Talent Strategy

Talent Strategy

Talent Philosophy

A talent philosophy defines how the company thinks about people — who to hire, how to grow them, and how to exit them. Without it, decisions are inconsistent and feel unfair.

Core Questions to Answer

1. Do we hire for potential or experience?
2. Do we promote internally first or hire externally?
3. How do we manage underperformers? (PIP → exit vs fast exit)
4. Do we pay above, at, or below market?
5. What behaviors will disqualify someone regardless of performance?
6. How much do we invest in development vs. hiring talent in?

Sample Philosophy Statement

We hire people who are exceptional at their craft and hungry to grow.
We invest heavily in developing talent and promote from within when a
qualified candidate exists. We manage performance directly and quickly —
a sustained underperformer harms the team. We pay at the 75th percentile
for critical roles. Integrity violations are immediate exits, no exceptions.

Employer Brand (EVP)

Employee Value Proposition: why would a great person choose to work here over anywhere else?

EVP Pillars (typically 4-5)

EVP Development Process

1. Survey current employees: "Why did you join? Why do you stay?"
2. Survey recent exits: "Why did you leave?"
3. Interview candidates who declined offers: "Why did you choose elsewhere?"
4. Identify the honest 2-3 things that are genuinely differentiated
5. Build messaging around truth — false EVP accelerates attrition

EVP Channels

• Careers page: Embed EVP in every job description
• Glassdoor: Proactively manage; respond to all reviews
• LinkedIn: Employee-generated content > company posts
• Recruiting conversations: Train recruiters on EVP stories
• Offer calls: CEO/founder call for senior hires

Executive Hiring Process

Role Specification

## [Role Title] Specification

**Business context:** [Why we need this role now]
**Success in 12 months looks like:** [3-4 specific outcomes]
**Must-have experience:** [Non-negotiable criteria]
**Nice-to-have:** [Helpful but not required]
**Cultural fit signals:** [Behaviors that fit our environment]
**Dealbreakers:** [What immediately disqualifies]
**Compensation range:** [Internal band — don't publish]

Search Options

Structured Interview Process (exec level)

1. Recruiter screen (30 min) — Background, motivation, logistics
2. Hiring manager (60 min) — Strategic thinking, leadership philosophy
3. Panel interviews (3-4 x 45 min) — Peer leaders across functions
4. CEO/board (60 min) — Culture, vision alignment
5. Reference calls (3+ calls) — Structured, backward-looking questions
6. Work sample / case (optional) — For specific technical roles

Reference Call Protocol

References are the most underused signal. Ask:

• "On a scale of 1-10, how would you rate their performance? What would it take to be a 10?"
• "What is the single thing they most need to develop?"
• "Would you hire them again? Why/why not?"
• "In what kind of environment do they thrive vs. struggle?"

Talent Segmentation

Critical Role Identification

Not all roles are equal. Critical roles: if unfilled for 90 days, business materially suffers.

High-Potential Identification

Criteria (all three required):

1. Performance — consistently exceeds expectations
2. Aspiration — wants to grow, actively seeks responsibility
3. Potential — demonstrates capability beyond current role

HiPo program elements:

• Executive sponsor (not direct manager)
• Accelerated exposure (board presentations, strategy sessions)
• Cross-functional stretch assignments
• External development (conferences, programs)

Compensation Philosophy

Positioning Decision

Pay Mix Components

Equity Guidelines

• Refresher grants: annual or on promotion — necessary for retention
• Vesting standard: 4 years, 1-year cliff
• Strike price matters: underwater options retain no one
• Communicate equity value clearly — most employees don't know how to value it

Retention Programs

Flight Risk Identification

Signals: promotion passed over, manager change, peer departures, major life event, compensation below market.

Retention Tools by Risk Level

Counter-Offer Policy

Most companies don't counter-offer. If you do:

• Accept that 80% of people who accept counter-offers leave within 12 months anyway
• Counter only when you'd make the same investment without an external offer
• Use as signal to fix systemic compensation gaps, not just individual ones

Talent Review Cadence

Workforce Planning

Annual Headcount Planning Process

1. Department heads submit headcount requests with business justification
2. Finance models scenarios (base, optimistic, conservative)
3. Leadership calibrates priorities against strategic plan
4. Board approves headcount budget as part of annual plan
5. HR back-plans hiring timeline from need date (hire 3-4 months before need)

Workforce Planning Metrics

• Time-to-fill by role level
• Quality of hire (90-day retention, performance rating at 6 months)
• Offer acceptance rate
• Recruiter source yield (% of qualified candidates per source)
• Cost per hire