USING BIG AND LITTLE DATA TO RECRUIT THE RIGHT CANDIDATE FOR EVERY POSITION

3,850 views

Published on

Published in: Technology, Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
3,850
On SlideShare
0
From Embeds
0
Number of Embeds
2,000
Actions
Shares
0
Downloads
69
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

USING BIG AND LITTLE DATA TO RECRUIT THE RIGHT CANDIDATE FOR EVERY POSITION

  1. 1. USING BIG AND LITTLE DATA TO RECRUIT THE RIGHT CANDIDATE FOR EVERY POSITION IQPC Workshop - September 16, 2013 © Dr John Sullivan 1www.drjohnsullivan.com or Johns@sfsu.edu
  2. 2. 2 Dr Sullivan’s background • Fast Company Magazine called me… the “Michael Jordan of Recruiting” • Staffing.org once called me… “The father of HR Metrics” • A VP of HR recently called me… “The Darth Vader of HR” Take your pick!
  3. 3. 3 Topics for today 1. A shortcut to sourcing and hiring quality prospects 2. A quick introduction to the current state of metrics 3. Some basic definitions and goals 4. Selecting the right metrics 5. Benchmark firms 6. My recommended recruiting function metrics 7. The best data-driven processes for improving recruiting 8. The future direction of recruiting 9. If time permits… some data-driven retention tips
  4. 4. Please feel free to interrupt at any time with questions or comments 4
  5. 5. “Using data to find the right candidate for every position” means… focusing on referrals and boomerangs 5 Shortcut – Let’s cut to the chase…
  6. 6. 6 What source is #1 in volume and new hire quality Source effectiveness /quality of hire 1. Employee referrals 2. Large job boards 3. Niche job boards 4. Temp to perm 5. Recruiters 6. Trade media 7. Staffing services 8. College recruiting 9. Career fairs 10. Co-op education 11. Mass media 12. Military Source: staffing.org 2011 Source popularity Volume 1. Referrals 28.0% 2. Job boards 20.1% 3. Career site 9.8% 4. Recruiter initiated 9.1% 5. College 6.6% 6. Rehires 4.3% 7. Social media 3.5% 8. 3rd party 2.8% 9. Print 2.2% 10. Temp to hire 2.1% 11. Career fairs 1.9% 12. Walk-ins 0.8% Source: CareerXroads 2012
  7. 7. 7 Use referrals to get 50% of your hires  The best firms are now reaching 50% of all hires  Referral applicants are high quality - they found referrals were 39% of applicants but 61% of all hires (Jobvite)  Top performers make the best referrals  Refer “for the team”… not the $  Make sure the employee has seen their work  Make sure their work and skills are superior  ID “who beats you” and “who you learn from”
  8. 8. 8 Lesser known “quality of hire” sources Other “quality of hire sources 1. Top performer referrals 2. Boomerang re-hires 3. Professional event recruiting 4. Award winners 5. Contest winners 6. Grad assistants 7. Successful interns Source: DJS
  9. 9. 9 Use boomerang re-hires to get 16% of your hires  At DaVita boomerangs are 16% of all hires and at Yahoo they are up to 14%  Boomerangs are a known quantity  Begin the relationship during off-boarding”  Use an alumni group to continue the relationship
  10. 10. Boomerang re-hires “You’re always welcome here” e-card + alumni group
  11. 11. With referrals and boomerangs making up 2/3 of your hires… Now let’s see how data can help you find the remaining 1/3 11
  12. 12. Why today a good time to finally conquer analytics and big data 12 Part 1
  13. 13. 13 What % of CEO’s are confident in HR metrics? Only 12% of CEO’s are confident on the quality of Human Capital metrics 13 AICPA survey 2012
  14. 14. 14 What is HR best at? Worst at? (KPMG)
  15. 15. BTW - How do you know for sure that your function is having a major business impact! If your function is directly impacting the business… it will be written up in the annual report How often does your recruiting function appear? 15
  16. 16. 16 Why today is an ideal time to act on analytics  Opinions and past experience don’t change behavior, metrics are required if you expect to be “listened to” while sitting in your “seat at the table”  We live in a VUCA world that is difficult to understand without metrics  “Big data” and data / evidence based decision making are all the rage with executives  Firms like Google have already demonstrated what can be done in HR  Other industries (Moneyball) and functions have already developed an analytics model that HR can follow  New technologies and research are available >
