David delivering a Hiring Greatness: Lead Dominate Prosper presentation at the Great People Inside, New World of Work Conference in Braslov Romania – October 2016.
Click on the screen above to watch and listen to the Hiring Greatness presentation.
Transcript for the first minute:
What is an employee worth? I don’t mean compensation. I mean value. It’s hard to put a number on this. It’s a concept that a lot of people have difficulty with and for years people have asked me, why should we hire you to do this? We can hire our President, CEO, VP or Director, ourselves .
I say the “difference is between hiring an okay employee and a fantastic employee!” But it’s always been hard to prove there is such a difference. It’s almost impossible to demonstrate until very recently, the last three or four years.
Do you people know who Yahoo! is, the company Yahoo!? Google? Yes. Okay everybody knows Google, Yahoo! came before Google that should tell you something.
About four years ago, two CEOs were hired by two completely different companies in America, Yahoo! who has a search engine like Google and JC Penney, which was my favorite American retailer, great stuff. Love the people, love the product. They both had great backgrounds, Marissa Mayer came in as Google Vice President for 10 years, Ron Johnson was the Senior VP of Marketing at Apple. These are phenomenal companies to work in.
Yes but we are here today to talk about people and engagement and all the sauce stuff that makes us uncomfortable. I’m going to make you really uncomfortable shortly so I apologize in advance. The results were extremely different. Within six months of joining Yahoo!, Yahoo!’s valuation rose $17 billion, that’s a lot of money.
Unfortunately, my favorite retailer didn’t do as well. Within a year of Ron heading JC Penney sales went down $4.3 billion, that’s $500000 an hour, every hour, 24 hours a day, 365 days a year, that’s how fast down sales went. Marissa on the other hand, the value went up $3.8 million an hour, pretty interesting.
So the difference between hiring a great CEO or a great employee with the right fit and the CEO with the wrong fit, because they are both very talented, they both did extremely well before they joined the other companies, the difference was $21.3 million. That’s the difference between hiring great people and hiring okay people.