Erik Reed does a good job of explaining diminishing returns from an investment perspective.
Diminishing returns is a principle of economics.
It says that in any system, there comes a point where increasing the quantities of one input while holding all other inputs constant yields progressively smaller output results.
This point is called the optimal result.
Systems can operate in one of three states—below optimal, optimal, and diminishing returns.
When recruiting, it’s important to think in these terms.
The optimal results come when you’re contacting the right prospects, delivering compelling messages, and executing at the right frequency.
Most hiring managers err on the side of not reaching out enough.
Others err on the side of connecting too much with unhelpful, non-personal messages (usually through the use of tech-enabled communication or AI tools).
When you hear your agents complaining they’re constantly being called by recruiters in your marketplace, somebody’s gone too far.
The most successful hiring managers optimize by frequently bumping up against the line of diminishing returns and then pulling back.
