0
You can listen to today’s webinar using your computer’s
speakers or you may dial into the teleconference.
If you would lik...
Speaker: Mike Bartkus
Vice President
SkillSurvey, Inc.
Moderator: Ladan Nikravan
Associate Editor
Workforce Management Mag...
1. Will I receive a copy of the slides after the webinar?
YES
2. Will I receive a copy of the webinar recording?
YES
Pleas...
Ladan Nikravan
Associate Editor
Workforce Management Magazine
Mike Bartkus
Vice President
SkillSurvey, Inc.
Revolutionized Assessments for Business
How to Avoid Bad Hires through
Reference Checking
SkillSurvey Pre-Hire 360™
The History of a Reference Check
• Historically
– One of the most important steps
– Hiring managers talked to previous man...
Necessary for
making informed
hiring decision
Historical Phone Checking
History of Reference Checking Effectiveness
Actionable
Information
Reference Checking Past 40 Years
1990’s1970’s 20001980’...
The Lawyers Get Involved
• The 1990’s and the new millennium
– Legal issues arise
– HR cracks down and bans reference chec...
Results of Outsourcing
• 4 simple answers
• Does it really help
make a decision?
Key Success Traits
• Interpersonal Skills...
The Lawyers Get Involved
• The 1990’s and the new millennium
– Legal issues arise
– HR cracks down and bans reference chec...
• Bad Hire has an impact
• Various by organization and by job role
– Hard dollar cost – base salary, benefits, on board tr...
Dependable Employees
Absenteeism is a chronic problem among U.S. retail employers
• Conservatively costs $3,600 per hourly...
Employee Retention in Retail
Is Turnover Really a Fixed Cost?
Can we make an impact
by identifying behaviors
before they are hired?
Can HR Make An Impact?
The Results are in…….
0 10 20 30 40 50 60 70 80
Minimal
Moderate
Great
Percent
DevelopmentalNeed
10 + years of statistics ...
Risky Candidates: Can We Identify Them?
D’s and F’s are a must to avoid
Categorize the Candidates
0 10 20 30 40 50 60 70 80
Minimal
Moderate
Great
Percent
DevelopmentalNeed
The A’s, the B’s, the...
The D’s and F’s
We all know
someone like this
Who hired
this guy?
Are you
kidding me?
- Not a team player
- Gives 70% at b...
The Hard Cost of Bad Hire – Real ROI
The U.S. Department of Labor currently estimates
that the average cost of a bad hirin...
• Finding the B’s and C’s
• Seems to be many in pool
• The interview:
– Seemed ok, better than most
– Something nagging
– ...
A’s B’s and C’s
The B’s and C’s are Hard to Identify
Large Percentage of Candidate Pool
0 10 20 30 40 50 60 70 80
Minimal
Moderate
Great
Percent
DevelopmentalNeed
The A’s, the...
B Player is Singled Out and Hired
B Player is Chosen
• Some gaps
• No show stopper issues
• Onboarding plan
• Know the iss...
Less than one minute
85% Response Rate
Confidential Reference
Feedback
Two Days or Less
Identify
Avoid
Validate
Skeptical?
The Real Cost of Bad Hire – Cream of the Cream
• Hiring for Mediocrity
• Driving to the A player on every candidate
• Cost...
What is the Problem?
• Most candidates do a nice job presenting themselves during
interviews
– All are team players
– All ...
Phone interview
Face to Face
Personality / Behavior
Assessments
Resume
From Candidate Perspective – Today’s Approach
I’m t...
Phone interview
Face to Face
Personality / Behavior
Assessments
Resume
From Reference Perspective – Today’s Approach
She’s...
Phone interview
Face to Face
Personality / Behavior
Assessments
Resume
A New Perspective – The New Paradigm
Dependability
...
Comparison
Online Solution Typical Phone Check
More references 5+ business references
50% of which are former or
current S...
Why You and a Better Process?
• Improve
– Quality of Hire
– Hiring Manager’s Interview Effectiveness
– Efficiency
– Passiv...
Improve Hiring Manager’s Interview Effectiveness
• Lack of consistency for hiring managers
• Managers looking for differen...
Patient Satisfaction - HCAHPS
Behavioral Interview Questions
Improve Efficiency – Time and Money
RecruitersSourceCandidates
Screen to top 3 candidates
• Improve efficiency – time and money
• Six Sigma
 From 60 work weeks to 4.8
0
10
20
30
40
50
60
Telephone SkillSurvey
Wo...
