Maximizing “Human Capital” The Step One Survey Confirm Business Attitudes Assessments USA & Canada 800-808-6311 805-934-5956 www.assessments.biz.
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Maximizing “Human Capital” The Step One Survey Confirm Business Attitudes Assessments USA & Canada 800-808-6311 805-934-5956 www.assessments.biz Have you ever hired someone who did not reach your expectations? 2 People are like Icebergs You Can’t See... THE TOTAL PERSON Business Attitudes Job Match 3 YOUR HR GOALS To Screen, Hire, Mentor, & Evaluate: Honest, Reliable, Dependable Hard–Working Drug–free, Productive “Job-Matched” Employees! 4 5 Companies Have Two Kinds of Challenges Systems Challenges (objective) People Challenges (subjective) Scientifically validated assessments help you reduce or eliminate your People-Related Challenges 6 Applicants Can Bring Two Kinds of Profit-Stealing Baggage to the Job Poor Business Attitudes Bad Job Match Characteristics Through the use of properly sequenced screening assessments, you can identify and hire only candidates who have the corporate business attitudes and job match that your benchmarked positions require for job success. 7 2. “JOB 1. “BUSINESS MATCH” ATTITUDES” Supervisor, toward Sales Pro, Integrity Manager, HIRE Work Ethics THEM! Accounting, Reliability Customer Drug & Substance Service, Abuse Call Center Pass a Background Technician Check ETC 8 Check Applicants 36,000 business failures are caused by employee theft Employees steal 10 times more than shoplifters Absenteeism costs a 50 employee company $31,100 annually This is your applicant pool! 9 Due Diligence Background Checks A. Reference Checks B. Education Credentials C. Credit Report D. Criminal History E. Past Employers F. Driving Record Report G. Social Security Verification 10 There are 3 Places to “Fix” People Challenges Selection Process (Fire Wall-Prevention) Coaching & Training (Try to Change Behavior) Replacing the Employee 11 What Every Organization Needs To Know Performance Feedback Customer Delight Retention & Development Selecting the Right People HR Dept. Effective Sales Team Increased Productivit y Team Compatibilit y What is The New Art of Hiring Smart 1. Identify Hiring Problems System? 2. Quantify the Cost of Turnover 3. Understand What You Are Recruiting for 4. Use Innovative Prospecting 5. Prepare and Conduct a Winning Interview 6. Do Background Checks 7. Assess Applicants for Job Match 13 Typical HR Challenges Selection Process Lack of: Structure Accurate Information Consistency Job Fit Management Inability to: Communicate Motivate Train Promote 14 4 Invalid Hiring Criteria Hiring in your own image Pirating from your competitor Hiring based on experience Hiring based on education Herbert M. Greenberg, Ph.D. 15 Four Great Employment Myths “You can be anything you want to be.” “If you work hard enough, you can succeed.” “There is nothing you cannot achieve.” “If I can do it, you can do it.” Herbert M. Greenberg, Ph.D. 16 Decisions Made Fast . . . Why? Hiring on “gut reactions” “First Impressions based on emotions, biases, chemistry, personality, and stereotyping cause more hiring mistakes than any other single factor.” Source:Hire with Your Head, by Lou Adler 17 Problems with Antiquated Hiring Practices 63% Hired within 4.3 Minutes “Instinctive” Hiring Faulty Information • “Exaggerated” resumes • Trained interviewees • Past employers • References Lack of any Pre- or Post- Selection) Strategic HR System Poor Job Matching • 41% Not Formally Trained • 67% Personality Are Not Best Job Fit 18 Identify Hiring Problems Spot Highest Turnover Areas Evaluate Your Selection System and Find its Weaknesses and Barriers Look at the People Doing the Hiring to See What type of Training is Necessary 19 WHY? A. Unpredictable Applicant Pool B. High Hiring Costs C. Government Regulations D. Turnover Costs E. Time for a Paradigm Change 20 Determine the True Cost of TURNOVER Calculate Your Cost per Employee Consider Additional Factors Lost Productivity Recruiting Costs Training Expenses Poor Morale 21 The High Cost of Staff Turnover 180 Hours per Month 29% Benefits* Hourly Plus Total Hr. Rate Benefits* Wages $ 25.00 $ 7.25 $ 32.25 $ 30.00 $ 8.70 $ 38.70 $ 40.00 $ 11.60 $ 51.60 $ 50.00 $ 14.50 $ 64.50 $ 60.00 $ 17.40 $ 77.40 $ 70.00 $ 20.30 $ 90.30 $ 80.00 $ 23.20 $ 103.20 $ $ $ $ $ $ $ Monthly Wages 5,805 6,966 9,288 11,610 13,932 16,254 18,576 Turnover Cost after 3 Months $ 17,415 $ 20,898 $ 27,864 $ 34,830 $ 41,796 $ 48,762 $ 55,728 22 Understand What You Are Recruiting For Understand the Job, define Job Performance and develop a thorough Job Description Identify the “Success Characteristics” of your top performers 23 Use Innovative Recruiting Methods Competitors Persons with Disabilities Companies who have announced cutbacks Advertise in New Places Set up Educational Relationships HR Assessments Military Retirees Outplacement Firms Retired Seniors 24 Assessments are the only way to really know and understand your people 25 US Department of Labor Employment and Training Administration 1999 Publication 26 Here’s what the US Department of Labor says •Employment tests can be used to gather accurate information about job-relevant characteristics. This information helps assess the fit or match between people and jobs. •Tests can be used to predict employee and applicant job performance. •Appropriate use of professionally developed assessment tools, on average, enables organizations to make more effective employment-related decisions... 