Commodity to Experience — Where Your HR Actually Sits | HR4HR®
HR4HR® Consulting

Commodity
to Experience.

Pine & Gilmore said that when a tier gets undifferentiated, you compete one level up. Here is that ladder, applied to three things HR does every week.

The four tiers

Same logic whether you're selling coffee or running a performance cycle.

01
Commodity
Raw and interchangeable. Nobody can tell whose it is.
02
Good
Manufactured and standardized. You bought it. So did everyone else.
03
Service
Performed on request, customized to you. Delivered at people.
04
Experience
Staged so the person leaves changed — and can describe it to someone else.
Performance ManagementArea 01
01 · Commodity

The rating scale. A form with a 1-to-5 on it that could belong to any company on earth.

02 · Good

The module in your HRIS. The competency framework you licensed. Configured, not authored.

03 · Service

HR runs the cycle — chases managers, compiles ratings, staffs calibration, sends the reminders.

04 · Experience

The person walks out knowing where they stand, what happens next, and that somebody was actually paying attention all year.

RecruitingArea 02
01 · Commodity

The job posting. Interchangeable text that half your competitors have also published this month.

02 · Good

The ATS. The careers page template. The employer-brand deck someone sold you.

03 · Service

A recruiter works the req — sources, screens, schedules, follows up, closes.

04 · Experience

The candidate can describe who you are to someone else that night — including the ones you turned down.

OnboardingArea 03
01 · Commodity

The paperwork. I-9, W-4, handbook acknowledgment. Legally required, entirely generic.

02 · Good

The onboarding portal. The welcome kit. The laptop sitting on the desk.

03 · Service

HR runs orientation, coordinates IT, books the 30-60-90 check-ins, answers the questions.

04 · Experience

They finish day one knowing what they joined and why it matters — and they tell somebody about it that evening.

Why the tier matters

  • Every step up is harder to copy and harder to replace.
  • Automation eats from the bottom. Commodities first, then goods, then services.
  • Most HR functions are working extremely hard at tier three and calling it strategy.
  • Tier four is the only one that requires a decision about who you are.
You don't climb this ladder by buying something. You climb it by designing something.
HR4HR® Consulting Teratha Williams hr4hrconsulting.com

Ladder adapted from B. Joseph Pine II and James H. Gilmore, The Experience Economy (Harvard Business Review Press). Applications to HR practice are HR4HR® Consulting's own.