There is a question I ask in recruitment manager training that often surprises delegates. That question is: Did you know that only 20% of your work and efforts are most likely producing 80% of your results? It’s usually met with nervous silence.
This 80/20 principle is called Pareto’s Law and it’s one of the most important business principles you’ll ever learn. When you implement this principle it will impact the results you achieve in all areas of your life.
In the 19th century Wilfred Pareto noticed that 80% of the world’s wealth was concentrated in only 20% of the world’s population. As he studied this idea in more depth he found that the 80/20 principle held true in almost all areas of life. A few examples:
- 80% of the wear on carpets occurs on just 20% of its surface.
- 20% of your clothes will be worn 80% of the time.
- 80% of car accidents come from 20% of car drivers.
- 80% of your sales will come from 20% of your clients.
- 80% of your profits will come from 20% of your team.
- 20% of your team will give you 80% of your problems.
- 80% of your results will come from 20% of your time and effort.
What does this mean for Recruitment Managers?
Pareto’s Law states that 80% of the outputs result from 20% of the inputs and vice versa. In other words there is a built in balance between efforts and results. This means that essentially you are spending 80% of your time and focus on doing things that are largely irrelevant.
When you are aware of this you can review what you are spending your time and energy on and become more efficient. By removing the things that require high effort but produce low results you can focus your energy instead on things that yield big results and require less input. When you become practiced at using this technique you can refocus your priorities with laser like precision. It becomes about working smarter, not harder or longer hours.
Practical Ways to Apply Pareto’s Law:
1. Work with quality Clients, Jobs and Candidates
Figure out which 20% of your clients bring you 80% of your business. Then invest your time into building those relationships and understanding.
2. Prioritize your Work Time
Be ruthless and make sure you spend time only on things that bring rewards and support your business strategy.
3. Become a Master at Focus and Discipline
Stop half of the 80% of “stuff’ that brings you in little or no return and double the 20%. Then do it again. And keep doing it.
4. Remove Distractions.
What can you delegate, spend less time doing or stop doing all together? I’m talking about thinks that take high effort and bring low reward. Work at removing them from your life.
5. Share Best Practice.
Identify the experts in different areas of your business, then get them to share their knowledge and mentor others.
6. Champion your Champions.
Focus your efforts to the 20% of your consultants that are either motivated to make a difference or bring in 80% of the business.
I hope you found this article useful. For more advice on how to get your under performers back on track, join my FREE Webinar ‘The 6 Step System to Convert Your Under Performers to High Billers in 14 days or Less’.
Click on this link to sign up: 6 Steps Convert your Under Performers to High Billers