People Are the New Bottom Line

Great Hires make Great Companies

The ONLY major asset where decisions are made using gut instincts, rules of thumb and tradition.

Hiring by “gut instincts” goes awry 75% of the time. (#1 see bottom of page)

 

Hiring the right people is hard, time-consuming, energy-draining and costly;

and the most important thing you do.

Typical Method of Hiring is FAILING

Most Managers and Companies THINK they are good at Hiring;

research shows they are FAILING. 

 

The common practice of Hiring for aptitude (skills, experience and knowledge) is no better than the “flip of a coin”.   

 

While aptitude is important, IT IS NOT a good Predictor of Job Success. 

Right Talent is the Key Challenge

Finding, acquiring and retaining the right talent continues to remain one of the key top challenges identified by C-Suite Leaders at companies of all sizes.


Human capital is the critical enabler of business results.

Most Hires Fail (#2)

46% of hires fail within 18 months

Only 11% fail for lack of Skills

89% fail for: attitude, personal attributes, not a fit with team, manager, company culture, etc

 

 

What is WRONG with Typical Hiring Method?

Hiring often determines your success as a Manager.  Most Managers and Companies THINK they hire well.

Research shows most FAIL at Hiring.

Typical Hiring works well to identify: Skills, Experience, Knowledge and Likability.

While Important, these aren’t great predictors to job success.  Assessing performance through exercises, also not a good predictor.

Google, No.1 employer brand for all jobs (#3), conducted a study to determine number of their managers particularly good at hiring:

RESULT: 1

Using typical interviewing approach, odds of a successful hire no better than “flipping a coin”

Failed Hires

Cost up to 400% of an employee’s annual salary (#4)

 

41% of companies said SINGLE failed hire cost >$25,000

 

25% of companies said SINGLE failed hire cost >$50,000 (#5)

Top Performers

Google (#6)  calculated the performance differential

 

between their exceptional technologist and average one:

 

as much as 300 times higher (that’s 30,000 percent).

Goal

Increase Hires of Top Performers &

 

Avoid More Bottom Performers

Achieve Better Hiring

Shift to Data & Analytical Based Hiring Decisions

 

Use Predictive Analytics to Hire Talent

BetterHiring Rapid Talent Data Collection Methodology™


Innovative, Robust and Effective Solution (Patent-Pending)

Finding the right tech talent is difficult. 

Nearly every I.T. Hiring Manager struggles to find enough quality Candidates; and when it’s time to decide who to hire, too often there is uncertainty in the final decision.

The Key is finding the Right Talent, Contractors or Permanent hires, that will thrive and have the greatest chance of being a Top Performer for your Position, Team, Manager and Company.

It starts with collecting and converting your Key Talent Data into useful information. That is never easy.

Knowing which data is relevant and predicts Job Success and how to quickly gather and analyze it, is even more difficult.

Our Patent-pending BETTERHIRING RAPID TALENT DATA COLLECTION METHODOLOGY™ is an innovative, robust and effective solution for collecting Key Talent Data, the actual drivers that predict Job Success.

Our Talent Data gathering process is simple and quick; your investment is small.

 

SMALL INVESTMENT FOR MANAGER & COMPANY

Managers will not drastically alter nor replace their current Hiring practices.

The best thing: Managers don’t spend much more time using our Process than they currently do with other staffing firms.

Our Patent-Pending BETTERHIRING RAPID TALENT DATA COLLECTION METHODOLOGY™ quickly gathers, analyzes and coverts subjective, qualitative Key Talent Data (the drivers of Job Success) into quantifiable, data-driven, measurable information used as Benchmarks for your Ideal Hire.

 

ONGOING OBSERVATIONS

Information and ongoing observations are important for successful implementation.

We monitor, evaluate and refine our analysis over time to ensure continuous improvement and results.

Talent Analytics

Measurable Business ROI of Predictive Hiring Model

Predictive Analytics helps both Companies and Candidates.

