Workforce Performance Webinar
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Workforce Performance Webinar

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Workforce Performance Webinar Workforce Performance Webinar Document Transcript

  • WORKFORCE DESIGNS Joe Davenport Your Competitive Edge: The High Performance Workforce Presented by Joe Davenport WORKFORCE DESIGNS Who is WORKFORCE DESIGNS? Helps clients of all types build and retain a top performing workforce Is an outgrowth of 40 years of business / management experience in a variety of industries Was created to satisfy the need for better information to make workforce management decisions Is a strategic business partner with the recognized world leader in employment evaluation and human resource management assessment tools – Profiles International, Inc. 1
  • WORKFORCE DESIGNS Joe Davenport Today’s Objectives Learn how to: Identify the characteristics of top performers Select & retain the best people for your jobs Maximize the performance of your current personnel Make great people decisions! Change companies from good to GREAT! People are Key! Jim Collins, author of Good to Great says: Put the right people “on the bus” Get the wrong people “off the bus” Put the people in the right seats “on the bus” “The bus” will take you where you want to go People are the key to the success of almost all endeavors . . . Why should your business be any different? 2
  • WORKFORCE DESIGNS Joe Davenport Yin alone cannot arise Yang alone cannot grow Yin and Yang are divisible but inseparable. - ‘The Yellow Emperor’s Canon of Internal Medicine’ People & Processes are the Yin & Yang of business, yet the ‘people’ component receives little management attention compared to the ‘processes’ component. Why? . . . . People Challenges Most difficult to fix – People are emotional Hardest to isolate – No line item on the financial statement Recruiting cost Turnover cost Most costly – Companies spend 50-80% of their gross revenue on employee-related costs – Lost opportunity cost 3
  • WORKFORCE DESIGNS Joe Davenport People Challenges Most re-occurring – Peter Drucker says 66% of hiring decisions prove 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 was not what he/she appeared to be? 4
  • WORKFORCE DESIGNS Joe Davenport Have you ever hired or promoted someone who greatly exceeded your expectations? What was different about the method used to hire these people? 5
  • WORKFORCE DESIGNS Joe Davenport “If only I had known that . . .” Predicting superior performance is all about having enough of the right information when you make people decisions Why do we continue to put 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 enough We do not see our employees as the #1 asset in our company We spend more time buying a computer than we do selecting people We think we can change people once we hire them We use the “traditional” approach to hiring What is the definition of insanity? 6
  • WORKFORCE DESIGNS Joe Davenport The ‘Traditional’ Selection Process Skill Fit Company Fit Education Attitudes Training Values Experience Demeanor PAST Skills Appearance etc. PRESENT Resume Integrity Cultural fit Past Employment Interview Background Check The Interview “63% of all hiring decisions are made during the first 4.3 minutes of an interview.” – SHRM Study, reported in USA Today 7
  • WORKFORCE DESIGNS Joe Davenport Top 3 Reasons People Fail Incompetence Incompatibility Dishonesty How do you determine these qualities in your job candidates now? Interviews have only a 14% success rate for identifying superior people! Why? – Hunter & Hunter “Validity & utility of Alternative Predictors of Job Performance”. Psychological Bulletin, Vol. 96, No. 1. p90 8
  • WORKFORCE DESIGNS Joe Davenport Here is what you see when you hire and promote. Here is what you get! 9
  • WORKFORCE DESIGNS Joe Davenport Many businesses just can’t afford this risk! How can you minimize your 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.” “Testing and Assessment: An Employer’s Guide to Good Practices” US Department of Labor - Employment and Training Administration 10
  • WORKFORCE DESIGNS Joe Davenport 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 11
  • WORKFORCE DESIGNS Joe Davenport The Selection Process Step One Survey II Skill Fit Company Fit Education Attitudes Training Values Experience Demeanor PAST Skills Appearance PRESENT Resume etc. Integrity Cultural fit Past Employment Interview Background Check Information Resources for Hiring Decisions 100 Source: Psychological Bulletin Vol. 96, No. 1, August 1994, Professor Mike Smith, University of Manchester 90 80 70 60 50 40 26% 30 20 14% 10 0 Interview + Background Check What other information might be useful? 12
  • WORKFORCE DESIGNS Joe Davenport The right people can be the difference between: Extinction & survival Profit & loss A good or a GREAT company Does that see like too big a statement? ‘Poor’ ‘Average’ ‘Superior’ Performers Performers Performers Bottom 16% Middle 68% Top 16% Bell Curve . - Studies by Frank L. Schmidt and John E. Hunter (well-respected personnel psychology researchers ) 13
  • WORKFORCE DESIGNS Joe Davenport Why does this matter? Unskilled / Semi-skilled ‘Average’ produce 19% more than ‘Poor’ ‘Superior’ produce 19% more than ‘Average’ ‘Superior’ produce 38% more than ‘Poor’ Skilled ‘Average’ produce 32% more than ‘Poor’ ‘Superior’ produce 32% more than ‘Average’ ‘Superior’ produce 64% more than ‘Poor’ Management / Professional ‘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. Example of Impact Small Company with . . . 50 Unskilled / Semi-skilled Workers 25 Skilled Workers 10 Managers 14
