How I recruit the best employees in the world…
Summary
- My name is Alex Hormozi, and at Acquisition.com, we make around $85 million a year in revenue.
- Scaling a company internally is vital, and I've learned some impactful strategies to do so effectively.
- There are five core functions in any business that should never be outsourced: lead generation, lead nurture, sales, fulfillment, and retention and ascension.
- Every company should understand and divide tasks within these core functions; it's a beneficial framework for growth.
- Just as you generate leads for customers, you should generate applications for potential employees using similar tactics.
- There are six ways to attract both customers and employees: paid ads, earned media, owned media, manual outbound, affiliates, and word of mouth.
- Often, you don't need a new strategy, you need a "who" – someone already skilled who can help your business grow faster.
- Treat your employee applications with the same urgency as customer leads, so you can engage top talent quickly.
- The interview process is really another form of sales where you're selling the candidate on why they should work for you, not competitors.
- Competition for talent is intense with the rise of remote work, so deliberate and aggressive recruitment strategies are essential.
- The internal pipeline includes training your employees, setting communication cadences, job descriptions, KPIs, compensation structures, and growth opportunities.
- Retain employees by motivating them and identifying who can ascend to greater responsibilities, creating a fast track for growth.
- By establishing systems for talent acquisition, retention, and ascension, you create a desirable brand that people aspire to join.
- Clear KPIs and advancement opportunities are necessary; without them, employees can't envision their future with your company and may leave.
- Talent acquisition and management are key to scaling your business. Knowing the metrics of your talent system ensures you get the talent you need.
- These insights and strategies are aimed to help prevent you from being "broke," by sharing knowledge that I hope contributes to your success.
Video
How To Take Action
I would suggest implementing a defined talent acquisition system based on the internal framework mentioned. Start by categorizing activities into core functions: application generation, application nurture, interviewing, training, and employee ascension. Here's how to do it:
Application Generation: Just like lead generation for customers, get creative for employees. Use paid ads, social media, your network, and even cold outreach to gather potential candidate applications. This gets the ball rolling.
Application Nurture: Treat these applications like customer leads. Respond quickly. Aim to make contact with potential hires within a couple of days. Don't let that top talent slip away because you were slow to engage.
Interviewing: This is your sales pitch for why a candidate should work with you, not elsewhere. Develop a script that highlights the benefits of joining your company, and be ready to sell your vision and culture passionately.
Training: Once someone's hired, you need to deliver on what you promised during the interview. That means providing proper training and clear communication about job roles, KPIs, and how they can succeed in your business.
Employee Ascension: Identify star players early and offer them a clear path for growth within the company. Show them how they can advance, what the milestones are, and what rewards they'll get for meeting them. This keeps them motivated and loyal.
Remember, the goal is not just to acquire talent, but to keep them growing and contributing to your company's success. Monitor the metrics of this talent system so you can make improvements and get the talent you need to scale your business.
By following these steps, you'll hopefully avoid being "broke" and instead, build a thriving company with a team that's as invested in growth as you are.
Quotes by Alex Hormozi
"All of us are one amazing hire away from all the growth you could ever want"
– Alex Hormozi
"A lot of times you don't need a what; you need a who"
– Alex Hormozi
"If you can't see a future for when they're going to work for you, they're a ticking time bomb for when they're going to leave you for someone else"
– Alex Hormozi
"Talent is the way that you scale the business"
– Alex Hormozi
"If you find out that somebody worked at Facebook or they worked at Google, at in any kind of relatively high up capacity, you're going to probably assume that that person's very smart"
– Alex Hormozi
Full Transcript
in this video i'm going to talk about how to scale your company by scaling through hiring all right so if you guys don't know how to do these two things that i'm going to be walking through uh i will show you how to scale in the realest way all right like this is from the trenches so if you guys don't know who i am my name is alex rozio at acquisition.com we do about 85 million a year in revenue so uh first time i heard this term uh was from a guy named alex tarfin and this is uh his in his external framework and i want to show you my internal framework for scaling the company on the inside all right and so um he talked about how there's there's five he calls them core functions of the business right so you've got lead generation you've got lead nurture which is working the leads to get them to to show you've got sales you've got fulfillment and then you've got retention and ascension right so retention getting people to buy uh more times essentially getting to buy more expensive stuff right so he calls these the five core functions right of any business etc i remember looking at this and being like oh this is so cool and these are the things that uh you should really never outsource in your business it's my opinion right you should know how to generate leads you should know how to work the leads you know how to sell you should not fulfill and you just know how to uh retain and ascend your customers right if you don't know how to do these things and you haven't divided up your uh the activities of the business into this thing is a very useful framework that you can use for yourself all right and think about this as a pipeline right that's everything here is done in sequence but here's the cool thing there is a parallel internal five core functions of a business that you can use and that you should use and when i realized this this is what allowed us to scale our business because we actually were able to use the same methodology the same thinking process of how we scaled our acquisition of getting more customers and continuing to grow that side to how we scale our employees and how we get them all right so follow along so what normally externally we're doing is lead generation here we're doing is application generation so this is how we're getting and the ads that we're running where we're running them and just like you can run an ad to get a prospect you can run an ad to get an employee just like you can do cold outbound to get a client you can use cold outbound to recruit from other companies you can use code outbound to attract talent all right so the same six ways of getting customers also works when you're actually getting employees all right so think about this hopefully this is a good mindset for you so there's six ways of getting customers i'll say them real quick you can do paid ads you can do earned media so if you have a following of any kind you can have your owned media so people you already have access to on your lists your your crm your cell phone the people who follow you uh that that have given you access to them right that you can directly message them without asking their permission the fourth is through manual outbound the fifth is through affiliates and the sixth is through word of mouth