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You can listen to today’s webinar using your computer’s       speakers or you may dial into the teleconference.          I...
Speaker:     Jack Kramer             Vice President             SkillSurveyModerator:   Kellye Whitney             Managin...
•   Q&A    –     Click on the Q&A icon on           your floating toolbar on the           top of your screen.    –     Ty...
Polling  Polling question will   appear in the “Polling”  panel.   Select your response   and click on “Submit.”          ...
1. Will I receive a copy of the slides after the webinar?                             YES  2. Will I receive a copy of the...
Kellye WhitneyManaging EditorTalent Management magazine                             #TMwebinar
Jack KramerVice PresidentSkillSurvey                 #TMwebinar
How to Avoid Bad-Hires Through     Reference-Checking   SkillSurvey Pre‐Hire 360™     Revolutionized Assessments for Busin...
The History of a Reference Check• Historically   – One of the most important steps   – Hiring managers talked to previous ...
Historical Phone Checking                       Necessary for                        making informed                      ...
History of Reference Checking Effectiveness                                             Can we make it                    ...
The Lawyers Get Involved• The 1990’s and the new millennium   –   Legal issues arise   –   HR cracks down and bans referen...
What is the Problem?• Most candidates do a nice job presenting themselves during   interviews   – All are team players   –...
Impact of a Bad Hire• Bad Hire has an impact• Various by organization and by job role   – Hard dollar cost – base salary, ...
Can You Guess What This Number Represents?            $23,160,000
Let’s Look at the Statistics• SkillSurvey Customers had 3,500 + sales candidates• Evaluate competencies and behaviors    •...
Stats Speak for Themselves    $23,160,000
From Candidate Perspective – Today’s Approach   Phone interview                                   I’m a Team PlayerRecruit...
From Reference Perspective – Today’s Approach  Phone interview                                                    She’ a T...
A New Perspective – The New Paradigm  Phone interview                                                            Work Ethi...
Comparison                                 Online Solution             Typical Phone CheckMore references                5...
Why You and a Better Process?• Improve   –   Quality of Hire   –   Hiring Manager’s Interview Effectiveness   –   Efficien...
Improve Quality of Hire                                   SkillSurvey References Perceive That 10-15 % or more of         ...
Improve Hiring Manager’s Interview Effectiveness• Lack of consistency for hiring managers• Managers looking for difference...
Patient Satisfaction ‐ HCAHPS
Behavioral Interview Questions
Improve Efficiency – Time and Money                                  Screen to top 3 candidates Recruiters Source Candidates
Exclusive Case Study: Improved Efficiency – Time and Money• Improve efficiency – time and money• Six Sigma        From 60 ...
Passive Sourcing by the Numbers                                                                                   Talent P...
Risk and Compliance ManagementScience   Compliance     Risk
Reliability and Validity – Why?•   Without understandable data, you cannot ensure a fair and equal    assessment.•   Can y...
Increase Compliance and Consistency• It is all about the science ‐ Validity of survey questions    – Do the questions vali...
Why You and a Better Process?• Clear ROI for Finance and Budgets   –   Quality of Hire   –   Turnover   –   Efficiency   –...
1 minute                         5 minutes2 seconds            10 minutes
Survey Availability         Job Level ►   Entry-   Hourly     Clerical   Professional   Supervisor   Manager   Executive▼J...
Step 1: Enter Candidate Data
Step 1a: Select SurveySend emailto candidate
Sample Libraries: Finance
Other Libraries: IT
Other Libraries: Customer Service
Other Libraries: Healthcare
Step 1a: Select SurveySend emailto candidate
Step 2: Candidate Enters ReferencesFrom: org name Recruiting                                                      Automate...
Step 2c: Candidate Confirms References and Signs Legal Waiver                                           Proof of Consent  ...
The Surveys: Job‐Specific, Behaviorally‐Based Questions
Job‐Specific, Behaviorally‐BasedWould you like to learn more about job openings at Your Co name?
Drive Warm Candidates to Career Page
Step 4: Aggregate Reference Responses into Actionable Intel
Validated Candidate – Good Fit
Validated Candidate – Good Fit
Pause or Avoid this Candidate – Low Scoring
Professionalism
Interpersonal Skills
Patient Satisfaction ‐ HCAHPS
Verbatim Comments
Verbatim Comments
Passive Candidate Database
Why You and a Better Process?• Clear ROI for Finance and Budgets   –   Quality of Hire   –   Turnover   –   Efficiency   –...