  17. 17. 17 This recent HBR report quantified the importance of HR metrics Connecting Workforce Analytics to Better Business Results 2013 The study can be accessed at: www.sumtotal.com http://talent.sumtotalsystems.com/WebRes-Connecting-Workforce-Analytics-HBRReport_0813.html?source=SEARCH_WP_TM_HBRReport_0813&pi=TM%20-%20Complete%20TM 17
  18. 18. 18 HBR data supports the connection between using analytics and workforce effectiveness Among firms that report a moderate or a high degree of success in creating a productive workforce 95% are advanced analytics users 80% are moderate analytics users Only 5% of advanced analytic users report that they are ineffective in leveraging their workforce Source: Connecting Workforce Analytics to Better Business Results by HBR 2013
  19. 19. Introduction Let’s make sure we are all on the same page… with some definitions and goals 19 Part 2
  20. 20. 20 A few quick definitions… so that we are all on the same page 20
  21. 21. 21 Some quick simplified definitions 1.Metrics – the process of measuring and reporting a result or output 2.Historical metrics – measures that focus on reporting things that have already occurred 3.Workforce Analytics – a set of integrated capabilities (technologies, metrics, data and pro-cesses) to measure, analyze, identify trends and to improve workforce performance 4.Real-time metrics – reporting or monitoring metrics that cover what is happening now in order to improve current decisions 5.Predictive metrics – using past and current data to forecast and model upcoming problems/opportunities
  22. 22. 22 Some quick simplified definitions 6. A scorecard – results listed on a 1 sheet (Balanced) 7. A dashboard – an array of metrics, that in a single view, covers all of the key functional measures 8. “Why” metrics – a process for identifying why things happen in Talent Management 9. Showing revenue impact – converting standard HR metrics to their dollar impact on revenue 10. An algorithm – a formula /equation that accurately directs talent actions (who to hire?) 11. Index – a combination of metrics converted to a single number for ease of comparison (i.e. Dow Jones)
  23. 23. 23 Some quick simplified definitions 12.Business Intelligence (BI) – information for improving business decisions 13.Big data in recruiting – huge, changing and complex data sets that… can’t be easily analyzed using traditional software (Recruiting Big Data – Sales leads/ credit, LinkedIn, Facebook, Professional association or website membership lists, DOL labor supply reports etc.)
  24. 24. What are the 6 primary goals or purposes of metrics? 24
  25. 25. 25 Reports or opinions do not change behavior 1. They drive action – metrics influence managers and employees so that they change their behavior An example - how Google uses data to influence  “All people decisions at Google are based on data and analytics”  “Even when people don’t want to believe that they’re underperforming, it’s hard to dispute years' worth of numbers”  “For most people, just knowing that information causes them to change their conduct” >
  26. 26. 26 What are the 6 primary goals for metrics? 2. Improved decisions – metrics improve the accuracy and the $ impact of the talent decisions made by managers / HR in “fact driven HR” 3. They tell you “what is working” – metrics tell you what is working, what is not working and why for continuous improvement purposes 4. Increased funding and executive support – metrics cause executives to better fund HR because metrics reveal the business impact it has
  27. 27. 27 The 6 primary goals of metrics 5. They prepare you for the future – metrics reveal trends and they can alert you on upcoming problems / opportunities so that you can act in time 6. They help you better allocate resources – metrics tell leaders which programs produce the highest value, so that they can shift resources towards the areas with the highest ROI
  28. 28. An effective HR function identifies and focuses its resources on activities that increase profit (BCG) 28Source: BCG/WFPMA - From Capability to Profitability: Realizing the Value of People Management, 2012 Which TM functions have the highest impact on profit?
