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What Is Talent Density?

by Meghan Kelly

Jan 22, 2025

Posted in Culture

Formada founder, Meghan Kelly, believes that Formada's talent density is key to delivering great customer service.

Building A Great Business Means Building A Great Team

Have you heard of “talent density?” As a concept, talent density is relatively new, and I have a feeling that in the coming months we’ll be inundated with think pieces on its importance, why more businesses should focus on it, and ultimately, why maybe it doesn’t really matter all that much. (This is how these things evolve, do they not?) 

To be perfectly honest, the term itself is not something that means a lot to me, but the general concept, the practice of talent density is something that has helped Garrett and I make Formada into the successful business that it is today, based solely on the beliefs we’ve held as we’ve built our business. 

In a nutshell, talent density is staffing your business with only the most exceptional talent possible — bringing on the high-performers that will foster innovation and help your business achieve its goals. 

Some of you might read that and think, “Well…yeah. Why wouldn’t you choose to only hire high performers?” And you’re right! But if you’re someone who is intimately familiar with the hiring process, you’ll also understand that bringing on the right talent for the right position at the right time isn’t always so easy. No matter how clear cut your systems are, people are people, and people are sometimes…unpredictable, let’s say. 

But when you’re able to achieve talent density in your organization, amazing things can happen. 

I want Formada to grow. but Garrett and I are committed to building Formada through considered, sustainable growth. That’s been a focus of ours since day one. Why? Because we know that we have something special, and if we scale too quickly, then we run the risk of diluting the experiences of our clients and of our team. 

That’s not acceptable to us. 

Talent Density Means Quality Over Quantity

We’re luckier than a lot of other businesses out there because our team is primarily of professionals whom we’ve had a lot of prior professional experiences with. This made bringing them on as full-time hires less stressful than if we hadn’t, but as a business in startup mode, it was still extremely stressful. The stakes had changed.

In the existing (and growing) literature I’ve read on talent density, most of the articles point to Netflix. The story goes that, back in 2001, they were forced to lay off a considerable percentage of their team, keeping only the highest performers on staff. 

They expected their productivity to drop due to the reduction in staff, but instead it actually flourished.

I don’t think anyone should take this as an endorsement to cut staff. You won’t be more efficient just because you’re small. Big doesn’t always equal bloated. It’s about leadership. 

Formada was from its very beginnings a tight ship, staff-wise because we had to be. We were (and are) a self-funded, bootstrapped endeavor. Garrett and I were responsible for operations, finance, HR, bookkeeping, not to mention every imaginable role that actually pertained to client services. I read books on lean organizations.

And when we finally did hire our first set of full-time employees, it was because we had carefully set the stage to achieve our next level of growth. 

A lot of organizations onboard a ton of new employees, assess their performance over a certain period of time, and then cut the low-performers loose before starting the whole process over. 

We’ve never had that luxury, and philosophically speaking, I don’t really agree with it, nor do I think it’s a good way to build morale and create a healthy team culture.  

Why Talent Density Matters To You

Having a talent-rich organization offers several benefits, the primary of which is confidence. 

Our clients get direct support from subject matter experts. No one on our team is just “filling a role.” Garrett and I have such a high level of trust in our team that we can focus our energy on serving our clients and growing our business. We’re working on the business vs. simply in the business. 

This means we’re never resting on our laurels. We’ve continuously looking for ways to improve our service offerings and delivery. And we’re making those decisions based on the direct experiences of our clients and the team members who serve them. 

In some of the articles I’ve read about talent density, they warn of a few potential drawbacks, namely the increased potential for creating a highly competitive environment. I see how that’s possible, but I also see how the right leadership (and therefore the culture) helps you avoid all that. 

Our team is highly competitive, but typically it’s related to board games or our weekly round of Animal Lifespan.

I am of the opinion that achieving great team chemistry is an art and a science, and Garrett and I are very careful about who we add into the mix. It’s not because we’re risk-avoidant, it’s because we’ve made a commitment to our clients and to the team. 

We have an incredibly low turnover rate (regarding staff and clients) for a reason. I’d like to believe that it’s because we deliver custom marketing strategies that actually work from folks who actually love doing what they do (and are extremely good at it!)

Commitment To Service Transcends Trends

It’s worth paying attention to concepts like talent density when they arise. When it came to building Formada, Garrett and I were committed to building a growth-driven business — a business that’s success hinged on growing other people’s businesses. This requires other builders, people who are highly skilled at their specific roles and responsibilities while also possessing a very specific sort of mindset. Our team thrives on doing great work. They want every campaign and project they do to be successful. But more than anything, they want to do what is right for the client.

It’s what they deserve. It’s what you deserve. If you’re interested in custom digital marketing strategies from a talent-dense team that’s committed to your success, then contact me today. I’d love to learn about how we can help you achieve your goals!

Get in touch with the Formada Team