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© 2013 HireIQ Solutions, Inc. All rights reserved BEST PRACTICES IN ATTRACTING, SELECTING AND RETAINING A HIGH-PERFORMING AGENT WORKFORCE Kevin G. Hegebarth VP, Marketing HireIQ Solutions, Inc.

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Page 1: BEST PRACTICES IN ATTRACTING, SELECTING AND RETAINING …crmxchange.com/uploadedFiles/Webcasts_Events/images/HireIQ - Hi… · ATTRACTING, SELECTING AND RETAINING A HIGH-PERFORMING

© 2013 HireIQ Solutions, Inc. All rights reserved

BEST PRACTICES IN ATTRACTING, SELECTING AND

RETAINING A HIGH-PERFORMING AGENT WORKFORCE

Kevin G. Hegebarth VP, Marketing HireIQ Solutions, Inc.

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www.hireiqinc.com

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Agenda × Introducing the agent lifecycle × Harnessing the power of attraction × Screening and selection best practices × The REAL labor pool – the devil’s in the

details × Rise of the Machines: technology-aided

selection × Retaining the engaged workforce

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The Rise of the Agent Lifecycle WFO solutions contain complementary functions designed to improve the performance of customer engagement centers by means of optimized deployment of appropriately trained and motivated agents. The functions range from ones for recruitment and scheduling to ones of evaluation and training. By adding intelligence to each function, everything from recruitment to scheduling to training can be optimized.

- Gartner, Inc.

When centers adopt a “lifecycle” view that incorporates hiring, evaluation, training and retention into the performance picture, they achieve a more productive call center than if these efforts are isolated. In effect, it helps to assure that an initial hire is someone who will last through training, rather than someone who will take training and then decide the job is not a fit. A holistic viewpoint allows centers to target training more appropriately, with the result that they keep the most qualified agents on the job, and elevate the performance of everyone else.

- Frost & Sullivan.

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The Agent Lifecycle Attract •  Source candidates •  Market open positions •  Create compelling event

Select •  Interview and assess •  Background, reference check •  Offer preparation and

acceptance

Retain •  Train and coach •  Drive engagement •  Measure and improve

performance

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© 2013 HireIQ Solutions, Inc. All rights reserved

POWER SHIFT: IT’S A BUYER’S MARKET

Improving Candidate Sourcing Excellence

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The Agent Lifecycle Attract •  Source candidates •  Market open positions •  Create compelling event

Select •  Interview and assess •  Background, reference check •  Offer preparation and

acceptance

Retain •  Train and coach •  Drive engagement •  Measure and improve

performance

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Agent Hiring Sourcing Dilemma × Shrinking unemployment means fewer

candidates to choose from. Or does it? × Industry attrition rate largely unchanged × Local labor pool is “overfished” × Increased requirements for higher skilled

labor × Increased pressure to attract and select

candidates quickly × Candidates have higher expectations and

shorter attention spans

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Speed Matters

Days from Application to Hiring Decision

Qua

lity

Can

dida

tes

Ava

ilabl

e

Ideal Hiring

Window

Applicants form an opinion of the company based on the hiring process experience. Companies that act quickly are more likely to attract high-quality candidates who will become engaged, high-performing employees. Source: “The Effect of Job Offer Timing on Offer Acceptance, Performance, and Turnover.” Personnel Psychology

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Communication Matters

Days from Application to Hiring Decision

Qua

lity

Can

dida

tes

Ava

ilabl

e

Ideal Hiring

Window

68% of applicants are influenced by the hiring process 75% hear nothing from a hiring company 82% expect they should 40% will never apply again 48% will not buy from hiring company 56% will chronicle their negative experience 82% of companies feel a bad experience has little negative impact 52% respond to fewer than half of the applicants Source: CareerBuilder Candidate Behavior Report, 2013, 2015

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Expand your Search

Source:U.S.DepartmentofLaborBureauofLaborStatistics

Persons are classified as unemployed if they do not have a job, have actively looked for work in the prior 4 weeks, and are currently available for work.

