like, what do you mean we don't have the time? They're like, we're already overwhelmed. We have, like, 48 open roles right now that we're working on. And he's like, oh. So then Mike just started doing it himself and started recruiting. Yep. But with that many open roles, there's no way that it's being filled by network. Mhmm. It's I'm assuming a lot of it is just going out there and recruiting. But on the flip side, I was talking to my CEO about a internal role, for our organization. So we're in, I think, 28 countries. I don't know all of them by heart, but let's call it 28 countries that we classify internally. For marketing, I think we use a little bit less. I know we have people in, like, 35 or something like that countries. But we're in, call it, 28 countries. We have, at this point, a good amount of global clients that pay us for different regions. Some of those clients, we communicate altogether, and we're doing one cohesive plan. Some of those clients were not because they split up their marketing by region, and each person has their own say, and they want their own team, and they wanna do whatever they want. Right? So we have to mold and adapt to the organizations. But we were thinking about hiring one person whose job is to work with all the big organizations we have, and their only job would be to land and expand. So if you're a company like McDonald's, who we don't work with, but I'm gonna use them as an example because we don't work with them, Their job would be like, we have Brazil here, and we have, Europe here. We used to work with McDonald's. We wanna go and network with the people at McDonald's and try to get the relationships for the rest of Europe, then get them from North America, then get them from Canada, and work with them for not just a cohesive strategy, but more so work with them to sell within the company and more of a global role who not just builds relationships with our clients, but also is in sales. So when we have roles like that that are more you need someone who's just really good high level. You're talking …
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“Check what percentage of a target company's employees are actively seeking new jobs on LinkedIn. Healthy companies show under 10% open to work, while one European target showed 70% seeking exits despite claiming strong retention.”
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