If Bad Hires Squeaked!

If Bad Hires Squeaked!

It might seem like a rather odd time to write an article on hiring when so many companies are not. Determining the need to improve upon one's hiring process, and making the changes, is something that can be done right now. Consistent marginal performers presently on board got there somehow. They weren't good hires that suddenly changed after their start date. Poor performance can be traced back to incorrect assessments and the ill-fated decision to hire. Yet many companies only address poor performance with employee counseling and discipline stopping short of fixing the real problem - how they got hired.

* How Effective Are Interviewers At Hiring High Performers?

When the economy is robust and the unemployment rate is low, the supply and demand model favors the applicant, not the employer. Companies can struggle just to fill all their openings. However, hiring High Performers does not require a flood of applicants. If you do need more, you can always get creative. In any labor market, one of the best ways to increase the pool to choose from is to turn your current employees into extended recruiters. Create a referral bonus program and get the word out. Make a big deal about each bonus you pay and it will catch on. But even with quantity, there are times we mistakenly hire poor performers thinking they're good choices. The opposite occurs as well. Without realizing, we say, "No Thanks!" to applicants that would do a good job. More important than a quantity of applicants is our ability to accurately recognize quality. Discerning the difference between who is motivated to do the job and who is motivated to get the job involves more than just assessing a candidate's skills. Without knowing how to properly identify the best, many unskilled interviewers are forced to rely on their gut to tell them which candidate is best. This produces good results sometimes and bad results other times. Improving your selection process involves improving the effectiveness of your interviewers.

* Many people believe that their years of interviewing experience automatically make them an effective interviewer.

This one is my personal favorite. The biggest roadblock to improving hiring is convincing interviewers they need training. More managers come to workshops kicking and screaming in defiance, stating they have too many important things they need to be doing, but leave professing it was the most valuable training they ever had. If a company is already filled with top performers, then indeed, interviewer training is unnecessary. However, if you track and review hiring stats, many companies find they have too few top performers. And, it's no wonder. Typically, 80% or more of those making the hiring decisions have had little or no formal training on how to hire the best. For those who have had some training, it's usually just the legal do's and don'ts, and some interviewing basics.

Many interviewers bring with them what they learned at prior jobs. When one company asked their interviewers to send copies of their interview guides to HR, they received 75 different ones. There was no consistency. Another company had a standard interview format but their training focused mainly on how to keep the company out of litigation. They provided no specifics on how to hire high performers. Since the full cost of bad hiring are typically not tracked, it's hard to say which costs more - poor performers or lawsuits. It's the squeaky wheel that gets the oil, even if both wheels need it. If only bad hires would squeak a little louder.

* We track time-to-hire and cost-of-hire but we don't track quality-of-hire or quality-of-turnover.

Are we saying fast and cheap hires are always good? Do we really not care about the quality that comes into and goes out of our company? In many companies, there is a lack of accountability for the costs associated with each poor performer hired. It's not tracked. There is no line item on a P & L for the lost productivity and sales from hiring a substandard employee. If there were, hiring would suddenly become more important. If a manager's bonus was tied to his staffing effectiveness, you'd see him seek out the training. Both the cost and the time-to-hire are valuable pieces of information, but what matters most is the quality of hire.

Low turnover numbers, without taking into consideration job performance, can be deceiving. It all depends on who's leaving. Turnover should be tracked not by voluntary and involuntary, but rather by percentage of high performers who move on. Effective exit interviews should be used to gather the "real" reason top performers leave. Only accurate feedback can result in changes that improve retention. Luring back the departed best is always a good way to increase a company's High Performer percentages.

If you'd like to improve your hiring effectiveness, here are some things you can do now:

* First, gather as much past department, or company, hiring results as possible. Break current employees into three performance categories: High, Average, and Poor Performer. Current evaluations can be a simple way to do this. Then divide the total number in each category by the total number of company employees, to determine your percentage in each group. It doesn't include recent turnover but it will give you a baseline to compare future hiring results with. Many company percentages create a bell-shaped curve with 20% on each end and 60% performing at an average level.

* Take the time to survey those currently involved in your company's employee selection process, as well as those being groomed for promotions involving this responsibility. Find out in detail about prior training, i.e., legal, basics, behavior-based, etc. Since years of experience does not always equal good hiring skills, knowing who needs training and who doesn't may be tough to determine. True effectiveness is determined by an interviewer's results and without prior statistics it can be hard to calculate. Many interviewers tend to embellish on their successes and forget the rest. Establishing an across-the-board training program that gets everyone on the same page may be what is best.

* Track effectiveness going forward. Have each interviewer sign-off on their decision to hire. Create a simple form (contact Hire Authority if you need assistance). Turnover numbers should not lump top performers with the poor performer turnover. It should be broken into at least two groups: those rated average and above who left, and those rated lower. Include the interviewer(s) responsible for the hire. Hiring will never be 100% effective. Every interviewer will have a mis-hire now and then. For those responsible for several, make additional training mandatory. Every job opening is an opportunity to fill the position with someone who will outperform the one before.

Ref: CAROL QUINN

Misconceptions About The Temporary Industry

The temporary industry has exploded over the last two decades and the idea of what a Temporary employee is has changed over the years.

