Reference Checking Isn’t a Waste of Time;
You’re Just Doing it Wrong!
A Study of 20,000 New Hires Reveals:

• 46% of all new hires FAIL.
• 89% fail for attitudinal reasons.
• Only 11% fail due...
What is the lesson?

• Our ability to screen for skills is good.
• Our ability to screen for attitude is TERRIBLE.
It’s Time to Stop Making Bad Hires

“Those who cannot
learn from history are
doomed to repeat it.”
George Santayana
Traditional Talent Selection is Flawed
• Resumes are polished reflections of experience.
• Assessments can filter but don’...
Only Past Employers Know What Matters
Personal Drive
Creativity
Adaptability
Resilience
Resourcefulness
Continuous Learnin...
Reference Checking Myths
Reference Checking Myth #1
“Candidates will only supply references that are going
to say good things about them”
Reference Checking Myth #1
“Candidates will only supply references that are going
to say good things about them”

Fact:
On...
Truly Candid Feedback
Reference Checking Myth #2
“The information I can get from a reference is usually limited to
name, rank and serial number”
Reference Checking Myth #2
“The information I can get from a reference is usually limited to
name, rank and serial number”...
Detailed Insight to Past Performance

Strategic Intent
Reference Checking Myth #3
“References are difficult to reach. The completion rates
are so low it’s not worth it.”
Reference Checking Myth #3
“References are difficult to reach. The completion rates
are so low it’s not worth it.”

Fact:
...
Truly Candid Feedback
Reference Checking Myth #4
“Reference checking is too time consuming.”
Reference Checking Myth #4
“Reference checking is too time consuming.”

Fact:

Recruiters initiate the reference process
w...
Add or Invite a Candidate
Templated Email Requires a Single Click.
Automation is Reason Enough

“Using ChequedReference™ will save us over
1600 man hours this year.”
Michael Wright
Head of ...
Reference Checking Myth #5
“Reference checking is too expensive.”

Fact:
The cost of a SINGLE bad hire is FAR greater than...
The True Value of Reference Checking
“We bought it for the automation. We use it to
avoid bad hires”
Michele Hansen
Direct...
But Wait!
There’s More!
The Power of Automated Reference Checking
• Positive impact on recruitment brand
• 61% of candidates prefer companies that...
Summary
• Past performance is the best indicator of
future success.
• Automated reference checking is fast, easy
and affor...
Our Goal
Contact us:
info@chequed.com
888-412-0699
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Reference Checking Isn't a Waste of Time; You're Just Doing it Wrong

