Moneyball methods use statistical analysis to find out what really matters.
What metrics actually predict important outcomes?
Organizations can recruit more effectively once they discover that some things are traditionally overvalued—and they often find great sources of undervalued and untapped potential at the same time.
This provides a particularly strong competitive advantage when organizations need to compete for talent.
Outside of sports, employers traditionally focus on recruiting for specific skills. Unfortunately for them, skills typically only actually account for about 20% of performance on the job.
Why stop at recruiting?
What about existing employees? You probably want to provide them with useful feedback and recognize or reward them when they do well.
But are you focusing on the right metrics?
Or are some overvalued and others undervalued?
Recognizing and rewarding performance
Jobs usually require some amount of learning and development, risk-taking and creativity. This means that employees are likely to experience difficulties and setbacks from time to time.
How they react to these challenges is determined by what psychologists call “mindset.”
Focusing on ability leads to a “fixed mindset” while focusing on effort leads to a “growth mindset.”
A fixed mindset makes difficulties and setbacks seem like reaching a limit. Time to give up.
Having a growth mindset encourages persistence and continuing effort to learn and improve.
While we often focus on rewarding overall performance or specific positive outcomes, these aren’t the most important things.
The evidence shows that it’s much more effective to focus on recognizing and rewarding effort and improvement over time.
Asking for feedback
Asking for feedback is one of the most under-utilized methods for effectively engaging and retaining employees.
Even the simple act of distributing a quick internet feedback survey shows employees that you might actually care.
The results of this feedback can be used to create more effective strategic initiatives that boost employee engagement and retention.
That’s what Moneyball is all about.