Using Employee Profiling To Win The War For Talent

Presented By David Reynolds

Executive General Manager – Consulting Chandler Macleod Australasia

Session Objectives

• Define Employee Profiling• Explain its growing popularity and use• Outline the different Employee Profiling options

available• Demonstrate how organisations can use

Employee Profiling to help win the war for talent

Who is Chandler Macleod?

• Australia’s leading firm of people consultants• Established in 1959• Employ over 700 people across 70 offices in

Australasia• Specialise in people attraction, assessment,

development and impact initiatives• Focus on helping our client partners maximise

people performance and manage risk• Profile 8000+ employees each year

‘Management Speak’

“We expected that Good to Great leaders start out by setting a new vision and strategy.

We found out instead that they first got the right people on the bus, the wrong people off the bus, the right people in the right seats – and then they figured out where to drive it”.

Good to Great – Jim Collins

Understanding the organisation

What is Employee Profiling?

Understanding the individual

General Employment Trends (Year to April 2006)

• Employment increased to 10,079,800• Unemployment decreased to 543,100• Unemployment rate stable at 5.1%

Employment Trends Unemployment Trends

National Employment Forecast May 2006 Quarter

• Australian labour market growth will slow • Skills shortage and high demand = rising wages • WA skills shortage now the worst on record• State and Federal Governments issuing infrastructure

projects warnings• Queensland and Western Australia will account for almost

half of all new jobs created

What Does This Mean for Employers?

• In short “War for Talent”!• Skills shortages, coupled with high demand, are driving

wages higher • Employers and recruitment firms are finding it increasingly

difficult to find and retain talented employees• Suitable applications to recruitment advertising continues

to fall• Newspaper “Positions Vacant” adverts are attracting as

little as 5-10 responses• Your competitors are targeting your talented employees,

right now!

Did You Know That…

• Replacing an employee in the first year costs up to 3 times their salary

• Selecting a top performer can mean significant impact on your people investment

Job LevelAverage

SalaryIncrease in

OutputIncrease in

ROI

Unskilled

Skilled

Management

$40k

$70k

$100k

19%

32%

48%

$7,600

$22,400

$48,000

Did You Know That…

TOP THIRD PERFORMERS MAKE YOU MONEYMAKE YOU MONEY

MIDDLE THIRD PERFORMERS MAINTAIN STATUS QUOMAINTAIN STATUS QUO

BOTTOM THIRD PERFORMERS LOSE YOU MONEYLOSE YOU MONEY

Did You Know That…

• When managers were asked:

Q:”If you knew at the time of hire what you now know, would you rehire?

A: 32% of current staff would not be rehired!

The Cost of Getting it Wrong

• Recruitment is not a perfect science…in the people business, mistakes can occur

• The cost of hiring the wrong person includes:– Salary cost of payout/notice period– Lost productivity (of the hired person and co-worker overload)– Lost productivity (morale drop of co-workers and teams)– Re-hire costs– Learning curve ‘productivity lag’ of new starter– Re-training costs– Loss of intellectual capital

Common Problems in Selection

• Important information is missed• Applicant data is misinterpreted• Biases and stereotypes affect judgement• Decisions are made too quickly• Too much reliance on interview• Pressure to fill positions affects judgement• Interviewer’s hiring decisions not systematic• Availability of candidates affect judgement

The Case for Employee Profiling

CORRECT DECISION INCORRECT DECISION

The person “looks right and is right”

- obvious hire, can demand higher salary

The person “looks wrong and is right”

- missed opportunity

The person “looks right and is wrong”

- management problem

The person “looks wrong and is wrong”

- risk avoided

Suitable Candidate

Unsuitable Candidate

Correct Decision Incorrect Decision

Temperament

Behaviour in a particular situation and the use of personal resources

Based on habits, feelings, attitudes and emotions

Interests

Effects both performance and job satisfaction

Abilities

Cognitive or intellectual abilities. Some are learned or formalised, others are more innate.

Knowledge, Skills and Experience

This information is gathered through standard recruitment steps

CM AssessmentStandard Recruitment

Understanding the Person

BEHAVIOUR PERSON ENVIRONMENT

Can Do

Motivation

Want to

How to

Temperament

Interests

Ability Aptitude

Employee Engagement

SkillsKnowledge Experience

Performance

Satisfaction

= fn ( X )

PerformanceManagement

Systems

Co-operativeWorking

structures

OrganisationalAdaptiveness

Power/Politics/Culture

Calibre of Leadership

The Formula For Behaviour

“Management Speak”

“We expected that Good to Great leaders start out by setting a new vision and strategy.