Sample Clients
SkillSurvey Usage and Growth                               Page 60
About Us: SkillSurvey• Providing Reference Solutions since 2002• Inventor of web‐based reference checking    – Patent pend...
Contact SkillSurvey           www.skillsurvey.comJack Kramer, Vice President Field Operations         jkramer@skillsurvey....
Jack KramerVice PresidentSkillSurvey                 #TMwebinar
Join Our Next TM Webinar   The Crowdsourced Performance Review           Tuesday, March 19, 2013TM Webinars start at 2 p.m...
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How to Avoid Bad Hires Through Reference Checking

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How often have you hired someone with a great track record who turned out to be a bad hire? By discovering what a candidate’s previous managers and colleagues candidly say about his or her work style, skills and behaviors, you can objectively assess the candidate’s ability to be a top performer. Through this session, you will learn how technology has introduced a way for talent acquisition professionals to capture behavioral feedback from five references in just two days for each job candidate, and how to avoid candidates who score low with references. Also, see an overview of how this technology infuses compliance, consistency, reliability and validity into each reference check and obtains feedback that identifies candidates’ developmental needs.

What will participants learn?

How to improve quality of hire by avoiding candidates who score low with references.
How to capture behavioral feedback from five references in two days for each candidate.
How to infuse compliance, consistency, reliability and validity into each reference check.

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Transcript of "How to Avoid Bad Hires Through Reference Checking"

  1. 1. You can listen to today’s webinar using your computer’s speakers or you may dial into the teleconference. If you would like to join the teleconference,please dial 1.650.479.3208 and enter access code: 924 523 772 #. You will be on music hold until the seminar begins. #TMwebinar
  2. 2. Speaker: Jack Kramer Vice President SkillSurveyModerator: Kellye Whitney Managing Editor Talent Management magazine #TMwebinar
  3. 3. • Q&A – Click on the Q&A icon on  your floating toolbar on the  top of your screen. – Type in your question in the  space at the bottom. – Click on “Send.” #TMwebinar
  4. 4. Polling Polling question will  appear in the “Polling” panel.  Select your response  and click on “Submit.” #TMwebinar
  5. 5. 1. Will I receive a copy of the slides after the webinar? YES 2. Will I receive a copy of the webinar recording? YES Please allow up to 2 business days to receive these materials. #TMwebinar
  6. 6. Kellye WhitneyManaging EditorTalent Management magazine #TMwebinar
  7. 7. Jack KramerVice PresidentSkillSurvey #TMwebinar
  8. 8. How to Avoid Bad-Hires Through Reference-Checking SkillSurvey Pre‐Hire 360™ Revolutionized Assessments for Business
  9. 9. The History of a Reference Check• Historically – One of the most important steps – Hiring managers talked to previous managers • How are they day to day? • Nuances? • What challenges do they have and what can I do to make them A+ players?• Actionable Information – Will it help make a decision? – Will it screen out or have candidate rise to the top? – Will this information help this person succeed? – Will this information predict behavior?
  10. 10. Historical Phone Checking Necessary for  making informed  hiring decision
  11. 11. History of Reference Checking Effectiveness Can we make it relevant again? Actionable Should it be?Information 1970’s 1980’s 1990’s 2000 2010 Reference Checking Past 40 Years
  12. 12. The Lawyers Get Involved• The 1990’s and the new millennium – Legal issues arise – HR cracks down and bans reference checking – Outsource the process – check the box – Or worse – stop doing it – If you do try and reference check: • Countless hours of phone mail tag, email tag, phone mail tag • Weeks and weeks of time – All for no actionable information
  13. 13. What is the Problem?• Most candidates do a nice job presenting themselves during  interviews – All are team players – All show up for work and don’t text, sit on Facebook all day – Most are ethical and always do the right thing• Most candidates are well rehearsed in the question/response mode – Books, job seeker sites – Experience interviewing all the time• Your only view today is from the candidate’s perspective – Really need a true 360 review from those who saw the behavior in the past
  14. 14. Impact of a Bad Hire• Bad Hire has an impact• Various by organization and by job role – Hard dollar cost – base salary, benefits, on board training, exit costs – Internal team turmoil – Customer satisfaction – Compliance (Finance – SOX issues and the Fed’s) • For sales roles – Cost of lost revenue – Asset is time – time is lost forever• For clinical roles – HCAHPS and reimbursements
  15. 15. Can You Guess What This Number Represents? $23,160,000
  16. 16. Let’s Look at the Statistics• SkillSurvey Customers had 3,500 + sales candidates• Evaluate competencies and behaviors  • Scientific and predictive• 11 % or 386 candidates were high risk and potentially avoided• If you took average cost per sales $60,000 x 386 candidates = 
  17. 17. Stats Speak for Themselves $23,160,000
  18. 18. From Candidate Perspective – Today’s Approach Phone interview I’m a Team PlayerRecruiter Face to Face Candidate I interview well I’m terrific Resume Personality / Behavior I work really hard, weekends Assessments too!
