How much does a bad hire cost?
40% employers reported typical new hire costs
33% reported between $1001-$5000
27% greater than $5000
Impact on Bottom line?
41% lower productivity
40% lost time to recruit and train another
37% cost to recruit and train another worker
36% Negative impact on employee morale
22% Negative impact on client solutions
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!!!
Critical Decision Points Talent Acquisition:
Can the person do the job?
Will the person do the job?
Does the person fit the organization?
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
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Occupation Specific Information
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
Assist in market rate for various jobs
Tool Kit http://www.onetcenter.org/toolkit.html
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
How to Assess Candidates
Interview based on job duties and requirements
Legally defensible and twice as likely to predict
future job performance
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
4 – I would go into work and make certain everything is OK. Then I would go
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.
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?
Why Talent Stays
Interesting, challenging work
Opportunities for advancement and learning
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
What Can You Do?
Sense of Control
Keep them in the Loop
Room to grow
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).
Percentage of defined positions that have an identified
Percentage of open defined positions filled internally during
Index of relevant questions from employee surveys
Information on the response rate and methodology/tools
Index of relevant questions from employee survey
Information on the response rate and
Human Capital Discussion and Analysis
Narrative to provide context and discussion of the
Disclosure of any material risks or any other
material information related to human capital
SHRM/ANSI Investor Metrics
Cascio, W. & Boudreau, J. 2008. Investing in
People: Financial Impact of Human Resource
Initiatives. Pearson LTD: Upper Saddle River,
NJ. Free calculator for metrics: