Hiring and Managing Smarter Webinar
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Hiring and Managing Smarter Webinar

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The most important asset of any organization is its people. This program will show you how to maximize your “human capital” to achieve greater revenues and profits. You will learn how to improve ...

The most important asset of any organization is its people. This program will show you how to maximize your “human capital” to achieve greater revenues and profits. You will learn how to improve workforce performance in all aspects of your business, including sales, manufacturing, and customer service, clerical, administrative, and engineering.

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Hiring and Managing Smarter Webinar Hiring and Managing Smarter Webinar Document Transcript

  • COSE Webinar - 9/22/08 WORKFORCE DESIGNS Joe Davenport Your Competitive Edge: Who is WORKFORCE DESIGNS? Helps clients of all types build and retain a top performing The workforce Is an outgrowth of 40 years of business / management High Performance experience in a variety of industries Was created to satisfy the need for better information to Workforce make workforce management decisions Is a strategic business partner with the recognized world leader in employment evaluation and human resource Presented by management assessment tools – Profiles Joe Davenport International, Inc. WORKFORCE DESIGNS Today’s Objectives People are Key! Learn how to: Jim Collins, author of Identify the characteristics of top performers Good to Great says: Select & retain the best people for your jobs Put the right people “on the bus” Maximize the performance of your current Get the wrong people “off the bus” personnel Put the people in the right seats “on the bus” “The bus” will take you where you want to go Make great people decisions! People are the key to the success Change companies from good to GREAT! of almost all endeavors . . . Why should your business be any different? Yin alone cannot arise People Challenges Yang alone cannot grow Yin and Yang are divisible but Most difficult to fix inseparable. – People are emotional - ‘The Yellow Emperor’s Canon of Internal Medicine’ Hardest to isolate – No line item on the financial statement Recruiting cost People & Processes are the Yin & Yang Turnover cost of business, yet the ‘people’ component Most costly receives little management attention – Companies spend 50-80% of their gross revenue compared to the ‘processes’ component. on employee-related costs – Lost opportunity cost Why? . . . . 1
  • COSE Webinar - 9/22/08 WORKFORCE DESIGNS Joe Davenport People Challenges Have you ever hired or promoted someone who Most re-occurring was not what he/she – Peter Drucker says 66% of hiring decisions prove to be appeared to be? wrong in 12 months and the people who are mis-hired seldom quit - they stay! – 67% of employed people have positions in which they are not happy Most time-consuming – Peter Drucker says 60% of management’s time is spent fixing people problems and just 40% working to achieve corporate goals Additional research shows that when you fix your people problems, your process problems will get fixed! Have you ever hired or promoted someone who greatly exceeded your expectations? What was different about the method used to hire these people? Why do we continue to put “If only I had known that . . .” the wrong people in jobs? We believe that poorly selected people are a normal part of doing business Our hiring practices may be too “instinctive” and not scientific Predicting superior performance enough is all about having We do not see our employees as the #1 asset in our company We spend more time buying a computer than we do selecting enough of the right information people We think we can change people once we hire them when you make people decisions We use the “traditional” approach to hiring What is the definition of insanity? 2