  • WORKFORCE DESIGNS Joe Davenport Cost of ‘Average’ vs. ‘Superior’ Performers Cost per # People in Cost if All Estimated ‘Average’ this are Salary Performer Category ‘Average’ Unskilled $20,000 X 0.19 = $3,800 X 50 = $190,000 Skilled $40,000 X 0.32 = $12,800 X 25 = $320,000 Management $60,000 X 0.48 = $28,000 X 10 = $280,000 Total Exposure if all ‘average’ = $790,000 Percentage of salary investment at risk = 30% Implications These figures are not ‘worst case’. If any or all are below average the cost for that position is doubled – but so is the potential for improvement. Unless all your people are ‘superior’ performers, you are incurring unnecessary costs. Regardless how large or small your organization, the potential losses are relatively large. Every time you move performance in any single job from ‘average’ to ‘superior’ you have a measurable financial impact. This is the easiest strategy for making significant improvements to your bottom line. 15
  • WORKFORCE DESIGNS Joe Davenport ‘Poor’ ‘Average’ ‘Superior’ Performers Performers Performers Bottom 16% Middle 68% Top 16% OBJECTIVE #1: . Move performers from ‘Poor’ to ‘Average’ ‘Average’ ‘Superior’ Performers Performers Bottom 84% Top 16% OBJECTIVE #2: . Move performers from ‘Average’ to ‘Superior’ 16
  • WORKFORCE DESIGNS Joe Davenport ‘Superior’ Performers 100% OBJECTIVE #3: . Maintain ‘Superior’ performers in all positions The Challenge “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 ‘people’ decision - whether for hiring & selection, placement, promotion or development - is aimed at promoting ‘superior’ performance 17
  • WORKFORCE DESIGNS Joe Davenport When do people perform at a ‘superior’ level? “It’s not experience, or college degrees, 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. 18
  • WORKFORCE DESIGNS Joe Davenport Job Fit vs. Time 6 Months After Hire: “… persons who had been matched, outperformed, to a statistically significant degree, those who had not been matched…” 14 Months After Hire: “Moreover, the differences widened after 14 months” Source: Herbert M. Greenberg and Jeanne Greenberg, “Job Matching for Better Sales Performance,” Harvard Business Review, Vol. 58, No. 5. They also stay longer – saving a fortune With Without on recruitment & training costs! Job Job Match Match High Turnover Industry % left / fired after 6 months 46% 24% % left / fired after 14 months 57% 28% Low Turnover Industry % left / fired after 6 months 25% 5% % left / fired after 14 months 34% 8% Source: Herbert M. Greenberg and Jeanne Greenberg, “Job Matching for Better Sales Performance,” Harvard Business Review, Vol. 58, No. 5. 19
  • WORKFORCE DESIGNS Joe Davenport “…companies will need to reorient their recruitment and selection processes by hiring “for fit” rather than mere credentials…” “Contented Cows Give Better Milk” Milk” Bill Catlette & Richard Hadden Two Opportunities to Job Match for Superior performance Place the right people in the right job the first time Evaluate existing employees to determine where they best fit 20
  • WORKFORCE DESIGNS Joe Davenport The Selection Process Step One Survey II Company Fit Skill Fit Education Attitudes Training Values Experience Demeanor PAST Skills Appearance PRESENT Resume etc. Integrity Cultural fit Past Employment Interview Background Check Job Match Personality Abilities FUTURE Interests … helps predict ‘superior’ performance Information Resources for Hiring Decisions 100 Source: Psychological Bulletin Vol. 96, No. 1, August 1994, Professor Mike Smith, University of Manchester of Manchester 90 80 75% 66% 70 60 54% 50 38% 40 26% 30 20 14% 10 0 Interview + Background + Personality + Mental + Interests + Job Matching Check & Behavior Abilities & Motivators 21
  • 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 22
  • WORKFORCE DESIGNS Joe Davenport Thinking Style Learning Index 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 Can she cope with the Verbal Skill 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 Assertiveness 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 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 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 Learning Index Learning, reasoning and problem solving approach 1 2 3 4 5 6 7 8 9 10 ONE ONE GALLON GALLON 23
  • WORKFORCE DESIGNS Joe Davenport 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 Job Match Verbal Reasoning Numerical Ability 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 10 10 Pattern 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 Assertiveness 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 indicate 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 Accommodating 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 show requirements Occupational Interests for the jobs Enterprising Financial/Admin 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 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 1 2 3 4 5 6 7 8 9 10 Good 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 24
  • 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 25
  • WORKFORCE DESIGNS Joe Davenport Improved Selection Process Step One Survey II Company Fit Skill Fit Education Attitudes Training Values Experience Demeanor PAST Skills Appearance PRESENT Resume etc. Integrity Cultural fit Past Employment Interview Background Check Job Match Personality Abilities The Profile XT FUTURE Interests … helps predict ‘superior’ performance Two Opportunities to Job Match for Superior performance Place the right people in the right job the first time Evaluate existing employees to determine where they best fit 26
  • WORKFORCE DESIGNS Joe Davenport 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? 27
  • 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 28