Talent strategy

Talent Strategy

Talent Philosophy

A talent philosophy defines how the company thinks about people — who to hire, how to grow them, and how to exit them. Without it, decisions are inconsistent and feel unfair.

Core Questions to Answer

1. Do we hire for potential or experience?
2. Do we promote internally first or hire externally?
3. How do we manage underperformers? (PIP → exit vs fast exit)
4. Do we pay above, at, or below market?
5. What behaviors will disqualify someone regardless of performance?
6. How much do we invest in development vs. hiring talent in?

Sample Philosophy Statement

We hire people who are exceptional at their craft and hungry to grow.
We invest heavily in developing talent and promote from within when a
qualified candidate exists. We manage performance directly and quickly —
a sustained underperformer harms the team. We pay at the 75th percentile
for critical roles. Integrity violations are immediate exits, no exceptions.

Employer Brand (EVP)

Employee Value Proposition: why would a great person choose to work here over anywhere else?

EVP Pillars (typically 4-5)

Pillar	Description	Proof point
Mission	What we're building matters	Customer story
Growth	Fastest place to grow	Internal mobility rate
Team	Work with the best	Hiring standards
Compensation	Competitive total comp	Percentile positioning
Flexibility	Autonomy in how you work	Remote/async policy

EVP Development Process

1. Survey current employees: "Why did you join? Why do you stay?"
2. Survey recent exits: "Why did you leave?"
3. Interview candidates who declined offers: "Why did you choose elsewhere?"
4. Identify the honest 2-3 things that are genuinely differentiated
5. Build messaging around truth — false EVP accelerates attrition

EVP Channels

• Careers page: Embed EVP in every job description
• Glassdoor: Proactively manage; respond to all reviews
• LinkedIn: Employee-generated content > company posts
• Recruiting conversations: Train recruiters on EVP stories
• Offer calls: CEO/founder call for senior hires

Executive Hiring Process

Role Specification

## [Role Title] Specification

**Business context:** [Why we need this role now]
**Success in 12 months looks like:** [3-4 specific outcomes]
**Must-have experience:** [Non-negotiable criteria]
**Nice-to-have:** [Helpful but not required]
**Cultural fit signals:** [Behaviors that fit our environment]
**Dealbreakers:** [What immediately disqualifies]
**Compensation range:** [Internal band — don't publish]

Search Options

Method	Best for	Timeline	Cost
Internal promotion	Developed pipeline, signal of health	4-8 weeks	Low
Network/referral	Known talent, faster trust	6-10 weeks	Low-medium
Retained search (exec recruiter)	Senior, confidential, broad market	12-20 weeks	High (25-33% of comp)
LinkedIn sourcing	Mid-senior, specific skills	8-14 weeks	Medium

Structured Interview Process (exec level)

1. Recruiter screen (30 min) — Background, motivation, logistics
2. Hiring manager (60 min) — Strategic thinking, leadership philosophy
3. Panel interviews (3-4 x 45 min) — Peer leaders across functions
4. CEO/board (60 min) — Culture, vision alignment
5. Reference calls (3+ calls) — Structured, backward-looking questions
6. Work sample / case (optional) — For specific technical roles

Reference Call Protocol

References are the most underused signal. Ask:

• "On a scale of 1-10, how would you rate their performance? What would it take to be a 10?"
• "What is the single thing they most need to develop?"
• "Would you hire them again? Why/why not?"
• "In what kind of environment do they thrive vs. struggle?"

Talent Segmentation

Critical Role Identification

Not all roles are equal. Critical roles: if unfilled for 90 days, business materially suffers.

Role type	% of workforce	Investment level
Critical/differentiating	~20%	Maximum (pay, development, retention)
Core/essential	~60%	Standard
Support/commodity	~20%	Minimum viable

High-Potential Identification

Criteria (all three required):

1. Performance — consistently exceeds expectations
2. Aspiration — wants to grow, actively seeks responsibility
3. Potential — demonstrates capability beyond current role

HiPo program elements:

• Executive sponsor (not direct manager)
• Accelerated exposure (board presentations, strategy sessions)
• Cross-functional stretch assignments
• External development (conferences, programs)

Compensation Philosophy

Positioning Decision

Position	When to use
90th percentile	Competing for scarce, high-value talent; differentiating strategy
75th percentile	Strong offer without overpaying; most Series B+ companies
50th percentile	Capital conservation; offset with strong equity/mission
Below market	Only sustainable with exceptional mission/equity/flexibility

Pay Mix Components

Component	Purpose	Typical range
Base salary	Predictable income, market signal	60-80% of total for senior roles
Annual bonus	Short-term results incentive	10-30% of base
Equity (options/RSUs)	Long-term ownership, retention	Varies widely
Benefits	Health, wellness, retirement	$15-30k/year cost
Perks	Flexibility, stipends, L&D	Variable

Equity Guidelines

• Refresher grants: annual or on promotion — necessary for retention
• Vesting standard: 4 years, 1-year cliff
• Strike price matters: underwater options retain no one
• Communicate equity value clearly — most employees don't know how to value it

Retention Programs

Flight Risk Identification

Signals: promotion passed over, manager change, peer departures, major life event, compensation below market.

Retention Tools by Risk Level

Risk level	Action
Low	Stay interview, development plan
Medium	Comp review, stretch assignment, executive attention
High	Retention package (cash or equity acceleration), role change
Critical/immediate	CEO conversation, counteroffers (use carefully)

Counter-Offer Policy

Most companies don't counter-offer. If you do:

• Accept that 80% of people who accept counter-offers leave within 12 months anyway
• Counter only when you'd make the same investment without an external offer
• Use as signal to fix systemic compensation gaps, not just individual ones

Talent Review Cadence

Review	Frequency	Participants	Output
Performance calibration	Annual	All managers + HR	Ratings, comp decisions
Succession planning	Annual	Senior leadership + HR	Successor bench by critical role
High-potential review	Annual	Senior leadership	HiPo program enrollment
Flight risk review	Quarterly	Manager + HR	Retention actions
Headcount planning	Annual (+ quarterly updates)	Finance + department heads	HC plan vs budget

Workforce Planning

Annual Headcount Planning Process

1. Department heads submit headcount requests with business justification
2. Finance models scenarios (base, optimistic, conservative)
3. Leadership calibrates priorities against strategic plan
4. Board approves headcount budget as part of annual plan
5. HR back-plans hiring timeline from need date (hire 3-4 months before need)

Workforce Planning Metrics

• Time-to-fill by role level
• Quality of hire (90-day retention, performance rating at 6 months)
• Offer acceptance rate
• Recruiter source yield (% of qualified candidates per source)
• Cost per hire