Investing in People 2013
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Peter Cosgrove presented on investing in people. He discussed common hiring mistakes made by employers such as lack of accountability in recruitment and poor recruitment processes. Cosgrove emphasized the importance of involving existing teams in hiring and ensuring an attractive employee value proposition. He also stressed the importance of retaining talent by focusing on work-life balance, recognition, learning opportunities, and technology. Cosgrove concluded with takeaways around prioritizing talent, making it easy for people to join the company, understanding one's brand, being a good place to work, and the CEO's role in hiring and retaining talent.
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Investing in People 2013
- 1. Investing in People Peter Cosgrove June 11th 2013
- 2. Agenda • The problem with people • Tips on hiring • Tips on retaining • Takeaways
- 3. I hate networking!! The problem with people They don’t do what they are meant to do! 1+ 1 does not always equal 2
- 4. Why is Talent Not Our Top Priority • All CEOs say it’s a top priority but….. • Director salary levels • Selling - vs - Hiring • Human behaviour All CEOs have people as a top priority – but are senior management target against a people metric? HR Directors are paid about 60- 70% of finance /sales equivalents. People prefer to sell/meet clients rather than interview despite the importance of hiring the best talent
- 5. Ultimatum Game • Here is €20 you can keep it under one condition, you have to share some of it with a friend, it is up to you how much and your friend has no say in it. • If your friend rejects your offer you both get nothing, if he accepts you both keep your share. • How much will you offer your friend?
- 6. The Cost of Turnover Cost of a poor hire = 3 to 5 times employee’s annualised compensation. Specialist functions = 10 x annual salary. For an employee earning €30,000, a hiring mistake can cost up to €150,000. Harvard Business School
- 7. Increased Productivity 100 100 100 150 185 225 Low Complexity Jobs Medium Complexity Jobs High Complexity Jobs Average Performer Top Performer Average Performer Top Performer Average Performer Top Performer Journal of Applied Psychology
- 8. What does this mean? • We measure the wrong things • Quarterly results financially driven • People don’t look just when we want to hire Measuring time to hire, or number of hires is not the best metric Big companies are targeted on quarterly figures – not conducive to hiring the best Don’t expect the best people to look for a job just when you are looking to hire
- 9. I hate networking!! The Job Marketplace
- 11. Ireland Marketplace • 2 speed economy • Demand: IT, Finance, Healthcare, Science & Languages • Other areas have a huge over supply • The social welfare “challenge” There is not 400,000 people out there in Ireland looking for a job – in some areas there is few to no one actively looking!
- 13. The internet is making it too easy for people to apply online making the candidate experience a horrible one with less than 10% response rate to applications and a huge time waster for organisations
- 14. Hiring Talent
- 15. Hiring mistakes made by Employers 1. No accountability on recruitment
- 16. Job Specs What are you looking for? HAVING: Skills BSC, MBA 5 years industry experience 3 years Sales management Consultative selling Good communication skills What does the person need to do? DOING: Deliverables ESTABLISH sales tactics for each account to meet budget UPSKILL sales team to enable them to achieve target IMPLEMENT sales management system and realistic forecasting model
- 17. Hiring mistakes made by Employers 2. The Recruitment Process Screening The Interview References Urgency Screening out those without a 2.1 degree or any degree will take out these guys Focus more on references less on face to face interviews
- 18. Its your attitude not your aptitude that will define your altitude
- 19. Hiring mistakes made by Employers 3. Involve the existing team and use your own people to hire
- 20. Hiring mistakes made by Employers 4. Your employee value proposition - your brand is not what you think it is.
- 21. The moment of Truth… “Every time a customer interfaces with SAS Airlines we give them a little vignette of film, and over a period of time we will give them enough evidence to decide if they are watching an Oscar winning epic, or a horror story” (Jan Carlzon- CEO- he turned it from B listing to Airline of the Year)
- 22. Touch Points • What are the touch points to a great hire? Disney – the experts on employee engagement and how to transfer this to shareholder value
- 23. I hate networking!! Holding/ Retaining Talent
- 25. Worker Satisfaction PWC Research Employee turnover is likely to rise. No one expects to work long-term for one company anymore.
- 26. Holding Talent Generation Y - Work-Life balance Generation X – Work -Family • More family time • Work from home • Reduce travel time Baby Boomers • Less working hours • Knowledge transfer • Reduce travel time • Increased pension Source - CRF International Holding BV.