Temporary workers are used in virtually all industries, in both private and public sectors. Previously, we would think of the temporary worker as fill-ins for a front desk or warehouse person. Today, there is a temporary worker for every imaginable skill set---marketing, human resources, accounting, office support, and today, larger companies are establishing and maintaining (or employing) in-house temporary services on a permanent basis, as part of their human resources department. Many large Fortune 500 companies have in-house programs.

Mary Meunier, Branch Manager of Kimco Staffing Services, believes there are many misconceptions about the temporary industry. According to Meunier, many applicants do not perceive temporary work as "a real job." In fact, temporary work can be an excellent vehicle for transitioning or as an audition for a specific job or a specific company.

Why are temporary workers used?

The temporary workforce serves several purposes:
-As an extension of a busy human resources department
-As a way to internally groom and develop an employee
-As a means to recruit a large number of applicants at once
-To assist with overload or cyclical projects (many businesses have predictable growth periods – such as "tax season")

Who works for temporary agencies?

Working as a temporary can either be a smart job search strategy or a life style choice. If you are a career changer, re-entry worker, or someone wishing to get your foot in the door, or to supplement your income, temporary work might be a possibility.

How do you maximize working with temporary agencies?

First and foremost, find out how they operate. Who are their customers? Who do they primarily serve? What skill levels do they serve? Do they specialize in a certain sector of the job market? Remember: using temporary work is one of many tools you should use in your job search. However, it should not be the only tool.

How do you work with agencies?

A good agency will look for a good fit—both for the employer and the applicant. Do you have the right skill set? Will you fit with the other workers? An agency looking to place you quickly without knowing more about you probably is not the best fit. Ask yourself how you were treated? Did they take time to get to know you? Was the office professional in their customer service? Your intuition is important. How well you were treated is very important to the overall success of the experience.

What should you ask the agency?

Find out about their key clients and the industries they serve. Do they cater primarily to temporary work? What is their rate of temp conversion into permanent placements? Can you be considered for both temp, as well as permanent assignments? How long will this assignment last? Can you be exposed to a particular industry, such as biotech or high tech? In short, how they can help you? What company representative will be assigned to you and your point of contact?

What else is important?

Communication! Communication, communication, communication! It is important for both parties to keep in touch. Ask your company representative, how often should you be in touch? Once a week? Every two weeks?

Communication at all levels is important from getting insights into the company to receiving feedback about your resume and interviewing style. Also, if you are in the job search process with a company, the interviewer or placement specialist needs to discuss this with you. Have you been offered a job? Is it in line with your career goals? Do they call you on a regular basis for assignments? Or have you not been called at all? If that is the case, you need to know why.

A final word: don’t put all of your eggs in one basket!
Every temporary agency caters to different employers. Sometimes, employers will use a number of temporary agencies to fill their needs. They will have a primary and secondary source. Why not use 3-5 agencies in order to reach your career goals?

Oldest Executive Search Firm

The executive search business began in the United States in 1926 when Thorndike Deland launched a business that charged a $200 retainer to find expert buyers for New York department stores. However, it was not until after the second world war that executive search gathered speed as part of the rapidly growing management consultancy business. It soon became evident to search consultants at McKinsey and Booz Allen Hamilton that the service might best be provided as a separate business. McKinsy moved out of the executive search business in 1951.

McKinsey left the search sector in 1951. H. Wardwell Howell, head of the McKinsey search practice at that time, left to found Ward Howell, which became one of the biggest global search firms (until 1998 when its American division was acquired and the rest of the company rebranded itself as Signium). Handy Associates also broke away from McKinsey. Booz Allen Hamilton, which maintained its search activities until the late 1970s, groomed many of today’s top search consultants. Among firms launched by its former management consultants are Boyden (1946), Heidrick & Struggles (1953), Spencer Stuart (1956) and Amrop Hever (1967).

HR Policy and Manual

HR policies vary considerably from one organization to another, depending on the age of the organization, its size, the nature of the workforce and the position regarding union recognition, but here are the main policy areas:

Principles:

This is a statement about the general view by the management of employment in the organization. It is likely to carry ringing phrases about teamwork, fairness, innovation and opportunity, but may also include a declaration about the degree and method of employee involvement and the security of employment in different parts of the workforce.

Staffing and development:

Here will be the specific undertakings to employees and the management strategies to be followed in appointing the most appropriate people, providing the opportunities for career growth and ensuring that employees develop their skills and capacities in line with the growth of the business. The main features of this policy area are how vacancies will be determined, where applicants will be sought and how decisions will be made in selection. There will be further sections on how promotions are made, training opportunities and requirements, as well as the use of performance appraisal and assessment centers.

Employee relations:

Policies in the area of employee relations will depend on the union recognition situation, but typical features are arrangements about recognition, bargaining units and union membership agreements, agree¬ments relating to negotiation, consultation, shop steward representation, membership of joint committees, safety matters and points of reference, such as following national engineering agreements on the number of days' annual holiday.

