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Improving Hiring and Team Effectiveness for
Associations Presented to: Your Not-for-Profit AssociationPresented by: Stephen Bieda
Precept Benchmark Consulting Inc.
Date: June 6, 2010Vers: 1.3
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Key Messages – Focus of Our Discussion
1. Success in a organization is in large part a function of it’s people. Hiring mistakes are costly and hit the bottom line quickly.
2. The interviewing process can be improved using Assess Tools™, a suite of scientifically validated assessment surveys that can help improve the probability of hiring the best and improving performance of existing employees.
3. Assess Tools™ are a great Association membership value add that can help grow the membership, build more cohesive teams and enhance bottom lines.
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Hiring and developing the right sales talent is a key focus across SMEs todayTHE FACTS
Small business Association Members have on average 10-30 employees but the program is scalable for companies with many thousands of employees
Finding qualified people is harder than ever
Most Association Members are comprised of small businesses units and lack the expertise to know how to hire the best people; they cannot afford dedicated HR staff and don’t have the right tools to help them
ALL Association Members s are looking to get more from their existing teams but may not have the expertise or modern tools to do so
THE NET RESULT Cost of miss hire is huge Association Members are reluctant to
address poor hiring choices because: The recruiting process is costly
and time consuming They dislike retraining people They don’t have the tools to
measure performance accurately They don’t know what motivates
their team
Association Members typically repeat past hiring mistakes over and over again
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Assess Tools ™ Affordable enough for EMC but scalable for the big guys too!
Dow Chemical Company Aetna Insurance Company Amtrak Budget Rent-A-Car Canadian Urban Transit Association Neiman Marcus PETCO Frito Lay Hilton Reservations Worldwide Hyatt Hotels & Resorts Wyndham Vacation Resorts
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American Heart Association Blue Cross Blue Shield of Kansas Cox Communications Blockbuster Video Texas Instruments AUTOZONE North American Coal
Most experts agree that the cost of a poor hire can range from 6 months to 18 months of the applicant’s salary and benefits
Soft costs — the additional turnover caused by the hiring, the effect on morale, the decrease in team effectiveness — are much harder to quantify but can be very significant.
Most people believe the cost of a poor hire is just a paycheque. Not so! Remember, without great people, you won't have a great sales team. And if you don't have a great sales team, you won't have a great company!
So why do organizations make hiring mistakes?
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The Cost of a Bad Hire Can Exceed a Full Year of Salary and Benefits!
Hiring Effectively is not Easy – Assoc Members are Busy and Lean
Association Members are very busy and they feel like they need to fill positions YESTERDAY. Word of caution – if you hire the wrong person it can get much worse quickly.
They cannot afford to hire interviewing experts – they do their best with what they have
Sometimes gut reactions are wrong
This can result in ineffective hiring
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Observation & Instinct – Did you know that many interviewers make a “go or no go” decision in the first few minutes?
Shiny Shoes
Good eye contact
Bright Smile
Firm Hand Shake
Shiny Shoes
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Did you know?
• Over 50% of candidates admit to lying on a resume• Over 60% admit they will lie in an interview if it helps
them get the job This can contribute to mismatches between individual and
roles
• Unfortunately, a high percentage of the population will lie, given the opportunity
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So what does this tell us?
Screening resumes and the interview process may not give us all of the data we need Do you want someone who didn’t really want the job working for you?
Better hiring decisions can be made if we can add objectivity to our selection process One way to do this is via assessment
Interviewing skills do NOT equal job skills
What you see is not necessarily what you get…
The Bottom Line - Hiring based on fit with a role will increase the likelihood of success for both the candidate and the organization
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Key Messages
1. Success in small business is in large part a function of it’s people. Miss-hires are very costly.
2. The interviewing process can be improved using Assess Tools™, a suite of scientifically validated assessment surveys that can help improve the probability of hiring the best and improving performance of existing employees.
3. Assess Tools™ are a great Association value add that can help grow the membership, build more cohesive teams and enhance bottom lines.