right there's the six ways you get customers right that is all of these things are traffic for how you generate leads but you can also use those same six for how you generate applications pretty cool right because right now all of us are one amazing hire away from all the growth you could ever want and i promise you that i've lived this first hand is that a lot of times you don't need a what you need a who right you're trying to find and figure out the skill when someone already has that skill and the experience and has already run an olympic gold multiple times you just say hey can you just run it over here rather than trying to figure it all out on your own it's much faster and simpler all right so just like you have lead generation you have application generation what goes next application nurture all right so there's some really interesting stats along this but 10 out of 10 employees high quality prospects will find a job within eight days so if it takes you six days to even make your first contact with the the leads that you're getting from applications which honestly happens so common people work the crap out of their leads but don't completely ignore the applications that are coming in for new employees right you should have just as structured of a process of how you're nurturing those applications so that they have a high likelihood of scheduling and showing up for wait for it instead of sales are you still selling hell yeah you're still selling but we just call it interviewing right and so we're selling them on why they should work for us right rather than someone else and right now more than ever before is a huge war for talent all right all the companies that i know of and all the guys who have bigger companies right now are all talking about it is that the the the the drive to acquire talent is higher now than it ever has been it's because of the shift to remote so now everyone is competing against netflix apple google like all these huge companies are now fishing in all of our ponds because they're employing remotely right and so what used to be an advantage if you you know worked from home or you had an internet business is no is now just table stakes work from home flexible hours etc is now table sticks right and so now we have to get more aggressive and more deliberate in how we recruit and hire and that's the only way that you scale your company it's the only way once you increase this side you have to increase this side because you have to accommodate the demand that you're meeting i said there's five core functions these are the external ones these are the internal now who can guess what number four is right you have fulfillment for your customers but now you have training for your employees you take the person who now says yes and you make sure that they now go through the process which as a customer would be fulfilling before an employee is fulfilling on the job you just sold them on right so you're actually giving them the skills and how you function and how you do things within your company what are the communication cadences who they're going to report to what's the job description where the kpis are going to be measured on you know what their compensation structure is how they can get raises all that kind of stuff and so that's the fourth thing that has to be defined within your internal pipeline that are that are core functions of the business now number five who can guess what this is normally you have retention and ascension sorry my camera's just being wacky as hell i try to keep it try to keep it fun for you guys mix it up try and uh go in and out of focus number five is how are you going to retain and ascend your talent how are you going to retain them so how you're going to continue to motivate them so that they want to continue to perform that's the retention aspect and then how do we select the star players and ascend them to higher levels and put them on a fast track so that they can move up within the company get more responsibility and make more impact to the bottom line in the business how can you identify the leaders early on and then put them on a track that allows them to grow which is one of the biggest things that if you see the biggest companies in the world it's because they have such amazing talent acquisition systems and retention and ascension systems for identifying talent and allowing them to move up all right the reason the biggest companies in the world are the biggest companies world is because they employ the smartest people i mean think about this if you find out that somebody worked at facebook or they worked at google at in any kind of relatively high up capacity you're going to probably assume that that person's very smart right so think about that kind of brand for your own business how can i make it so that my business becomes a a star or a stamp of approval on someone's revenue someone's resume how can i make it so that my business is like harvard man and i can tell you there's definitely aspects of our business if someone like the amount of people who try and recruit my sales team is ridiculous right but we pay really well so it's hard and they also really like it here because we're you know established business and they have a clear career path they can make lots of money but the thing is is that if you can create this thing where people aspire to be associated with your brand and your company then they will retain you will be able to attract better people they will want to work for you because they'll know that your your training your fulfillment right that you have is so good that it's worth even taking a pay cut to acquire the skills through the the business that you have because you're so good at teaching it right these skills that make them more valuable and so i wanted to give you this as two parallel frameworks that you can use within your business one is the external framework of lead generation lead nurture sales fulfillment retention and ascension of how you bring people in to your business and then there's a parallel or a mirror internal core functions of how you get generate you generate applications you uh nurture those applications so that they schedule and they show up for interviews you sell them during the interview so you should have a process a script just like you have a sales script you have a sales script internally how you can indoctrinate people once they come in to believe what you believe share the values that you have and then hopefully just like in a normal sale disqualify people that aren't going to be a good fit and then once they are in fulfill on the promises that you made to them increase the value of that person show them how they can fit and provide value to the company and then finally how do we what are the kpis that we use to manage these people what are they driving towards what are they going to get compensated and then how do we ascend them what are the titles that they that they get and what are the increases in pay that are clear based on milestones when they know they will qualify for that next raise or for that next increase in job so they can see a clear path of when they're going to work and continue to work for your company because if they have no way they can't see a future for when they're going to work for you they're ticking time bomb for when they're going to leave you for someone else all right and so talent is the way that you scale the business and if you don't have a reliable way and you don't know the metrics of your talent acquisition system well then is it any wonder why you don't have the talent that you want so i'll leave you with that in terms of how to scale the business like i said mosey nation there's lots of people who are broke i don't want you to be one of them that's why i make these videos keep being awesome i'll see you guys in the next vid bye
