Workforce Performance Webinar
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Transcript of Workforce Performance Webinar
WORKFORCE DESIGNS Joe Davenport
1
TheTheHigh PerformanceHigh Performance
WorkforceWorkforce
Your Competitive Edge:
Presented byJoe DavenportWORKFORCE DESIGNSWORKFORCE DESIGNS
Who is WORKFORCE DESIGNS?
Helps clients of all types build and retain a top performing workforce
Is an outgrowth of 40 years of business / management experience in a variety of industries
Was created to satisfy the need for better information to make workforce management decisions
Is a strategic business partner with the recognized world leader in employment evaluation and human resource management assessment tools – Profiles International, Inc.
WORKFORCE DESIGNS Joe Davenport
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TodayToday’’s Objectivess Objectives
Learn how to:
Identify the characteristics of top performers
Select & retain the best people for your jobs
Maximize the performance of your current personnel
Make great people decisions!
Change companies from good to GREAT!
People are Key!People are Key!
Put the right people “on the bus”Get the wrong people “off the bus”Put the people in the right seats “on the bus”“The bus” will take you where you want to go
Jim Collins, author ofGood to Great says:
People are the key to the successof almost all endeavors . . .
Why should your business be any different?
WORKFORCE DESIGNS Joe Davenport
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Yin alone cannot ariseYang alone cannot grow
Yin and Yang are divisible but inseparable.
- ‘The Yellow Emperor’s Canon of Internal Medicine’
People & Processes are the Yin & Yang of business, yet the ‘people’ component
receives little management attention compared to the ‘processes’ component.
Why? . . . .
People ChallengesPeople Challenges
Most difficult to fix– People are emotional
Hardest to isolate– No line item on the financial statement
Recruiting costTurnover cost
Most costly– Companies spend 50-80% of their gross revenue
on employee-related costs– Lost opportunity cost
WORKFORCE DESIGNS Joe Davenport
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People ChallengesPeople Challenges
Most re-occurring– Peter Drucker says 66% of hiring decisions prove to be
wrong in 12 months and the people who are mis-hired seldom quit - they stay!
– 67% of employed people have positions in which they are not happy
Most time-consuming– Peter Drucker says 60% of management’s time is spent
fixing people problems and just 40% working to achieve corporate goals
Additional research shows that when you fix your people problems, your process problems will get fixed!
Have you ever hired or promoted someone who
was not what he/she appeared to be?
WORKFORCE DESIGNS Joe Davenport
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Have you ever hired or promoted someone who greatly exceeded your
expectations?
What was differentabout the method
used to hire these people?
WORKFORCE DESIGNS Joe Davenport
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Predicting superior performanceis all about having
enough of the right informationwhen you make people decisions
““If If onlyonly I had known that . . .I had known that . . .””
Why do we continue to put Why do we continue to put the wrong people in jobs?the wrong people in jobs?
We believe that poorly selected people are a normal part of doing business
Our hiring practices may be too “instinctive” and not scientific enough
We do not see our employees as the #1 asset in our company
We spend more time buying a computer than we do selecting people
We think we can change people once we hire them
We use the “traditional” approach to hiring
What is the definition of insanity?
WORKFORCE DESIGNS Joe Davenport
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The The ‘‘TraditionalTraditional’’ Selection ProcessSelection Process
Company FitAttitudesValues
DemeanorAppearance
Integrity
Skill FitEducation
TrainingExperience
Skillsetc. PRESENT
Cultural fitInterview
PASTResumePast EmploymentBackground Check
The InterviewThe Interview
“63% of all hiring decisionsare made during
the first 4.3 minutes of an interview.”–– SHRM Study, reported in USA TodaySHRM Study, reported in USA Today
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Top 3 Reasons People FailTop 3 Reasons People Fail
IncompetenceIncompatibilityDishonesty
How do you determinethese qualities
in your job candidates now?
Interviews have only a14% success ratefor identifying superior people!
– Hunter & Hunter “Validity & utility of Alternative Predictors of Job Performance”. Psychological Bulletin, Vol. 96, No. 1. p90
Why?
WORKFORCE DESIGNS Joe Davenport
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Here is what you seewhen you hire and promote.
Here is what you get!
WORKFORCE DESIGNS Joe Davenport
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Many businesses just can’t afford this risk!
How can you minimize your risk?
”The appropriate use of professionally developed assessment tools on average enables organizations to make more effective employment-related decisions than the use of simple observation or random decision making.”
“Testing and Assessment: An Employer’s Guide to Good Practices”US Department of Labor - Employment and Training Administration
Using AssessmentsUsing Assessments
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The Step One Survey IIThe Step One Survey II
Use to determine cultural/company fitMeasures candidate attitudes– Integrity– Reliability– Work Ethic– Substance abuse
Provides valuable information about a candidate– Past employment – Employment-related problems– Illegal substance use– Theft of employer’s money, property, data, etc.– Computer/Internet/Email abuse
Provides suggested interview questions based on candidate’s assessment results
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The Selection ProcessThe Selection Process
Company FitAttitudesValues
DemeanorAppearance
Integrity
Skill FitEducation
TrainingExperience
Skillsetc. PRESENT
Cultural fitInterview
PASTResumePast EmploymentBackground Check
Step One Survey II
Interview
Information Resources for Hiring DecisionsInformation Resources for Hiring DecisionsSource: Psychological Bulletin Vol. 96, No. 1, August 1994, Professor Mike Smith, University of Manchester
14%
0102030405060708090
100
+ BackgroundCheck
26%
What other information might be useful?