  29. 29. Mid and lower impact HR functions 29
  30. 30. How to select high impact metrics 30 Part 3
  31. 31. How many metrics do you need? 31
  32. 32. 32 You need metrics in each of these 4 areas 1.One for every major program goal – Ex. new hire on-the-job performance and retention rate 2.One for every major improvement area – Ex. increase the diversity rate, cut offer rejects etc. 3.One for every major executive budgeting decision criteria – ID and gather information to meet each of the executive funding criteria 4.Data for assessing process ROI - use data to calculate the ROI and then shift resources to the recruiting processes with the highest ROI
  33. 33. What does a great strategic metric looked like? 33
  34. 34. 34 There are 6 categories that should be covered in the metrics for assessing an entire HR program 1.Quantity (Volume) Number hired 2.Quality (Error rate) Performance on the job 3.Time (On time or the time to complete) Time to fill 4.Money (Cost or revenue generated) Cost per hire ($9k) 5.Satisfaction (Of the users) Hiring mgr. satisfaction 6.Comparison number Aver. CPH is $4k QQTMSC Recruiting example
  35. 35. 35 What does a strategic action metric looked like? There are 2 basic categories of action metrics “So what metrics” – when you see them you think either “so what” or “that’s interesting” but you take no action (The average new hire had a GPA of 2.8) “OMG” metrics – the topic causes you to read them and seeing significant variations up or down causes you to take immediate action (i.e. because of it’s $ impact on corporate revenue) An example >
  36. 36. 36 A simple OMG recruiting metric  This year there were 210 position vacancy days in loan officer positions at this Midwestern bank  Last year they had only 110 vacancy days, before the CFO cut the recruiting staff by 20% (The root cause)  $5000 is the lost revenue for each day that a loan officer position is vacant  Rev impact – $500,000 loss per year if we take no action ($5,000 loss per day X 100 additional excess vacancy day)  The savings from the 20% recruiter cut was only $200,000 (a minimum $300,000 net loss) OMG!
  37. 37. One final strategic action metric example for advanced users 37
  38. 38. 38 The very best strategic OMG action metrics include these 10 elements? 1. It shows its impact on corporate goals (revenue) 2. It quantifies that goal impact in dollars 3. It is reported where it will be seen by executives 4. It shows the “near future” trend line 5. It includes several comparison numbers (last year’s, the average and the best in the firm, the average and the best in the industry) 6. It includes “real-time” current data 7. It identifies the root cause of the problem 8. Highlights the effective actions & their success rate 9. It includes the cost of doing nothing or delaying 10.It drives immediate action
  39. 39. 39 An example of an OMG metric display HR metric – Time to fill (TTF) This months' TTF = 90 days Projected TTF = 112 days (Up 22%) Last year’s TTF = 78 days TTF Trend (Up 22%) Best in the industry = 29 days (We are 61 days behind) Cause – Mgr.'s workload is slowing interview scheduling Action required – Cut interview delays with after hour video interviews – minimal cost and a 87% success rate Accountable individual – Pam Tyne, staffing manager Rev. impact of no action - $4.1 million Corp goal: Time to Market
  40. 40. 40 Provide “drop-down” menus for detailed information Provide instant access to “in depth” information Time to fill (up 22 %) • Consequences of slow TTF •Reasons for slow TTF •TTF data for your unit •Definition of TTF •Formula for time to fill • Which jobs take the longest • More recommended actions Drop-down menu Run your cursor over the metric and you see this drop-down menu
  41. 41. 41 How do I decide which metrics to use?
  42. 42. 42 Let the CFO be your champion Don’t select your HR metrics in isolation… instead… let the “king of metrics” guide you 1.Work with the CFOs / COO office to determine what they consider to be strategic metrics 2.Let the CFO / COO select the final ones (3x5 cards) 3.Also consider letting the CFO present/ report your metrics An illustration > 42
  43. 43. The smartest thing I ever did in HR… “I hired the assistant comptroller to do my HR metrics” I had zero funding arguments after that because: 1. They were credible because the CFO and others trusted who did them 2. The metrics used the language and the format that the senior leadership could understand 3. They included no “soft” metrics or language 43
  44. 44. 44 Who are the benchmark firms to learn from?
