What Successful Businessesare Doing

What Successful Businesses are Doing

Companies that Prosper in Good Times and Difficult Times -
1.
Understand what their customers want and need
2.
Do the right things to consistently exceed customers
expectations
3.
Focus on the most important things to achieve
These expectations
4.
Incorporate this into a well defined strategy
Aberdeen Group August 2007

Prosperous Companies Use this Strategy to Guide -
1.
How they organize themselves
2.
How they staff their organization
3.
How they define what their people should do
4.
How they invest in their human capital

The Challenges
1. Hire top performers
2. Develop present employees
Stepping
Stones or Stumbling Blocks
3. Managing employee performance
4. Planning for the future

WHAT ARE THEY USING?
1
Assessments tools for skill, fit & Attitude
2
Competency modeling
3
360 Multi-rater Feedback
Succession planning tools
4
5
Performance planning tools
They are using -

1. Hiring Challenges
Response
Challenge
Challenge
Response
49%
53%
39%
52%
Articulate behaviors and skill sets of top performers, so we can test and find people who match the job best
Ability to compete for top talent in hiring or retention
Inconsistent hiring practices across the organization
Enhance screening to select the best candidates

1. Hiring Challenges
Response
Challenge
Challenge
Response
35%
47%
34%
44%
Improve candidate screening to screen out candidates who do fit the position requirements
New hires are unprepared in knowledge or skills for the positions we fill
Fail to prepare new hires sufficiently for the new position
Create a talent pool from which to select candidates
Aberdeen Group

Hire the right people
W. Edward Deming said,
“If a person is not performing as expected, it is probably because they have been miscast for the job.”

Who is Applying?
A 36% increase in number of job applicants who are not eligible for rehire due to personality conflicts, disciplinary problems, theft and embezzlement.
7% of applicants had criminal record.
25% misrepresented their education and credential records.
Avert Inc., 800,000 background checks

What is the Cause?
What is the Cause?
Eighty five percent of all job failures have to do with the lack of appropriate work habits, not technical skills… how the person does the job and what kind of habits they bring is in most cases more important to identify than technical skills.
Dell Still, High Impact Hiring

Insanity in Hiring
Michigan State University School of Business professors concluded a study recently that showed assessments were the most accurate means of predicting the performance of an individual.
Assessments were rated four times more accurate than interviews.

Hire the Right People
Jim Collins, Author of Built to Last said- “The right people are your most important asset and you can’t get the right behavior (performance) from the wrong people.”
50 to 70 percent of most job qualifications may be more inherent in personality than skill.

The Payoff is Enormous
If you accurately assess a person’s soft skills, the payoff is enormous. You’ve not only landed a productive employee but freed the employee’s manager to do constructive, rather than remedial, coaching.
“The first mistake that anybody in management makes is to assume that through training, incentives, or disciplinary action, you can change people who are not doing the job right. People can change, but in the end, we think, most people won’t.”

Hire Smart, Hire Right
The use of pre-hire testing is a growing part of hiring
The goal of improving the quality of each new employee is not to just get a better workforce, but to retain it, thus reducing hiring costs by reducing turnover

Testing Fears
Two decades ago, corporations feared using pre-employment assessments could be grounds for lawsuits.
Afraid they may unintentionally discriminate or have adverse impact on diverse populations.
Today companies worry more about hiring malfeasance, than about testing malfeasance.
Only 5 successful suits in the last 60 years of testing.
SHRM reports that testing is the safest thing you can do.
Aberdeen Group

Why Use Assessments?
68% of companies of 1000 plus ee’s
Use assessments
57% agree that pre-hire assessments are a valuable strategy for employee retention
Validated
Assessments
Work!
52% agree that tests have alerted them to potential problem hires
45% Agree testing distinguished poor from good hires

Who is Testing?

Assessment Usage
Companies with 1000 plus ee’s
Who is being
Assessed?
52%Execs
40%
C-Level
52%
Hourly
66%
Professional
64%
Mid-Mgrs
Text1

$$ CHANGE IN 2008 EMPLOYEE RECRUITING BUDGET
An average of 56% of employers increased their budget
SHRM talent management survey

2. Competency Usage
Present
Planned
35%
45%
Plan to use tools to identify competencies
Use tools to identify competencies

WHY COMPETENCY MANAGEMENT?
1.
5.
Aligning workforce with business objectives 57%
Increase retention/reduce turnover 24%
2.
Improved workforce productivity 37%
3.
Flexible and agile workforce 29%
4.
Identify and develop Hi-Po workers earlier 27%

Current & Planned Competency Use
Present
Planned
Present
Planned
55%
43%
36%
52%
Identify knowledge gaps that can be resolved with learning
Identify knowledge gaps that can be resolved with learning
Define common behaviors of top performers
Define common behaviors of top performers

Current & Planned Competency Use
Present
Planned
Present
Planned
37%
50%
33%
46%
Leverage workers who display desired competencies
Leverage workers who display desired competencies
Create career paths with matching competencies
Create career paths with matching competencies

3. 360 Multi-Rater feedback
360 Feedback Assessment Surveys or Multi-Rater Surveys refer to…
Surveys that are completed by one’s boss, staff, team members,co-workers or customers.
Feedback comes from multiple sources.
Not a self assessment only process
Surveys that provide feedback that indicate how effectively the person is performing specific job-related skills and practices.

