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Transcript of Bruce Crumley Blog:
Bruce CrumleyBlog:
www.executiveandhrguidance.blogspot.com/
Technologically Advanced Assessments/Systems in driving
Sustainable Business Success through Performance Modeling/Benchmarking
and 360 Performance Reviews in Business and the BPO Industry
Bruce CrumleyDirector – Enterprise Solutions
Profiles Asia Pacific/People DynamicsSeptember 21, 2011
WHY THESE TWO TOPICS?
• HUMAN RESOURCES IS THE DRIVING DIFFERENCE FOR SUSTAINABILITY
• PERFORMANCE MODELING/BENCHMARKING DRIVES SUCCESS THROUGH JOB FIT
• 360 PERFORMANCE REVIEWS GIVE METRICS FOR CAREER DEVELOPMENT AND LEADERSHIP
• BIGGEST SHORTAGE GLOBALLY IS LEADERSHIP IN THE COMING 5-10 YEARS
Overview
• Advent of Technology – Online• Performance Modeling/Job
Pattern/Benchmarking• Job FIT• BPO Experiences and Processes• Technologically Advanced Systems – Recently
Developed• Applicant Tracking Systems to Speed Delivery• 360 Performance Reviews
Advent of Technology
Forms of Administration of Assessments
• Paper and Pen– Still Used in Areas of the Philippines where
Broadband is not reliable– Presently generally Small/Medium users still use
these– Disadvantages: Slow, Prone to Error, Difficult to
Use the Information and Merge it, Consumes a lot of Peopletime leading to SIGNIFICANT LOST PRODUCTIVITY
• LAN Based, Computer-Based – Mid-90’s• Online – Introduced in The Philippines in 2002
Assessments• Costs per Assessment have come down
significantly in recent years• Information is more Scientific and Predictive
than ever before - Psychometricians are not required to obtain reliable results
• Information can now be Utilized in many different formats and uses – Quantification rather than just Qualification
• Distortion – consistency in answering questions is measured in good Assessments
Assessments II• Need to Screen and Hire larger quantities of
candidates in less time – fast ramp-up! GLOBALLY
• Some Have Behavioral Event Interview Questions
• Ipastive is being replaced more by Normative Assessments – Normative is based on a population rather than how one compares oneself to oneself
• Speed of Results and Accuracy!
The Top Three Reasons People Fail
Incompetence
Incompatibility
Dishonesty
Peter Drucker,Famous Management Consultant:
“Chances are good that up to 66% of your company’s
hiring decisions will prove to be mistakes in the first
twelve months.”
Why New Hires Fail• Technical skills are not the primary reason new hires fail.
• Poor interpersonal skills within management dominate the list.
• 46% of newly-hired employees will fail within 18 months.
• 19% will achieve unequivocal success.
Leadership IQ, News Release (WASHINGTON, D.C.) December 2, 2009
Have you ever hired someone
who did not reach your
expectations?
The Total Person
10% - Good But Limited Information:
Skills, Experience - Resume
90% - Essence of the Total
Person:Thinking Style
Occupational Interests
Behavioral Traits
Job and Company Fit
Utilize All Of Your Resources
75%
66%
54%
38%
26%
14%InterviewBackground Checks & Integrity Testing Personality TestingAbility Testing
Interest TestingJOB MATCHING
– Psychological Bulletin Vol. 96, No. 1, August 1994 Professor Mike Smith, University of Manchester
Performance Model =Job Pattern =
Benchmarking=>
Job FIT
Creating Job Patterns
• Benchmarkingis an important and often
neglected aspect in the correct use of Employment Assessments
• It is Company and Job Specific
Consider Behaviors, Interests, and Abilities Identify the most critical characteristics needed for
job success Establish a benchmark based on top performing
incumbents to which prospects may be compared Must be based on critical job performance measures Results in a Job Match Percent to help make
decisions about hiring, placement, and training Job Match should NEVER be more than 1/3 of the
information used to make a hiring decision.
