Framework for improving and measuring quality of hire

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So many recruiting leaders want to move away from metrics like cost of hire and time to hire, and onto more useful measurements — with quality of hire topping many recruitment leaders’ lists.

Rob McIntosh, SVP of global talent acquisition for the 60-office, 20-country technology consulting firm Avanade, will walk you through, in detail, the problem Avanade wanted to solve by increasing the quality of hires; the journey and thinking required to build a new quality of hire global framework; and ultimately, how to measure and derive actionable outcomes on improving the overall quality of hires.

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Framework for improving and measuring quality of hire

  1. 1. Avanade Confidential – Do Not Copy, Forward or Circulate© Copyright 2011 Avanade Inc. All Rights Reserved.
  2. 2. Avanade Confidential – Do Not Copy, Forward or Circulate© Copyright 2011 Avanade Inc. All Rights Reserved.
  3. 3. Avanade Confidential – Do Not Copy, Forward or Circulate© Copyright 2011 Avanade Inc. All Rights Reserved.3CareerXroads FY12 Quality of Hire survey of Recruiting Leaders 75.6%do not or minimally track Quality of Hire. Outof the Companies that do only 16.1%used test scores during the interview and assessment process.According to the 2012 survey, Inc. 500 CEOs feel that the difficulty of finding good employees hinders growth more thananything else. They gave “finding talented workers” a severity rating of3.31 out of 5(66%), putting it ahead of other obstacles like “keeping up with demand” and “domestic competition.”A 2012 Corporate Executive Board Survey on How effectively does your recruitingorganization measure quality of hire? shows more than 86%don‟t measure or doit very well.A recent HCI Study found 77%of survey respondents cited Quality of Hire as the most „important‟ metric to their jobsand function, and yet only 34%subsequently said they had „access to reliable data‟ needed to form this metric.A Staffing.org Impress the CEO Survey of C-Level executives rated new hire quality as the #1most important HRperformance metric out of 20 possible metrics. It was rated 9.6/10
  4. 4. Avanade Confidential – Do Not Copy, Forward or Circulate© Copyright 2011 Avanade Inc. All Rights Reserved.Can‟t find AnswersI can’t control the outcomes pasthire!Employee’s get headhunted away….Poor onboarding experience….Poor employee performance….Employee’s get reassigned….Bad career manager….Not a cultural fit…Boring work….Etc…..
  5. 5. Avanade Confidential – Do Not Copy, Forward or Circulate© Copyright 2011 Avanade Inc. All Rights Reserved.Can‟t find Answers?I can’t control the outcomes pasthire!Employee’s get headhunted away….Poor onboarding experience….Poor employee performance….Employee’s get reassigned….Bad career manager….Not a cultural fit…Boring work….Feels like trying to‘Boil the Ocean’
  6. 6. Avanade Confidential – Do Not Copy, Forward or Circulate© Copyright 2011 Avanade Inc. All Rights Reserved.+„Boil the Teacup‟ notthe OceanbyFinding the keyAnchors!
  7. 7. Avanade Confidential – Do Not Copy, Forward or Circulate© Copyright 2011 Avanade Inc. All Rights Reserved.7AvanadeDataAhead
  8. 8. Avanade Confidential – Do Not Copy, Forward or Circulate© Copyright 2011 Avanade Inc. All Rights Reserved. Competency AssessmentChallenges“We do a pretty good job ofassessing a candidates Technicalcapability but we are challenged atConsistently evaluating thecandidates softer skills” Quality vs. Quantity Scalability and Capability Proactive vs. ReactiveRecruitingAttrition Data Points8‘Voice of the customer’feedback: Common themesMajor Theme
  9. 9. Avanade Confidential – Do Not Copy, Forward or Circulate© Copyright 2011 Avanade Inc. All Rights Reserved.Additional Business Value9Creating a Scenario in our WFP tool, a positive shift in attrition by 4.2%Positively impacts Company Revenue by 3.2% (40million))Modeled Forecasting
  10. 10. Avanade Confidential – Do Not Copy, Forward or Circulate© Copyright 2011 Avanade Inc. All Rights Reserved.10“Why was Solomon recognized asthe wisest man in the world?Because he knew more stories(proverbs) than anyone else.Scratch the surface in a typicalboardroom and we’re all justcavemen with briefcases, hungryfor a wise person to tell us stories.”—Alan Kay, Vice President at WaltDisney“Stories are the single most powerful weapon in a leader’sarsenal.”—Howard Gardner, Harvard UniversityBuild your Stories to the Foundational key Anchors!Avanade
  11. 11. Avanade Confidential – Do Not Copy, Forward or Circulate© Copyright 2011 Avanade Inc. All Rights Reserved.11=Avanade Quality of Hire (QoH) Mission StatementCreation of a worldwide interview assessment methodology thatconsistently measures a candidate‟s Avanade competencies,behaviors, technical capability and cultural fit, against each of ourworkforces.The result is Improved new hire Performance and helpsReduce Attrition in the first 12 month‟s of employment.
  12. 12. Avanade Confidential – Do Not Copy, Forward or Circulate© Copyright 2011 Avanade Inc. All Rights Reserved.12Quality of Hire Plan/Framework
  13. 13. Avanade Confidential – Do Not Copy, Forward or Circulate© Copyright 2011 Avanade Inc. All Rights Reserved.Avanade QoH Assessment Framework13QuantityQualityBetter Fit Lower Attrition Higher PerformerBusiness Intake & Sourcing Strategy DiscussionFinal In-person interviewsCandidate Online Assessment (Psychometric Test Pilot VP+ only)Business Technical & Functional Assessment (2nd)Business Competency Assessments (1st)Recruiter Pre-Screen (Competency + Functional)Job Application Quality Pre-Screening Questions
