pinstripe presents quality of hire myth or measurement
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Quality of Hire: Myth or Measurement?
#talentmindset
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Welcome & Introductions
Kevin Wheeler Founder and Chairman the Future of Talent Institute
Kevin started FOTI five years ago out of his passionate belief that organizations need a more powerful and thoughtful architecture for talent than they have.
Kevin is a globally known speaker, author, teacher and consultant in human capital acquisition and development, as well as in corporate education.
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• “One top-notch engineer is worth 300 times or more than the average engineer.”
• “We would rather lose an entire incoming class of engineering graduates than one exceptional technologist.”
Alan Eustace Senior Vice President of Engineering and Research
Setting the Stage
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• Measures of output quality reported in 20 studies of production workers found:
– The Value of Top Third performance was 1.7 times the value of average workers.
– The DIFFERENCE between the annual value of Top Third vs. Average performers was AT LEAST 40% of their salary.
Some Facts
Schmidt & Hunter
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• The Myths – We’ll know it when we see it.
– You can’t quantify it.
– The same factors apply to every position.
• The Reality – It can be described by every hiring manager and fellow employee.
– It can measured, tracked and improved.
– Every position needs a specific combination of factors.
Can We Measure Quality?
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Why, What and How?
Why? What?
Input
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Factors that Impact Quality
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Example 1: Silicon Valley Internet Company
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Example 2: Nuclear Engineer
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Measuring Quality
#talentmindset
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1. Establish a definition of quality for each position. – Determine what performance outcomes are important and that make a
business difference.
– Determine what characteristics makes up hiring manager satisfaction.
• KSAs
• Fit
• Motivation
• Experience
2. Develop standards to measure quality of hire. – Define which competencies/criteria are most important to those
outcomes.
– Decide levels of KSAs, motivation, fit and experience that are needed to achieve performance outcomes.
Steps to Measuring Hire Quality
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• Tangible-outcome positions – Gross sales
– Number of proposals to closes
– Customer satisfaction
– Customer additions/losses
– Number finished/assembled/etc. per established timeframe
– Time to complete a certain amount
• Intangible-outcomes positions – Jury-of-peers evaluation
– Time to productivity
– Number of rejections or amount of rework
– Customer/team satisfaction
Defining Quality for Each Position Measures
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• Performance-Based Tests: – Tests objectively scored for productivity, customer service, and sales.
• Risk-Based Tests: – Tests objectively scored for safety, financial, sobriety, and civility risk.
• Behavior-based Interviews: – Guides with questions, probes and rating anchors used by trained hirers
whose ratings have been calibrated and skill checked.
Measuring KSAs
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• Job Knowledge Tests: – Multiple choice tests objectively scored for technical / functional
knowledge critical to value.
• Years of Practice – Measures of time, especially if at significantly greater levels of responsibility
or complexity.
• Peer Reviews – 360 degree feedback, anonymous feedback.
• Referrals – Recommendations from trusted partners.
Measuring Experience
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• Only subjective measures available: – Interviewer opinion of candidate’s enthusiasm, opinion on level of
engagement with organization's ideals and goals.
– Assessment of whether active or passive candidate.
• Active may be more motivated.
– Number of times candidate applied.
– Team/Panel judgment.
Measuring Motivation
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• Managerial Simulations – Inbox and role-play simulations that feature realistic managerial and
executive challenges evaluated by trained assessors guided by rating anchors.
• Team/Panel Interviews – Crowd sourced opinion about candidate based on group interview and
subsequent discussion.
• Cultural Fit Tests – Some tests available.
– Personal Job Fit assessment or others.
Measuring Fit
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• Average (expected) performance outcomes – Meets sales targets three quarters out of four
– Maintains 98% of customers
– Adds at least four new customers per quarter
– No interpersonal conflicts or issues with team
• Tenure average: 16 months
• Hiring manager satisfaction: 3.5 out of 5
Example: Sales Lead Position
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• Clear understanding of manager’s expectations & needs.
• Clearly/objectively defined job descriptions.
• Targeted sourcing.
• Clear assessment criteria.
• Effective assessments.
• Post-hire measurement.
• Feedback.
Ways to Improve Quality of Hire
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Predicting New Hire Quality
#talentmindset
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Performance & Risk-based tests
Performance & Risk-based tests + Behavior-based interviews
Performance & Risk-based tests + Behavior-based interviews + Simulations
Resume review + Typical interview
Abili
ty to
Pre
dict
Per
form
ance
Management Position
Ability to Predict Performance
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Summary of the Process
Identify top performing
incumbents by position
Use measures of outcomes,
manager satisfaction and team fit
Determine competencies & skills position-by-position
Use multi-rater process
Determine competencies that
make a performance difference
Use predictors of the competencies to assess candidates
Use tests, simulations and behavior-based
interviews
Train and monitor process rigorously
Measure new hires and correlate to
assessment
Measure new hires against top performers
Measure manager satisfaction
Continuously refine
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Q&A
#talentmindset
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Thank you & learn more!
Download the complimentary whitepaper Quality of Hire: Myth or Measurement at PinstripeTalent.com
And, connect with us online.
#talentmindset
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Save the Date! Wednesday, February 15
Corporate Recruiting: How Does Your Organization Measure Up?
Guest Presenter: Kim Lamoureux, Principal Analyst for Talent Acquisition
at Bersin& Associates