How To Make Better Hiring Decisions For Your Business
CPL Retail How To Make BetterHiring Decisions For Your Business Arleen Quigg
Agenda• The Marketplace• Retail Statistics• Current Irish Market• Think About The Future• Future Trends• Cost of Turnover• Increased Profitability• How Hiring Decisions Are Made• 10 HIRING MISTAKES EMPLOYERS MAKE• Engagement
The Marketplace• Increase in Discount Stores• Fashion Slow - Shortage of Top Talent.• Grocery Steady Growth.• Non Food and Cosmetics Slow to Steady growth
Retail Statistics• 255,000 people employed in 2012• 310,000 people employed in 2007• Currently there is a Shortage of Top Talent for the Retail Industry in Ireland.• Highly Commercially hires are key to the current market . Quality vs. Quantity.
Current Irish Market• May 2012 Live Register of 432,907 14.3% This includes part time workers (3 days), seasonal and casual workers entitled to Jobseeker Benefit• Unemployed is measured by the Quarterly National Household Survey 4th Qtr of 2011 Unemployment is at 302,000
Current Irish Market• Long term claimants raised by +7% this year to 188,729• Short Term claimants Make up 56.4% of Live Register at 244,178 reduced by -7.7%• Under 25 decreased by 8,345 (-10.3%)
Just Think ....• 20 years ago No One had Mobile Phones• 10 years ago No One was part of a Social Network• People are more Flexible on International Career Opportunities than just close to home• Advances in Technology is Changing our Communities.
I hate networking!!Trends - Tomorrow’s Candidate James is 12 …his last Christmas list was online using price comparison site data! …his favourite film Ironman, he downloaded from iTunes. ...he put together his holiday videos into a movie using the iMovie app. … after scanning a QR code on his mum’s iPhone, he won a trip to Disneyland. … he taught his dad to stream football online. => Do you think he’ll ever send you his CV or reply to a job ad?
Cost of Turnover• Cost of a poor hire = 3 to 5 times employee’s annualised compensation.• Specialist functions = 10 times annual salary.• For an employee earning €30,000, a hiring mistake can cost up to €150,000.
Increased Productivity 225 185 150 100 100 100 Average Top Average Top Average TopPerformer Performer Performer Performer Performer PerformerLow Complexity Jobs Medium Complexity Jobs High Complexity JobsJournal of Applied Psychology
How Hiring Decisions are made:•Labour Cost as a % of Sales•Hours Allowance per Store
Mistake 1: “We want the person who just left the job” No you don’t. The person who has just left is not the person who will want the job as they can already do it, you need some stretch in the role for the prospective candidate.The person you hired originallyis who you are looking for.
Mistake 2: References are taken as a “tick box” exerciseThere is NO better way to really find out about an employeethan to find out how they performed in a previous job. Thiswill be much more reliable than any interview process. Once you are confident the reference is accurate…
Mistake 3: Not selling your company brandYou may think you are the best company to work for butwithout providing a great impression and an engaginginterviewer to a candidate, they won’t feel the same.The interview is the start of the journey with your brand asan prospective employee but also for a future customer.Also Word of mouth is critical to brand success in Irelandwhich includes the interview process. First impressions are critical.
Mistake 4: The Line Manager is not actively involvedEveryone says their staff are their most important resourcebut how many times is the recruitment left to the HR/recruitment department? You will get out what you put in.Have the prospective managerinvolved from the start.
Mistake 5: Out of date, too narrow or too vague job specsIt may seem like a chore to write but if you cannot agree what thejob entails, what the key competencies are for the role, don’t besurprised if you cannot find the right candidate. Stop re-hashing old job specs and work out competencies of the role.
Mistake 6: Over InterviewingInterviewing a candidate more than 4 times generally meansthat you are not doing interviewing effectively. Interviewsalone only have a 30% accuracy.Try other assessment methods:• Group role-plays “Tell me about• Psychometric tests yourself again and• Presentations again and again…”• Exercises
Mistake 7: Delaying the Recruitment ProcessDon’t start the process until you can answer the question “ifI saw the perfect person tomorrow would I hire themimmediately”. Delaying the process sends all the wrong messages to candidates.
Mistake 8: Have they got the X-Factor?Dont be mislead by first impressions. Just because they workfor a competitor and look the part open your mind to interviewthe candidates that fit your company and have passion for yourcompany.Use competency based behavioural interviewing techniques toidentify the real skills sets to identify your next Susan Boyle.Don’t have tunnel vision,take advice from yourrecruiters for suitable hiresfor long term engagedemployees
Mistake 9: Under-utilising your own people to sourcecandidatesThe best hires are generally referrals from someone who hasworked for or with someone. Ensuring there is a constantpipeline of referrals is critical to find great talent for yourorganisation. Network your own organisation and contacts.
Mistake 10: Over stating the roleIf you mis-represented the role at the start, you may hire theperson but they won’t stay. You have already broken thepsychological contract with the employee. They may dis-engage from the start.Be open and honest aboutthe role from the beginningof the hiring process.
Engagement• An engaged employee is one who is willing to put in discretionary effort• “An exceptional employee is not just a little better than someone who is pretty good they are 100 times better” Mark Zuckerberg