Unveiling the Art of Spotting High-Potential Talent: A Guide for UK Entrepreneurs
Posted on 13th September 2023 at 09:40
As a business coach based in the UK, I firmly believe in the wisdom of French economist Jean-Baptiste Say, who characterised an entrepreneur as one who "shifts economic resources out of an area of lower and into an area of higher productivity and greater yield." This definition transcends its literal translation from the French, "one who undertakes," and encompasses the vital concept of value creation.
For many UK entrepreneurs, especially those who are bootstrapping their startups, creating more value with fewer resources is a mantra. This holds particularly true when it comes to hiring. While the allure of hiring seasoned C-level executives with impressive CVs and LinkedIn profiles can be strong, the reality is that smaller businesses often lack the financial muscle for such high-cost talent. So, what's the solution? The answer lies in mastering the art of hiring talented individuals poised for greatness.
High Potential Employees (HIPOs) may not boast extensive resumes, but they hold untapped potential that can bring significant value to your organisation. However, identifying them can be a challenge, given their limited credentials. That's where the three-part process developed by Skubana co-founder Chad Rubin comes into play. Rubin successfully built his company to £5 million in revenue with the help of a team of HIPOs before deciding to sell it to 3PL Central. He dubbed the traditional hiring process as "broken" and developed an alternative solution in the form of a three-part approach.
The Three-Part Strategy
1. Hide a Golden Egg
Rubin recognised the importance of detail-oriented applicants who took the time to understand his business and the specific role. To identify these candidates, he embedded an obscure request within each job posting. For instance, he asked applicants to include the name of their favourite '90s band in their cover letter. This seemingly unusual request had a purpose - to filter out those who had not read the entire posting.
2. Pattern Recognition
Traditional interviews often fall short in assessing a candidate's true potential. Rubin turned to pattern recognition assessments as a reliable measure of intelligence. He found an online puzzle that required candidates to recognise patterns in a set of images, revealing their intellectual potential.
3. Measure the Fit
After evaluating cognitive abilities, Rubin aimed to gauge how well a candidate would integrate into his team and company culture. Instead of relying on conventional interviews, he used a Culture Index psychometric test to assess psychological attributes beyond IQ, providing insights into their fit within the organisational culture.
Leveraging the Kolbe A Index
In addition to the Culture Index, you can also leverage the Kolbe A Index, a psychometric assessment that measures how individuals instinctively take action. Here's how it can assist in your hiring process, particularly when seeking a manager to oversee your business's daily operations:
- **Fact Finder:** Seek a score of 6-8, indicating someone who gathers and shares information thoughtfully before taking action, without succumbing to analysis paralysis.
- **Follow Thru:** Look for candidates scoring 5-8, as they excel in organising, designing systems, and maintaining structure and organisation.
- **Quick Start:** Aim for a score of 4-6, which demonstrates a balanced approach to risk and uncertainty. Excessive risk aversion (a score of 1) may not align with the entrepreneurial spirit.
- **Implementor:** Find candidates with a score between 3-7, indicating their ability to manage tangible aspects and create solutions when needed.
Unlocking Hidden Value
This unique three-part hiring strategy, complemented by effective assessment tests, empowers UK entrepreneurs to consistently recruit high-potential employees, even when they are at entry-level positions. By identifying HIPOs and nurturing their potential, you can unlock hidden value for your organisation, driving growth and success.
Are you ready to enhance the value of your business? Schedule a discussion with me, your trusted UK-based business coach, to explore how we can help you prepare for a successful exit. Your journey to greater success begins with the right team and a strategic approach to talent acquisition. Let's make it happen together. 🚀
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