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  • HI Everyone, Thanks for joining today. My name is George Ehinger and I am the VP of Marketing here at Chequed.com. We specialize in predictive talent selection which is a fancy way of saying we help companies make fewer bad hires. Our focus today of course is reference checking. This is a practice that used to be the number deciding factor in choosing a person to join your organization. Let’s face it—there is nothing better than candid feedback from a past employer or colleague if you want to get a real understanding of how an employee will perform on the job and fit into your culture. Of course our over litihgous and increasingly disconnected society has caused the use of reference checking to decline dramatically over time. Today I’ll be showing you a new way of reference checking that is faster, easier and much more insightful than our fathers reference checking process. Before we get started a quick poll to see where this audience stands on the reference checking continuum. LAUNCH POLL
  • I read on Forbes.com recently an article by Dan Schawbel the millenial hiring guru about the prevalance of bad hires. Leadership IQ had done a survey of 20,000 new hires and uncovered the fact that 46% FAILED IN THE FIRST 18 Months! Nearly 50% failure rate? That’s the same odds as flipping a coin. Digging deeper it turns out the main cause is attitudinal, not skills. Think about that for a minute—90% failure based on attitude? I don’t think so. Most people don’t accept jobs they intend to fail at, nor do they show up on the first day asking themselves how long can I milk this gig? No. Most people want to succeed, please their boss, contribute to a team. Attitudinal is just another word for bad fit—with the culture, with the team, with the boss, whatever.
  • The real lesson in that stat is how it reflects on our ability to screen talent. Our processes have been built to screen for skills but are abysmal and screening for fit. Let’s face it, skills are the easy part but fit is what seperates a superstar contributor from the walking dead—that dreaded person that performs just enough to get by but never really contributes. They bring down morale, impact organizational effectiveness and keep companies from realizing their full potential. They are the ultimate BAD HIRE and probably not even reflected in Mark’s original 46% failure rate.
  • It’s time then to face this dilemma head on and stop making bad hires. The data shows we are terrible at screening for fit. I would argue that such terrible results are an output of a broken process.
  • The fact is that tools we have come to rely are flawed. Resumes are not a reflection of potential and certainly not a reflection of fit. They’re polished refelections of an individuals perception of his or her past. Lets face people who have been out of work a lot have probably spent a lot more time polishing their resumes than the real perfomers that your CEO is harping on you to find. Assessments are also only one point of data. We’re a huge believer in them—especially behavioral assessments and culture fit assessments. But they are one data point that shoudl be used early on to screen out low potential. They are not accurate enough to help you select the best people for a job. And then of course there is the interview—the most over trusted, LEAST RELIABLE selection tool. The problems with interviews are so immense they could fill another webcast so I will boil it down to this:The interview is an artificial setting that favors people who are good at selling themselves. Thus Narcissists are likely to interview great while humble performers interview poorly.
  • The fact is that ONLY past employers and colleagues can provide insight into the information that really matters. Look at this list of 28 traits. These are the things that matter. And these are the things that past employers can reveal. Who on an interview is not a customer focused, resourceful, decision maker that can understand complex information and deliver it to the client thanks to a composed and unfailing work ethic? The interview is not the place to get to these questions—the reference check is. Now. I’m sure there is more than audience member here that’s thinking—Sure. It would be great to ask these questions of a past employer but reference checking doesn’t work that way.
  • Look. I’ve heard all the reasons why traditional phone based reference checks don’t work. They are time consuming costly, unreliable. The list goes on and on. Well, the title of this webcast wouldn’t of been reference checking isn’t a waste time, you’re just doing it wrong if I didn’t have a way to bust open every one of those myths. The fact is that phone based reference checks are subject to all of these problems. But automated reference checking that uses assessment based logic does work. Not only that. It’s easier, faster and more insightful too. Let’s take a look at the 5 most common reference checking myths one at a time.
  • Seems logical. Who would put down a bad reference?
  • Here’s the fact. In our system only 1 in 5 candidates score a perfect 5 out of 5 cheques as an overall score. Amazingly 15% are revealed to be such poor performers that managers should seriously re-consider a decision to bring them on board. The reason is 2-fold. First, we are asking the questions anonymously thus people are more apt to tell the truth. Second, the questions and the scoring mechanism are designed by behavioral scientists who know how to get to the truth.
  • Look at this bell curve of results. This is real client data representing the actualreference report scores of 646 whose references were checked via checked reference. The individuals are scored on a scale of 1 to 5. 5 being the highest. Only 72 of 646 candidates got 5 check scores. 58 candidates were scored as 2.5 or below. These are candidates who provided references they believed would say good things about them. They are also candidates who got through the rest of the screening process and were approved for hiring contingent on the reference check. Myth #1 busted. You can get truly candid information with automated reference checking.
  • So it may be candid but is it insightful? Isn’t going to be limited to name, rank, serial number?
  • Nope. Remember the list of 28 traits you’d love to be able to learn about a candidate before you hire them? Our reference checking system has a battery of questions that correlate to each trait. We choose the traits that are most important to the positin and the culture to formulate the reference survey for each position and company.
  • The result is detailed insight into a candidates TRUE FIT to a position at a competency by comptency basis. Here is a sales person and we measured adaptability, acting with integrity, building relastionships etc..
  • This is true with phone based references.
  • But with automation we see an 80% completion rate in 48 hours. What’s more 3 out of 4 references prefer automation and only 1 in 10 prefer phone based. The rest have no preference.
  • Back to the client results from earlier. You can see 86% completion rate with a system average across 646 candidates of just 1.8 days.
  • This system is easy on everyone.
  • The science behind ChequedReference was developed by a team of behavioral scientists in a partnership with the State University of New York at Albany which is home to the one the worlds leading I/O Psychology departments. The team of PHD’s at the University have designed, vetted and tested the questions and the scoring methodologies to ensure the most accurate results. We add that great science to cloud based functionality that makes the product extremely configurable with high value features such as. Hire/rehire scoringThe ability to write add customized questions to the refence reportPreliminary employment verification. And optional confidentialityAnd of course it easy to implement and integrate with any ATS.
  • Welcome to todays webinar 2 Minute Reference Checks: The shortest route to past performance. My name is George Ehinger and I am the VP of Marketing here at Chequed.com. Joining me this afternoon is Vince Smith our Director of Client Services. Quick housekeeping items before we get started. First, all participants are on mute so no matter how loud you scream we can’t hear you. If you have a question or a need please use the questions options on your goto webinar viewing panel on the right hand side of your screen. Please do submit questions throughout the presentation as we have set aside time at the end of the webinar to answer them. Next, the slide deck will be made available however the deck is only one portion of what we are presenting today so it really does not replace the webinar. Lets get started.
  • So now we’ll go to the Q&A. Please note our contact information on the screen if you would like to arrange a more in depth discussion.
  • Reference Checking Isn't a Waste of Time; You're Just Doing it Wrong