- 27. Recognition – remember to say thank you
- 28. We come to work to earn but also to learn
- 29. Use “small” to your advantage Small companies have less internal barriers to social media Small companies are nimble, remember Darwin, its those most “adaptable to change”
- 30. Invest in Technology solutions Remember Moore’s Law - technology is changing so fast – get your people to help you with your technology strategy – they know your business and everyone is using the best technology these days
- 31. Your Top Talent Wants… • Challenge • Opportunity • Lack of bureaucracy • Accountability • Other top talent • Mentors
- 32. Case Study – Julliard School of Music • Top talent helps everybody improve • Everyone knows the worst performers – act fast Ref: Brian Kotinos
- 33. Performance Range On a scale of 1 – 10 rate your lowest and highest performer 1 2 3 4 5 6 7 8 9 10 Low High Ref: Brian Kotinos
- 34. Performance Range On a scale of 1 – 10 rate your lowest and highest performer 1 2 3 4 5 6 7 8 9 10 Low High Ref: Brian Kotinos
- 35. Performance Range On a scale of 1 – 10 rate your lowest and highest performer 1 2 3 4 5 6 7 8 9 10 Low High Ref: Brian Kotinos
- 36. 5 Takeaways
- 37. Takeaways 1. When is the last time the whole team talked only about talent. 2. Does you make it easy for people to join your company. 3. Do you know what your brand says to your potential hires. 4. Are you a good place to work. 5. Hiring and holding talent starts with the CEO.
- 38. QUESTIONS Name: Peter Cosgrove Title: Director – Cpl Phone: 01 614 6160 / 087 6200836 Email: peter.cosgrove@cpl.ie Twitter: @petercosgrove Website: www.cpl.ie
Editor's Notes
- I will promise is that everyone will learn something and that you will be able to take away actions from this.All slides will be online so no need to take notes.I am trying to cover the MNC and the start up of 8 staff so perhaps not everything will be specifically relevant to you perhaps
- CEOs say it is (our survey says its not) Less than 10% of organisations have a talent metric for the top teamEveryone agrees it is important and the data backs it upWhat makes it so difficult to implement …because of human behaviour and the inability to be totally scientificHR Directors are paid significantly lower than Heads of IT and FinancePwc hiringvs client salesHuman behaviour is a challenge Who wants to be a millionaire in RussiaUltimatum game -
- People are not rational
- Ownership of the cost of hiring and it is spread across the businessEveryone can easily blame someone else – it was the manager, the process was too slow, what chance do we have against googleetc,Wghhere is the talent metric that makes the senior team responsible for peopleJust when you are ready to hire is not very linked to when someone may want to workfor youHow often do you fob someone off when they may be the next excellent employeeHiring Top talent does not necessarily work when filling a job, a job is about skills not success factors, measure performance not personality
- Temporary high unemployment is generating an overwhelming pool of the wrong applicants when companies need to tightly match the right skills with the candidates they need to recruit.Conclusion – hiring is very difficultFirst you need to find the right people and either you find none or you are swamped with applicationsThen you need to be clear who is right for youThen they need to want you…not as straightforward as it seems given people are not rational
- How do we find that diamond candidate that no one else knows about…
- We have a run of the mill job that many people could doThe internet makes it easy to send lots of job applications to the wrong jobs – same for everyone
- You do not rewrite a 3 year old job specYou want the guy who has just left even though you should really be looking for the guy who joined youYou don’t work with the HR team to identify who and where the best people for the position areTherefore you get a shortlist of candidates you don’t want because no one knew what you were thinking and you never wrote it downIf it was easy to find these people you would not be struggling to hire – great people are not easy to find you need to look for them!Who owns the problem
- Define Success not Skills
- You do everything by interview – therefore you are using a very poor assessment tool, and you do it 5 times as opposed to giving some sort of a test – you would not hire a secretary without checking typing speed, there are plenty of tests to give IT, marketing, finance professionals but we do not use them Its about de-selection not selection however de-selecting based on degree would exclude such visionaries such as:Steve jobs, Mark Zuckerberg, Michael dell etcIf you found the perfect candidate would you hire them – no I need to see a few more candidates!You take forever to make a decision because rightfully you worry about hiring but you end up losing candidates who love companies that can move the process alongYou do not put out your best people to hire Reference – nothing highlights better how good they are – work harder to get reliable references, there are ways around companies saying they don’t give out references – we are a small village really – someone will always know someoneAlways be ready to hire – many great people apply to companies they love not positions and companies cannot handle this – you need to!