  45. 45. 45 Who are the benchmark firms to learn from? Benchmark firms for recruiting metrics 1. Google 2. DaVita 3. Sodexho 4. Deloitte 5. CACI 6. Marriott 7. Tata A Google example >
  46. 46. 46 Example The “data driven” approach at Google  Algorithm (Google oxygen) to define leader behaviors, to identify leaders and to fix bad ones  Algorithm for predicting who will leave /retention  Algorithm for predicting hiring success and what doesn’t work  Algorithm for increasing interaction, collaboration and innovation (length of the cafe line) Algorithm to increase hiring, promotion and retention of women
  47. 47. 47 The best benchmark comparison data sources Staffing.org - this group narrowly focuses on recruiting http://www.staffing.org/productsandservices.asp PWC - Saratoga - this arm of the consulting firm have been doing benchmark metrics (including recruiting) for years http://www.cfodirect.pwc.com/CFODirectWeb/Controller.jpf;jsessionid=L0GbF5LXMM72QtvnF7W72n2nD21WnGzx8T NxbGGjByJh9Xz05Dxd!-552653960?ContentCode=MSRA-7XXJQD&ContentType=Content The Recruiting Roundtable -- this members only group includes some of the largest corporations, it specializes in sharing recruiting best practices https://rr.executiveboard.com/Public/PDF/Driving_Business_Decisision_with_Metrics.pdf BNA - this publishing firm has been doing a broad HR benchmarking survey for years http://www.bna.com/special/hrpromo/?gclid=CJPHiYeo658CFSEbawod8iHUcQ
  48. 48. 48 Other good comparison data sources in recruiting CareerXroads - they rank both sourcing channel usage and the leading corporate websites www.careerxroads.com Best Practices, LLC - focused on the pharmaceutical, biotech, medical device and health care industries http://www3.best- in-class.com/bestp/domrep.nsf/pages/96DEB3761738BDE485257026006CD495!OpenDocument NACE - this association focuses on college recruiting http://www.naceweb.org/Research/Recruiters/2009_Recruiting_Benchmarks_Survey.aspx The Hackett Group - this consulting group does a lot of work with government agencies http://www.thehackettgroup.com.au/solutions/benchmarking.jsp APQC - this benchmarking group periodically does some private benchmarking studies with top companies www.apqc.org CLC - this membership group does periodic "gold books" covering HR best practices and benchmark firms http://recruiting.hr.toolbox.com/research/
  49. 49. My 14 recommended strategic metrics for recruiting 49 Part 4
  50. 50. A list of metrics to choose from Strategic recruiting goals and their metrics Note: Strategic metrics cover the functional actions and programs that have a measurable impact on corporate goals 50
  51. 51. 51 9 revenue impact recruiting measures 1. The total dollar impact of great recruiting on the business this year – this number is the sum of the $ results from the following 8 rev. metrics 2. Performance of the hire – the % of improvement over average on the job performance ratings (or performance appraisal) after 6/12 mths. (Value - % of improvement multiplied by the average revenue per employee) C-Level executives rated new hire quality as the #1 most important HR performance metric, out of 20 metrics Source: Staffing.org - Impress the CEO survey This metric also reveals the best source and assessment approach
  52. 52. 52 Revenue impact recruiting measures 3.New hire failure rate – % of new hires in key jobs had to be terminated or asked to leave (Cost – the # of bad hires multiplied by times the cost of a bad hire – 1X salary) 4.Voluntary turnover of new hires - the % of new hires that voluntarily quit within their 1st year (Cost - the # of voluntary turns multiplied by the replacement costs and the lost revenue until they are replaced) 5.The number of “vacancy days” – after a position is vacated, the number of vacant days in key and revenue-generating positions (Cost – the average revenue generated each day multiplied by the number of vacant days)
  53. 53. 53 Revenue impact recruiting measures 6. Number of not-filled positions – the number of key positions that were not filled by recruiting (Cost – the number of not filled days multiplied by the average revenue per employee per day) 7. The number of positions not filled by “need date” – the number of days after the “need by date” that key positions were filled (Cost – the number of vacant days after the need date multiplied by the average revenue per employee per day)
  54. 54. 54 Revenue impact recruiting measures 8. New hire “time to productivity” TTP – because quality hires are productive almost immediately, the average time it takes for new hires to meet the minimum output standard (Value – the average reduction in days that it takes to reach minimum productivity multiplied by the revenue per employee per day)
