Price’s law is a more precise variant of the 80/20 rule. It states that 50 percent of the work done in your company is done by the square root of the total number of people in your company. If a construction crew has 25 employees, five of them do 50 percent of the work.
Topgrading provides you with a systematic process you can use to attract, identify, and retain these all-star employees. This is crucial because, as Dr. Smart explains, one characteristic of the A Player is their association with other A Players. So, a team of A Players is more likely to attract and retain other A Players.
If you’re already using sites such as LinkedIn, Indeed, or Monster to advertise and recruit A Player candidates, you’ll want to segment your pool of candidates. Divide candidates into two groups: A Players and A Player potentials. A Players are candidates you can hire immediately, A Player potentials are independent contractors who are given a chance to prove their worth.
Research studies by personnel psychologists, George Dreher and Ronald Ash, found businesses overwhelmingly prefer to use an unstructured interview process.
This common, unstructured interview process produced a 60 to 90 percent mis-hire rate.
These employees struggled to perform at adequate levels. As a result, the average loss to businesses was six to 27 times base salary. Reducing mis-hires is a straightforward way to increase productivity and profits.
The more A Players you have, the more revenue you have available for salary increases (boosting retention rates), while simultaneously decreasing direct labor and project costs.