Quality of Hire: Myth or Measurement?

#talentmindset

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

• 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

Factors that Impact Quality

Example 1: Silicon Valley Internet Company

Example 2: Nuclear Engineer

Measuring Quality

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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

• 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

• 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

• 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

Predicting New Hire Quality

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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

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

Q&A

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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.

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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