2. How much does a bad hire cost?
40% employers reported typical new hire costs
$1000
33% reported between $1001-$5000
27% greater than $5000
3. Impact on Bottom line?
41% lower productivity
40% lost time to recruit and train another
worker
37% cost to recruit and train another worker
36% Negative impact on employee morale
22% Negative impact on client solutions
4. Why do bad hires occur?
38% needed to fill jobs quickly
34% Not sure; sometimes you make a mistake
11% didn’t check references
All point to negligence of employer!!!
CareerBuilder Survey
http://www.careerbuilder.com/share/aboutus/pressreleasesdetail.aspx?id=pr
609&sd=12%2F13%2F2010&ed=12%2F31%2F2010
6. Acquisition
Critical Decision Points Talent Acquisition:
Can the person do the job?
Will the person do the job?
Does the person fit the organization?
Value fit
Future growth
7. Can the person do the job?
Specify job requirements general and specific
Identify critical success factors a candidate
must have to succeed on the job
8. ONET--FREE
Sponsored by the DOL, largest provider of
occupational information
Worker Characteristics
Worker Requirements
Experience Requirements
Occupational Requirements
Occupational Characteristics
Occupation Specific Information
http://www.onetonline.org/
9. Onet Free Resources
Provides info on
Job descriptions and specifications which are
legally required by ADA, FMLA, & WC
Base of job success factors and performance
criteria
Assist in market rate for various jobs
Onet Resources:
Tool Kit http://www.onetcenter.org/toolkit.html
JD Writer
http://www.careerinfonet.org/jobwriter/default.aspx
10. Other Decision Points
Will the Person do the job?
Does the person match the organization?
Value set between organization and person
Future growth potential of organization & applicant
11. How to Assess Candidates
Structured Interview
Standardized questions
Interview based on job duties and requirements
Benchmark answers
Take notes
Legally defensible and twice as likely to predict
future job performance
12. Situational Structured interviews
It is the night before your vacation. You are all packed and ready
to go. Just before you get into bed, you receive a phone call from
the plant. A problem has arisen that only you can handle. You are
asked to come into take care of things. What would you do in this
situation?
Scoring Guide
4 – I would go into work and make certain everything is OK. Then I would go
on vacation.
3 – There are no problems that only I can handle. I would make certain that
someone qualified was there to handle things.
2 – I would try to find someone else to deal with the problem
1 – I would go on vacation.
13. Behavioral Descriptions
Based on the premise past performance is the best
predictor of future performance
Describe a time when you were not satisfied with your
own performance. What did you do about it?
Give me an example of a problem you faced on the job,
and how you dealt with it.
Describe how you handled a situation where you found
yourself dealing with someone who didn’t like you.
Give me an example of an important goal you had to set
and tell me about your progress in reaching that goal.
What steps did you take?
16. Why Talent Stays
Interesting, challenging work
Opportunities for advancement and learning
Collegial workforce
Fair compensation
A respected manager
Recognition for accomplishment
Feeling a valued member of a team
A substantial benefits package
The feeling “their work” makes a difference
Overall pride in company’s mission and products
17. What Can You Do?
Clear Expectations
Sense of Control
Keep them in the Loop
Room to grow
Recognition
Leadership
19. Investor Metrics for Human Capital
Spending on Human Capital
Total amount spent on employees
Total amount spent in support of employees
Total amount spent in lieu of employees
Total amount invested in training and development
Ability to Retain Talent
Voluntary and total turnover
Broken down by EEO -1 job types
Industry std. formula (#terminations during the
period/average active headcount during period).
20. Metrics (cont.)
Leadership Depth
Percentage of defined positions that have an identified
successor
Percentage of open defined positions filled internally during
the period.
Leadership Quality
Index of relevant questions from employee surveys
Information on the response rate and methodology/tools
21. Metrics (cont.)
Employee Engagement
Index of relevant questions from employee survey
Information on the response rate and
methodology/tool
Human Capital Discussion and Analysis
Narrative to provide context and discussion of the
reported metrics
Disclosure of any material risks or any other
material information related to human capital
22. Measuring Resources
SHRM/ANSI Investor Metrics
http://hrstandardsworkspace.shrm.org/apps/group_public/docu
ment.php?document_id=6504&wg_abbrev=mamt02
Cascio, W. & Boudreau, J. 2008. Investing in
People: Financial Impact of Human Resource
Initiatives. Pearson LTD: Upper Saddle River,
NJ. Free calculator for metrics:
http://hrcosting.com/hr/index.cfm?timeout=true
Editor's Notes
Measurement Efficiency and Effectiveness Measures
Acqui-Hiring---where big firms come in and buy smaller companies mainly for their employees
