We Got One! How to Measure How Well You’re Hiring

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We Got One! How to Measure How Well You’re Hiring Tom Morley, President, Snowflake Llc

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Today’s Content Leader Tom Morley President, Snowflake LLC Strategy, organization, and people subject matter expert 17 years consulting to leaders in all sectors, US and abroad Twitter: @snowflakellc

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The “right” people A Simple Workforce Challenge Inspire Hire Identify A changing world calls for different resources People are a limiting factor for strategy It’s hard to hire the people you need Today’s challenges require inspired solutions

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Did We Get This One Right? Measuring what’s important about individuals Typical measurable elements of “right” Readiness – Prepared for what’s expected Performance – Delivering results, good “fit” These elements cover other indicators The organization may have other factors

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Is the individual “right”?

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Readiness Is the employee prepared to contribute when asked? Knowledge and skills at prescribed times Measure milestone capabilities Align with development plans Three primary methods: Requirements tracking Gateway knowledge assessment Short-term evaluation

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Readiness Requirements tracking – “Did he/she get the basics?” Benefits Simplest form to track Can measure and respond within activity Data can be collected and analyzed Problems Assumes training effectiveness Tests are often too easy No clear consequences

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Readiness Gateway knowledge assessment – “Is he/she ready?” Benefits Rigorous Tests knowledge, not memory Can identify and address gaps Problems How much is “too much”? Wrong person, or wrong program?* Possible legal risks

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Readiness Short-term evaluation – “Is this working out?” Benefits Early recognition Opportunity to correct May be able to identify commonalities Problems Can be highly subjective Whose “fault” is it?* Limited, often costly options

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Readiness Overall evaluative contribution Value Individual-level “course correction” Aggregate trends Concerns Problem misidentification When to “pull the plug”?

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Performance Is the person continuously contributing as expected? Accomplishing, inspiring, and advancing Evaluate results of work and participation Assess and project impact on organization Three primary methods: Performance reviews Achievements Return on investment (ROI)

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Performance Reviews – “Is he/she having the expected impact?” Common types of reviews Routine interim and annual On-going dialogue 360o feedback PIP evaluations Competency assessments – performance?

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Performance Reviews – “Is he/she having the expected impact?” Benefits Assess contributions and “fit” Positive and negative incentivization Realignment and continuous growth Problems Subjectivity, real or perceived Tendency to over-rate Too infrequent, no dialogue

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Performance Reviews – “Is he/she having the expected impact?” Key indicator of “right”, if you: Measure what matters Align and adjust Ensure “realism” and feasibility Include effects on work environment Provide adequate support Train managers Review and reconcile Can tie back to hiring

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Performance Achievements – “Does the individual ‘stand out’”? Common types of verifiable achievements Promotions (individual’s or others’) Initiative leadership or participation Internal and external awards Industry thought leadership

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Performance Achievements – “Does the individual ‘stand out’?” Benefits Indicates intangible leadership qualities Recognizes “going the extra mile” Can be sufficient reward by itself Problems Validity of promotions Need to distinguish quality, quantity Impediments to opportunity

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Performance ROI – “What is his/her impact on the ‘bottom line’?” Benefits Outcome-oriented Very specific indicator of impacts Quantitative, difficult to dispute Problems Requires complete, accurate data Primarily supports transactional Hard to establish cause-and-effect

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Performance Overall evaluative contribution Value Individual impact Aggregate trends Concerns Subjectivity Opportunity and support

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Does the process deliver?

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Are We Getting Them Right? Measuring aggregate hiring effectiveness Typical measurable elements of overall workforce Recruiting Hiring Selection Retention Statistics don’t lie, but they do misdirect

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Recruiting Are we identifying the right candidates? Delivering a qualified pool to choose from Analyze applicant statistics Assess efficacy of identification Key statistics: Gross number and proportion qualified Alignment of managers and recruiters “Dropout” rate

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Recruiting Contributions of recruiting statistics Benefits Determine if recruiting strategy is working Monitor performance of recruiters Improve communications Problems Rely on appropriateness of definitions Require explanatory analysis Some aspects beyond control

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Recruiting Exploring recruiting issues Key explanatory statistics Qualified candidates by source Number and percentage qualified by role Time from contact to interview Qualitative indicators Individual candidate feedback Labor market surveys

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Hiring Are the people we want accepting our offers? Securing the selections Evaluate hiring statistics Assess ability to capture Key statistics: Total acceptance rate Average rank choice accepting

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Hiring Contributions of hiring statistics Benefits Evaluate success securing desired candidates Problems Require explanatory analysis Market dependencies Some aspects beyond control

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Hiring Exploring hiring issues Key explanatory statistics Cycle time (from contact, interview to offer) Acceptance rate by job, source, demographic Compensation demand gaps Qualitative indicators Individual candidate feedback

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Selection Are the people we’re hiring turning out “right”? Investigating outcomes Review performance statistics Assess workforce potential Key statistics: Distribution of performance ratings Average time in position, # of promotions Proportion of positions filled internally

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Selection Contributions of selection statistics Benefits Potentially best indicator across life cycle Possibility of discovering systemic issues Problems Many other factors may explain Require explanatory analysis Some aspects beyond control

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Selection Exploring potential selection issues Key explanatory statistics Aggregate department, enterprise performance Distribution of ratings vs. outcomes Proportion of internal openings to staff Qualitative indicators Employee, culture surveys Organization assessments

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Retention Are the “right” people sticking around? Evaluating retention Assess turnover statistics Determine elements within control Key statistics: Turnover rate by performance ratings

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Retention Contributions of retention statistics Benefits Identify potential environmental concerns Possible indicator of incentive misalignment Discover need for policy changes Problems Require explanatory analysis Market dependencies Some aspects beyond control

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Selection Exploring potential retention issues Key explanatory statistics Average annual increase and incentive payments Proportion of promotion opportunities to staff Turnover after training, certification, etc. Turnover by job, manager, department Qualitative indicators Exit interviews, surveys External economy, market review

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Summary Measuring “right” – the individual and the process Have to define “right” to hire “right” Getting it “wrong” is costly, affects brand “Effectiveness” vs. “explanatory” measures Individual monitoring allows real-time correction Process evaluation: Can identify systemic challenges May not fix individual situations Environment may play a major role

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More Information Learn more about best practices and how they might apply to your organization Snowflake LLC +1.540.931.9943 info@snowflakellc.com www.snowflakellc.com/contact Facebook: www.facebook.com/snowflakellc Twitter: @snowflakellc