16
Performance Models/Benchmarking
® 2010 Profiles International www.profilesinternational.com
Benchmarks
• Selected Tools allow the Ability to almost instantaneously refine/revise Benchmarks– Eliminates the need for Consultants to benchmark
positions – flexibility, cost and time– Dynamic and rapid market changes require
frequent adjustments to benchmarks
Source: Oracle Human Capital management event
Essential First Step is Hiring Right
SPEED
is the real
differentiator of
today.
TALENT ACQUISITION: Your Strategy
1. Determine measurable criteria for position.
21
1. Determine measurable criteria for position.
2. Based on selected measurable criteria, determine top performers.
Identifying Top Performers
Identifying Top Performers
• Use new sheet for each position
• Carefully identify objective performance criteria (‘Pers’)
• Use new sheet for each position
• Carefully identify objective performance criteria (‘Pers’)
Score each employeeScore each employee
New Business Sales
Margin/Profitability
Client Retention
Repeat Business TargetD
ave
Mik
e
Car
en
Jim
Oli
via
Shau
n
Noe
l
9 16 10 10 15 20 18
Sales Representative
July 22nd 2007
Tom Manager
Top Performers score highest
Top Performers score highest
Review for accuracyReview for accuracy
5
21
1
3
54
332
2
23
4
34
5
55
5
44
3 4 5 524
23
1. Determine measurable criteria for position.2. Based on selected measurable criteria,
determine top performers.3. Communication to individuals that will be
taking assessments. (Suggested that you assess all in position)
24
1. Determine measurable criteria for position.
2. Based on selected measurable criteria, determine top performers.
3. Communication to individuals that will be taking assessments. (Suggested that you assess all in position)
4. Schedule Assessments.
25
1. Determine measurable criteria for position.2. Based on selected measurable criteria,
determine top performers.3. Communication to individuals that will be
taking assessments. (Suggested that you assess all in position)
4. Schedule Assessments.
5. Build pattern
a
a
28
1. Determine measurable criteria for position.2. Based on selected measurable criteria,
determine top performers.3. Communication to individuals that will be
taking assessments. (Suggested that you assess all in position)
4. Schedule Assessments.5. Build pattern
6. Review pattern
Thinking and Reasoning [CAN THE PERSON DO THE JOB?]
Learning Index Verbal Skill &
Reasoning Numerical Abilities & Reasoning
Occupational Interests [WILL THE PERSON DO THE JOB?]
Enterprising Financial / Administrative People Service Technical Mechanical Creative
Behavioral Traits [HOW WILL THE PERSON DO THE JOB?]
Energy Level Assertiveness Sociability Manageability Attitude Decisiveness Accommodati
ng Independence Objective Judgment
Graph Report
One-page graphical summary of candidate vs. position
All critical information
For experienced users
Useful in multi-candidate reviews
One-page graphical summary of candidate vs. position
All critical information
For experienced users
Useful in multi-candidate reviews
Top and Bottom Performers
Representation of Top Performer STEN ScaleFor the top performers, the computer-generated Performance Model (blue) is toward the high end for this trait.
Representation of Bottom Performer STEN ScaleThe computer-generated Performance Model for bottom performers (red) is toward the low end of this trait.
Representation of STEN scores for two groups of employeesThe results for bottom performers are shaded red and the results for the top performers shaded blue.
STEN Scores 1 2 3 4 5 6 7 8 9 10
Subjects 1 2 3 3 2 1
STEN Scores 1 2 3 4 5 6 7 8 9 10
Subjects 1 2 3 3 2 1
1 2 3 4 5 6 7 8 9 10
32® 2010 Profiles International www.profilesinternational.com
Justifications:
JOB FIT=>TURNOVER
ROI
The New Art of Hiring Smart
JOB MATCH OR NO JOB MATCH
Low Turnover Industry – Sample Size: 5,941
Percentage who quit or were fired after 6 months: 25% 5%
Percentage who quit or were fired after 14 months: 34% 8%
YesNo
Job Match?
Source: Herbert M. Greenberg and Jeanne Greenberg, “Job Matching forBetter Sales Performance,” Harvard Business Review, Vol. 58, No. 5.
