Quality of Hire: Myth or Measurement?#talentmindset
Welcome & Introductions Kevin Wheeler Founder and Chairman the Future of Talent Institute Kevin started FOTI five years ago out of his passionate belief that organizations need a more powerful and thoughtful architecture for talent than they have. Kevin is a globally known speaker, author, teacher and consultant in human capital acquisition and development, as well as in corporate education. 2
Setting the Stage• “One top-notch engineer is worth 300 times or more than the average engineer.”• “We would rather lose an entire incoming class of engineering graduates than one exceptional technologist.” Alan Eustace Senior Vice President of Engineering and Research 3
Some Facts• Measures of output quality reported in 20 studies of production workers found: – The Value of Top Third performance was 1.7 times the value of average workers. – The DIFFERENCE between the annual value of Top Third vs. Average performers was AT LEAST 40% of their salary. Schmidt & Hunter
Can We Measure Quality?• The Myths – We’ll know it when we see it. – You can’t quantify it. – The same factors apply to every position.• The Reality – It can be described by every hiring manager and fellow employee. – It can measured, tracked and improved. – Every position needs a specific combination of factors. 5
Steps to Measuring Hire Quality1. Establish a definition of quality for each position. – Determine what performance outcomes are important and that make a business difference. – Determine what characteristics makes up hiring manager satisfaction. • KSAs • Fit • Motivation • Experience2. Develop standards to measure quality of hire. – Define which competencies/criteria are most important to those outcomes. – Decide levels of KSAs, motivation, fit and experience that are needed to achieve performance outcomes.
Defining Quality for Each PositionMeasures• Tangible-outcome positions – Gross sales – Number of proposals to closes – Customer satisfaction – Customer additions/losses – Number finished/assembled/etc. per established timeframe – Time to complete a certain amount• Intangible-outcomes positions – Jury-of-peers evaluation – Time to productivity – Number of rejections or amount of rework – Customer/team satisfaction
Measuring KSAs• Performance-Based Tests: – Tests objectively scored for productivity, customer service, and sales.• Risk-Based Tests: – Tests objectively scored for safety, financial, sobriety, and civility risk.• Behavior-based Interviews: – Guides with questions, probes and rating anchors used by trained hirers whose ratings have been calibrated and skill checked. 13
Measuring Experience• Job Knowledge Tests: – Multiple choice tests objectively scored for technical / functional knowledge critical to value.• Years of Practice – Measures of time, especially if at significantly greater levels of responsibility or complexity.• Peer Reviews – 360 degree feedback, anonymous feedback.• Referrals – Recommendations from trusted partners. 14
Measuring Motivation• Only subjective measures available: – Interviewer opinion of candidate’s enthusiasm, opinion on level of engagement with organizations ideals and goals. – Assessment of whether active or passive candidate. • Active may be more motivated. – Number of times candidate applied. – Team/Panel judgment. 15
Measuring Fit• Managerial Simulations – Inbox and role-play simulations that feature realistic managerial and executive challenges evaluated by trained assessors guided by rating anchors.• Team/Panel Interviews – Crowd sourced opinion about candidate based on group interview and subsequent discussion.• Cultural Fit Tests – Some tests available. – Personal Job Fit assessment or others. 16
Example:Sales Lead Position• Average (expected) performance outcomes – Meets sales targets three quarters out of four – Maintains 98% of customers – Adds at least four new customers per quarter – No interpersonal conflicts or issues with team• Tenure average: 16 months• Hiring manager satisfaction: 3.5 out of 5
Ways to Improve Quality of Hire• Clear understanding of manager’s expectations & needs.• Clearly/objectively defined job descriptions.• Targeted sourcing.• Clear assessment criteria.• Effective assessments.• Post-hire measurement.• Feedback.
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