Insight at your fingertips …
Most hated tasks by managers # 1 Firing #2 Hiring
Pop Quiz The likely turnover cost of losing a sales representative earning $150,000 per year is ____ a. $30,000 b. $76,000 c. $90,000 d. $176,000 e. $250,000
Pop Quiz The likely turnover cost of losing a sales representative earning $150,000 per year is ____ a. $30,000 b. $76,000 c. $90,000 d. $176,000 e. $250,000
Cost of a bad hire TURNOVER COST as a % of TURNOVER COST as a % of JOB TYPE/ CATEGORY annual salary • Entry Level – Hourly, Non Skilled (e.g. Fast Food Worker) 30 – 50% • Service/ Production Workers – Hourly (e.g. Courier) 40 – 70% • Skilled Hourly (e.g. Machinist) 75 – 100% • Clerical/ Administrative (e.g. Scheduler) 50 - 80% • Professional ( e.g. Sales Representative, Nurse, Accountant) 75 – 125% • Technical (e.g. Computer Technician) 100 – 150% • Engineers (e.g. Chemical Engineer) 200 – 300% • Specialists (e.g. Computer Software Designer) 200 – 400% • Supervisors / Team Leaders (e.g. Section Supervisor) 100 – 150% • Middle Managers (e.g. Department Managers) 125 – 200%
Non-tangible cost of bad hires
Consequences of Hiring errors High Turnover Company Individual
Low Job Low Consequences Satisfaction Motivation of Hiring errors Low initiative Individual Absenteeism High Likelihood of Low Leaving Engagement Social Loafing Poor Poor Work Morale Ethics Presenteism Negativity
Poor Consequences Stress, Morale Lower burnout of Productivity Hiring errors Lower Quality of Work Company High Conflicts, Turnover disagreements, complaints Low “Us vs. Them” Engagement Attitude Lower Opportunity Overall Poor Cost Efficiency Customer Service
How to hire right?
Solution Hire the right person the first time around • Hire those who match the job, team and company • Manage the gap between personality and “job persona” Facilitate onboarding • Facilitate integration into new team and work environment • Train to improve areas that need to be developed • Tailor job functions/tasks to new hire’s strengths and preferences • Prevent future performance issues – address potential problems before they start Increase retention of top talent • Career development • Personal development • Keep them challenged & interested • Identify leadership potential
How to get a great fit? • Is this person a good fit into a company’s atmosphere and image? Personality • Which specific traits are a must for a position • What makes him/her unique? Some quirks are adorable, some not What is important to this person? Values Beliefs What views of the world, others, and self does this person hold? What kind of a work ethic can you expect? Is s/he assertive, proactive, Attitudes risk-taker, procrastinator? Motives What drives the person? What makes the person tick? What stresses this person Emotions out? If put in a specific situation, how will this person respond? What Behaviour makes this person behave this way?
What if they all look like a
The Selection Process Advanced: • Assessments & tests • Work sampling • Interview with an Organizational Psychologist Standard: • Reference checks • Background checks Basics: • Screening of résumés • Phone interviews • Interviews
First Rationalisation impressions Primacy Candidate’s side & Halo Recency Self-fulfilling effect effects prophecy Hiring Similarity pitfalls Spinned Cultural bias résumés differences Interviewer’s side References Interviewing skills
JOB TYPE/ CATEGORY TURNOVER COST as a % of annual salary How to FIND DIAMONDS in the ROUGH?