  55. 55. 55 Revenue impact recruiting measures 9. Project delays and missed strategic opportunities as a result of weak recruiting - because on time project completion has a direct impact on revenue, the loss must be estimated (Cost: this “project delay metric” is calculated by surveying project managers on a quarterly basis to identify if any projects have been negatively impacted by weak recruiting and the cost of those delays)  The cost of missed opportunities should also be included
  56. 56. 56 5 quality of hire recruiting measures 10.High level diversity hires – because diversity reduces errors and increases innovation, the % of diverse hires in exempt an executive level positions Plus these:  On-the-job performance of new hires  Voluntary turnover rate  New hire failure rate  Time to productivity
  57. 57. 57 2 competitive advantage recruiting metrics 11. Give away/ take away ratio - the # of employees in key jobs that we “poach” from a competitor firm… compared to the number that they “poach” from us 12. Employment brand strength – a strong external employer brand results in a larger number of applicants, so track the number of applications received each year (Google 2 mil, Yahoo 600k), track the % of improvement or compare it to last year’s total or to the number that top competitors receive
  58. 58. 58 2 additional strategic recruiting metrics 13.Percentage of innovators and game changers hired - if your goal is to hire more innovators and purple squirrels, survey hiring managers 6 months after a hire and ask them whether the work of this individual qualifies them as an innovator 14.Manager & new hire satisfaction survey – the % of key managers, new hires in key jobs and applicants that are satisfied with the hiring process
  59. 59. 59 Tactical metrics that should be calculated but… not reported to executives Note: Tactical metrics are for internal functional use for continuous improvement and resource allocation 59
  60. 60. 60 High impact tactical recruiting metrics 1. % of new hires from quality sources – because using quality sources results in better quality hires… track the % of applicants for key jobs that came from top sources (usually employee referrals and boomerang rehires) 2. The quality of those not-hired – because a great hiring process doesn’t “miss” hiring top applicants, measure the % of superstar applicants that were not hired, and the # of “exceeds qualifications” that were “not hired” from target firms
  61. 61. 61 Lower impact tactical metrics These other tactical recruiting metrics are good for identifying efficiency and effectiveness problems 1. Offer acceptance rates 2. Interview to hire rates 3. Quality of applicants 4. Recruiter req. loads 5. Time to fill (vs. filled by need date) 6. Cost per hire
  62. 62. 62 For advanced users… Let’s look at some predictive recruiting metrics 62
  63. 63. 63 Predictive recruiting metrics Predictive metrics to consider Upcoming internal hiring needs – what new skills will be needed and in which jobs and regions Labor market competition - will there be a surplus or shortage of labor in key jobs and regions, which will change the difficulty of hiring top talent (the unemployment rate) Competitor hiring – which talent competitor firms will be hiring, and in what positions, which firms are likely to be losing top talent for us to recruit? >
  64. 64. 64 Predictive recruiting metrics Predictive metrics to consider Changing candidate expectations – what will be the changing expectations of our target candidates Our future employer brand image – will it be getting better or worse relative to our competitors Individual talent availability – what exceptional individuals will likely become available as a “talent opportunity” Acqui-hiring possibilities – which “high talent” small firms will be available for purchase or merger
  65. 65. Data-driven processes for recruiting top candidates 65 Part 5
  66. 66. 66 What is the best data-driven process for finding and selling top candidates? 66
  67. 67. 68 Conduct market research on how they look Step #1 – Understand their job search process  You must accurately understand how top candidates look for a job today!  Identify the most common approaches… by interviewing new hires during onboarding and asking them to outline how they went about their job search  Realized that active job seekers use a different search approach than “not-looking” prospects  Obviously your recruiting approach must “match” their job search process
  68. 68. 69 Conduct market research… on what they want Step #2 - You must precisely know what candidates care about in a firm… and a job  You can’t assume that you know, instead you must use market research surveys (among your own employees and applicants) to compile a list of the factors that top candidates demand in a firm (i.e. a great product)  Also identify what they look for in a great job (i.e. a great manager)  Put information covering these firm and job factors in your branding messages and in your job postings