 

YOUR INVESTMENT IS SMALL

The BETTERHIRING PREDICTIVE MODEL™ will not require Companies or Managers to drastically alter nor replace their current Hiring practices.

The best thing: Our Process doesn’t require hardly any more time than Managers currently spend with other staffing firms.

 

A LITTLE PREDICTION GOES ALONG WAY

The good news is our Model doesn’t even need to be able to predict with great accuracy,  just predict BETTER than your current Hiring method.  Even incremental improvements are very valuable.

Hiring only a few more Top Performers and/or avoiding only a few more Bottom Performers has a SIGNIFICANT EFFECT on your Bottom Line.

Leadership IQ (#2)  tracked 20,00 new hires over a 3 year period and found:

  • 46% new hires failed in one way or another
  • 35% became middle performers, and
  • Only 19% went on to become high performers

Roughly for every 10 people hired:
5 will Fail, 3 will do okay, and 2 will be great

**Imagine eliminating ONLY a few more Bottom Performers and/or hiring ONLY a few more Top Performers

 

FAILED HIRES (BOTTOM PERFORMERS)

Can cost up to 400% of an employee’s annual salary. (#4)

 

TOP PERFORMERS

Google calculated the difference between exceptional and average technologist to be as much as 300 times higher (that’s 30,000 percent). (#6)

  • 10 times (that’s 1,000 percent) higher value than average — GE, Yahoo, and the U of Indiana study by O’Boyle and Aguinis
  • 25 times (2,500 percent) higher value than average — Apple
  • 28 times (2,800 percent )higher value than average — Bradford Smart at Top Grading

 

ADDITIONAL TALENT ROI

Coming Soon

Using Predictive Analytics to Hire Talent

PREDICTIVE ANALYTICS: SHIFTING YOUR FOCUS TO THE FUTURE

Predictive Analytics adds value by improving Hiring decisions.  It turns the uncertainty about the future into usable probability.

Predictive Analytics uses historical and current data, analysis and systematic reasoning to improve Hiring.

Predicting which Candidates, based on their profile and fit, are most likely to thrive, and thus have the best chance of being a Top Performer for your specific Position, Team, Manager and Company.

Predictive Analytics turns your Key Talent Data into guidelines for Better Hiring decisions.

The best part is our BETTERHIRING PREDICTIVE MODEL™ will not require managers to drastically alter nor replace their current hiring practices.  Managers don’t hardly spend any more time using our Process than they currently spend with staffing firms.

The Science Behind Predicting Job Performance and Hiring Success

Our BETTERHIRING PREDICTIVE MODEL™ is based on research going back more than 100 years. (#7)

Our BETTERHIRING PREDICTIVE MODEL™ uses significant predictors for Job Success from the framework theories: person-job (PJ), person-organization (PO), person-environment (PE), person-group (PG), person-manager (PM), and person-person). (#8)

Limitations of Predictive Model

SELECTIVE DATA

Our BETTERHIRING PREDICTIVE MODEL™ uses selective Company Key Talent Data.  Using larger internal data only available to the Company, it is possible to create Hiring Algorithms that could uncover other predictors of success for specific positions.  Many of those predictors that have never been considered before, further improving the entire Hiring process.

 

NO 100% GUARANTEE

Does Predictive Analytics guarantee 100% hiring success? No.  But, good news is predictions need NOT be highly accurate to score big value.

A little prediction goes along way, you don’t need to predict accurately.  You just need to predict BETTER than your current Hiring method, even incremental improvements in Hiring can be very valuable.

Hiring ONLY a few more Top Performers and/or Decreasing ONLY a few Failed Hires can have a SIGNIFICANT EFFECT on your Companies Bottom Line.