Persons who are neither employed nor unemployed are not in the labor force. This category includes retired persons, students, those taking care of children or other family members, and others who are neither working nor seeking work.

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Five Keys to Effective Sourcing × Treat your candidates like customers and

sell your company, not your jobs × Market jobs to those no longer in the labor

force × Frame the job posting in “what’s in it for

me” terms × Use social media – Facebook, Twitter, and

Pinterest – “fish where the fish are” × Use a progressive application strategy

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© 2013 HireIQ Solutions, Inc. All rights reserved

SPEED, QUANTITY OR QUALITY? HOW ABOUT ALL THREE?

Strategies to Improve the Screening Process

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The Agent Lifecycle Attract •  Source candidates •  Market open positions •  Create compelling event

Select •  Interview and assess •  Background, reference check •  Offer preparation and

acceptance

Retain •  Train and coach •  Drive engagement •  Measure and improve

performance

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The Labor Funnel

Applications

Screens

Interviews

Offers

Hires

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The Hiring Funnel: A Numbers Game Application

Resume Review

Pre-Screening

Live Interviews

Background Check & Drug Test

Offer First Day!

Cumulative Loss Rate 15% 24% 68% 90% 92% 94% 95%

Reasons •  Not qualified •  Location •  Salary •  Benefits •  Job content •  Incomplete

application

•  Not qualified •  Work

history

•  Not qualified •  No-show •  Poor job fit •  No longer

interested •  Accepted

another job •  Unable to

reach

•  No-show •  No longer

interested •  Accepted

another job

•  Failed or high-risk •  No longer

interested •  Accepted

another job

•  Low salary •  No longer

interested •  Accepted

another job

•  No-show •  No longer

interested •  Accepted

another job

1 3 13 18 24 28 Elapsed

Time (days)

1 2 10 5 6 4 Step Days

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It’s a Numbers Game Application

Resume Review

Pre-Screening

Live Interviews

Background Check & Drug Test

Offer First Day!

Cumulative Loss Rate 15% 24% 68% 90% 92% 94% 95%

Reasons •  Not qualified •  Location •  Salary •  Benefits •  Job content •  Incomplete

application

•  Not qualified •  Work

history

•  Not qualified •  No-show •  Poor job fit •  No longer

interested •  Accepted

another job •  Unable to

reach

•  No-show •  No longer

interested •  Accepted

another job

•  Failed or high-risk •  No longer

interested •  Accepted

another job

•  Low salary •  No longer

interested •  Accepted

another job

•  No-show •  No longer

interested •  Accepted

another job

1 3 13 18 24 28 Elapsed

Time (days)

1 2 10 5 6 4 Step Days

Impact: •  20:1 applicant:hire ratio •  Best candidates lost early •  Cost/hire ~$1,200, before onboarding

& training

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Virtual Interviewing × Interactive, on-line screening software × Automates labor-intensive, low-value,

tedious parts of the process × Trims valuable time from the critical early

stages × Increases candidate engagement and

interview completion – yield × Reduces candidate susceptibility to other

offers × Reduces recruiter labor effort and cost × Increases recruiting team value

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Automate Pre-Screening Step Application

Resume Review

Virtual Interview

Live Interviews

Background Check & Drug Test

Offer First Day!

Cumulative Loss Rate 15% 24% 45% 77% 79% 81% 82%

Reasons •  Not qualified •  Location •  Salary •  Benefits •  Job content •  Incomplete

application

•  Not qualified •  Work

history

•  Not qualified •  No-show •  Poor job fit •  No longer

interested •  Accepted

another job •  Unable to

reach

•  No-show •  No longer

interested •  Accepted

another job

•  Failed or high-risk •  No longer

interested •  Accepted

another job

•  Low salary •  No longer

interested •  Accepted

another job

•  No-show •  No longer

interested •  Accepted

another job

1 3 5 10 16 20 Elapsed

Time (days)

1 2 2 5 6 4 Step Days

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www.hireiqinc.com

Automate Pre-Screening Step Application

Resume Review

Virtual Interview

Live Interviews

Background Check & Drug Test

Offer First Day!

