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The Shift to Performance-Based Hiring 

Michelle Gaba | | September 21, 2018

The Shift to Performance-Based Hiring

Performance-Based Hiring is a term that is gaining momentum in recruiting circles. Simply put, it involves hiring people based on what they have accomplished, not based on a list of skills that they claim to have on their resume. The focus on performance-based assessment allows for the hiring of candidates who are at the top of their game, with the goal being to only hire from the top 5% of the market.  

The basic steps include: 

  1. Write a performance-based job description   
  2. Source high-quality talent with a compelling job ad and seek passive talent with strong results profiles 
  3. Review candidate’s resume or profile for performance-based accomplishments  
  4. Objectively select only candidates with excellent performance track records  
  5. Conduct a performance-based interview with the top 5% of candidates
  6. Conduct performance-based reference checks to make sure the selected candidate has actually walked the walk and is not just talking the talk

The difference between a performance-based hire and a skills-based hire begins with a stellar job description. A standard job description lists traits and skills. Essentially a performance-focused job description focuses on what they can deliver at the end of the day. For example: 

Hotel Sales Manager 

Skills-based approach 

  • Generate revenue for the hotel 
  • Follow revenue management procedures 
  • Book group business and maintain regular accounts 

Performance-based approach 

  • Generate a 10% annual revenue increase in sales 
  • Implement revenue management procedures that increase positive cash flow by 5% 
  • Book a minimum of 100K in group business annually 

The value of Performance-Based Hiring is that it emphasizes looking for and selecting talent that has a proven record of success. These are people who have a history of growing sales, increasing marketing leads, improving and simplifying processes, and creating success in their given area of expertise. They have not just got the skills but have been in this role before and have numbers or results to show for it.  

Performance-Based Hiring can be a real game-changer. Above all, bringing in people who have a proven record of successful accomplishments dramatically improves results. It builds expectations for a results-oriented approach right into the job description, making it clear even before the person comes onboard what they are expected to do. It paves the road to success for both the employee and the company as a whole. 

Visit the Goodwin Recruiting Job Board to search current openings.