 

FAILED HIRES

Can cost up to 400% of an employee’s annual salary. (#4)

 

TOP PERFORMERS

Google has calculated the difference between an exceptional and average technologist is as much as 300 times higher (that’s 30,000 percent). (#6)

  • 10 times (that’s 1,000 percent) higher value than average — GE, Yahoo, and the U of Indiana study by O’Boyle and Aguinis
  • 25 times (2,500 percent) higher value than average — Apple
  • 28 times (2,800 percent )higher value than average — Bradford Smart at Top Grading

 

ONGOING OBSERVATIONS

Information and ongoing observations are important for successful implementation.

We monitor, evaluate and refine our analysis over time to ensure continuous improvement and results.

Validation

The BETTERHIRING PREDICTIVE MODEL™ selection procedure is predictive of job success and has a strong statistical evidence showing that candidates who were selected went on to perform better, ensuring that its tests are valid and will clear the legal hurdle set under UGESP.

BetterHiring Predictive Model™

Over 100 years of academic and business research (#7) has shown what predicts Job Success

The research is clear

 When people are a good FIT with 5 Key Factors they:
* perform better
* more engaged
* stay longer, and
* are more satisfied

The 5 Factors that Predict and Drive Job Success

statistically validated and scientifically proven to Predict Job Success (#9)

(Our Analytics Model is Logical and Intuitive; yet very Powerful and Difficult to Implement)

Benchmarking Successful Job Performance (skills, knowledge, experience, PLUS)

Using our Patent-pending BETTERHIRING RAPID TALENT DATA COLLECTION METHODOLOGY™ we do a thorough Job Analysis, converting the critical skills and requirements into quantifiable, data-driven, measurable lists of performance objectives or tasks.

Our Patent-pending BETTERHIRING RAPID TALENT DATA COLLECTION METHODOLOGY™ was designed, structured and developed with the help of a team of a team of some of today’s most well-respected Industrial and Organizational Scientists in Talent Analytics.

We Benchmark Successful Job Performance by understanding what the person specifically needs to “DO” and accomplish in order to be considered successful.

The traditional Hiring process: assessing for skills, knowledge, experience and likability are considered prerequisites in our BETTERHIRING PREDICTIVE MODEL™.

While Important, they are POOR PREDICTORS of Job Success.

Most staffing firms ONLY cover this, often focusing on the WRONG elements

Many candidates will “have” the required years of skills and desired experience BUT won’t be successful.

Our assessment focuses on what that person needs to “DO” and accomplish to be considered successful.

One of the main causes of failure is unmet expectations.  Our approach allows candidate(s) a clear understanding of expectations by defining “success metrics”.

We understand and quantify:

  • How the major skills and requirements are used (what they will be “doing” with that skill), and
  • What the candidate needs to do and accomplish to be considered successful

We build a well-defined, quantifiable, evidence-based JOB FIT SCORECARD to assess candidate(s) against this Benchmark.

Benchmarking Your Top Performers

Reverse Engineering your Top Performers

It is important to understand which KEY Attributes and Traits predict success and failure with your team, manager and company.

Using our Patent-Pending BETTERHIRING RAPID TALENT DATA COLLECTION METHODOLOGY™ we help understand, identify and quantify the Key differential Attributes and Traits that SEPARATE your Top Performers from everyone else.

We then recruit and submit ONLY candidates with those success attributes and traits; we avoid submitting anyone that shares those attributes and traits that predict failure.

The key here is differential characteristics – those attributes and traits that SEPARATE your Top Performers from others, and your Bottom Performers from everybody else.

We Benchmark your Top Performers; building a well-defined, quantifiable, evidence-based JOB FIT SCORECARD used to assess candidate(s).

Culture and Sub-Cultures, Cultural Alignment

No two companies’ cultures are exactly alike and there are no right or wrong cultures.

Our Goal is to Understand your Culture and Sub-cultures & Cultural Alignment

 

DEFINITION

Culture is a common word often used, but not clearly understood.

