How to Build a High-Performing Team: Achieving Talent Density with Workforce Analytics
Market forces, AI, and generational workforce shifts are shaking up talent management. The current economy sees companies seeking to increase workforce productivity and revenue without significantly increasing headcount. While this sounds like an impossible ask, Netflix has done it with talent density, and many other businesses are following its example.
Talent density, the amount of top-performing talent you have per seat, is a philosophy invented by Netflix that prioritizes having a small team of top performers over increasing headcount. It was considered revolutionary because increasing staff size was traditionally used as a measure of success for companies, particularly tech startups. Since its introduction, talent density has gained significant traction, with firms like Zapier and Amazon implementing it in their HR practices.
Beyond Headcount: Strategically Structuring Your High-Impact Teams
Following this model does not mean firing everyone but your top performers. That is a quick path to burnout for your rockstars, and average workers are required in every business to get the job done. It’s more about giving the top performers the room they need to thrive by putting them on a team that drives change and accelerates growth.
It does, however, mean reorganization to make that “excellence cluster” effective. A few of them may need to be promoted, and they should be given the power to do what they like with appropriate checks and balances.
Requirement one is that they are a team; requirement two is that they are given the freedom to make nimble decisions. They should be able to work by focusing only on how they can do better, not on their obstacles. It can be tough for management to do, but the more autonomy a high performer has, the more they’ll do for you.
Netflix says it best in their blog:
“We get more done with fewer people in less time, and this is a key ingredient to maintaining high talent density, because employees aren’t being frustrated by bureaucracy, the default behavior is to trust their judgement.”
Research by McKinsey shows that high performers are up to 400-800% more productive than the average employee. Netflix’s numbers are impressive; at less than 20,000 employees, it generates $3 million in revenue per employee. While there are undoubtedly other factors that play into that, it self-reports talent density as one of them.
From Average to A-Team: Leveraging Performance Management Data for Upskilling
All of this is to be done with tact, as some of your average performers may see this team being assembled and feel left out. They don’t have to be!
Everyone should have a clear path to becoming a top performer, and there’s no easier way to do that than to incorporate productivity monitoring software like Prodoscore. With Prodoscore, workers get feedback on how they’re performing with team, organization and industry benchmarks.
The solution also visualizes how your A-Team employees are spending their time so you can build a template for other workers to follow. For example, Prodoscore might reveal that your top sales rep spends 2 hours more on high-value activities like calling and only 30 minutes on email, compared to the team average.
When you identify the gaps, you can fill them with training, coaching, or other measures you deem necessary to move your team up the ladder. Training up average performers keeps them with the company and actively engages them in furthering their own success.
Talent Density in Action: Optimizing Hiring & Training with Data
In today’s market, it is absolutely possible to attract the best and the brightest. Every new hire should be viewed through the lens of potentially joining your team of top performers, either eventually for entry-level hires or right away for mid- to senior-level hires.
To hire for talent density, build personas and typical workdays for high performers in your organization, preferably for each department. The template you can create with Prodoscore will help by showing how they spend their days - in which tools, who they collaborate with, and the time they spend doing it.
Then, build a scorecard for each candidate based on your persona and template. Vibe-based hiring does not encourage talent density; it only helps high-charisma individuals land jobs. Actual data is the only way you’ll get it right.
The job market ebbs and flows, and right now is the best time to hire for talent density. While it does require some restructuring and granting star performers more autonomy, talent density can result in exponential growth. Before you can do that, you need workforce metrics.