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The Evolution of the Interview Process
The mirror test
The “who do you know” test and resume review
The Traditional Interview
The Behavioural Interview
The Behavioural
Interview with Assess™
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©2007, 2008 Optimal Performance Tools Inc. www.opt-inc.com
The Mirror Test – Simple … but Ineffective
Hold a mirror in front of the candidates mouth. If they are able to fog the mirror……
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The “Who do you know/Who are you related to” Test
Here’s typically what happens…
A quick scan of the resume (sometimes) Ted is related to Jane Jane is hard working, conscientious, smart and excellent with customers Therefore, Ted must be hard working, conscientious….. “Ted…..you’re hired!”
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The Traditional Interview
The interviewer focuses on what candidate has done.
Hiring manager tends to look at résumé, and use it as a guide upon which to base their questions.
Questions are direct: What is your salary expectation? What are your long-range goals? What skills would you like to develop in this job? What are your strengths and weaknesses? Have you managed people before?
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The Behavioural Interview
The objective is to find out how well your candidate is likely to perform in the job for which they are applying.
Interviewees are asked questions about past positions. Belief is that past behaviour is the best predictor of future success.
Specifically, behavioural interview questions are designed to determine what a candidate did, how they did it and more specifically, what their role was.
Types of Questions
Tell me about a time when you had to make a tough decision? Describe a situation in which you were able to use persuasion to successfully convince
someone to see things your way? Describe a time when you were faced with a stressful situation that demonstrated your coping
skills? Give me a specific example of a time when you used good judgment and logic in solving a
problem? Give me an example of a time when you set a goal and were able to achieve it? Includes traditional interview questions as well
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The Behavioural Interview with Assess™ Tools
Combine Behavioural Interview with Assess tools™ Why?
Research has shown that personality predicts aspects of job performance that may not be strongly related to knowledge, skills and abilities Evaluation of what a person “WILL DO” as opposed to what they “CAN DO” Considers potential apart from past behaviour alone Appropriate types of assessment add objectivity and validity Good assessment tools show no adverse impact (i.e. a fancy way for saying they don’t
discriminate based on gender, age, ethnicity, etc…) They meet labour guidelines – ie Employment Equity Opportunity Commission (U.S.)
Evolution – each new technique incorporates best of previous techniques It’s all about making the best possible decision
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Now let’s see how Assess Tools™ can lead to greater profitability
What is Assess Tools™?
An easy to use on-line assessment system geared towards talent selection in the following areas: hourly rate associate level employees, professional/managerial sales people, consultative sales and executive level leaders
The Selection Report – identifies candidates who are most likely to achieve above average success in professional sales
Developmental Report – helps current employees to identify strengths and developmental areas and guides them in constructing a personal development plan to achieve success
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What Does Assess Tools Tell us?
It Provides information about: Sales Personality – characteristics or traits linked to success in most any
roll Knowledge -- understanding of effective behaviours and strategies at key
stages of the sales and customer service cycles Motivations -- personal motivators to help in managing and motivating the
candidate Assess Tools™ enhance the behavioural interview process by providing data
relevant to success in employment roles. Information that an interview alone COULD NOT provide – information
about the underlying drivers of success in employment roles…
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Assess Tools gets to the heart of the behaviours underlying effectiveness and gives Team Leaders the ability to measure them
Job Experience
Candidate Knowledge
Candidate Personality
Candidate Motivations
SURFACE LEVEL INDICATORS
UNDERLYING SUCCESS DRIVERS
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Why SalesMax™ for Example? It Will Improve your Bottom Line
Reduce the probability of making a hiring mistake, without having to become an expert in behavioural interviewing
A candidate’s SalesMax™ results can be clearly linked to success in sales and predict their probability of success.
Would you like to hire more people with a higher probability of success and avoid those with a lower probability of success?
What does this mean for your bottom line? Poor performers often produce 40% less than high performers. If the average revenue of a salesperson is $3,750,000, high performers will sell
on average $1,500,000 more than poor performers. In this case the cost of hiring the poor performer is $1,500,000 plus any
negative impact this individual has on the rest of your organization
SalesMax™ Delivers Results Candidates with top scores on SalesMax™ produce as much as 121% of average or
about 40% more than poor performers 84% of poor performers are screened out using SalesMax™.