We define culture as a shared set of values, principles, assumptions, belief and behaviors (either explicit or implicit) that drives behaviors within a company. It is the way a company operates and usually expressed as “how we do things around here”.

A company may have multiple sub-cultures based on differences between: office locations, divisions/departments/teams and even among levels of management.

 

CULTURAL ALIGNMENT

It is not the content of a company’s culture that correlates with performance, but the strength of conviction to which employees hold those values and beliefs.  Culture alignment is a key indicator of corporate success.

Over 100 years of research into Person-Environment Fit (PE) reveals that employees who are culturally aligned are:

  • perform better
  • more engaged
  • stay longer, and
  • are more satisfied (#10)

The KEY then to Culture is how well-aligned it is; how strong your Company, Manager and Team adheres to it.

Companies that have well-aligned cultures are 6X more profitable than their competitors. (#11)

 

CULTURAL INSIGHT TOOL

Our BETTERHIRING CULTURAL INSIGHT ASSESSMENT TOOL™ utilizes our BETTERHIRING RAPID TALENT DATA COLLECTION METHODOLOGY™ to identify, measure and objectively quantify the Company’s key cultures (culture and sub-cultures).

We discover what type of Candidate(s) will best FIT and align with your unique culture and sub-cultures.

We then evaluate and measure Candidates’ personality, values, behaviors and cultural preferences.

 

JOB FIT SCORECARD

The success or failure of a new Hire often depends on the extent to which they understand and FIT in with the Company’s key cultures.  The better the FIT and alignment the more likely they are to be successful in your Company.

Our  JOB FIT SCORECARD quantitatively and objectively gives a predictive rating for Candidate’s FIT and alignment to the Company’s key cultural and sub-cultural benchmarks.

Managerial Style & Employee Engagement

MANAGERS ARE PRIMARY CAUSE OF TURNOVER

People leave Managers NOT Companies; studies show Managers are the #1 or #2 reason employees quit.

Harvard Management Update cited a survey of Managers reporting that 89% believed employees quit mainly for pay.  Pay is often cited in exit interviews because:

  1. it’s an answer that doesn’t burn bridges, and
  2. it happens to be true that most get pay increases when going elsewhere (#12).

75% of employees say the most stressful aspect of their job is their immediate Manager (#13), and 51% of employees’ total job satisfaction is determined by the quality of relationship with their Manager (#12).

A Gallup Poll (#14) of more than 1 Million U.S. workers concluded bad Managers were the #1 reason people quit and poorly managed groups were on average 50% less productive and 44% less profitable.

 

EMPLOYEE ENGAGEMENT CRUCIAL TO BOTTOM LINE

Engaged employees are the best co-workers.  They strive together to build the Company, are more involved, enthusiastic and committed.  They know their work and look for new ways to achieve outcomes.

Extensive research shows that employee engagement is strongly connected to a Company’s financial success, including productivity, profitability and customer satisfaction.

Employee engagement has a greater impact on performance than either corporate policies or perks (#14).

 

MANAGERS: KEY TO EMPLOYEE ENGAGEMENT

Managers are primarily responsible for employees’ engagement levels.  They have the ability to support, empower and engage them; the challenge is how to effectively accomplish this?

There is no one right way to engage everyone.  Each employee has different talents, skills, experiences, needs and expectations.  It is a tough challenge for managers to unite all the different individual personalities in the team/group to focus on a common mission and achieve goals.

 

MANAGERIAL STYLE

Everyone agrees that Managers SHOULD use different strategies and tactics to put employees in a position to succeed.

For employees to have the opportunity to do what they do best, managers need to understand who the individual employees are, what they do well and how to perfectly position them in areas or tasks that will use their greatest strengths.

Research clearly shows that Managers are NOT effectively changing or adapting their style to successfully manage most employees.

 

IMPROVING ENGAGEMENT

Employees have the highest level of engagement during the first 6 months, yet only 52% of employees are engaged at this point (#14).  51% of new hires have “buyer’s remorse” and 88% are looking to make a change.  Their chief complaint is that the hiring process “failed to paint a realistic or accurate picture of the job” (#15).