Passive Sourcing by the Numbers
Job opening
100
Candidate
s
300
Reference
s
1,500
An organization
has 100 job
openings
3 c...
Science Compliance Risk
Risk and Compliance Management
Increase Compliance and Consistency
• It is all about the science - Validity of survey questions
– Do the questions valida...
• Clear ROI for Finance and Budgets
– Quality of Hire
– Turnover
– Efficiency
– Passive Sourcing
• Elevate Recruitment’s R...
1 minute
5 minutes
10 minutes
2 seconds
Survey Availability
Job Level ►
▼Job Family
Entry-
Level
Hourly Clerical Professional Supervisor Manager Executive
General...
Step 1: Enter Candidate Data
Step 1a: Select Survey
Send email
to candidate
Sample Libraries: Finance
Other Libraries: IT
Other Libraries: Customer Service
Other Libraries: Healthcare
Step 1a: Select Survey
Send email
to candidate
From: org name Recruiting
Sent: Thursday, November 06, 2008 12:57 PM
To: Patrick T
Subject: org name Selection Process Inf...
Step 2c: Candidate Confirms References and Signs Legal Waiver
Proof of Consent
“…I hereby release any such
person, their c...
The Surveys: Job-Specific, Behaviorally-Based Questions
Job-Specific, Behaviorally-Based
Would 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
• Clear ROI for Finance and Budgets
– Quality of Hire
– Turnover
– Efficiency
– Passive Sourcing
• Quickly Implement and E...
Sample Clients
Sample Clients
SkillSurvey Usage and Growth
About Us: SkillSurvey
• Providing Reference Solutions since 2002
• Inventor of web-based reference checking
– Patent pendi...
Contact SkillSurvey
www.skillsurvey.com
Mike Bartkus, Vice President
mbartkus@skillsurvey.com
610-947-6300
Mike Bartkus
Vice President
SkillSurvey, Inc.
Join Our Next Workforce Webinar
“Times They Are A-Changin' - Simplifying Compliance
and Lowering Costs for Time and Attend...
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How to Avoid Bad Hires Through Reference-Checking

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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.

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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: 492 182 320#. You will be on hold until the seminar begins.
  2. 2. Speaker: Mike Bartkus Vice President SkillSurvey, Inc. Moderator: Ladan Nikravan Associate Editor Workforce Management Magazine
  3. 3. 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.
  4. 4. Ladan Nikravan Associate Editor Workforce Management Magazine
  5. 5. Mike Bartkus Vice President SkillSurvey, Inc.
  6. 6. Revolutionized Assessments for Business How to Avoid Bad Hires through Reference Checking SkillSurvey Pre-Hire 360™
  7. 7. 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?
  8. 8. Necessary for making informed hiring decision Historical Phone Checking
  9. 9. History of Reference Checking Effectiveness Actionable Information Reference Checking Past 40 Years 1990’s1970’s 20001980’s 2010 Can we make it relevant again? Should it be?
  10. 10. The Lawyers Get Involved • The 1990’s and the new millennium – Legal issues arise – HR cracks down and bans reference checking • What are the options? – Outsource the process – check the box
  11. 11. Results of Outsourcing • 4 simple answers • Does it really help make a decision? Key Success Traits • Interpersonal Skills • Teamwork • Honesty • Dependability • Integrity
  12. 12. The Lawyers Get Involved • The 1990’s and the new millennium – Legal issues arise – HR cracks down and bans reference checking • What are the options? – Stop doing it? • If you do attempt to check references: • Countless hours of phone mail tag, email tag, phone mail tag • Weeks and weeks of time – All for no actionable information
  13. 13. • 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 Impact of a Bad Hire
  14. 14. Dependable Employees Absenteeism is a chronic problem among U.S. retail employers • Conservatively costs $3,600 per hourly employee per year and $2,650 per salaried employee per year • A company with 5,000 hourly employees has the potential to reduce costs by over $7.9 million per year (3.2% of total payroll) • Results in lost productivity, high-cost replacement workers, and excess staffing Results in reduced ability to meet demand leading to dissatisfied customers
  15. 15. Employee Retention in Retail Is Turnover Really a Fixed Cost?
  16. 16. Can we make an impact by identifying behaviors before they are hired? Can HR Make An Impact?