27 Here’s what the experts say about assessments “Chances are good that up to 66% of your company’s hiring decisions will prove to be mistakes in the first twelve months.” Peter Drucker, Management Consultant When an employee leaves you, “...you're going to lose 2 1/2 times the person's annual salary, whether they're entry-level or senior management,” Dr. Pierre Mornell, as quoted in Nations Business “In these days of talent wars, the best way to keep your stars is to know them better than they know themselves --- and then use that information to customize the careers of their dreams.” “Job Sculpting: The Art of Retaining Your best People” Harvard Business Review -- September. - Oct. 1999 28 Consequences of Bad Job Match Substandard Quality Low Productivity Poor Customer Relations Stress, Tension and Conflict Turnover Ineffective Training Low Profitability BUSINESS FAILURE 29 Step One Profile PPI-Coaching “Attitudes” “Job Match” & Mentoring Customer Service Sales Pro Call Center Team Analysis Checkpoint 360° Multi-Rater Eval MAXIMIZE YOUR HUMAN CAPITAL 31 Selection Process Past Via Resume`, Application, References Future Present Skill Fit Company Fit Education, Training, Experience, Skills, Etc. Attitudes, Values, Demeanor, Appearance, Integrity Integrity, Work Ethics, Reliability, & Substance & Drug Abuse 32 Business Attitudes The Step One Survey Costs third or half of the cost of a standard background check Provides a structured interview and employment history 33 Critical Issues! INTEGRITY Does the person’s attitude match those of honest employees who can be trusted not to steal? SUBSTANCE ABUSE Does the person’s attitude about drugs match the attitudes of people who do not use drugs? RELIABILITY Does the person’s attitude regarding reliability and being on time match those of people with proven records of dependability? WORK ETHIC Does the person have an attitude toward work that is like the attitudes of long–term, hard–working employees? 34 Section II Summary Table The data from Section II is summarized in the table below. Please note that the higher the attained score on each scale, the more favorable the results for that scale. SCALE Low High Integrity Adherence to moral and ethical principles acceptable in the workplace 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9 Substance Abuse Attitudes deemed acceptable in the workplace and by society Reliability Attitudes towards tardiness and personal dependability deemed acceptable in the workplace Work Ethic Belief in the value of work and supervisory relationships acceptable in the workplace The Distortion Scale deals with how candid and frank the respondent was while taking this assessment. The range for this scale is 1 to 9, with higher scores suggesting greater candor. The Distortion Scale score on this assessment is 9 35 Use All of Your Resources Interview 14% 26% Business Attitudes Personality Testing Abilities Testing Interests Testing Job Matching 38% 54% 66% 75% 0% 10% 20% 30% 40% 50% 60% 70% 80% Sources: Professor Mike Smith, University of Manchester, August 1994 John E. Hunter and Ronda F. Hunter, Validity and Utility of Alternative Predictors of Job Performance, Psychological Bulletin, Vol. 96, No.1, 1984, p. 90; Robert P Tett, Douglas N. Jackson, and Mitchell Rothstein, Personality Measures as Predictors of Job Performance: A Meta-Analytical Review, Personnel Psychology,Winter 1991, p.703. Michigan State 36 University’s School of Business. Selection Process Past Via Resume`, Application, References Future Via Testing for Job Match Present Skill Fit Company Fit Education, Training, Experience, Skills, Etc. Attitudes, Values, Demeanor, Appearance, Integrity Job Match Personality, Via Interview Add the Step One Survey® Do Background Check Abilities, Interest 37 Consequences of Hiring People with Bad Business Attitudes & Poor Job Match Substandard Quality Low Productivity Poor Customer Relations Stress, Tension and Conflict Turnover Ineffective Training Low Profitability Poor Sales Performance BUSINESS FAILURE 38 Benefits You Gain From Using Assessments You identify the characteristics of your top performers You maximize employee and team productivity You develop and retain more top performers “Put the right person in the right job, train and motivate them, give them an opportunity for advancement, and your company will grow and prosper” J.W. Marriott 40 Summary... People are our number one resource. Turnover is a major expense. Traditional hiring methods are not effective. Competition is forcing a closer examination of those we employ. We must determine their business attitudes We need to confirm their job match 41