In the pursuit of a competitive edge, companies often enter a high-stakes bidding war for industry stars, expecting them to perform equally stellar feats as they did in their previous roles. However, caution is warranted—winning this bidding war may come at a cost far greater than the hefty salary package it takes to onboard these coveted talents.

Captivating Comet or Fading Star?

When you recruit a top performer from another firm, you might expect them to shine just as brightly in your world. Yet, research suggests that the performance of these stars drops by up to 20% once they switch companies. It turns out that the brilliance of these performers is not just innate talent but also the systems, support, and environment of the organisation that developed them. A mere 30% of a star's performance is due to their individual capabilities, while a staggering 70% is a product of their former organisation's resources—its technologies, leadership, training programs, team dynamics, and even its reputation.

The Hidden Costs of Hiring Stars

The disruption doesn't end with the imported talent's decreased performance. There’s a ripple effect: the morale and productivity of the group often suffer due to the high-profile nature of such hirings. Existing employees may feel undervalued or overshadowed, leading to an environment where resentment brews and collective performance dwindles. Furthermore, investors are shrewd. They sense when a company has potentially overpaid for talent, which may lead them to adjust their valuation of your company negatively.

Cultivating Brilliance from Within

The alternative strategy is clear: nurture your own stars. This means:

- Disciplined Hiring: Recruiting bright individuals with the potential to grow within the fabric of your organisation.

- Development Through Training: Investing in robust training and mentoring programs that foster talent internally.

- Retention Efforts: Actively working to retain your high performers by recognising their achievements, supporting their career progression, and addressing work-life balance concerns.

In short, the key to sustainable performance enhancement lies not in acquiring stars but in creating an environment where talent is continuously cultivated.

This post aims to shift your mindset from acquisition to development, revealing the truth behind the supposed quick fixes of hiring industry stars. By focusing on internal development, you can ensure a more stable, harmonious, and productive work environment.

Next Steps

Want to learn more about increasing performance? Check out these links:

The Risky Business of Hiring Stars

Leadership Development Programme Framework – 10 Essential Elements

High Performing Teams Characteristics - 15 Things All High Performing Teams do

10 Proven Strategies for Boosting Team Performance

To find out how PerformanceNinja could help you with increasing performance, book a free strategy call or take a look at our GrowthLab.