ears into my career as an executive recruiter and coach, I woke up one morning and had an epiphany: The recruiting system was broken.

“Our HR is terrible.”

“Our internal recruiters aren’t getting the job done.”

“Recruiters aren’t trained to fill so many positions.”

These are just a few statements I’ve heard throughout the years I’ve worked with leaders. Many were under the impression that they had a recruiting problem when in reality it was only a symptom of a deeper issue within their organization. They didn’t have a recruiting problem; instead, they had a strategy problem.

That’s what led me to coin the term Talent-Centric Organization (TCO) to define and detail the process of becoming a company where the executive team is aligned and a talent strategy that supports that alignment is in place. But like many forward-thinking ideas, the solution was disruptive to the traditional system companies used, and it’s hard to alter people’s thinking and set ways.

Years went by and I continued to see the issue get worse, so I decided to go all-in despite having a well-paid career in coaching and recruiting. I focused all of my efforts on educating the world on what a TCO is and why it’s critical to be one.

I wrote a book, started a podcast, published articles on the topic, and centered my business around building TCOs. Every day I continue to spread the word hoping to see more and more companies fix their “recruiting problem” by redesigning the way talent fits into their company.

A TCO is a business that concentrates on employee engagement, autonomy, creativity, and advancement. In other words, it must be focused on its talent, and led by people who realize the key to their company’s success is every single employee in it.

TCOs stand out in their alignment at an executive level; their culture, where any and every employee feels comfortable voicing feedback; and their diverse team. It’s simple: When you have better talent, you’ll generate more revenue. And TCOs attract better employees, have lower turnover rates, and are proven to outperform competitors on the S&P 500 by 211 percent.

Elements of Being a TCO

1. Alignment of the executive team.
As a TCO, you must have an executive team that puts the company as a whole before themselves. Every member of the leadership team needs to learn the vision of the organization and be on the same page in order to communicate it consistently to the rest of the staff.

Although it may seem like just a small detail, in my experience, if a leadership team operates with different visions in mind the whole company is likely to stray from its original purpose. If they all work with the same vision in mind, not only will the company stay on track, but the employees will feel connected to the greater purpose and have more motivation in daily tasks.

Only 22 percent of America’s employees agree that their company’s leaders have a clear direction for their organization, according to Gallup’s State of the American Workplace report. If you can be a part of that percentage, your business will reap the benefits.

2. Effective communication from the top down.
We all know how easy it is nowadays to misinterpret a message with so many external distractions, not to mention the rise of multitasking. For this reason, in a TCO it’s important to be intentional about how your staff communicates and listens to one another. By learning how to communicate clearly, you can drastically improve the way your organization runs.

I’ve seen a pattern in organizations where the CEO thinks their company is running smoothly, when in reality it has a culture where no one—not even their closest team members—feels comfortable giving feedback. It’s not until I come in and communicate with their employees that many problems arise, not new problems but hidden problems.

It’s important to realize that talking is only half of the equation—listening is the crucial other half. You must not only speak your points but also listen.

And listening occurs with intention; just hearing is unintentional.

Then, there’s how communication happens daily. Say you need to announce staff cuts. Do you send one email out informing the entire company? *Cough cough* Elon Musk. Or do you call an in-person meeting where you can be honest and open with your staff and take questions?

You need to ask your employees what methods of communication work effectively for them. The best way to talk is always in person; no matter how many technological advances take place, this will always be true.

Also keep in mind that different people require different methods of communication. Are you communicating in a way that the receiver will clearly understand? For example, I have terrible trouble understanding instructions that are provided by chat. It takes longer to get my questions answered due to so much misinterpretation. I understand better and more quickly by having a verbal, back-and-forth conversation.

You need to ask your employees what methods of communication work effectively for them. The best way to talk is always in person; no matter how many technological advances take place, this will always be true. The next best method is to hold a Zoom meeting. You can still see facial expressions and body language even though you aren’t physically in the same place.

If neither of these is possible, a phone call will suffice. And lastly, text and email are the least effective. Written messages open the door for miscommunication because of a lack of tone, body language, and facial expressions.

3. A culture of feedback.
At TCOs, employees at every level must feel comfortable giving feedback to those below, above, or across from them. For example, in a TCO a lower-level worker can call a meeting with the head of their department to openly discuss an issue with their manager, and the department head will actually listen because they see it as a contribution to bettering the company.

This helps employees feel empowered and like they have a voice. Not to mention they may have a point of view you haven’t considered or useful information you didn’t know previously.

Building a culture of feedback begins with you, the CEO. In my experience, CEOs who hold an all-hands meeting to declare and describe what it is to have a “culture of feedback” (and provide examples) build more successful companies.

You as the CEO should practice what you preach so the rest of your executive team, as well as individual contributors in all departments, can follow suit.

4. A clear talent strategy.
Once you have an aligned team leading your organization, you can begin to create a talent strategy. How are you hiring new people? Why are you hiring them? The strategy behind finding and bringing on new talent is often overlooked and done in a traditional but inefficient way.

It starts with conversations. Bring in an expert to do discovery and talk with each department separately. Then create a talent strategy that aligns the company.

5. A diverse group of minds.
From my perspective, this is a no-brainer. It’s important that everyone in the room is not from the same background, race, age, gender, etc. But also keep in mind that diversity means not hiring your friends. Hire people from all walks of life. Especially in leadership positions, this will ensure that many ideas come to the forefront and lead to the growth of your business.

Over two-thirds of CEOs with diverse cultures reported increased profits, according to a survey. And those with women in top positions proved to have higher profits.

• Increased growth and productivity: Paying attention to your employees and their needs will make them more passionate and productive when it comes to your organization.
• Less turnover: By focusing your business on talent, you’ll retain more people and save precious time and money otherwise spent hiring. The average cost of replacing an employee ranges from one-half to two times the employee’s salary.
• Interest from top talent: Top players will notice you. They will hear from those who already work there how great the environment is and want to be a part of it.

If you’re interested in transforming your company into a TCO, the first step is to hire a third party to come in and do discovery, identify gaps in alignment, and train and coach your executive team. Once everyone is speaking the same language, you can begin to create a talent strategy and go from there.