  69. 69. 70 Conduct market research on where they read Step #3 – Where would they read about your firm  Before prospects can become interested in a job, they have to read / hear information that attracts them to the firm  So, unless your firm is extremely well-known, you must 1st understand where potential prospects would see, read and hear information about your firm (including general recruiting and employer branding messages as well as product information)  Use surveys of new hires or hold focus groups at professional meetings to identify those places where prospects would read company information
  70. 70. 71 Conduct market research on where they would see a job posting Step #4 – Where they would see a job posting  Survey applicants, new hires and current employees to identify the specific places where active candidates would most likely see one of your job posting (Niche job boards, Monster etc.) Step #5 - How could they hear about an opening?  Because most “not-looking” prospects don’t frequently visit job posting sites, you may learn that prospects find out about job openings through their social network or employee contact as a result of your employee referral program
  71. 71. 72 Once individuals are called in for an interview… Step #6 – You must identify interviewee’s “job acceptance criteria”  You can’t successfully “sell” a candidate during the interview process unless you know their personal criteria for accepting a job  You should also identify “dealbreaker” issues  Either ask them to fill out a simple sheet or ask them directly during their 1st interview  You want to make sure that they realize that your firm and job meets most of their criteria by providing them with relevant information throughout the interview and offer process
  72. 72. 73 Step #7 - Survey new hires to find the best sources Identify the high impact sources during onboarding 1. Tell us the primary source that made you aware of our firm. Was there a secondary source? 2. Tell us the primary source that made you aware that we had this job open. Was there a secondary source? 3. What was the final trigger that convinced you to formally apply?
  73. 73. 74 Step #8 - Survey new hires to find out what worked Identify “what worked” during onboarding 1. List the key selling points you heard during the interview process that convinced you to say yes? 2. List the factors that made you less sure about saying yes? 3. What parts of the recruiting process worked best for you and why? What were the worst parts and why? 4. If you could change one thing about the recruiting process, what would it be? 5. Tell us why you quit your last 2 jobs (For retention use)
  74. 74. 75 Data can reveal the failure points in your entire recruiting funnel 75
  75. 75. 76 Look at the number and quality of candidates that make it through each hiring step Branding provides sufficient name recognition Sourcing attracts the right number of applications The recruiter resume screen leaves quality prospects Managers approve the candidate slates Finalists are selected % of offers accepted Goal 45% know firm Actual 47% know Goal 1,000 apps a wk. Actual 1,200 Goal 38% pass Actual 40.4% quality apps. Goal 75% approval & 33% are diverse Actual 23% / 3% women Goal finalists are selected 90% of the time & 30% are diverse Actual 30% / 1% diverse Goal 85% accepted / 30% women Actual 85% / 1% women
  76. 76. The future direction of recruiting metrics 77 Part 6
  77. 77. 78 Highlighting the future direction of HR metrics Metric leaders must move in this direction 1. HR must adopt a data based decision model which follows the approach already taken by every other major business function… as well as sports (Moneyball) and the film industry 2. Link people management actions to business results and quantify their revenue impacts 3. Calculate the ROI for HR programs 4. Calculate the cost of delay and doing nothing 5. Provide fewer but more impactful metrics
  78. 78. 79 Highlighting the future direction of HR metrics HR must move in this direction 6. Shift away from “ last year” metrics 7. Shift to real-time data for managers so that they can make better people management decisions 8. Move towards predictive analytics for alerts, if- then scenarios and modeling 9. Provide a range of workable solutions to the problems that metrics identify 10.Tie your metrics to rewards 11.HR must learn to hire those with analytics skills
  79. 79. 80 HR must move in this direction 12. Provide internal & external comparison numbers 13. Do “why” research to identify the causes of problems 14. HR must embed its metrics in standard financial reports to increase their visibility 15. Calculate the performance differential between top and average performers in the same job, to justify focusing on top performers (5% - 26%) 16. Small business must adopt them because of lean budgets and small size magnifies the impact… And government needs them because of increased scrutiny
  80. 80. • 81 End of recruiting metrics Any additional questions?