Cumulative Loss Rate 15% 24% 45% 77% 79% 81% 82%

Reasons •  Not qualified •  Location •  Salary •  Benefits •  Job content •  Incomplete

application

•  Not qualified •  Work

history

•  Not qualified •  No-show •  Poor job fit •  No longer

interested •  Accepted

another job •  Unable to

reach

•  No-show •  No longer

interested •  Accepted

another job

•  Failed or high-risk •  No longer

interested •  Accepted

another job

•  Low salary •  No longer

interested •  Accepted

another job

•  No-show •  No longer

interested •  Accepted

another job

1 3 5 10 16 20 Elapsed

Time (days)

1 2 2 5 6 4 Step Days

Impact: •  6:1 Applicant:Hire Ratio - 3x+

improvement •  Increased interview yield by 50%+ •  Cost of Hire reduced by 60% •  Time-to-hire reduced by 30%

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Always On – Always Available

Over 45% of candidates complete their interviews outside of normal working hours. Effectively creates a 24/7 recruiting operation, with no increase in labor cost, and eliminates much of the shrinkage due to candidate inavailability.

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© 2013 HireIQ Solutions, Inc. All rights reserved

ANALYTICS-ENABLED SELECTION

Predictive analytics tools to choose the right candidates everytime.

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Definition: A variety of statistical techniques from predictive modeling, machine learning, and data mining that analyze current and historical facts to make predictions about future or otherwise unknown events.

Predictive Analytics

What: A systematic, performance analytics-based approach for selecting new hires based on their demonstrated performance and engagement potential.

How: Compare pre-hire assessment data against observed post-hire tenure, engagement and performance measures of prior hires to create predictive performance models that aid in the selection of exceptional performers.

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NBER Study × 15 companies, 300,000 employees × Low-skilled labor positions – call center × Algorithmic recommendations based on

evaluation results (Red, Yellow, Green) × Tenure results

®  Greens stayed 12 days longer than Yellows ®  Yellows stayed 17 days longer than Reds ®  Average tenure of all employees = 90 days

× Algorithmic recommendations consistently outperformed human judgment

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Predictive Selection Analytics

Pre-hire Interviews and Assessments •  Identify key attributes •  Collect actionable data

Performance Feedback •  Collect observed performance •  Report quality-of-hire

Predictive Analytics •  Model excellent performers •  Recommend candidates for hire

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Top

Middle

Bottom

Behavioral Language Cognitive Emotional

Pre-HireAssessments

Tenure CSAT Attendance Close

PerformancePotentialHigh

Medium

Low

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Top

Middle

Bottom

Behavioral Language Cognitive Emotional

Pre-HireAssessments

High

Medium

Low

Tenure CSAT Attendance Close

PerformancePotential

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Top

Middle

Bottom

Behavioral Language Cognitive Emotional

Pre-HireAssessments

High

Medium

Low

Tenure CSAT Attendance Close

PerformancePotential

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Effects

60% 90-DayRetention

56% FCRAttainment

28% CSATAttainment

58% HiringCosts

84% TimetoFillInterval

90% RecruiterLabor

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© 2013 HireIQ Solutions, Inc. All rights reserved

EMOTIONAL ASSESSMENTS: DISRUPTIVE INNOVATION TO

CANDIDATE SELECTION

Transparent to the applicant. Effective for the company.