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Takes the guess work out of choosing between applicants!(Part of an 8 page report)
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Saving time and money with SalesMax™
Screen the resumes and conduct phone interviews first. The acting HR person will likely end up putting a max of 10 people through SalesMax™ testing.
Let’s assume … HR person has to spend at least 30-45 minutes on each of 25 candidates for
interview That is a total of 12.5 -18.75 hours, excluding admin time to set up the interviews,
etc… Let’s call it at least 15 hours and up to 25 hours total.
SalesMax™ provides focus and can reduce the number of candidates interviewed.
What else can be done with this time?
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Don’t Forget the Existing Sales Team – Help Them be More Effective!
To assist in improving performance the SalesMax™ Development Report provides:
A personality profile - A quick summary that shows personality results. Motivations – Scores show the relative importance of motivators and how
the candidate can get more of what they want from the job. Developmental suggestions - Recommendations on how to close
developmental gaps with specific resources. Development action plan guide – Practical and easy to implement tips on
building strengths and recognizing weaknesses. Additional support consultation and implementation coaching is available
upon request
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Validation is Critical, But What does it Mean?
All of our surveys (ASSESS™, SalesMax™ and SELECT) have been validated and are different from many other tools in the market.
What do we mean by valid?
Three types of validation – face, construct and criterion-related Face – looks like it measures what it claims to measure Construct – measures what it claims to measure Criterion related - measures whether performance on a survey can be linked to
(predict) job performance.
All of our surveys have been shown to be non-discriminatory – they do NOT discriminate based on age, gender or ethnicity and meet the Equal Employment Opportunity Commission Guidelines (U.S.)
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All of our tools have been validated
SELECT is used to improve hiring at the associate level. It measures: Important, work-related personality characteristics associated with
productivity, cooperative work behaviours, integrity and service to others
ASSESS™ can be used to improve hiring and development process of higher level employees, including general managers and owner/operators
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Key Messages
1. Helping sales organizations hire and develop sales talent can provide a revenue stream for an association, while addressing a organizational need.
2. Assess Tools™ include scientifically validated tools with proven ability to hire and develop the best sales performance. Linked to traits, predicts results!
3. Assess Tools™ are a great Association membership value add that can help grow the membership, build more cohesive teams and enhance bottom lines.
Add value to your membership and earn Commission
By choosing to partner with Precept Benchmark Consulting Inc your authorized Assess Tool marketer, your association can:
1. Enhance membership perceived value.
2. Help your constituents build more cohesive and effective teams
3. Help your constituents enhance their bottom line.
4. Assess Tools™ tests range between $40-$500 per test and for every test sold your Association can earn a 10% commission.
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The Candidate Experience – How does SalesMax™ work?
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Candidates are required to agree to the statement of informed consent before they can continue the survey.
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Candidate completes personal information. Candidate can choose the “prefer not to say option” in the drop down menu for Age, Gender and Ethnicity (these can be suppressed)
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Candidate verifies personal information and clicks accept, or revises information.
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Candidate answers all questions on the page and then hits the “Next” button at the bottom of the page to continue to the next screen.
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The Life Cycle of Effective Leadership and Management
2. Hire the Best•Hire based on fit with your success model• Fit with existing team?•Change agent?
4. Improve Performance • Link Goals to Behaviours• Common Language• Coaching Facilitated• Measure what and how•Team Effectiveness•Training continues
3. Integrate Employees•Hit the ground running•Roadmap for success•Integrate with team/org’n•All training targeted
1. Define Success• Link Strategy/outcomes to successful behaviours •Create Model
The OptimalPerformance Lifecycle™
5. Ensure Future Success•Succession Planning•Performance and Potential• Adds Objectivity•Promotion?•Stay in Role?•Lateral Move?
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The OptimalPerformance Lifecycle™
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