: 13,102
Percentage who quit or were fired after 6 months: 46% 24%
Percentage who quit or were fired after 14 months: 57% 28%
YESsHigh Turnover Industry No
Job Match?
37
Business Case and ROI
Note: Graph is improvement in 30-day attrition in North America after rollout of Profiles XT vendor.
April May June0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
16.3%15.4%
7.5%
Skills AddedMidway through Month
Skills
30 DayLinear (30 Day)Skills Added
Impact of Assessment and skills Testing on 30-Day turnover
ROI Calculator
38
Based on 2009 to date 90-Day attrition: 732
Reducing the attrition numbers with improved processes and better screening directly impacts cost to re-hire for the same positions.
Direct correlation of decreased attrition and costs
39
1 2 3 4 5 6 7$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
650
660
670
680
690
700
710
720
730
Direct Correlation of Reduced Attrition and Cost Savings
Annual Savings Annual Attrition Logarithmic (Annual Attrition)
40
Talent War – a new playing field
They have changed the rules of the game ……
They have new players…………..
Winning in talent sourcing is a business imperative…….
They even break the rules….
So you think your business is impervious to this onslaught …..
BPO PROCESSES
HIRING PROCESS
Application/ATS
Phone Screen
Job Preview
Assessments
Structured Interview
Job Offer
Background Checks
Follow-up call/Welcome Call
Associate Selection Process I
Application/ATS – 30 mins
Screening Interview – 15 mins
Language Assessment – 20 mins
Skills Verification – 60 mins
Program Fit – 30 mins.
Organizational Fit – 30 mins
Job Offer – 30 mins
Follow-up call/Welcome Call
Associate Selection Process II
Technologically Advanced Systems
Avatar Audio Visual - Giving Instructions and Explanations
THESE AVATARS CAN BE IN MULTIPLE LANGUAGES
in our caseOver 32 different Languages
and Normed for Each Country
ARTIFICIAL INTELLIGENCE
ATS / RMS
Preparing for Success
Overview ATS/ RMS
• Makes a complete solution• Makes using assessments easier• Makes comparing candidates easier• Makes hiring better employees easier• INTEGRATES with Job Boards, Assessments,
HRIS
Overview ATS• Key competitive advantages
– Built around world class assessments designed to help your organization hire people that “FIT”
– Flexible implementation• Complete custom job board• One time usage or annual license with unlimited usage• Everything in between!
– Robust Applicant Processing Features• Candidates easily apply online• Tools to move candidates through the process• Easy to review RSD (Rapid Screening Data)• Easy to share candidate information with hiring managers
– Affordable
AdvantagesAdvantages• Easy-to-use online system for processing unlimited
applicants for unlimited numbers of positions• Priced for unlimited use of selection tests per year or
per job posting.• Designed for long-term development of and
management of a private talent pool.• Enables an organization to inexpensively implement
selection testing across the company or for specific positions.
• Premium quality tests like ours provide significant competitive advantage over most applicant-tracking systems.
• System complements internal corporate recruiters.• System simplifies screening and selection
administration.
TACTICAL RECRUITING SOLUTION
What PDI Acclaim Does
Automate the process. Accelerate your business. Dominate the market.
Fully-Automated Processes
Computer-adaptive interviews
Extensive Job Matching Assessments
Candidate Ranking
Auto-scheduling of Face-to-Face Interview
Automate your hiring process with intelligence
Easy integration with other on-boarding processes
Uses the IVR (interactive voice response) technology
Automate the process. Accelerate your business. Dominate the market.
What PDI Acclaim Does:
Configurable script engine enables changing the flow of questions, on the fly, based on candidate responses, can also: launch another program, or redirect candidate to
another website
The Acclaim Reporting Suite includes the following reports:• Analysis of Candidate Responses• Candidate Volume• Source of Referral• Partial vs. Completed Candidates• Desired Compensation vs. Previous Experience• Applicant Review Code Status Summary• Application Intake Methods• Quality of Candidates vs. Source of Referral• EEOC Summary• Adverse Impact Analyses• Job Satisfaction vs. Initial Qualifications• Productivity of Employees vs. Initial Qualifications
Automate the process. Accelerate your business. Dominate the market.
