Nalin, I am looking forward to understand from you "Companies using outdated methods such as bell curves and compa-ratio performance grids (merit-market grid/increment grid) are likely to lose the war". As this is a challenge in my present organisation and I wish to bring change to my legacy thought process leaders
Hi Hema, Thank you for your comment. Companies using comp-ratios make an error by not considering the 'replacement cost' of talent. E.g. A great performer is already positioned at 75th percentile of the market. Because of this person's knowledge, relationships, awareness of the current company's business model, the value of this person is more than the 75th percentile salary indicated by a survey. We need to take that into account while determining this person's salary. A new person, even if obtained at 75th percentile salary, will take a long time to succeed and there is a risk of failure. This risk becomes higher as you go more senior in an organization. Maybe you can communicate within your organization with some examples.
As for the problems with the Bell curve, do review this article.
Thank you Jennifer. If the economics of the talent equation works, it is easier to provide great careers, build a great culture and all the other great work that HR leaders want to do.
I re-read your post - very simple but innovative! I wish more organisations took such a thoughtful approach while taking strategic decisions (Exhibit A: social media companies which have been in the news for largely the wrong reasons this month). Keep writing - keenly waiting for your next chapter.
Nalin, I am looking forward to understand from you "Companies using outdated methods such as bell curves and compa-ratio performance grids (merit-market grid/increment grid) are likely to lose the war". As this is a challenge in my present organisation and I wish to bring change to my legacy thought process leaders
Hi Hema, Thank you for your comment. Companies using comp-ratios make an error by not considering the 'replacement cost' of talent. E.g. A great performer is already positioned at 75th percentile of the market. Because of this person's knowledge, relationships, awareness of the current company's business model, the value of this person is more than the 75th percentile salary indicated by a survey. We need to take that into account while determining this person's salary. A new person, even if obtained at 75th percentile salary, will take a long time to succeed and there is a risk of failure. This risk becomes higher as you go more senior in an organization. Maybe you can communicate within your organization with some examples.
As for the problems with the Bell curve, do review this article.
https://open.substack.com/pub/nalinmiglani/p/still-trapped-by-the-performance?r=lj9dl&utm_campaign=post&utm_medium=web
Happy to discuss more if you would like to.
So refreshing to read about senior leaders thinking about talent from the lens of economics! Looking forward to the deeper dive on PPE!
Thank you Jennifer. If the economics of the talent equation works, it is easier to provide great careers, build a great culture and all the other great work that HR leaders want to do.
A great start Nalin. Looking forward to reading aboutTalent Value Cell™. (TVC™) in your next article.
Now that the Talent Value Cell post is up, tell me what you think about it.
So simple yet so profound! Look forward to the next iteration!
Thank you Rajnil. Did you read the next iteration on Talent Value Cell?
I re-read your post - very simple but innovative! I wish more organisations took such a thoughtful approach while taking strategic decisions (Exhibit A: social media companies which have been in the news for largely the wrong reasons this month). Keep writing - keenly waiting for your next chapter.
Rajnil: Thank you for the encouragement.
Yes I did; however I plan to go back and re-read, just to make sure that I am understanding the nuances correctly
Such information is very valuable and relevant to our purposes. Thank you for sharing this.
Emmy: Thank you very much. Together, let's build this missing HR capability.
Very interesting and insightful. Looking forward to the next one on TVC..
Fauzia: Did you read Talent Value Cell. What did you think?
Yes, I did.. Interesting method to measure cost of talent.. Very simply explained.. Value cells👌.. Looking forward for the next steps..
A very scientific way to measure the cost of acquiring talents.
Calvin: It is also a way to measure the value added by talent.
Interesting
Thank you Nitin. Did you read Talent Value Cell?