What is the 80 20 hiring rule?

The 80/20 Rule of Hiring: Snagging Top Talent for Maximum Impact

The Pareto Principle, also known as the 80/20 rule, states that roughly 80% of effects come from 20% of causes. This principle, widely applicable in business, holds particularly true in hiring. The 80/20 rule of hiring suggests that 80% of your company’s success is driven by the top 20% of your talent. Therefore, focusing your recruitment efforts disproportionately on attracting and securing this elite group yields significantly better results than spreading your resources evenly across all candidates.

Instead of casting a wide net and hoping for the best, the 80/20 hiring rule encourages a laser focus on identifying and pursuing the top tier of talent. This means dedicating approximately 80% of your recruitment resources – time, budget, and effort – to attracting, vetting, and onboarding this exceptional 20%. This may involve:

• Investing in premium job boards and specialized recruitment agencies: Reaching passive candidates who aren’t actively searching but represent the top talent in their field.
• Developing a robust employer brand: Creating a compelling narrative that attracts high-achievers who resonate with your company’s values and mission.
• Implementing rigorous and targeted screening processes: Ensuring that your assessment methods effectively identify candidates with the specific skills and experience required for high performance.
• Offering competitive compensation and benefits packages: Attracting top talent often requires going beyond standard market rates to demonstrate your commitment to their value.
• Creating a positive and engaging candidate experience: Even rejected candidates from the top tier can become valuable brand ambassadors if treated with respect and professionalism.

While this concentrated approach may seem to neglect the remaining 80% of candidates, it’s not about ignoring them entirely. It’s about prioritizing. The remaining 20% of your recruitment resources can still be utilized for essential hiring activities, such as filling entry-level positions or addressing immediate staffing needs. However, the bulk of your energy and investment should be directed towards securing those exceptional individuals who will disproportionately contribute to your organization’s success.

The benefits of applying the 80/20 rule to hiring are numerous:

• Improved quality of hires: By focusing on top talent, you increase the likelihood of bringing in individuals with exceptional skills, experience, and cultural fit.
• Increased productivity and innovation: High-performing employees drive innovation, improve efficiency, and contribute significantly to the bottom line.
• Reduced employee turnover: Top talent is more likely to be engaged and satisfied, leading to higher retention rates and lower recruitment costs.
• Stronger organizational performance: A team composed of high-achievers elevates the overall performance of the organization and drives sustainable growth.

The 80/20 hiring rule isn’t a magic formula, but it offers a valuable framework for optimizing your recruitment strategy. By focusing your resources on attracting and securing the top 20% of talent, you can significantly improve your hiring outcomes and build a stronger, more competitive organization.