  • COSE Webinar - 9/22/08 WORKFORCE DESIGNS Joe Davenport The ‘Traditional’ Selection Process The Interview Skill Fit Company Fit Education Attitudes Training Values Experience Demeanor “63% of all hiring decisions Skills Appearance PAST etc. PRESENT are made during Resume Integrity Cultural fit Past Employment Interview the first 4.3 minutes of an interview.” Background Check – SHRM Study, reported in USA Today Interviews have only a Top 3 Reasons People Fail 14% success rate for identifying Incompetence superior people! Incompatibility Dishonesty Why? How do you determine these qualities in your job candidates now? – Hunter & Hunter “Validity & utility of Alternative Predictors of Job Performance”. Psychological Bulletin, Vol. 96, No. 1. p90 Here is what you get! Here is what you see when you hire and promote. 3
  • COSE Webinar - 9/22/08 WORKFORCE DESIGNS Joe Davenport Many businesses just can’t afford this risk! Using Assessments ”The appropriate use of professionally developed assessment tools on average enables organizations to make more effective employment-related decisions than the use of simple observation or random decision making.” How can you “Testing and Assessment: An Employer’s Guide to Good Practices” US Department of Labor - Employment and Training Administration minimize your risk? The Step One Survey II Use to determine cultural/company fit Measures candidate attitudes – Integrity – Reliability – Work Ethic – Substance abuse Provides valuable information about a candidate – Past employment – Employment-related problems – Illegal substance use – Theft of employer’s money, property, data, etc. – Computer/Internet/Email abuse Provides suggested interview questions based on candidate’s assessment results The Selection Process Information Resources for Hiring Decisions Step One Survey II 100 Source: Psychological Bulletin Vol. 96, No. 1, August 1994, Professor Mike Smith, University of Manchester 90 Skill Fit Company Fit 80 Education Attitudes 70 Training Values Experience Demeanor 60 PAST Skills Appearance PRESENT 50 Resume etc. Integrity Cultural fit Past Employment 40 Interview 26% Background Check 30 20 14% 10 0 Interview + Background Check What other information might be useful? 4
  • COSE Webinar - 9/22/08 WORKFORCE DESIGNS Joe Davenport The right people ‘Poor’ ‘Average’ ‘Superior’ can be the difference between: Performers Performers Performers Extinction & survival Bottom 16% Middle 68% Top 16% Profit & loss A good or a GREAT company Bell Curve . Does that see like too big a statement? - Studies by Frank L. Schmidt and John E. Hunter (well-respected personnel psychology researchers ) Why does this matter? Example of Impact Unskilled / Semi-skilled ‘Average’ produce 19% more than ‘Poor’ ‘Superior’ produce 19% more than ‘Average’ ‘Superior’ produce 38% more than ‘Poor’ Small Company with . . . Skilled 50 Unskilled / Semi-skilled Workers ‘Average’ produce 32% more than ‘Poor’ ‘Superior’ produce 32% more than ‘Average’ 25 Skilled Workers ‘Superior’ produce 64% more than ‘Poor’ Management / Professional 10 Managers ‘Average’ produce 48% more than ‘Poor’ ‘Superior’ produce 48% more than ‘Average’ ‘Superior’ produce 96% more than ‘Poor’ Source: “The validity and utility of selection methods in personnel psychology: Practical and theoretical implications of 85 years of research findings” Psychological Bulletin, Sept 1998, Vol. 124, No. 2, pp 262-274. Cost of ‘Average’ Implications vs. ‘Superior’ Performers Cost per # People in Cost if All These figures are not ‘worst case’. If any or all are below Estimated Salary ‘Average’ Performer this Category are ‘Average’ average the cost for that position is doubled – but so is the potential for improvement. Unskilled $20,000 X 0.19 = $3,800 X 50 = $190,000 Unless all your people are ‘superior’ performers, you are Skilled $40,000 $12,800 X 25 $320,000 incurring unnecessary costs. X 0.32 = = Regardless how large or small your organization, the Management $60,000 X 0.48 = $28,000 X 10 = $280,000 potential losses are relatively large. Every time you move performance in any single job from ‘average’ to ‘superior’ you have a measurable financial Total Exposure if all ‘average’ = $790,000 impact. Percentage of salary investment at risk = 30% This is the easiest strategy for making significant improvements to your bottom line. 5