  17. 17. The Results are in……. 0 10 20 30 40 50 60 70 80 Minimal Moderate Great Percent DevelopmentalNeed 10 + years of statistics prove out - SkillSurvey References Perceive Candidates in the following categories 5-10 % High Risk Candidates 10-15 % Moderate Risk for Success Candidates 80-85 %Validated Low Risk
  18. 18. Risky Candidates: Can We Identify Them? D’s and F’s are a must to avoid
  19. 19. Categorize the Candidates 0 10 20 30 40 50 60 70 80 Minimal Moderate Great Percent DevelopmentalNeed The A’s, the B’s, the C’s, the D’s, the F’s 5 % D and F’s
  20. 20. The D’s and F’s We all know someone like this Who hired this guy? Are you kidding me? - Not a team player - Gives 70% at best - Terrible with customers
  21. 21. The Hard Cost of Bad Hire – Real ROI The U.S. Department of Labor currently estimates that the average cost of a bad hiring decision can equal 30% of the individual’s first-year potential earnings. That means a single bad hire with an annual income of $50,000 can equal a potential $15,000 loss for the employer. Question for the attendees: Can you think of one person your team hired recently where you made a mistake? Hiring manager override gone bad? Example – RN $60,000 x .3 = $18,000
  22. 22. • Finding the B’s and C’s • Seems to be many in pool • The interview: – Seemed ok, better than most – Something nagging – ….3 months later – C – player – I knew it The B’s and C’s "I noticed that the dynamic range between what an average person could accomplish and what the best person could accomplish was 50 or 100 to 1. Given that, you're well advised to go after the cream of the cream. ...A small team of A+ players can run circles around a giant team of B and C players.“ --- Steve Jobs
  23. 23. A’s B’s and C’s The B’s and C’s are Hard to Identify
  24. 24. Large Percentage of Candidate Pool 0 10 20 30 40 50 60 70 80 Minimal Moderate Great Percent DevelopmentalNeed The A’s, the B’s, the C’s, the D’s, the F’s 15 % B & C’s 80 % A’s
  25. 25. B Player is Singled Out and Hired B Player is Chosen • Some gaps • No show stopper issues • Onboarding plan • Know the issues before day 1
  26. 26. Less than one minute 85% Response Rate Confidential Reference Feedback Two Days or Less Identify Avoid Validate Skeptical?
  27. 27. The Real Cost of Bad Hire – Cream of the Cream • Hiring for Mediocrity • Driving to the A player on every candidate • Cost of B’s and C’s – HCAHPS – Customer Satisfaction – Sales – Avis – we try hard to be the best (#1) • Must focus on the A’s • Identify those who can be B+ players
  28. 28. 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
  29. 29. Phone interview Face to Face Personality / Behavior Assessments Resume From Candidate Perspective – Today’s Approach I’m terrific I work really hard, weekends too! I interview well I’m a Team Player Recruiter Candidate
  30. 30. Phone interview Face to Face Personality / Behavior Assessments Resume From Reference Perspective – Today’s Approach She’s terrific I would hire her again, yes! She works hard She’ a Team Player Recruiter Reference
  31. 31. Phone interview Face to Face Personality / Behavior Assessments Resume A New Perspective – The New Paradigm Dependability Interpersonal Skills Personality Work Ethic Teamwork Integrity References Recruiter
  32. 32. Comparison Online Solution Typical Phone Check More references 5+ business references 50% of which are former or current Supervisors 2 to 3 Faster 1 to 2 days 5 to 10 days Guide Hiring Managers Previous managers assisting in leading interview No Pauses a hiring decision 5% - 10% of candidates < 1% of candidates? Passive sourcing tools 5 references per candidate – warm leads Not Applicable Compliant/Legal Risk Supports compliance with EEOC and OFCCP Uncertain/Inconsistent
  33. 33. 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
  34. 34. 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
  35. 35. Patient Satisfaction - HCAHPS
  36. 36. Behavioral Interview Questions
  37. 37. Improve Efficiency – Time and Money RecruitersSourceCandidates Screen to top 3 candidates
  38. 38. • Improve efficiency – time and money • Six Sigma  From 60 work weeks to 4.8 0 10 20 30 40 50 60 Telephone SkillSurvey Work weeks to reference check 2,272 job candidates Solution resulted in a 92% Reduction in Time Spent reference checking Exclusive Case Study: Improved Efficiency – Time and Money
  39. 39. Passive Sourcing by the Numbers Job opening 100 Candidate s 300 Reference s 1,500 An organization has 100 job openings 3 candidates apply on average for each job = 300 candidates 3 candidates SkillSurveyed and provide 5 references each = 1,500 potential contacts 65% of the 1,500 contacts opt in to learn about future career opportunities. 1,500 x .35 = 525 + passive candidates 1 2 3 4 Talent Pipeline and Funnel • Multiplier Effect Based on Number of Candidates Screened • Builds Automatically Industry Professionals with Whom To Network and Source • “Great People Know Great People” • “Warm Lead” vs. “Cold Lead”
  40. 40. Science Compliance Risk Risk and Compliance Management
  41. 41. 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
  42. 42. • Clear ROI for Finance and Budgets – Quality of Hire – Turnover – Efficiency – Passive Sourcing • Elevate Recruitment’s Role Why You and a Better Process?