  19. 19. From Reference Perspective – Today’s Approach Phone interview She’ a Team PlayerRecruiter Face to Face Reference She works hard Resume She’s terrific Personality / Behavior Assessments I would hire her again, yes!
  20. 20. A New Perspective – The New Paradigm Phone interview Work Ethic Face to Face Dependability IntegrityRecruiter Resume Teamwork Personality References Personality / Behavior Interpersonal Skills Assessments
  21. 21. Comparison Online Solution Typical Phone CheckMore references 5+ business references 2 to 3 50% of which are former or  current SupervisorsFaster 1 to 2 days 5 to 10 daysGuide Hiring Managers Previous managers assisting in  No leading interviewPauses a hiring decision 5% ‐ 10% of candidates < 1% of candidates?Passive sourcing tools 5 references per candidate – Not Applicable warm leads Compliant/Legal Risk Supports compliance with EEOC  Uncertain/Inconsistent and OFCCP
  22. 22. Why You and a Better Process?• Improve – Quality of Hire – Hiring Manager’s Interview Effectiveness – Efficiency – Passive Sourcing• Drive  – Compliance and Consistency• Elevate Recruitment’s Role
  23. 23. Improve Quality of Hire SkillSurvey References Perceive That 10-15 % or more of Candidates Have Great Developmental Need 5-10 % Avoidable, High Risk Candidates GreatDevelopmental Need 10‐15 % Coachable, Moderate Risk Candidates  Moderat e = Interview and on‐boarding assistance 80-85 % Minimal 0 10 20 30 40 50 60 70 80 Percent
  24. 24. Improve Hiring Manager’s Interview Effectiveness• Lack of consistency for hiring managers• Managers looking for differences in candidates• Probing questions driven by previous managers’ comments
  25. 25. Patient Satisfaction ‐ HCAHPS
  26. 26. Behavioral Interview Questions
  27. 27. Improve Efficiency – Time and Money Screen to top 3 candidates Recruiters Source Candidates
  28. 28. Exclusive Case Study: Improved Efficiency – Time and Money• Improve efficiency – time and money• Six Sigma  From 60 work weeks to 4.8 Solution resulted in a 92% Reduction in Time Spent reference checking 60 50 Work weeks to  reference check  40 2,272 job  30 candidates 20 10 0 Telephone SkillSurvey
  29. 29. Passive Sourcing by the Numbers Talent Pipeline and Funnel • Multiplier Effect Based on  100 300 1,500 Number of Candidates ScreenedJob opening Candidate Reference • Builds Automatically s s Industry Professionals with Whom  To Network and Source • “Great People Know Great  People” • “Warm Lead” vs. “Cold Lead” An organization 3 candidates 3 candidates 65% of the 1,500 contacts opt in to learn about future1 2 3 4 has 100 job apply on average SkillSurveyed and career opportunities. 1,500 x .35 = 525 + passive openings for each job = 300 provide 5 references candidates candidates each = 1,500 potential contacts
  30. 30. Risk and Compliance ManagementScience Compliance Risk
  31. 31. Reliability and Validity – Why?• Without understandable data, you cannot ensure a fair and equal assessment.• Can you prove your practices are not discriminatory, even accidentally?• The risks are massive, and can damage an organization and destroy a brand.
