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If you want to raise your company’s talent bar, you first need to know where the bar is set. Learn from Lou Adler that measuring quality of hire starts by defining it, how to get hiring managers on-board, forget the interview, and conduct a pre-hire performance review instead, and how big data raises your company’s talent bar. Continue your talent acquisition transformation at Talent Connect 365: http://linkd.in/1z8YEaf
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How to Measure and Maximize Quality of Hire
… and Achieve an ROI > 500%!
Based on Lou Adler’s
Hire With Your Head and The Essen2al Guide for Hiring & Ge8ng Hired
Rev 814-‐A
#intalent
Investment or Expense?
Raise ROI or Reduce Costs?
Surplus or Scarcity?
Maintain or Raise Talent Level?
#intalent ROI Calculator = budurl.com/ROICalc
Mid-third
Strategy/Process/People Raise Talent Bar
Existing Processes Maintain Talent Level
Shortcuts/Random Lower the Bar
Upper-third Lower-third
What’s Your Talent Strategy?
Difference in Performance of People Hired #intalent
Mid-third
Strategy/Process/People Raise Talent Bar
Existing Processes Maintain Talent Level
Shortcuts/Random Lower the Bar
Upper-third Lower-third
What’s Your Talent Strategy?
Difference in Performance of People Hired
Efficiency & Minimize
Cost
#intalent
Mid-third
Strategy/Process/People Raise Talent Bar
Existing Processes Maintain Talent Level
Shortcuts/Random Lower the Bar
Upper-third Lower-third
What’s Your Talent Strategy?
Difference in Performance of People Hired
Max Speed & Volume
Efficiency & Minimize
Cost
#intalent
Mid-third
Strategy/Process/People Raise Talent Bar
Existing Processes Maintain Talent Level
Shortcuts/Random Lower the Bar
Upper-third Lower-third
What’s Your Talent Strategy?
Difference in Performance of People Hired
Max Speed & Volume
Efficiency & Minimize
Cost
Max Quality & ROI
#intalent
What’s the ROI of a
15% Better Person?
What’s the ROI of a
15% Better Person?
What’s the ROI of a
15% Better Person?
Profit to Salary Multiplier
$600K x 40% = $240K
$240K/$100K = $2.40
What’s the ROI of a
15% Better Person?
Salary 100 people hired @ $100K each = $10mm
Avg Generate $24mm Profit per Year
Top 1/3 will generate $3.6mm/yr more or $14mm extra variable profit over 4 yrs
ROI = $14mm/Cost to Hire Top 1/3 200% to 700%
Profit to Salary Multiplier
$600K x 40% = $240K
$240K/$100K = $2.40
Requirements to Hire Top-Third
#intalent
Requirements to Hire Top-Third
Different Strategy Attract In vs. Weed Out
Different Processes Benchmark the Best
Shift Sourcing Mix More Passive
Talent Partnership Recruiter & Manager
Solution vs. Transaction-based
Performance Metrics
#intalent
Rethinking Talent Strategy Is there a surplus of the best people or scarcity?
HAVE GET BECOME DO
#intalent
Rethinking Talent Strategy Is there a surplus of the best people or scarcity?
HAVE GET BECOME DO
Surplus – Weed Out the Weak – Active – Best Who Apply
#intalent
Rethinking Talent Strategy Is there a surplus of the best people or scarcity?
HAVE GET BECOME DO
Surplus – Weed Out the Weak – Active – Best Who Apply
Scarcity – Attract the Best – Passive – Raise the Talent Bar
#intalent
Rethinking Talent Strategy Is there a surplus of the best people or scarcity?
HAVE GET BECOME DO
Surplus – Weed Out the Weak – Active – Best Who Apply
Scarcity – Attract the Best – Passive – Raise the Talent Bar
DO BECOME
#intalent
Rethinking Talent Strategy Is there a surplus of the best people or scarcity?