- Start with the right raw material – attitude not aptitude (Sean Kelly)
- You do not look at the network and knowledge within the teamWho has ever recalled in their time in business when someone is hired and everyone goes “how did that person get hired” Most people have come across this. The team know who fit – this does not mean they get total control but they should be listened to and it absolutely engages the teamThey are also your best sort of referrals – the best way to hire a person for which many people can do the job is not advertising at all but just to see who internally knows someone and more importantly can vouch for themHiring managers prioritse speed over quality
- You think you are a great company to work for =- that’s why you are hring – maybe everyone else does not think the sameBig brands can scream opportunity but also bureacuracyStart ups can scream opportunity or riskySMEs can scream – quick decisions vs lack of brand presence..What you can control is how your people interact, as interviewees make a lot of decisions based on the interactions with the company …first impressions last
- What are the candidate touchpoints like for your hires?How easy is it too apply to you?How easy is it for a talented employee to tell you they are interested in working for you
- Only 45% of employees polled said they were satisfied with their jobs — the lowest level in two decades.Employee engagement levels among top performers fell more sharply last year than they did for workers overall WorldatWorkThis means that when there is an upturn or when employees eventually feel they would rather risk a new co that stay where they are -you will have people waking out the door…Focus on being a good place to work for as opposed to being worried about your employees being headhunted – in an ideal worlkd you want talent that is headhunted
- Real generational differencesGen Y – 2 major challenges a) Reduced supply Already (b) Entirely different view of the W-Life equation70% of Gen Y professionals intend to take a sabbatical of 6 months or MORE (in their first job)Expectations – Gen Y - Flexibility is a right not a privilegeGen X - retention is providing time to care for family (Family time / work from home / reduce travel time)This is having a significant impact on talent / workforce planning You also see companies like B&Q actively hiring senior citizens as they are more productive
- So what advantages do a small firm haveRecognition – you are closer to the personGreat idea – tell me how you would spend a Sunday morning, what you would do with a day off – make it realistic etc then give them this gift eg walking on a beach listening to jazz music – booked a b7b for two in brighton and enclosed a jazz cd – people were so moved – you cannot beat caring for your employeeSAY THANKS
- You need to invest in their education but ask for them to invest in youA give and a get
- Social media – better playing field for the smaller firms – huge concerns from large corporates
- the fact that everyone uses technology in almost everything they do means they feel they know what they need and they want it now.People expect to achieve very simple chores on mobile devices and it frustrates them when IT cannot do this in a business context. The importance of data security, IT audits, compliance, password security is lost on the business user40% use the mobile in the toilet.Half a billion apps downloaed on Christmas day…
- Think of how good your best people are and how easy it is to work with them – now look at it from their side.Good to great – bureaucracy only exists because of the 10% who would not do it unless you checked up on themNetflix in the US gives out unlimited holidays BUT it also has a very strong performance management culture – they can work together. Info on companies not using email after hours – VolkswagenHere is the other point – if you asked your teams who were the worst performers, most likely not to last – they will tell you –everyone knows – we just don’t do anything about it
- As a CEO senior exec key part is to create and stimulate the right set of conditions that will lead to perfimpiovment among your people, but what are these conditions.Julliard School of music in New yorkHere is the other point – if you asked your teams who were the worst performers, most likely not to last – they will tell you –everyone knows – we just don’t do anything about it
- As a CEO senior exec key part is to create and stimulate the right set of conditions that will lead to perfimpiovment among your people, but what are these conditions.Julliard School of music in New yorkHere is the other point – if you asked your teams who were the worst performers, most likely not to last – they will tell you –everyone knows – we just don’t do anything about it
- With such a gap performance of the good staff dis-improves
- With a narrow range in performance – everyone tries harder
- Mckinsey study says senior managers over 60% do not invest the requisite time – until you discuss it you don’t know what you need to doPeople express tray tables…Boards.ie will tell me if you are a good company = not your websiteMichael O’Leary story
- Good to great – bureaucracy only exists because of the 10% who would not do it unless you checked up on themNetflix in the US gives out unlimited holidays BUT it also has a very strong performance management culture – they can work togetherHere is the other point – if you asked your teams who were the worst performers, most likely not to last – they will tell you –everyone knows – we just don’t do anything about it