  43. 43. 1 minute 5 minutes 10 minutes 2 seconds
  44. 44. Survey Availability Job Level ► ▼Job Family Entry- Level Hourly Clerical Professional Supervisor Manager Executive General        Production      Sales        Marketing      IT        Operations      Customer Service       R&D     Admin       Finance       Legal       HR       Engineering      Education     Healthcare       
  45. 45. Step 1: Enter Candidate Data
  46. 46. Step 1a: Select Survey Send email to candidate
  47. 47. Sample Libraries: Finance
  48. 48. Other Libraries: IT
  49. 49. Other Libraries: Customer Service
  50. 50. Other Libraries: Healthcare
  51. 51. Step 1a: Select Survey Send email to candidate
  52. 52. From: org name Recruiting Sent: Thursday, November 06, 2008 12:57 PM To: Patrick T Subject: org name Selection Process Information Dear Patrick T, Thank you for your continued interest in the Major Account Sales position with org name. As already explained to you, a critical step in the selection process is reference checking. org name uses web-based reference checking for this purpose. Please click on the link below. It will open a web page where you will input your reference. You will also be able to review a sample of the questions being asked and the email that will be sent to your references. Your references will be emailed a reference survey and their responses will be submitted directly back to SkillSurvey. No one will see your references' individual responses because all responses are electronically aggregated together to produce one summary report. Note that all references will be responding as individuals, not as representatives of any company or organization. Please click on the following link (URL) to begin: http://eref.skillsurvey.com//CandidateUtilities/EOC.aspx? Step 2: Candidate Enters References Automated Email From Recruiter to Candidate Explaining the Process
  53. 53. 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…”
  54. 54. The Surveys: Job-Specific, Behaviorally-Based Questions
  55. 55. Job-Specific, Behaviorally-Based Would you like to learn more about job openings at Your Co name?
  56. 56. Drive Warm Candidates to Career Page
  57. 57. Step 4: Aggregate Reference Responses into Actionable Intel
  58. 58. Validated Candidate – Good Fit
  59. 59. Validated Candidate – Good Fit
  60. 60. Pause or Avoid this Candidate – Low Scoring
  61. 61. Professionalism
  62. 62. Interpersonal Skills
  63. 63. Patient Satisfaction - HCAHPS
  64. 64. Verbatim Comments
  65. 65. Verbatim Comments
  66. 66. Passive Candidate Database
  67. 67. • 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 Why?
  68. 68. Sample Clients Sample Clients
  69. 69. SkillSurvey Usage and Growth
  70. 70. About Us: SkillSurvey • Providing Reference Solutions since 2002 • Inventor of web-based reference checking – Patent pending • 37,611 Candidates in June 2013 – June 2012 – 30,621 – Over 1,000,000 candidates entered since 2008 – Over 5,000,000 people experienced the SkillSurvey process • 750+ customers • 319 surveys in current inventory – 23 different job families – Cynthia Hedricks, PhD, Chief Analytics Officer – 92 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, 13 for Education
  71. 71. Contact SkillSurvey www.skillsurvey.com Mike Bartkus, Vice President mbartkus@skillsurvey.com 610-947-6300
  72. 72. Mike Bartkus Vice President SkillSurvey, Inc.
  73. 73. Join Our Next Workforce Webinar “Times They Are A-Changin' - Simplifying Compliance and Lowering Costs for Time and Attendance” Wednesday, September 4, 2013 Webinar starts at 1:00 pm Eastern / 10:00 am Pacific Register for upcoming Workforce Webinars at www.workforce.com
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