  • COSE Webinar - 9/22/08 WORKFORCE DESIGNS Joe Davenport ‘Poor’ ‘Average’ ‘Superior’ ‘Average’ ‘Superior’ Performers Performers Performers Performers Performers Bottom 16% Middle 68% Top 16% Bottom 84% Top 16% OBJECTIVE #1: . OBJECTIVE #2: . Move performers Move performers from from ‘Poor’ to ‘Average’ ‘Average’ to ‘Superior’ ‘Superior’ Performers The Challenge 100% “If only I had known that Joe…” Predicting superior performance is all about having enough of the right information when you make ‘people’ decisions Use effective processes to ensure that EVERY OBJECTIVE #3: ‘people’ decision - whether for hiring & . selection, placement, promotion or Maintain ‘Superior’ development - is aimed at promoting ‘superior’ performers in all positions performance When do people perform at a “It’s not experience, ‘superior’ or college degrees, level? or other accepted factors… …(it) hinges on fit with the job.” Source: Herbert M. Greenberg and Jeanne Greenberg, “Job Matching for Better Sales Performance,” Harvard Business Review, Vol. 58, No. 5. 6
  • COSE Webinar - 9/22/08 WORKFORCE DESIGNS Joe Davenport They also stay longer Job Fit vs. Time – saving a fortune Without With on recruitment & training costs! Job Job Match Match 6 Months After Hire: : High Turnover Industry “… persons who had been matched, outperformed, to a statistically significant degree, % left / fired after 6 months 46% 24% those who had not been matched…” % left / fired after 14 months 57% 28% 14 Months After Hire: Low Turnover Industry “Moreover, % left / fired after 6 months 25% 5% the differences widened after 14 months” % left / fired after 14 months 34% 8% Source: Herbert M. Greenberg and Jeanne Greenberg, “Job Matching for Source: Herbert M. Greenberg and Jeanne Greenberg, “Job Matching for Better Sales Performance,” Harvard Business Review, Vol. 58, No. 5. Better Sales Performance,” Harvard Business Review, Vol. 58, No. 5. Two Opportunities to Job Match for Superior performance “…companies will need to reorient their recruitment and selection processes Place the right people in the right by hiring “for fit” job the first time rather than mere credentials…” Evaluate existing employees to determine where they best fit “Contented Cows Give Better Milk” Milk” Bill Catlette & Richard Hadden The Selection Process Information Resources for Hiring Decisions Step One Survey II 100 Source: Psychological Bulletin Vol. 96, No. 1, August 1994, Professor Mike Smith, University of Manchester of Manchester 90 Company Fit 80 75% Skill Fit 66% Education Attitudes 70 Training Values 54% Demeanor 60 Experience PAST Skills Appearance PRESENT 50 Resume etc. Integrity Cultural fit 38% Past Employment Interview 40 Background Check 26% Job Match 30 Personality 20 14% Abilities 10 FUTURE Interests 0 Interview + Background + Personality + Mental + Interests + Job Matching Check & Behavior Abilities & Motivators … helps predict ‘superior’ performance 7
  • COSE Webinar - 9/22/08 WORKFORCE DESIGNS Joe Davenport The Total Person 10% - Good But Limited Information: Skills, Experience & Company Match 90% - Essence of the Total Person: Thinking Style Occupational Interests Behavioral Traits Job Fit Thinking Style Learning Index 1 2 3 4 5 6 7 8 9 10 Can she cope with the Verbal Skill 1 2 3 4 5 6 7 8 9 10 Learning Index Verbal Reasoning 1 2 3 4 5 6 7 8 9 10 mental demands? Numerical Ability 1 2 3 4 5 6 7 8 9 10 Numeric Reasoning 1 2 3 4 5 6 7 8 9 10 Behavioral Traits Energy Level 1 2 3 4 5 6 7 8 9 10 Learning, reasoning and problem solving approach Assertiveness 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 Will she be comfortable in Sociability 1 2 3 4 5 6 7 8 9 10 Manageability 1 2 3 4 5 6 7 8 9 10 the job environment? Attitude 1 2 3 4 5 6 7 8 9 10 Decisiveness 1 2 3 4 5 6 7 8 9 10 Accommodating 1 2 3 4 5 6 7 8 9 10 Independence 1 2 3 4 5 6 7 8 9 10 Objective