  14. 14. Avanade Confidential – Do Not Copy, Forward or Circulate© Copyright 2011 Avanade Inc. All Rights Reserved.Competency/Behavioral Based Interviewing14Structured interviews such as competency-based interviewing have been found to bemore than twice as effective thanunstructured interviews at predicting acandidate‟s performance within a givenrole.[source: CBI-Smart.com]Very labour intensive to do correctly.Time to document the question+Time to document the answer+Can take forever to collect the properfeedbackPro’sCon’sI don‟thave time
  15. 15. Avanade Confidential – Do Not Copy, Forward or Circulate© Copyright 2011 Avanade Inc. All Rights Reserved. 45minute Online self serve Role play videos on good and badassessment techniques Anchors Competency/BehavioralBased Interviewing to our owncompany competency basedframework All interviews must complete and passtest certification15.Traditional Training Approach1. Interviewing 101 Certification2. Diversity and Inclusion (Module)3. Experienced Advanced Interviewers(Module)
  16. 16. Avanade Confidential – Do Not Copy, Forward or Circulate© Copyright 2011 Avanade Inc. All Rights Reserved.16Embracing Transparency!
  17. 17. Avanade Confidential – Do Not Copy, Forward or Circulate© Copyright 2011 Avanade Inc. All Rights Reserved.17Hiring managers are not always completely forthcoming with candidates. In fact, more than30%of hiring managers admit they were less than accurate when describing day-to-dayjob experiences to candidates.New hires confirm these inaccuracies, with almost 40%of new hires reporting that theyreceived less-than accurate information about the job when they were applying.In addition, new hires who are not confident that they made the right decision are 22%lessengaged and 46%less likely to stay with the organization than their peers who feel theymade the right call.White Paper StudyWin-Win Selection DecisionsSetting Expectations – Unmanaged Attrition
  18. 18. Avanade Confidential – Do Not Copy, Forward or Circulate© Copyright 2011 Avanade Inc. All Rights Reserved.18
  19. 19. Avanade Confidential – Do Not Copy, Forward or Circulate© Copyright 2011 Avanade Inc. All Rights Reserved.Interview/Assessment Scheduling Process19
  20. 20. Avanade Confidential – Do Not Copy, Forward or Circulate© Copyright 2011 Avanade Inc. All Rights Reserved.Avanade Competency Assessment Interview Guides20
  21. 21. Avanade Confidential – Do Not Copy, Forward or Circulate© Copyright 2011 Avanade Inc. All Rights Reserved.Communication StyleIncome and Class LevelEducational AchievementWork StyleReligionThinking StyleFirst LanguageSexual OrientationGender IdentityMilitary StatusOrganizational Role and LevelWork ExperienceGeographic LocationFamily StatusAgeSexRaceDisabilitySizeEthnicityGender ExpressionAvanadeDiversity Treebroadening understanding visuallyD&I Phase 1 - QoH % Targets = Total Hires byAvanade and workforceare Women 50% of Director+ Interviewslates contain Women andinclude a Avanade femaleinterviewer.
  22. 22. Avanade Confidential – Do Not Copy, Forward or Circulate© Copyright 2011 Avanade Inc. All Rights Reserved.22.Measurement will require multiple datapoints going forward to help informdirectional improvement in QoH.Performance QoH Metric = (APR + AE + HMS + ER) / N APR = Avg. Performance Rating for newemployees in first 12 months AE = Employee Performance as a % ofAchieves Expectations of performance in firstyear. HMS = Annual Hiring Manager SurveyQ:“Overall quality of New Joiners” ER = % of Employee Retention first 12months of employment. N = Number of indicators used.Example total Avanade QoH Metric:APR= 68% + AE= 94% + HMS= 80% + ER= 90% / N = 4QoH = 83%Avanade QoH Metric‟s and KPI‟s
  23. 23. Avanade Confidential – Do Not Copy, Forward or Circulate© Copyright 2011 Avanade Inc. All Rights Reserved.Avanade Quality of Hire (QoH) KPI‟s23Performance QoH Metric =(APR + AE + HMS + ER) / N
  24. 24. Avanade Confidential – Do Not Copy, Forward or Circulate© Copyright 2011 Avanade Inc. All Rights Reserved.Avanade Quality of Hire (QoH) KPI‟s24Performance QoH Metric =(APR + AE + HMS + ER) / NData Compression & PerceptionHighest = 83%Lowest = 62%Performance ManagementNewHires
  25. 25. Avanade Confidential – Do Not Copy, Forward or Circulate© Copyright 2011 Avanade Inc. All Rights Reserved.Avanade Quality of Hire (QoH) KPI‟s25Performance QoH Metric =(APR + AE + HMS + ER) / NPerformance ManagementData Compression & PerceptionHighest = 83%Lowest = 62%NewHires
  26. 26. Avanade Confidential – Do Not Copy, Forward or Circulate© Copyright 2011 Avanade Inc. All Rights Reserved.Revised - Avanade Quality of Hire (QoH) KPI‟s26Retention/AttritionPerformance PromotionsBusiness Satisfaction12 34
  27. 27. Avanade Confidential – Do Not Copy, Forward or Circulate© Copyright 2011 Avanade Inc. All Rights Reserved.Lesson‟s Learned so far……27Don‟tunderestimatethe amount ofchangemanagementrequired!Don‟t Overengineer thesolution. Make itEasy tocommunicate,understand andapply!(See Cheese).…It takes timeto successfullymeasureQoH progressQuality of Hire…
  28. 28. Avanade Confidential – Do Not Copy, Forward or Circulate© Copyright 2011 Avanade Inc. All Rights Reserved.28Thank youQ & A

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