Framework for improving and measuring quality of hire

3. Avanade Confidential – Do Not Copy, Forward or Circulate © Copyright 2011 Avanade Inc. All Rights Reserved. 3 CareerXroads FY12 Quality of Hire survey of Recruiting Leaders 75.6%do not or minimally track Quality of Hire. Out of the Companies that do only 16.1%used test scores during the interview and assessment process. According to the 2012 survey, Inc. 500 CEOs feel that the difficulty of finding good employees hinders growth more than anything else. They gave “finding talented workers” a severity rating of 3.31 out of 5(66%), putting it ahead of other obstacles like “keeping up with demand” and “domestic competition.” A 2012 Corporate Executive Board Survey on How effectively does your recruiting organization measure quality of hire? shows more than 86%don‟t measure or do it very well. A recent HCI Study found 77%of survey respondents cited Quality of Hire as the most „important‟ metric to their jobs and function, and yet only 34%subsequently said they had „access to reliable data‟ needed to form this metric. A Staffing.org Impress the CEO Survey of C-Level executives rated new hire quality as the #1most important HR performance metric out of 20 possible metrics. It was rated 9.6/10

4. Avanade Confidential – Do Not Copy, Forward or Circulate © Copyright 2011 Avanade Inc. All Rights Reserved. Can‟t find Answers I can’t control the outcomes past hire! Employee’s get headhunted away…. Poor onboarding experience…. Poor employee performance…. Employee’s get reassigned…. Bad career manager…. Not a cultural fit… Boring work…. Etc…..

5. Avanade Confidential – Do Not Copy, Forward or Circulate © Copyright 2011 Avanade Inc. All Rights Reserved. Can‟t find Answers? I can’t control the outcomes past hire! Employee’s get headhunted away…. Poor onboarding experience…. Poor employee performance…. Employee’s get reassigned…. Bad career manager…. Not a cultural fit… Boring work…. Feels like trying to ‘Boil the Ocean’

8. Avanade Confidential – Do Not Copy, Forward or Circulate © Copyright 2011 Avanade Inc. All Rights Reserved.  Competency Assessment Challenges “We do a pretty good job of assessing a candidates Technical capability but we are challenged at Consistently evaluating the candidates softer skills”  Quality vs. Quantity  Scalability and Capability  Proactive vs. Reactive Recruiting Attrition Data Points 8 ‘Voice of the customer’ feedback: Common themes Major Theme

9. Avanade Confidential – Do Not Copy, Forward or Circulate © Copyright 2011 Avanade Inc. All Rights Reserved. Additional Business Value 9 Creating a Scenario in our WFP tool, a positive shift in attrition by 4.2% Positively impacts Company Revenue by 3.2% (40million)) Modeled Forecasting

10. Avanade Confidential – Do Not Copy, Forward or Circulate © Copyright 2011 Avanade Inc. All Rights Reserved. 10 “Why was Solomon recognized as the wisest man in the world? Because he knew more stories (proverbs) than anyone else. Scratch the surface in a typical boardroom and we’re all just cavemen with briefcases, hungry for a wise person to tell us stories.” —Alan Kay, Vice President at Walt Disney “Stories are the single most powerful weapon in a leader’s arsenal.” —Howard Gardner, Harvard University Build your Stories to the Foundational key Anchors! Avanade

11. Avanade Confidential – Do Not Copy, Forward or Circulate © Copyright 2011 Avanade Inc. All Rights Reserved. 11 = Avanade Quality of Hire (QoH) Mission Statement Creation of a worldwide interview assessment methodology that consistently measures a candidate‟s Avanade competencies, behavior's, technical capability and cultural fit, against each of our workforces. The result is Improved new hire Performance and helps Reduce Attrition in the first 12 month‟s of employment.

13. Avanade Confidential – Do Not Copy, Forward or Circulate © Copyright 2011 Avanade Inc. All Rights Reserved. Avanade QoH Assessment Framework 13 Quantity QualityBetter Fit Lower Attrition Higher Performer Business Intake & Sourcing Strategy Discussion Final In-person interviews Candidate Online Assessment (Psychometric Test Pilot VP+ only) Business Technical & Functional Assessment (2nd) Business Competency Assessments (1st) Recruiter Pre-Screen (Competency + Functional) Job Application Quality Pre-Screening Questions