Judgment 1 2 3 4 5 6 7 8 9 10 Occupational Interests ONE ONE Enterprising 1 2 3 4 5 6 7 8 9 10 Is she motivated by this Financial/Admin 1 2 3 4 5 6 7 8 9 10 GALLON GALLON kind of work? People Service 1 2 3 4 5 6 7 8 9 10 Technical 1 2 3 4 5 6 7 8 9 10 Mechanical 1 2 3 4 5 6 7 8 9 10 Creative 1 2 3 4 5 6 7 8 9 10 Thinking Style Thinking Style The Learning Index Verbal Skill 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 10 10 Good Learning Index Verbal Skill 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 10 10 Job Match Verbal Reasoning 1 2 3 4 5 6 7 8 9 10 Verbal Reasoning 1 2 3 4 5 6 7 8 9 10 Pattern Numerical Ability Numeric Reasoning 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 10 10 Job Match Numerical Ability Numeric Reasoning 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 10 10 Behavioral Traits Behavioral Traits Energy Level 1 2 3 4 5 6 7 8 9 10 Energy Level 1 2 3 4 5 6 7 8 9 10 Assertiveness 1 2 3 4 5 6 7 8 9 10 Assertiveness 1 2 3 4 5 6 7 8 9 10 Sociability 1 2 3 4 5 6 7 8 9 10 Sociability 1 2 3 4 5 6 7 8 9 10 Shaded areas Manageability 1 2 3 4 5 6 7 8 9 10 Manageability 1 2 3 4 5 6 7 8 9 10 indicate Attitude 1 2 3 4 5 6 7 8 9 10 Attitude 1 2 3 4 5 6 7 8 9 10 the Job Match Pattern Decisiveness 1 2 3 4 5 6 7 8 9 10 Decisiveness 1 2 3 4 5 6 7 8 9 10 Accommodating 1 2 3 4 5 6 7 8 9 10 Accommodating 1 2 3 4 5 6 7 8 9 10 Independence 1 2 3 4 5 6 7 8 9 10 Independence 1 2 3 4 5 6 7 8 9 10 Job Match Patterns Objective Judgment 1 2 3 4 5 6 7 8 9 10 Objective Judgment 1 2 3 4 5 6 7 8 9 10 show requirements Occupational Interests Occupational Interests for the jobs Enterprising Financial/Admin 1 2 3 4 5 6 7 8 9 10 Enterprising Financial/Admin 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 in your company People Service 1 2 3 4 5 6 7 8 9 10 People Service 1 2 3 4 5 6 7 8 9 10 Technical 1 2 3 4 5 6 7 8 9 10 Technical 1 2 3 4 5 6 7 8 9 10 Mechanical 1 2 3 4 5 6 7 8 9 10 Mechanical 1 2 3 4 5 6 7 8 9 10 Creative 1 2 3 4 5 6 7 8 9 10 Creative 1 2 3 4 5 6 7 8 9 10 8
  • COSE Webinar - 9/22/08 WORKFORCE DESIGNS Joe Davenport Thinking Style 1 2 3 4 5 6 7 8 9 10 Questionable Learning Index Verbal Skill Verbal Reasoning 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 10 10 Job Match Numerical Ability Numeric Reasoning 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 10 10 Behavioral Traits Energy Level 1 2 3 4 5 6 7 8 9 10 Assertiveness 1 2 3 4 5 6 7 8 9 10 Sociability 1 2 3 4 5 6 7 8 9 10 Manageability 1 2 3 4 5 6 7 8 9 10 Attitude 1 2 3 4 5 6 7 8 9 10 Decisiveness 1 2 3 4 5 6 7 8 9 10 Accommodating 1 2 3 4 5 6 7 8 9 10 Independence 1 2 3 4 5 6 7 8 9 10 Objective Judgment 1 2 3 4 5 6 7 8 9 10 Occupational Interests Enterprising 1 2 3 4 5 6 7 8 9 10 Financial/Admin 1 2 3 4 5 6 7 8 9 10 People Service 1 2 3 4 5 6 7 8 9 10 Technical 1 2 3 4 5 6 7 8 9 10 Mechanical 1 2 3 4 5 6 7 8 9 10 Creative 1 2 3 4 5 6 7 8 9 10 Improved Selection Process Two Opportunities to Job Match Step One Survey II for Superior performance Company Fit Skill Fit Education Attitudes Training Values Experience Demeanor Place the right people in the right PAST Skills Appearance PRESENT Resume etc. Integrity Cultural fit job the first time Past Employment Interview Background Check Job Match Evaluate existing employees to Personality Abilities The Profile XT determine where they best fit FUTURE Interests … helps predict ‘superior’ performance Talent Shortage is Increasing Recap Unless you are confident all your people are ‘superior’ performers you have great potential for bottom line gains Regardless how large or small your organization, your potential for savings and productivity increases are great Every time you move an employee’s performance from ‘average’ to ‘superior’ you enjoy a measurable financial impact Questions? 9
  • COSE Webinar - 9/22/08 WORKFORCE DESIGNS Joe Davenport WORKFORCE DESIGNS Employee Selection, Retention & Management Solutions 277 South High Street • Cortland, OH 44410 Tel: 330.638.1881 • Fax: 330.638.1882 Email: info@workforcedesigns.com Web: www.workforcedesigns.com 10