HAVE GET BECOME DO
Surplus – Weed Out the Weak – Active – Best Who Apply
Scarcity – Attract the Best – Passive – Raise the Talent Bar
DO BECOME
Hiring Manager Focus: DOING vs. HAVING
Top Candidate Focus: DOING & BECOMING vs. GETTING #intalent
Zone 1 Zone 2 Zone 3 Zone 4 Very Active Tiptoers Explorers Super Passive
Time
Growth and
Impa
ct
Increase Quality by Career Zone
#intalent
Zone 1 Zone 2 Zone 3 Zone 4 Very Active Tiptoers Explorers Super Passive
Time
Growth and
Impa
ct
Increase Quality by Career Zone
#intalent
Zone 1 Zone 2 Zone 3 Zone 4 Very Active Tiptoers Explorers Super Passive
Time
Growth and
Impa
ct
Increase Quality by Career Zone
#intalent
Extraordinary Career Move
Significant Career Move
Much BeIer Job
Somewhat BeIer Job
Zone 1 Zone 2 Zone 3 Zone 4 Very Active Tiptoers Explorers Super Passive
Time
Growth and
Impa
ct
Extraordinary Career Move
Significant Career Move
Much BeIer Job
Somewhat BeIer Job
Increase Quality by Career Zone 20% - Ads 40% - Email/ERP 40% - Networking
#intalent
Zone 1 Zone 2 Zone 3 Zone 4 Very Active Tiptoers Explorers Super Passive
Time
Growth and
Impa
ct
Extraordinary Career Move
Significant Career Move
Much BeIer Job
Somewhat BeIer Job
Increase Quality by Career Zone
Shift to Steeper Part of the Career Zone Curve
20% - Ads 40% - Email/ERP 40% - Networking
#intalent
Zone 1 Zone 2 Zone 3 Zone 4 Very Active Tiptoers Explorers Super Passive
Time
Growth and
Impa
ct
Extraordinary Career Move
Significant Career Move
Much BeIer Job
Somewhat BeIer Job
Increase Quality by Career Zone
Shift to Steeper Part of the Career Zone Curve
20% - Ads 40% - Email/ERP 40% - Networking
5%
20% 50%
25%
#intalent
How Do You Find Your Best People?
#intalent
How Do You Find Your Best People?
#intalent
How Do You Find Your Best People?
#intalent
How Do You Find Your Best People?
#intalent
How Do You Find Your Best People?
#intalent
How Do You Find Your Best People?
#intalent
Define Pre-Hire Quality
#intalent
Define Pre-Hire Quality
#intalent
This is not a job description. It’s a person description.
Define Pre-Hire Quality
#intalent
This is not a job description. It’s a person description.
Define Pre-Hire Quality What’s the Real Job? • Collaborate with sales rep to
develop customer solutions at C-level in F500 companies
• Lead intense detailed product spec presentations to sophisticated buying groups
• Work with contracts to develop cost/price/margin analysis for $5mm+ programs
• Handle 3-6 major programs concurrently
This is not a job description. It’s a person description.
#intalent
Conduct Pre-hire Performance Review
#intalent
Conduct Pre-hire Performance Review
Question 1: Ask MSA question for job-related, team & individual tasks
TIME
IMPACT
#intalent
Conduct Pre-hire Performance Review
Question 1: Ask MSA question for job-related, team & individual tasks
TIME
IMPACT
Individual
Ask many MSA questions to see growth over time
#intalent
Conduct Pre-hire Performance Review
Question 1: Ask MSA question for job-related, team & individual tasks
TIME
IMPACT
Team
Individual
Ask many MSA questions to see growth over time
#intalent
Conduct Pre-hire Performance Review
Question 1: Ask MSA question for job-related, team & individual tasks
Have candidate prepare a 360° work chart for team relations
TIME
IMPACT
Team
Individual
Ask many MSA questions to see growth over time
#intalent
How to Measure Quality of Hire Pre- and Post
How to Measure Quality of Hire Pre- and Post
How to Measure Quality of Hire Pre- and Post
How to Measure Quality of Hire Pre- and Post
Rank in Comparison to Job 1.0 The Bottom Third 2.0 Middle Third 2.5 Current Average 3.0 Rock Solid: top 20% 4.0 Top-notch: top 10-15% 5.0 Rock Star: top 5% Compare Pre- and Post-hire Results for Feedback and Process Improvements
How to Measure Quality of Hire Pre- and Post
Rank in Comparison to Job 1.0 The Bottom Third 2.0 Middle Third 2.5 Current Average 3.0 Rock Solid: top 20% 4.0 Top-notch: top 10-15% 5.0 Rock Star: top 5% Compare Pre- and Post-hire Results for Feedback and Process Improvements
ROI Calculator budurl.com/ROICalc
Measure & Max Quality of Hire
#intalent
Measure & Max Quality of Hire
#intalent
Measure & Max Quality of Hire
#intalent
Measure & Max Quality of Hire
#intalent
Measure & Max Quality of Hire
#intalent
Measure & Max Quality of Hire
#intalent
Measure & Max Quality of Hire
What’s the ROI of a Top-third vs. Mid-third?
#intalent
Performance-based Hiring
ROI: Raise Talent Bar
#intalent
Performance-based Hiring
High-tech LinkedIn Recruiter & High-touch Performance-based
Hiring Proof of Concept
[email protected] ROI: Raise Talent Bar
#intalent
Proof of Concept