Our approach gives Candidates a clear understanding from the Manager on:

  • what the person is required to actually “DO”
  • the defined job success criteria
  • the expectations or metrics that matter the most

 

THE VALUE OF OUR APPROACH & PROCESS

Our belief is that Managers best engage, motivate, coach, encourage, lead and collaborate with certain employees more effectively than others.

Using our BETTERHIRING RAPID TALENT DATA COLLECTION METHODOLOGY™ and our BETTERHIRING CLIENT INSIGHT ASSESSMENT TOOL™, we are able to assess and quantify the Managers’ values and preferred managerial style framework (leadership, communication and work style).  The better the FIT and alignment between Candidates and Managers the higher the Employee Engagement.

 

JOB FIT SCORECARD

Our JOB FIT SCORECARD provides a quantitative measurement of Candidate(s) FIT with Managerial Style.  This rating provides Managers with INSIGHTS on how well-aligned the styles are and useful information regarding any potential future issues.

The BETTERHIRING PREDICTIVE MODEL™ selects only those Candidates that are highly compatible and well-aligned and thus have the best chance of Job Success with that Manager.

Team/Group Dynamics

Team/Groups best engage, support, encourage and collaborate with certain employees more effectively than others.

It is important that Candidates are in sync with the Team/Group Dynamics.

Using our BETTERHIRING RAPID TALENT DATA COLLECTION METHODOLOGY™ we are able to collect, gather and analyze the Teams/Groups’ values, norms and preferred style framework (collaboration, communication and work style).

Using our BETTERHIRING CLIENT INSIGHT ASSESSMENT TOOL™ we convert those qualitative descriptions into quantitative measurements.

The better the FIT and alignment are between the Candidate(s) and the Team/Group, the greater probability of Job Success.

 

TEAM/GROUP SUB-CULTURE

Understanding and aligning the Team/Group sub-culture, values and norms with Candidate(s) are essential for Job Success.  These can be different from the larger Company culture.

 

JOB FIT SCORECARD

The JOB FIT SCORECARD provides a quantitative measurement of Candidate(s) FIT and alignment with the Team/Group.  This rating provides Managers and Team/Groups with INSIGHTS on how well-aligned the styles are and useful information regarding any potential future issues.

The BETTERHIRING PREDICTIVE MODEL™ selects only those Candidates that are highly compatible and well-aligned and thus have the best chance of Job Success with the Team/Group.

JOB FIT SCORECARD

We Create Quantitative, Measurable Benchmarks to Assess Candidates’ Fit & Alignment with the 5 Key Factors that Predict Job Success

Most staffing firms ONLY fit for Skills & Experience

  • Benchmarking Successful Job Performance

  • Benchmarking your Top Performers

  • Culture and Sub-Cultures, Cultural Alignment

  • Managerial Style & Employee Engagement

  • Team/Group Dynamics

Based on our BETTERHIRING PREDICTIVE MODEL™ we create data-driven, objective and actionable profiles and select ONLY those candidates with the highest probability of Job Success

Job Fit Scorecard

Predictive Analytics turns your Key Talent Data into Guidelines for Better Hiring decisions.

We can scientifically and accurately predict which Contractors or Permanent hires will thrive and have the highest probability of being a Top Performer for your specific Position, Team, Manager and Company.

Our JOB FIT SCORECARD is a Predictive Candidate Rating Tool.

Using your Company’s “Ideal Hire” Benchmark for each of the 5 Key Predictive Factors, we quantitatively measure Candidates FIT and Alignment.

Candidate Profiles are data-driven and objective with actionable insights. 

Weighted Factors.  The relative importance or weight of the individual 5  Predictive Factors are determined by the Hiring Managers.

