Hiring and Retaining Top Talent Blog

Finally an article that is starting to understand the right way to hire.
An article in BusinessWeek.com from the Harvard Business Review is starting to address the issue we have been promoting for over 10 years. One that we even wrote a book about. Our Success Factor Methodology hiring system mirrors what this article in BW is addressing. Companies have to change how they define the job. Our research determined this is the number one biggest hiring mistake companies make. The traditional way of hours worked or tasked performed isn’t the way to hire or compensate. As we move to more of a service driven country the way we compensated in the past doesn’t work any longer.

This article gives the history of how we moved from a performance based compensation plan to an hourly focus as unions started demanding a new way to pay employees. Outcomes, quality, performance aren’t what counted, it was time. Everyone is payed the same regardless of performance. Only thing the changed the pay structure was time in grade or seniority.

This is just the type of discussion that needs to take place in companies all over the country regardless of size. Our Success Factor Methodology is exactly what Harvard Business Review is talking about.

Let us know if you think compensation should be based on time or performance? Which system does your company use? Do you think this is a fair way to compensate employees?

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