14. Avanade Confidential – Do Not Copy, Forward or Circulate © Copyright 2011 Avanade Inc. All Rights Reserved. Competency/Behavioral Based Interviewing 14 Structured interviews such as competency- based interviewing have been found to be more than twice as effective than unstructured interviews at predicting a candidate‟s performance within a given role. [source: CBI-Smart.com] Very labour intensive to do correctly. Time to document the question + Time to document the answer + Can take forever to collect the proper feedback Pro’s Con’s I don‟t have time

15. Avanade Confidential – Do Not Copy, Forward or Circulate © Copyright 2011 Avanade Inc. All Rights Reserved.  45minute Online self serve  Role play videos on good and bad assessment techniques  Anchors Competency/Behavioral Based Interviewing to our own company competency based framework  All interviews must complete and pass test certification 15 . Traditional Training Approach 1. Interviewing 101 Certification 2. Diversity and Inclusion (Module) 3. Experienced Advanced Interviewers(Module)

17. Avanade Confidential – Do Not Copy, Forward or Circulate © Copyright 2011 Avanade Inc. All Rights Reserved. 17 Hiring managers are not always completely forthcoming with candidates. In fact, more than 30%of hiring managers admit they were less than accurate when describing day-to-day job experiences to candidates. New hires confirm these inaccuracies, with almost 40%of new hires reporting that they received less-than accurate information about the job when they were applying. In addition, new hires who are not confident that they made the right decision are 22%less engaged and 46%less likely to stay with the organization than their peers who feel they made the right call. White Paper Study Win-Win Selection Decisions Setting Expectations – Unmanaged Attrition

21. Avanade Confidential – Do Not Copy, Forward or Circulate © Copyright 2011 Avanade Inc. All Rights Reserved. Communication Style Income and Class Level Educational Achievement Work Style Religion Thinking Style First Language Sexual Orientation Gender Identity Military Status Organizational Role and Level Work Experience Geographic Location Family Status Age Sex Race Disability Size Ethnicity Gender Expression Avanade Diversity Tree broadening understanding visually D&I Phase 1 - QoH  % Targets = Total Hires by Avanade and workforce are Women  50% of Director+ Interview slates contain Women and include a Avanade female interviewer.

22. Avanade Confidential – Do Not Copy, Forward or Circulate © Copyright 2011 Avanade Inc. All Rights Reserved. 22 . Measurement will require multiple data points going forward to help inform directional improvement in QoH. Performance QoH Metric = (APR + AE + HMS + ER) / N  APR = Avg. Performance Rating for new employees in first 12 months  AE = Employee Performance as a % of Achieves Expectations of performance in first year.  HMS = Annual Hiring Manager Survey Q:“Overall quality of New Joiners”  ER = % of Employee Retention first 12 months of employment.  N = Number of indicators used. Example total Avanade QoH Metric: APR= 68% + AE= 94% + HMS= 80% + ER= 90% / N = 4 QoH = 83% Avanade QoH Metric‟s and KPI‟s

23. Avanade Confidential – Do Not Copy, Forward or Circulate © Copyright 2011 Avanade Inc. All Rights Reserved. Avanade Quality of Hire (QoH) KPI‟s 23 Performance QoH Metric = (APR + AE + HMS + ER) / N

24. Avanade Confidential – Do Not Copy, Forward or Circulate © Copyright 2011 Avanade Inc. All Rights Reserved. Avanade Quality of Hire (QoH) KPI‟s 24 Performance QoH Metric = (APR + AE + HMS + ER) / N Data Compression & Perception Highest = 83% Lowest = 62% Performance Management New Hires

25. Avanade Confidential – Do Not Copy, Forward or Circulate © Copyright 2011 Avanade Inc. All Rights Reserved. Avanade Quality of Hire (QoH) KPI‟s 25 Performance QoH Metric = (APR + AE + HMS + ER) / N Performance Management Data Compression & Perception Highest = 83% Lowest = 62% New Hires

26. Avanade Confidential – Do Not Copy, Forward or Circulate © Copyright 2011 Avanade Inc. All Rights Reserved. Revised - Avanade Quality of Hire (QoH) KPI‟s 26 Retention/Attrition Performance Promotions Business Satisfaction 1 2 3 4

27. Avanade Confidential – Do Not Copy, Forward or Circulate © Copyright 2011 Avanade Inc. All Rights Reserved. Lesson‟s Learned so far…… 27 Don‟t underestimate the amount of change management required! Don‟t Over engineer the solution. Make it Easy to communicate, understand and apply! (See Cheese). …It takes time to successfully measure QoH progress Quality of Hire…

Framework for improving and measuring quality of hire

Framework for improving and measuring quality of hire

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