    1. 1. Reference Checking Isn’t a Waste of Time; You’re Just Doing it Wrong!
    2. 2. A Study of 20,000 New Hires Reveals: • 46% of all new hires FAIL. • 89% fail for attitudinal reasons. • Only 11% fail due to poor skills. --Mark Murphy, Founder & CEO Leadership IQ Forbes.com 1/23/2012
    3. 3. What is the lesson? • Our ability to screen for skills is good. • Our ability to screen for attitude is TERRIBLE.
    4. 4. It’s Time to Stop Making Bad Hires “Those who cannot learn from history are doomed to repeat it.” George Santayana
    5. 5. Traditional Talent Selection is Flawed • Resumes are polished reflections of experience. • Assessments can filter but don’t select. • Narcissists can ace interviews, humble performers rarely do.
    6. 6. Only Past Employers Know What Matters Personal Drive Creativity Adaptability Resilience Resourcefulness Continuous Learning Leadership Getting Along Building Relationships Persuading Others Decision Making Understanding Complex Information Critical and Strategic Thinking Oral Communication Skills Writing Skills Acting With Integrity Going Above and Beyond Planning and Prioritizing Compliance Attendance Customer Focus Guiding/Directing Others Composure Accountability Work Ethic Workplace Communication Data Analytic Skills Concern for Others
    7. 7. Reference Checking Myths
    8. 8. Reference Checking Myth #1 “Candidates will only supply references that are going to say good things about them”
    9. 9. Reference Checking Myth #1 “Candidates will only supply references that are going to say good things about them” Fact: Only 1 in 5 candidates receive the highest possible score in the ChequedReference™ system. 15% receive scores that cause hiring managers to rethink their decision.
    10. 10. Truly Candid Feedback
    11. 11. Reference Checking Myth #2 “The information I can get from a reference is usually limited to name, rank and serial number”
    12. 12. Reference Checking Myth #2 “The information I can get from a reference is usually limited to name, rank and serial number” Fact: ChequedReference™ gathers detailed feedback on 28 different job relevant competencies.
    13. 13. Detailed Insight to Past Performance Strategic Intent
    14. 14. Reference Checking Myth #3 “References are difficult to reach. The completion rates are so low it’s not worth it.”
    15. 15. Reference Checking Myth #3 “References are difficult to reach. The completion rates are so low it’s not worth it.” Fact: Automated Reference checking delivers over 80% completion rates in 48 hours or less. 76% PREFER to provide references online.
    16. 16. Truly Candid Feedback
    17. 17. Reference Checking Myth #4 “Reference checking is too time consuming.”
    18. 18. Reference Checking Myth #4 “Reference checking is too time consuming.” Fact: Recruiters initiate the reference process with a few key strokes, candidates add references in under 5 minutes and references spend no more than 3 minutes completing surveys.
    19. 19. Add or Invite a Candidate
    20. 20. Templated Email Requires a Single Click.
    21. 21. Automation is Reason Enough “Using ChequedReference™ will save us over 1600 man hours this year.” Michael Wright Head of Talent Acquistion, APAC
    22. 22. Reference Checking Myth #5 “Reference checking is too expensive.” Fact: The cost of a SINGLE bad hire is FAR greater than an annual subscription to an automated reference checking service like ChequedReference™. An annual license fee provides UNLIIMITED reference checks against the scope of your project.
    23. 23. The True Value of Reference Checking “We bought it for the automation. We use it to avoid bad hires” Michele Hansen Director, Talent Acquisition
    24. 24. But Wait! There’s More!
    25. 25. The Power of Automated Reference Checking • Positive impact on recruitment brand • 61% of candidates prefer companies that use ChequedReference™ • 76% of references prefer online; 92% satisfaction rating • 5X+ leverage of talent selection efforts • Average references per candidate is 4.3 • Average candidates per opening is 1.8 • Source high quality candidates • Searchable database with industry relevant experience • On-boarding and coaching • Know in advance areas of improvement and coaching • Only 20% of candidates earn 5 Cheque scores • They’re not bad, just not perfect
    26. 26. Summary • Past performance is the best indicator of future success. • Automated reference checking is fast, easy and affordable. • Stop repeating history. Start checking references today. “A-players like to work only with other A- players, which means you can’t indulge B-players. You have to be ruthless if you want to build a team of A-players. ” Steve Jobs
    27. 27. Our Goal
    28. 28. Contact us: info@chequed.com 888-412-0699

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