What PDI Acclaim Does:
Our goal today…
Web delivery System•Scheduling an
assessment•Retrieving reports•Candidate
experience
360 PERFORMANCE REVIEWS
Internal CustomersDirect Report
Direct Report
Direct Report
ExternalCustomers
Suppliers
PeersMe/Mgr(ratee)
Supervisor/Boss
Supervisor/Boss
Me/Manager
Comparison of Feedback Systems
Traditional Feedback 360° Feedback
The 360o ConceptBoss
Direct Report
Peers
Self
Others
OBSERVABLE BEHAVIOR
59© 2010 Profiles International www.profilesinternational.com
Managers Ignoring Employees
• Employees want a lot more attention and feedback from management.
• 66% of employees say that they have too little interaction with their boss.
• This number is up from 53% in May, 2008, the last time this study was conducted.
Leadership IQ, News Release (WASHINGTON, D.C.) December 2, 2009
The News Gets Worse
The Threat of Loosing High Performers
According to a new study by Leadership IQ, 47% of high performers are actively looking for other jobs (posting and submitting resumes, and even going on interviews).
Consequences at the Top
• 31% of CEOs get fired for mismanaging
change• 28% for ignoring customers• 27% for tolerating low performers • 23% for denying reality • 22% for too much talk and not enough action LeadershipIQ.com. News Release (WASHINGTON, D.C.)
Why 360’S Now?• Managers are chasing the numbers• Have most dialog with their Boss• Spend little time analyzing or defining their own
Competencies and Skill Sets• Hamster on wheel analogy• Issues with learning “something new”• Working without a net…little or no information• Much easier place to start in this market
(internal candidates)• 360’s Points to additional solutions….logically
and Quantifiably
ONLINE 360
• CONFIDENTIALITY• CANDID RESPONSES• IF ASSEMBLED AND MERGED ALL ON LINE-
COMPLETE CONFIDENTIALITY – as no one sees the inputs coming from raters
Management Gap
The Gap
PATH GOAL!
Information Bridge
GOAL!
The Gap
PATH
Feedback
Fee
dbac
k
Closing the Gap
The 360 is businesses feedback bridge to ensure Managers/Leaders can safely
close the information gap.
Gaps Between Individual Respondent Groups
These gaps occur when there is a difference of at least 1.5 points between respondent group averages.
68© 2010 Profiles International www.profilesinternational.com
Executive Skill Set Summary Report
69© 2010 Profiles International www.profilesinternational.com
Reasons for 360’s1. Current Reality, Leaders need and want to know “how are they
doing?”2. Issue awareness.3. Addresses business’ most pressing needs “Leadership development”4. Career Development and Advancement5. Gives employees a safe place to give honest feedback on a regular
bases.6. Timing…many companies readily admit they have a weak “bench”
Regarding leaders. A lot of great talent is lost in financial downturns.7. Establishes the RoadMap for a Manager’s Individual Development
Plan (IDP
McKinsey Reports 2007
Making Talent a Priority
• Experience suggests – exclusive focus on top players can damage the morale of the rest of the Organization -> Overall Performance
Overview• Advent of Technology –> Online• Performance Modeling/Job
Pattern/Benchmarking• Job FIT• BPO Experiences and Processes• Technologically Advanced Systems – Recently
Developed – Avatars, Artificial Intelligence• Applicant Tracking Systems to Speed Delivery• 360 Performance Reviews for Leader ID
HR and Technology:
• If you want one year of prosperity, grow grain.
• If you want 10 years of prosperity, grow trees.
• If you want 100 years of prosperity, grow people.
— Chinese proverb
Thank You!
Bruce CrumleyBlog: www.executiveandhrguidance.blogspot.com/
Director Enterprise SolutionsProfiles Asia Pacific/People Dynamics
[email protected]@Peopledynamics.phMobile: +63-917-528-9862