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Traditional Assessments × Based on ’50s OP theory × Episodic vs. continuous validation × Can be very lengthy × Gameable × Developed primarily for salaried positions × Don’t measure traits that relate to

delivering an exceptional customer experience

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Role of Emotions on the Workforce •  Members of a workgroup who exhibit similar affective

characteristics demonstrate higher customer service performance and lower absenteeism;

•  A workgroup consisting of members with widely divergent affect tends to exhibit greater friction, more absenteeism, less cooperation and reduced business performance;

•  Emotions are “contagious” and an employee’s disposition can be detected by customers, resulting in service quality evaluations that reflect that disposition – both positive and negative;

•  Positive affect is associated with reduced absenteeism and propensity to turnover, conversely negative affect is associated with increased absenteeism and actual turnover.

“Why Affect Matters in Organizations” by Sigal Barsade and Donald Gibson

Academy of Management Perspectives, February, 2007

These emotions can be effectively identified from natural language communication, such as that found in pre-hire screening interviews.

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Emotional Assessments × Use natural-language pre-hire interview

recordings × Transparent to the candidate × Continuously validated × Does not introduce an extra step in the

hiring process × Measures traits that are directly relevant

to contact center positions × Highly predictive

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RETENTION AND ENGAGEMENT

The engaged workforce is a high-performing workforce.

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The Agent Lifecycle Attract •  Source candidates •  Market open positions •  Create compelling event

Select •  Interview and assess •  Background, reference check •  Offer preparation and

acceptance

Retain •  Train and coach •  Drive engagement •  Improve performance

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Degrees of Engagement

Engaged – Works with a passion and feels a profound connection to the company. Drives innovation and moves the company forward.

Not Engaged – Generally “checked out.” Sleepwalks through the day, putting in time, but not much energy or passion into their work.

Actively Disengaged – Saboteurs. Not just unhappy, but putting energy into their unhappiness. Actively undermine what engaged colleagues are accomplishing.

32.8% of American Workers

Source: Gallup, Employee Engagement in the U.S., Jan. 2016

50.3% of American Workers

16.8% of American Workers

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Role of Emotions on Engagement × Key factor in the engaged workforce

®  Positive emotions are 5x more likely to be engaged ®  Negative emotions are 10x more likely to be

disengaged

× Higher level performance ®  37% reduction in absenteeism ®  65% reduction in turnover ®  10% increase in CSAT ®  22% improvement in profitability.

REFERENCES:DaleCarnegieTrainingwhitepaper,EmotionalDriversofEmployeeEngagementGallupreport,StateoftheGlobalWorkplace

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Improving Engagement × Measure at regular, key performance

intervals × Make it transparent to the agent

®  Natural language assessment ®  QA recordings

× Look for changes between intervals ®  “Canary in the coal mine” ®  Coaching and training implementation and

effectiveness

× Coach according to engagement level

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Key Takeaways × Actively market your jobs and the value

they offer × Use technology in place of repetitive, low-

value tasks ®  Revise hiring process & eliminate bottlenecks ®  Improves yield ®  Shortens time-to-fill

× Trust the algorithms – model excellent performers

× Benchmark engagement and measure often

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HireIQSolutions,Inc.Headquarters

1101C Cambridge Square

Alpharetta, GA 30009 USA

Tel: +1.678.279.2838

@kghegebarth

HireIQSolutions

www.hireiqinc.com

[email protected]

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Kevin G. Hegebarth Vice President, Marketing and Product Management

Kevin Hegebarth is Vice President of Marketing and Product Management for HireIQ Solutions, Inc. He has over 30 years’ experience in providing software and technology solutions designed to improve the recruiting, hiring, performance, and quality of customer service professionals. He has held executive marketing, product management and business development leadership roles with leading companies serving the customer contact market. He is a frequent contributor to industry publications and has spoken at numerous industry events on topics such as workforce acquisition and optimization, the role of social media in recruiting and customer service, and innovative human capital management strategies. He is an inventor on a number U.S. patents relating to the use of predictive analytics in hiring and employee performance optimization. He can be reached at [email protected].