2. Assess 3. Retain 1. Define Assess and Conquer
The job ✓ Task analysis ✓ Job analysis ✓ Job description The ideal candidate ✓ Personality profile ✓ Key characteristics and attitudes ✓ Behavioral benchmarks for the position The team ✓ Team roles ✓ Team dynamics ✓ Leadership style 1. Define
• Assess the incumbent • Assess the candidate • Assess match ✓ Job fit ✓ Team fit ✓ Culture fit ✓ Management style fit • Perform gap analysis • Assess performance • Assess promotion readiness 2. Assess
• Retain talent • Train for skills • Manage gaps • Manage performance • Provide timely feedback, good or bad • Motivate according to what really matters • Promote from within • Develop career • Allow personal growth • Build high-functioning teams 3. Retain
ROI from training ACTUAL BUSINESS RESULTS FROM TRAINING & DEVELOPMENT SETTING TARGET GROUP DESCRIPTION METHOD RESULTS 1,447% ROI Coca Cola First level supervisors 8 ½ day workshops Action planning covering supervisor roles, Follow-up session Benefit/cost goal setting and team building Performance monitoring Ratio 15:1 HMO All Managers and employees Organizational Development Performance Monitoring 20,700 New members 1,270% ROI (team building Management building, group meetings Estimation BCR 13.7:1 Customer service training Direct Sales All employees in the 20 hr. program spread over Action planning Payback of program Financial Services Division 60 days focusing on investment in 1 yr total quality mgmt 1,115% ROI Yellow Managers Redesigned interviews Follow-up interviews Freight Performance appraisal BCR 12:1 Systems appraisal with training Performance monitoring interpersonal skills 150% ROI Federal Government New Supervisors 5-day intro to Follow-up questionnaire supv. course BCR 12:1 covering eight key competencies 215% ROI Bakery Multi-Marques, Inc Supv./ Admin 15 hrs of supervisory Action Planning skills training (Work process Including the analysis), role of training Performance Monitoring
But then again, you can’t assess everything … so focus on the essential!
Emotions Personality Motivators traits Behaviours Attitudes Skills Beliefs Knowledge Values
Types of tests used in HR Skills and Knowledge Technical competencies • • Theoretical knowledge Leadership skills • • Practical skills Management skills • • Level of expertise in particular Emotional intelligence • domain Coping skills • Communication ability • Soft skills • Conflict skills
Types of tests used in HR Psychological Aptitude, IQ and Achievement Tests • • • Objective Mechanical reasoning Work ethics • ✓ Big 5 • Analytical reasoning Assertiveness ✓ DISC • • Self-confidence Intelligence ✓ MBTI • • Integrity Intelligence types or • • Projective (big “No No ” in HR) learning styles Customer service • Ipsative vs. non-ipsative orientation
When to use assessments? Pre-selection of candidates Career development Evaluation of & short-list Succession Planning Talent management & Retention Job matching Team & building Onboarding Training needs assessment
When to use assessments CAREER PRE-HIRE ONBOARDING DEVELOPMENT 1. Focus on-the-job training 1. Prescreen for bad fit and coaching on areas that 1. Use assessments as a 2. Narrow down candidate pool to learning and personal need development those who meet minimum development tool 2. Use insight from tests to requirements (lenient cut-off 2. Optimize training process points) manage employees 3. Identify training needs effectively 3. Assess candidates who make the (individual and groups) first cut for job fit 3. Tailor job functions to the 4. Offer custom-tailored 4. Narrow down candidate pool to new hire's strengths and learning opportunities those with best potential preferences 5. Determine the 5. Interview top candidates with effectiveness of your 4. Facilitate integration into test results in mind training process existing teams 6. Probe deeper to validate test 6. Monitor individual 5. Prevent future performance progress results issues by addressing 7. Evaluate trade-offs and culture fit 7. Assess who is ready for a potential problems before promotion, more they start responsibility or learning opportunities 8. Groom young employees for future leadership positions
When to use assessments CAREER DEVELOPMENT ENGAGEMENT & RETENTION 1. Use assessments as a learning 1. Optimize motivation and personal development tool 2. Understand what motivates individual employees and manage 2. Identify training needs, optimize accordingly training process, and determine 3. Ensure right job fit its effectiveness 4. Help them grow 3. Offer custom-tailored learning 5. Keep them challenged and opportunities interested 6. Develop leadership and 4. Monitor individual progress management skills of those in charge 5. Assess readiness for promotion 7. Monitor trends company-wide 6. Groom young employees for 8. Identify budding problems before they escalate (e.g. stress levels) future leadership positions
Recommend
More recommend