Value of 360’s
Help individuals improve
their performance
Feedback from 360 surveys can be the single most effective catalyst to individual growth and development when used properly
Help organizations align the
day to day performance of their people
with strategic goals
As individuals become effective,
so does the organization

360° Applications
Self Development
Leadership Development
Performance Appraisal/Management
Coaching and Counseling
Career Development
Team Building
Succession Planning
Sales Development

360°: Practical Benefits
Catalyst for Change
Personal
Professional
Consequences of behavior, actions
Identify barriers to career development
Increase Influence with Others
Identify strengths to build upon
Identify areas for development
Work more effectively with others
Continuous improvement
Personal
Professional

“GAP” Analysis Survey
Dual
Scale
Uses two scales (or questions) to gather data about the person’s current practices (how often am I doing this now) and the expectations or needs of others (how often should I be doing this now)
Effectiveness is determined by comparing the Current Practices against the Expectations or Needs of others the person works with an to use applicant tracking system in hiring process

Advantage of Dual Scale
The feedback results focus the rater’s real and immediate needs
A
The message “your people want more (or less) of a practice” is easier for a person to understand, accept and to respond
B
C
Shows what the “Majority “ wants

74%
Companies who are doing succession planning or plan to do succession planning
74%
74%
74%
4. TALENT MANAGEMENT/SUCCESSION PLANNING

Talent Management/Succession Planning Priorities
24%
76%
Top Priority
Not a Priority

EMPLOYEE DEVELOPMENT $$ CHANGE IN BUDGET
An average of 59% of employers plan to increase their budget
SHRM talent management survey

Why Succession Plan?
Need to evaluate top talent
Unexpected loss of
key leaders
Problem finding
successful management
candidates
Reduce the cost of
replacing employees
Identify Hi-Po candidates- early and have plan for retaining top talent
Improve company’s bench
strength in key positions

What Are Companies Doing?
51%
50%
34%
Use leadership development tools
Position succession planning as a KEY to retention strategy
Offer executive coaching
28%
D
Offer external leadership development programs
23%
Offer mentorship programs

Why Are Companies Doing It?
82%
80%
77%
Create culture that makes an individual want to join
Create a culture that values an employees’ work
Align employees with the mission and vision of the organization
72%
Create a culture that will make employees want to stay with the organization
D
70%
Place the right people in the right jobs

5. Performance Management
ensure managers involve employees in the goals definition process
77%
Have standardized employee performance ratings across the organization to ensure consistency with reviews
70%
Employees understand how their individual performance affects organizational goals
68%

Performance Management
Is
What
Driving
It?
54%
37%
27%
27%
Develop leadership and management pipeline
Align ee goals and development activities to business priorities
Create a performance culture
Increase productivity of current workforce
Aberdeen Group

Best-in-Class organizations are 55% more likely than all other organizations to have their managers define and communicate individual employee goals and expectations within or before the first week of the employee’s start date.
Three quarters of Best-in-Class organizations ensure that managers involve ee’s in the goal definition process. They establish common ground pertaining to performance expectations and create a sense of personal ownership of the goals by ee’s.

Best-in Class organizations have established mechanisms to ensure that managers provide ee’s with clear and consistent performance feedback.
They hold managers accountable for the management of their subordinates’ performance.
This helps maintain the critical line of communication between ee’s and their managers, builds trust between both parties and provides a mutual sense of ownership and accountability in the process.

Achieving Performance Management
Best-in-Class Organizations
Reinforce ee performance with supportive resources such as linking pay to performance, providing mentors or coaches and establishing a consistent line of communication between ee’s and their immediate supervisors
Laggard Organizations
Tend to focus their efforts on establishing better goal setting processes and suffer from inconsistencies and lack of accountability; which have a direct impact on ee morale, performance and retention

Standardize employee performance ratings
across the organization
Involve employees in their development and goal planning
Improving
Performance
Management
Define the metrics against which your organization will measure employee performance
Educate employees on how their personal performance affects the organization’s goals

Thank You !

What Successful Businessesare Doing

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