  32. 32. Increase Compliance and Consistency• It is all about the science ‐ Validity of survey questions  – Do the questions validate what you are actually asking? – Do the questions help predict future behavior? – Are the questions being asked in a way that reduces risk? • Sample question – What high school did you go to?• SkillSurvey reference feedback shows no differences  between sub‐groups – Helps support your efforts to remain EEOC and OFCCP  compliant • Standardized process 
  33. 33. Why You and a Better Process?• Clear ROI for Finance and Budgets – Quality of Hire – Turnover – Efficiency – Passive Sourcing• Elevate Recruitment’s Role
  34. 34. 1 minute 5 minutes2 seconds 10 minutes
  35. 35. Survey Availability Job Level ► Entry- Hourly Clerical Professional Supervisor Manager Executive▼Job Family LevelGeneralProductionSalesMarketingITOperationsCustomerServiceR&DAdminFinanceLegalHREngineeringEducationHealthcare
  36. 36. Step 1: Enter Candidate Data
  37. 37. Step 1a: Select SurveySend emailto candidate
  38. 38. Sample Libraries: Finance
  39. 39. Other Libraries: IT
  40. 40. Other Libraries: Customer Service
  41. 41. Other Libraries: Healthcare
  42. 42. Step 1a: Select SurveySend emailto candidate
  43. 43. Step 2: Candidate Enters ReferencesFrom: org name Recruiting Automated Email From Sent: Thursday, November 06, 2008 12:57 PMTo: Patrick T Recruiter to Candidate Subject: org name Selection Process Information Explaining the ProcessDear Patrick T,Thank you for your continued interest in the Major Account Sales position with org name. As alreadyexplained to you, a critical step in the selection process is reference checking. org name uses web-basedreference checking for this purpose.Please click on the link below. It will open a web page where you will input your reference. You will alsobe able to review a sample of the questions being asked and the email that will be sent to yourreferences. Your references will be emailed a reference survey and their responses will be submitteddirectly back to SkillSurvey. No one will see your references individual responses because all responsesare electronically aggregated together to produce one summary report.Note that all references will be responding as individuals, not as representatives of any company ororganization.Please click on the following link (URL) to begin: http://eref.skillsurvey.com//CandidateUtilities/EOC.aspx?
  44. 44. Step 2c: Candidate Confirms References and Signs Legal Waiver Proof of Consent “…I hereby release any such  person, their company, and any  affiliated officers, directors,  agents, and employees from any  and all claims I may have arising  out of the disclosure of such  information…”
  45. 45. The Surveys: Job‐Specific, Behaviorally‐Based Questions
  46. 46. Job‐Specific, Behaviorally‐BasedWould you like to learn more about job openings at Your Co name?
  47. 47. Drive Warm Candidates to Career Page
  48. 48. Step 4: Aggregate Reference Responses into Actionable Intel
  49. 49. Validated Candidate – Good Fit
  50. 50. Validated Candidate – Good Fit
  51. 51. Pause or Avoid this Candidate – Low Scoring
  52. 52. Professionalism
  53. 53. Interpersonal Skills
  54. 54. Patient Satisfaction ‐ HCAHPS
  55. 55. Verbatim Comments
  56. 56. Verbatim Comments
  57. 57. Passive Candidate Database
  58. 58. Why You and a Better Process?• Clear ROI for Finance and Budgets – Quality of Hire – Turnover – Efficiency – Passive Sourcing• Quickly Implement and Easy “Win” for HR• Elevate Recruitment’s Role in the Organization
  59. 59. Sample Clients
  60. 60. SkillSurvey Usage and Growth Page 60
  61. 61. About Us: SkillSurvey• Providing Reference Solutions since 2002• Inventor of web‐based reference checking  – Patent pending• 34,000 + Candidates in January 2013 – January 2012 – 23,000 + – Over 2,000,000 people experienced the SkillSurvey process• 700+ customers• 300 surveys in current inventory – 23 different job families – Cynthia Hedricks, PhD, Chief Analytics Officer – 91 Surveys for Healthcare roles, 22 Surveys for IT roles, 12 for Sales roles, 10  for Customer Service roles, 22 for Finance roles, 15 for Retail roles Page 61
  62. 62. Contact SkillSurvey www.skillsurvey.comJack Kramer, Vice President Field Operations jkramer@skillsurvey.com 610‐947‐6300 x 1203
  63. 63. Jack KramerVice PresidentSkillSurvey #TMwebinar
  64. 64. Join Our Next TM Webinar The Crowdsourced Performance Review Tuesday, March 19, 2013TM Webinars start at 2 p.m. Eastern / 11 a.m. Pacific Register for upcoming TM Webinars at www.talentmgt.com/webinars Join the Talent Management magazine Network http://network.talentmgt.com/ #TMwebinar
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