We found instead that they first got the right people on the bus, the wrong people off the bus, the right people in the right seats - and then they figured out where to drive it.”Good to Great, Jim Collins

“Management Speak”

Strategy Systems People Passion

15 20 35 30

% Importance of Success Factors Tom Peters

www.tompeters.com/slides/uploaded/Talent50_101305.ppt

Performance & Productivity

Jim’s “Right People”…

Tom’s “Passionate People”…

Performance & Productivity: the constant effort to increase the number of stars, get the best from the core and move low performers as fast as you can

The Value of Employee Profiling

Competency Cognitive Skills

Integrity Initiative Achievement Drive

Technical

Interview (Unstructured)

Interview (Behavioural)

Reference Check

(structured)

Work Sampling

Ability Testing

IQ Assessment

Narrow Personality

Broad Personality

Most useful Least useful

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7C

orr

ela

tio

n C

oe

ffic

ien

t

Selection Method

Techniques to Measure BehaviourPredictability Ratings

Temperament

Interests

PerformanceCan Do

Satisfaction

Ability Aptitude

Employee Engagement

SkillsKnowledge Experience

Motivation

Want to

How to

BEHAVIOUR PERSON ENVIRONMENT= fn ( X )

•Behavioural Interviews

•Work Sample tests

•Cognitive Ability appraisal

•Behavioural Interviews

•Personality questionnaires

•Reference checking

Best Fit Concept

The Use of Employee Profiling

• Organisations are increasingly using psychometric assessment to select the right person for the right job:

– Do they have the skills and abilities to do the job?– Are they motivated to do the job? – Will they be motivated to stay with the organisation?– Will they fit within the culture?– Will they do the right thing by the organisation?

Testing for Skills and Abilities

• Specialist tests

– Verbal and Numerical Reasoning– Mechanical Reasoning– Understanding Instructions– Visual Checking– Fault Finding – Spatial Checking– Technical Understanding– Abstract Reasoning

• Work simulations- including role plays, in-tray exercises, presentations

Assessment for ‘Fit’

• Use a personality scale to assess what makes the person tick:

– Teamwork

– Commitment

– Work ethic

– Safety focus

– Focus on detail

– Ability to work autonomously

– Ability to take the initiative

– Perseverance

– Results focus

– Integrity

– Motivation for the role

– How to manage the person

– How to keep them motivated

The ESP provides a report that includes:

Employee Profiling Innvovations

shortlist of jobs that best fit their soft skills including a comprehensive job fit report

job fit reports of employer specific jobs and local skill shortages

Training & development suggestions

CM developed the ESP, a leading edge system that provides information on the strenghts and weaknessess of an individual in relation to different roles in the organisation

Understanding the job fit of a candidate and their potential for different roles in your organisation

How ESP works

Suitability of candidate for a

particular role in their organisation

Suitability of candidate for other roles (across and

higher up the organisational

structure)Provision of

management and training advice in

case there is a gap between job

requirements and the candidate’s

profile

?

How ESP works

I nitiative &Enterprise

Team W ork ProblemSolving

Self-Management

Planning &Organising

SpeakingEff ectively

Assertiveness Persuasiveness Netw orking

Em pathy

Behaviou r A Behaviou r B Behaviou r C Behaviou r D

Behaviours

UnderstandingVerbal I nstructions

I nform ationSharing

Customer Focus

Competencies

Com m unication Learning Technology

Em ployability Skills

Em ployability

The ability to listen and understand spoken instructions

How ESP works

Pre-tasks• Consent• Moving Through the Tasks • A Short Practice Task • QuestionnaireEntry Level - Skilled• Humm Wadsworth Temperament Scale• Working with Numbers (SHL NWP2) • Understanding Instructions (SHL VWP1)• Reasoning (SHL DC3.1R )Professional• Humm Wadsworth Temperament Scale• Numerical Reasoning (SHL NMG2004) • Reasoning (SHL DC3.1R) • Verbal Reasoning (SHL VMG2004)

Profiling Against Multiple Roles

Innovation Features

• Evaluation of all staff possible• Against universally-accepted Employability Skills• Produces Degree of Fit to Role report, not percentile

numbers• Online, on-site, on demand• Instant access to all reports• Average assessment time for both entry and professional

level assessments reduced by 40%• Assess once – apply each time a decision is required

against any role

Questions ?…