Developing the High Performance Workforce
Developing the High Performance Workforce
The right people can be the difference between success & failure, profit &
loss…
The right people can be the difference between success & failure, profit &
loss…
Is that too big a statement?Is that too big a statement?
.
‘‘Superior Superior Producers’Producers’
Top Top 16%16%
‘‘NonNonProducers’Producers’
Bottom Bottom 16%16%
‘‘Average Average Producers’Producers’
68%68%
Why does this matter? Why does this matter?
Unskilled / Semi-skilled
• ‘Average’ workers output = 19% more than ‘Non-producers’ • ‘Superior’ workers output = 19% more than ‘Average’ • ‘Superior’ workers output = 41% more than Non-producers’
Unskilled / Semi-skilled
• ‘Average’ workers output = 19% more than ‘Non-producers’ • ‘Superior’ workers output = 19% more than ‘Average’ • ‘Superior’ workers output = 41% more than Non-producers’
Skilled
• ‘Average’ workers output = 32% more than ‘Non-producers’ • ‘Superior’ workers output = 32% more than ‘Average’ • ‘Superior’ workers output = 74% more than Non-producers’
Skilled
• ‘Average’ workers output = 32% more than ‘Non-producers’ • ‘Superior’ workers output = 32% more than ‘Average’ • ‘Superior’ workers output = 74% more than Non-producers’
Management / Professional
• ‘Average’ workers output = 48% more than ‘Non-producers’ • ‘Superior’ workers output = 48% more than ‘Average’ • ‘Superior’ workers output = 119% more than ‘Non-producers’
Management / Professional
• ‘Average’ workers output = 48% more than ‘Non-producers’ • ‘Superior’ workers output = 48% more than ‘Average’ • ‘Superior’ workers output = 119% more than ‘Non-producers’
Source: “The validity and utility of selection methods in personnel psychology: Practical and theoretical implications of 85 years of research findings” Psychological Bulletin, Sept 1998, Vol 124, No. 2 pp 262 - 274
Source: “The validity and utility of selection methods in personnel psychology: Practical and theoretical implications of 85 years of research findings” Psychological Bulletin, Sept 1998, Vol 124, No. 2 pp 262 - 274
Imagine yours is a small company with…
Imagine yours is a small company with…
• 50 Unskilled / Semi-skilled workers• 25 Skilled Workers• 5 Managers
• 50 Unskilled / Semi-skilled workers• 25 Skilled Workers• 5 Managers
Cost of ‘Average’ vs. Cost of ‘Average’ vs. ‘Superior’ Performers‘Superior’ PerformersCost of ‘Average’ vs. Cost of ‘Average’ vs. ‘Superior’ Performers‘Superior’ Performers
X 0.19 =
Average Salary
Your cost per ‘Average’
No. in this category
X = Unskilled
Skilled
Total Exposure if all ‘average’ Total Exposure if all ‘average’ (total i + ii + iii)(total i + ii + iii)
(i)
Management
X 0.32 =
X = (ii)
X 0.48 =
X = (iii)
= (iv)
Your cost if all in this category ‘average’
£10,000 £1,900 50 £ 95,000
Percentage of ‘unproductive’ salary investment Percentage of ‘unproductive’ salary investment =
£20,000 £6,400 25 £160,000
£40,000 £19,000 5 £ 85,000
£340,000
28%
The Bottom LineThe Bottom Line
• These figures are not ‘worst case’: If any or all are below average, the loss for that position is doubled – but so is the potential for improvement
• Unless all of your people are ‘superior’ performers, you are losing money unnecessarily
• Regardless of how large or small your organisation the potential losses are relatively large
• Every time you move performance in any single job from ‘average’ to ‘superior’ you have a measurable financial impact
• These figures are not ‘worst case’: If any or all are below average, the loss for that position is doubled – but so is the potential for improvement
• Unless all of your people are ‘superior’ performers, you are losing money unnecessarily
• Regardless of how large or small your organisation the potential losses are relatively large
• Every time you move performance in any single job from ‘average’ to ‘superior’ you have a measurable financial impact
Your ChallengeYour Challenge
To ensure that every “people” decision your organisation makes -
whether recruiting, placement, promotion or development - is aimed at promoting ‘superior’
performance
To ensure that every “people” decision your organisation makes -
whether recruiting, placement, promotion or development - is aimed at promoting ‘superior’
performance
When do people
perform at a ‘superior’
level?
“It’s not experience – or college degrees –
or other accepted factors…
…(it) hinges on fit with
the job.”Source: Herbert M. Greenberg and Jeanne Greenberg, “Job Matching for Better Sales Performance,” Harvard Business
Review, Vol. 58, No. 5.
