Developing The High Performance Workforce 1 Notes Version

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Developing The High Performance Workforce 1 Notes Version

  1. 1. Developing the High Performance Workforce
  2. 2. The right people can be the difference between success & failure, profit & loss… Is that too big a statement?
  3. 3. . ‘ Superior Producers’ Top 16% ‘ Non Producers’ Bottom 16% ‘ Average Producers’ 68%
  4. 4. Why does this matter? <ul><li>Unskilled / Semi-skilled </li></ul><ul><li>‘ Average’ workers output = 19% more than ‘Non-producers’ </li></ul><ul><li>‘ Superior’ workers output = 19% more than ‘ Average’ </li></ul><ul><li>‘ Superior’ workers output = 41% more than Non-producers’ </li></ul><ul><li>Skilled </li></ul><ul><li>‘ Average’ workers output = 32% more than ‘Non-producers’ </li></ul><ul><li>‘ Superior’ workers output = 32% more than ‘ Average’ </li></ul><ul><li>‘ Superior’ workers output = 74% more than Non-producers’ </li></ul><ul><li>Management / Professional </li></ul><ul><li>‘ Average’ workers output = 48% more than ‘Non-producers’ </li></ul><ul><li>‘ Superior’ workers output = 48% more than ‘ Average’ </li></ul><ul><li>‘ Superior’ workers output = 119% more than ‘Non-producers’ </li></ul>Source: “The validity and utility of selection methods in personnel psychology: Practical and theoretical implications of 85 years of research findings” Psychological Bulletin, Sept 1998, Vol 124, No. 2 pp 262 - 274
  5. 5. Imagine yours is a small company with… <ul><li>50 Unskilled / Semi-skilled workers </li></ul><ul><li>25 Skilled Workers </li></ul><ul><li>5 Managers </li></ul>
  6. 6. Cost of ‘Average’ vs. ‘Superior’ Performers X 0.19 = Average Salary Your cost per ‘Average’ No. in this category X = Unskilled Skilled Total Exposure if all ‘average’ (total i + ii + iii) (i) Management X 0.32 = X = (ii) X 0.48 = X = (iii) = (iv) Your cost if all in this category ‘average’ Percentage of ‘unproductive’ salary investment = £20,000 £6,400 25 £160,000 £40,000 £19,000 5 £ 85,000 £340,000 28% £10,000 £1,900 50 £ 95,000
  7. 7. The Bottom Line <ul><li>These figures are not ‘worst case’: If any or all are below average, the loss for that position is doubled – but so is the potential for improvement </li></ul><ul><li>Unless all of your people are ‘superior’ performers, you are losing money unnecessarily </li></ul><ul><li>Regardless of how large or small your organisation the potential losses are relatively large </li></ul><ul><li>Every time you move performance in any single job from ‘average’ to ‘superior’ you have a measurable financial impact </li></ul>
  8. 8. Your Challenge <ul><li>To ensure that every “people” decision your organisation makes - whether recruiting, placement, promotion or development - is aimed at promoting ‘superior’ performance </li></ul>
  9. 9. When do people perform at a ‘superior’ level?
  10. 10. “ It’s not experience – or college degrees – or other accepted factors… … (it) hinges on fit with the job.” Source: Herbert M. Greenberg and Jeanne Greenberg, “Job Matching for Better Sales Performance,” Harvard Business Review, Vol. 58, No. 5.
  11. 11. <ul><li>Superior performers fit their jobs because they: </li></ul><ul><li>Can deal with the mental demands of the business </li></ul><ul><li>Are comfortable with the demands of the environment and the people they work with </li></ul><ul><li>Enjoy the work and are motivated to do it </li></ul>
  12. 12. You get just two bites at ‘superior’ performance <ul><li>Coach the people you’ve got </li></ul>Place the right people first time
  13. 13. The information-gathering process for recruitment & promotion: <ul><li>“ Checking the past” </li></ul>“ ..and reviewing the present” … to predict future ‘superior’ performance Company Fit Attitudes,Values, Demeanour, Appearance, Integrity Skill Fit Education, Training, Experience, Skills, Etc.
  14. 14. Interviews have a 14% success rate in identifying superior people! Hunter & Hunter “Validity & Utility of Alternative Predictors of Job Performance”. Psychological Bulletin, Vol. 96, No. 1. p90
  15. 15. With that process, here’s what you see & recruit/promote… Here’s what you get!
  16. 16. & here’s what you get! With that process, here’s what you see & recruit/promote…
  17. 17. No business can afford the risk!
  18. 18. There is a missing third element that is essential… … for predicting future ‘superior’ performance Company Fit Attitudes,Values, Demeanour, Appearance, Integrity Job Fit Personality, Abilities, Interests Skill Fit Education, Training, Experience, Skills, Etc.
  19. 19. So how do you achieve Job Fit? <ul><li>It’s all about information </li></ul><ul><li>Objective information about the job Job Pattern </li></ul><ul><li>Objective information about the candidate Assessment </li></ul><ul><li>Comparison of the two Job Matching </li></ul>But what information can you gather? And what do you do with it?
  20. 20. What information can you gather?
  21. 21. What information can you gather?
  22. 22. Heads or Tails?
  23. 23. What information can you gather?
  24. 24. What information can you gather?
  25. 25. What information can you gather?
  26. 26. What information can you gather?
  27. 27. How do you gather it? <ul><li>All of this information is available </li></ul><ul><li>by using the right assessment </li></ul><ul><li>tools to support the recruitment, development and promotion decision-making process </li></ul>
  28. 28. And there’s a bonus <ul><li>As well as performing better, job-matched staff also stay longer – saving a fortune in recruitment costs </li></ul>Source: Herbert M. Greenberg and Jeanne Greenberg, “Job Matching for Better Sales Performance,” Harvard Business Review, Vol. 58, No. 5. Without Job Match Low Turnover Industry High Turnover Industry % left / fired after 6 months 46% 24% % left / fired after 14 months 57% 28% % left / fired after 6 months 25% 5% % left / fired after 14 months 34% 8% With Job Match
  29. 29. What happens if you don’t put the right people in the right jobs? What happens if you don’t put the right people in the right jobs?
  30. 30. The impact of poor job fit Source: Gallup
  31. 31. Next steps: what should you do? <ul><li>Identify your superior and bottom performers </li></ul><ul><li>Profile your superior performers (SPs) </li></ul><ul><li>Coach bottom and average performers for better performance using SP profile </li></ul><ul><li>Do not invest in development without a clear connection to superior performance </li></ul><ul><li>Promote/succession plan using SP profile </li></ul><ul><li>Recruit using SP profile </li></ul><ul><li>Review SP profile every quarter </li></ul>
  32. 32. Next steps: what should you do? <ul><li>Start measuring performance in every job </li></ul><ul><ul><li>Establish objective ‘pers’ for every position </li></ul></ul><ul><ul><li>Implement measurement of productivity against these ‘pers’ </li></ul></ul><ul><li>Quantify productivity gaps and target improvements </li></ul><ul><li>Monitor continually for improved productivity </li></ul>
  33. 33. Next steps: what should you do? <ul><li>Let’s talk! </li></ul>

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