  81. 81. A data-driven approach to retention 82 Part 6
  82. 82. 83 Retention is the #1 problem over the next 10 years A SHRM/economist survey showed that execs care about retention
  83. 83. 84 A data-driven approach to retention 7 key retention principles to remember 1. Most retention processes are not data-driven 2. Companywide retention actions that equally impact all employees have a low success rate / ROI 3. Prioritize jobs and key employees because you can’t (and don’t want to) keep everyone 4. It takes a “career impact event” to trigger leaving 5. Everyone has a unique set of reasons for leaving, so you need a personalized retention plan 6. The #1 reason for leaving is generally under their manager’s control
  84. 84. 85 Retention must be a data-driven approach Identify “why” employees have left 1.Identify general causes of turnover – develop a process for identifying the general causes of turnover in the past (summarizing all exit interviews) 2.Identify the turnover causes for key individuals that left – develop a process for accurately identifying the specific causes why a targeted individual actually left (use post-exit interview with the ex-employee or “buy” offer letters)
  85. 85. 86 Data-driven retention Identify “why” individual current employees might leave  “Why do you stay?” interviews, also ask “What factors would cause you to begin consider leaving?”  Why did you quit your last 2 jobs? (Ask during onboarding)
  86. 86. 87 Data-driven retention Identifying “who” is at risk of leaving? Develop a process for identifying “who” (which individual employees) are most likely to leave The process might include external approaches: A search of the web for resumes Blind recruiter calls… to see who responds A dry search by a headhunter to see who is desirable Run blind ads to identify who is applying Suddenly speaking at conferences They extensively update their LinkedIn profile
  87. 87. 88 Google identify these precursor factors Google uses an algorithm to spot internal patterns  Employee reviews  Promotion history  Pay history  Employee surveys  Peer reviews (360 degree)  Employee training  Leadership meetings They look for employees who “feel underused”
  88. 88. The retention actions of firms usually don’t match the reasons why employees leave Why employees leave 1.Better comp/benefits $ 2.Coaching programs 3.Mentoring programs 4.Tuition reimbursement $ 5.Stock options $ 6.Profit-sharing $ 7.Flexible hrs./schedule 8.Retention bonuses $ Only 2 of 6 causes are met Most common offerings 89 1.Career advancement 2.Pay/benefits $ 3.Lack of job fit 4.Management/environ 5.Flexible scheduling 6.Job security 1 of 6 is $ Sources: Gallup 2006 Sources: OI Partners 2012
  89. 89. Top performers stay for different reasons An average worker wants these things… (Homer Simpson) 1. Doing the best work of your life 2. Proud of their impact 3. Great managers 4. Opp. to innovate/ take risks 5. Learn rapidly / be challenged 6. Choice of projects 7. Make decisions 8. Implement ideas 9. Input into schedule/ location 10.Work with top co-workers Top performers want “well managed” factors… (LeBron/ Messi) 90 1. Guaranteed pay 2. Exceptional benefits 3. Security 4. Time off with pay 5. No surprises/ predictable 6. Seniority matters 7. Equal treatment 8. Minimize risk and stress 9. Work/ Life balance
  90. 90. 91 Retention metrics High business impact retention metrics 1. The cost of turnover 2. The forecasted turnover rate for next year 3. The % of employees that are “at risk” of leaving 4. Performance turnover (Top performers count more) 5. Regrettable turnover 6. High revenue impact turnover 7. Key position turnover 8. Key individual turnover
  91. 91. 92 Retention metrics High business impact measures to consider 9. Where the turnover goes 10.Hard to replace turnover 11.Preventable turnover 12.Involuntary turnover 13.Innovator, a game changer and pioneer turnover Present this list to senior executives and ask which ones they consider the most important to report
  92. 92. JohnS@sfsu.edu 93 Did I make you think?

×