Superior performers
fit their jobs because
they:•Can deal with the mental
demands of the business
•Are comfortable with the
demands of the
environment and the
people they work with
•Enjoy the work and are
motivated to do it
You get just two bites at ‘superior’ performance
You get just two bites at ‘superior’ performance
Coach the people you’ve gotCoach the people you’ve got
Place the right people first timePlace the right people first time
The information-gathering process for recruitment & promotion:
The information-gathering process for recruitment & promotion:
“Checking the past”“Checking the past” “..and reviewing the present”“..and reviewing the present”
…to predict future ‘superior’ performance…to predict future ‘superior’ performance
Company Fit Attitudes,Values,
Demeanour,Appearance,
Integrity
Skill FitEducation, Training,
Experience,Skills, Etc.
Interviews have a 14% success rate in identifying superior people!
Hunter & Hunter “Validity & Utility of Alternative Predictors of Job Performance”. Psychological Bulletin, Vol. 96, No. 1. p90
With that process, here’s what you see
& recruit/promote…
Here’s what you get!
& here’s what you get!
With that process, here’s what you see
& recruit/promote…
No business can afford the risk!
Company Fit Attitudes,Values,
Demeanour,Appearance,
Integrity
Job FitPersonality,
Abilities,Interests
There is a missing third element that is essential…
There is a missing third element that is essential…
…for predicting future ‘superior’ performance…for predicting future ‘superior’ performance
Skill FitEducation, Training,
Experience,Skills, Etc.
So how do you achieve Job Fit?
So how do you achieve Job Fit?
It’s all about information• Objective information about the job Job Pattern
• Objective information about the candidate Assessment
• Comparison of the two Job Matching
It’s all about information• Objective information about the job Job Pattern
• Objective information about the candidate Assessment
• Comparison of the two Job Matching
But what information can you gather?
And what do you do with it?
But what information can you gather?
And what do you do with it?
What information can you gather?
What information can you gather?
What information can you gather?
What information can you gather?
Heads or Tails?Heads or Tails?
What information can you gather?
What information can you gather?
What information can you gather?
What information can you gather?
What information can you gather?
What information can you gather?
What information can you gather?
What information can you gather?
How do you gather it?How do you gather it?
All of this information is available
by using the right assessment
tools to support the recruitment, development and promotion
decision-making process
All of this information is available
by using the right assessment
tools to support the recruitment, development and promotion
decision-making process
And there’s a bonusAnd there’s a bonus
As well as performing better, job-matched staff also stay longer – saving a
fortune in recruitment costs
As well as performing better, job-matched staff also stay longer – saving a
fortune in recruitment costs
Source: Herbert M. Greenberg and Jeanne Greenberg, “Job Matching forBetter Sales Performance,” Harvard Business Review, Vol. 58, No. 5.
WithoutWithoutJob Job
MatchMatch
WithWithJob Job
MatchMatch
Low Turnover IndustryLow Turnover Industry
High Turnover IndustryHigh Turnover Industry
% left / fired after 6 months% left / fired after 6 months 46%46% 24% 24% % left / fired after 14 months % left / fired after 14 months 57% 57% 28% 28%
% left / fired after 6 months 25% 5%% left / fired after 6 months 25% 5% % left / fired after 14 months 34% 8%% left / fired after 14 months 34% 8%
What happens if you don’t put the right people in the right jobs?
What happens if you don’t put the right people in the right jobs?
What happens if you don’t put the right people in the right jobs?
The impact of poor job fitThe impact of poor job fit
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
USA
Canada
Ger
man
y
Japan
Gre
at B
ritain
France
Austra
lia
New Zea
land
Chile
Singap
ore
Engaged
Not Engaged
Actively Disengaged
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
USA
Canada
Ger
man
y
Japan
Gre
at B
ritain
France
Austra
lia
New Zea
land
Chile
Singap
ore
Engaged
Not Engaged
Actively Disengaged
Source: GallupSource: Gallup
Next steps: what should you do?
Next steps: what should you do?
• Identify your superior and bottom performers• Profile your superior performers (SPs)• Coach bottom and average performers for
better performance using SP profile• Do not invest in development without a clear
connection to superior performance• Promote/succession plan using SP profile• Recruit using SP profile• Review SP profile every quarter
• Identify your superior and bottom performers• Profile your superior performers (SPs)• Coach bottom and average performers for
better performance using SP profile• Do not invest in development without a clear
connection to superior performance• Promote/succession plan using SP profile• Recruit using SP profile• Review SP profile every quarter
Next steps: what should you do?
Next steps: what should you do?
• Start measuring performance in every job• Establish objective ‘pers’ for every position• Implement measurement of productivity
against these ‘pers’
• Quantify productivity gaps and target improvements
• Monitor continually for improved productivity
• Start measuring performance in every job• Establish objective ‘pers’ for every position• Implement measurement of productivity
against these ‘pers’
• Quantify productivity gaps and target improvements
• Monitor continually for improved productivity
Next steps: what should you do?
Next steps: what should you do?
Let’s talk!Let’s talk!
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