Mutual control:

Several features of policy and related procedure deal with the working relationship between the organization and the employee or employees. These are mainly to deal with the approach to matters of grievance and discipline.

Terms and conditions:

Aspects of terms and conditions policies are approaches to determining differentials in payment, levels of sick pay, pension provision, holidays, study leave and hours of work.

Equality of opportunity:

A different type of HR policy is that relating to equality of opportunity. Theoretically, equalizing opportunity should be subsumed in all the other areas, but legislation and pressure groups have tended to identify this as an area needing separate treatment.

DEVISING POLICIES

HR specialists could use the following procedure to devise policies:

1) Identify the topic: Individual topics on which policy clarification is needed have to be identified and worked on when the time is ripe. In identifying the topic, one has to be sure that it is correctly identified and that a policy statement will be timely.

2) Determine the key features: After the general idea has been accepted and shaped, there will be the key features of the policy to be determined. In the area of trade union recognition, the idea to be sold is whether or not to recognize. If the idea of recognition is accepted, the key features to be determined will be to decide which union to recognize and for what the union will be recognized - individual grievances only, terms and conditions of employment, manning levels or what?

3) Agree the details: The last stage is to agree the precise details of the policy statement, with all the implications for later interpretation and implementation. If the key features have been previously determined, then the detailed considerations can be carried through without the risk of jeopar¬dizing what the policy is intended to achieve, but the importance of the details should not be ignored.

Ref: Derek Torrington and Laura Hall

Realistic Job Preview (RJP)

The realistic job preview (RJP), a new concept in recruiting and selection, is a method of communicating to an applicant or new employee what it will be like to actually perform a certain job. RJPs perform a valuable function in employee orientation, reducing reality shock and thus speeding the socialization process.

Realistic job previews can be developed in a number of ways. The most common method is to interview current employees, asking them to state actual experiences (good and bad), and attitudes toward the job. Another way is to film or videotape employees at work and ask them for comments. Information provided in an RJP should not be all positive; employees are encouraged to state some of their problems and frustrations. This information is presented to applicants or new employees verbally or in films, videotapes, or booklets.

Research shows that RJPs lower job expectations without completely "turning off" applicants to jobs. Additionally, RJP advocates argue that previews will create more positive job attitudes and contribute to reduced turnover. From a cost/benefit standpoint, it is advantageous for employers to provide applicants with realistic job previews as early in the employment process as possible. If applicants have a realistic perception of the job they are applying for, they are in a better position to determine if they are a good match for the job. An organization can save selection, hiring, and start-up costs if an applicant discovers that a poor match exists early in the process.
The currently limited use of RJPs in the recruiting and selection process stems from management's concern that too many applicants will reject job offers if they are provided with a true picture of the job. However, empirical study found that realism of job previews did not "drive away" applicants or cause candidates to reject job offers. RJPs need not be used exclusively before hiring; using them after hiring, as part of the orientation process, provides benefits as well.

The Talent Acquisition Killer App

In the past, the candidate intake process consisted of collecting existing information (via applications and resumes), generating new information (via assessments and interviews) and confirming information (via reference and background checks). Each step of that process generated different documents (application forms and paper resumes, printed test scores and interview notes, and background reports). And this information was all centralized in that old standby, the paper file folder.

As the process evolved, the paper folder was replaced with a subdirectory on a computer’s hard disk. Paper applications were replaced by online forms, paper resumes by scanned images, printed test scores by database records, etc., yet each of these components still existed separately from one another. While some efficiencies were gained by “going paperless”, the move from paper documents in paper file folders to scanned images on a hard disk hardly represented a re-engineering of the hiring process.

The integration of online assessments and Internet-delivered applicant tracking systems (ATS) created the opportunity to transform, rather than simply automate, candidate screening and hiring. This is because an ATS system provides more than just a centralized database of candidate records. It provides candidates and recruiters with portals into a variety of data sources including application and resume data, job interests, references, etc. Recruiters can view this information by individual candidate or in aggregate, enabling recruiters to rank candidates before choosing whom to interview. Modern ATS systems can also manage all of the steps in the recruiting and hiring process, right through employee onboarding.

Assessment is one of the few talent acquisition tools employers can use to generate new, unique data about a candidate that is not available to every other employer. And when skills and behavioral testing is integrated into automated applicant tracking, applicant tracking moves from a tool for increasing efficiency and compliance, to a platform for strategic re-engineering of the hiring process.

To begin with, simple “knock out” assessments can be used to gate the entire process, removing candidates who would be disqualified due to inexperience, legal status or some other factor before anyone wastes any time on their application. When behavioral and skills assessments are integrated later in the ATS-driven application process, recruiters can consistently compare all candidates against a job-based set of standards. Resume formats and language can vary, interviews can be subjective, and reference checks can be generic. But assessment is the one element of the talent acquisition process that creates new information related to job fit in a consistent way, through testing instruments designed to be fair and free from bias or subjectivity.

In a single platform, modern applicant tracking systems can integrate assessments, background checks, requests for substance abuse screening, even a window into whether a company can obtain tax credits by hiring a particular candidate. These capabilities do not simply increase efficiency, they transform what were once discrete processes into the “Killer Application” of talent acquisition.