Our Patent-Pending BETTERHIRING CANDIDATE INSIGHT ASSESSMENT TOOL™ converts Candidate(s) qualitative information into quantitative measurements for all 5 Key Predictive Factors in our BETTERHIRING PREDICTIVE MODEL™.

Predictive Rating Ranges use a scale of one (1) for poor fit to seven (7) for great fit.  No Candidate that scores below a four (4) in ANY category will be submitted.   Only those Candidates that have the highest level of probability for Job Success are submitted.

The higher the Predictive Rating Scores are for all 5 Key Predictive Factors, the better the FIT and Alignment and the more likely they are to be a Top Performer for your specific Position, Team, Manager and Company. 

JOB FIT SCORECARD doesn’t eliminate the need for managers to interview; they are not a substitute for due diligence.  Managers have the power to choose the right candidate(s) and with our BETTERHIRING PREDICTIVE MODEL™ they are better able to predict Job Success.  


 

 

________________________________

[1] Research conducted by Dr. Brad Smart, Topgrading: The Proven Hiring and Promoting Method that Turbocharges Company Performance. 2012.  Research includes over 65,000 hires.

[2] Mark Murphy, Hire for Attitude: An Interview with Mark Murphy, Forbes, January 23, 2012.  Based on study tracking 20,000 new hires.

[3]  Adam Bryant, In Head-Hunting, Big Data may not be such a Big Deal: Interview with Laszlo Bock, Sr. VP of People Operations, Google, New York Times, June 20, 2013, page F6.

[4]  Ross Blake, Employee Retention: What Employee Turnover Really Costs Your Company, WebPro News, July 2006.

[5]  Mary Lorenz, What’s the True Cost of a Bad Hire?  The Hiring Site, Careerbuilder.com, December 16, 2011. http://thehiringsite.careerbuilder.com/2011/12/16/true-cost-of-a-bad-hire

[6]  Dr. John Sullivan, How Google is using People Analytics to Completely Reinvent HR, February 26, 2013.  http://blog.loyola.edu/johnmichel/files/How-google-is-using-people-analytics-to-completely-reinvent-hr.pdf

[7]  J. Chapman, Improving Interactional Organizational Research: A Model of Person-Organization Fit, Academy of Management Review, 14 (3), 333-349 (1989).

[8]  Research has mostly focused on single type of fit and rarely on synthesize.

[9]  Weighted factors influenced by the position’s unique characteristics.  Research shows (PJ) fit more for contract or knowledge intensive positions, (PO) weighted more for a permanent position; the stronger the culture the more weight given to (PO) fit.

[10] A.L. Kristof-Brown, R.D. Zimmerman, and E.C. Johnson, Consequences of Individuals’ Fit at Work: A Meta-Analysis of Person-Job, Person-Organization, Person-Group, and Person-Supervisor Fit, Personnel Psychology, 58, 2005, 281-342.

[11]  Jim Collins, Good to Great: Why Some Companies Make the Leap…And Others Don’t.  2011.

[12]  Leigh Branham, 7 Hidden Reasons Employees Leave: How to Recognize the Subtle Signs and Act Before It’s Too Late.  2012.

[13]  Dr. Robert Hogan, Presentation to the American Psychological Association Annual Conference, Citing a 2010 Study by the Economist Intelligence Unit.  Tulsa, Oklahoma, 2012.

[14]  Gallup,  State of the American Workplace Report 2013: Employee Engagement Insights for U.S. Business Leaders, June 2013.  http://www.gallup.com/strategicconsulting/163007/state-american-workplace.aspx

[15]  Development Divisions International (DDI),  Global Selection Forecast 2012.  http://www.ddiworld.com/gsf2012

[16]  Chad H. Van Iddekinge, Patrick H. Raymark, and Philip L. Roth, Assessing Personality with a Structured Employment Interview: Construct-Related Validity and Susceptibility to Response Inflation, Journal of Applied Psychology, Vol. 90 (3), May 2005, 536-552.