Source: Psychological Bulletin Vol. 96, No. 1, August 1994, Professor Mike Smith, University of Manchester
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The right peopleThe right peoplecan be the difference between:can be the difference between:
Does that see like too big a statement?
Extinction & survival
Profit & loss
A good or a GREAT company
.
‘Superior’Performers
Top 16%
‘Poor’Performers
Bottom 16%
‘Average’Performers
Middle 68%
- Studies by Frank L. Schmidt and John E. Hunter (well-respected personnel psychology researchers )
Bell Curve
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Why does this matter?Why does this matter?Unskilled / Semi-skilled
‘Average’ produce 19% more than ‘Poor’‘Superior’ produce 19% more than ‘Average’‘Superior’ produce 38% more than ‘Poor’
Skilled‘Average’ produce 32% more than ‘Poor’‘Superior’ produce 32% more than ‘Average’‘Superior’ produce 64% more than ‘Poor’
Management / Professional‘Average’ produce 48% more than ‘Poor’‘Superior’ produce 48% more than ‘Average’‘Superior’ produce 96% more than ‘Poor’
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.
Example of Impact
Small Company with . . .50 Unskilled / Semi-skilled Workers25 Skilled Workers10 Managers
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Cost of ‘Average’vs. ‘Superior’ Performers
Total Exposure if all ‘average’ = $790,000
Percentage of salary investment at risk = 30%
X 0.19 =Unskilled
Estimated Salary
$20,000
Cost per ‘Average’Performer
$3,800
# People in this
Category
X 50 =
Cost if All are
‘Average’
$190,000
= $320,000Skilled X 0.32 = X$40,000 $12,800 25
= $280,000Management X 0.48 = X$28,000 10$60,000
Implications
These figures are not ‘worst case’. If any or all are below average the cost for that position is doubled – but so is the potential for improvement.
Unless all your people are ‘superior’ performers, you are incurring unnecessary costs.
Regardless how large or small your organization, 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.
This is the easiest strategy for making significant improvements to your bottom line.
WORKFORCE DESIGNS Joe Davenport
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.
‘Superior’Performers
Top 16%
‘Poor’Performers
Bottom 16%
‘Average’Performers
Middle 68%
OBJECTIVE #1: Move performers
from ‘Poor’ to ‘Average’
.
‘Superior’Performers
Top 16%
‘Average’Performers
Bottom 84%
OBJECTIVE #2: Move performers from ‘Average’ to ‘Superior’
WORKFORCE DESIGNS Joe Davenport
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.
‘Superior’Performers
100%
OBJECTIVE #3: Maintain ‘Superior’
performers in all positions
The The Challenge
“If only I had known that Joe…”
Predicting superior performance is all about having enough of the right information when you make ‘people’ decisions
Use effective processes to ensure that EVERY‘people’ decision - whether for hiring & selection, placement, promotion or development - is aimed at promoting ‘superior’performance
WORKFORCE DESIGNS Joe Davenport
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When do people perform at a
‘superior’level?
“It’s not experience, or college degrees,
or other accepted factors…
…(it) hingeson fit with the job.”
Source: Herbert M. Greenberg and Jeanne Greenberg, “Job Matching for Better Sales Performance,” Harvard Business Review,
Vol. 58, No. 5.
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Job Fit vs. TimeJob Fit vs. Time
Source: Herbert M. Greenberg and Jeanne Greenberg, “Job Matching forBetter Sales Performance,” Harvard Business Review, Vol. 58, No. 5.
14 Months After Hire:
“… persons who had been matched, outperformed,to a statistically significant degree,
those who had not been matched…”
“Moreover, the differences widened after 14 months”
6 Months After 6 Months After Hire::
Source: Herbert M. Greenberg and Jeanne Greenberg, “Job Matching forBetter Sales Performance,” Harvard Business Review, Vol. 58, No. 5.
WithJob
Match
24%28%
5%8%
WithoutJob
Match
Low Turnover Industry
High Turnover Industry% left / fired after 6 months 46%% left / fired after 14 months 57%
% left / fired after 6 months 25%% left / fired after 14 months 34%
They also stay longer– saving a fortune
on recruitment & training costs!
WORKFORCE DESIGNS Joe Davenport
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“…companies will need to reorient their
recruitment and selection processes
by hiring “for fit”rather than mere
credentials…”
““Contented Cows Give Better MilkContented Cows Give Better Milk””Bill Catlette & Richard HaddenBill Catlette & Richard Hadden
Two Opportunities to Job MatchTwo Opportunities to Job Matchfor for SuperiorSuperior performanceperformance
Place the right people in the right job the first time
Evaluate existing employees to determine where they best fit
WORKFORCE DESIGNS Joe Davenport
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Job MatchPersonality
AbilitiesInterestsFUTURE
The Selection ProcessThe Selection Process
Company FitAttitudesValues
DemeanorAppearance
Integrity
Skill FitEducation
TrainingExperience
Skillsetc.
PRESENTCultural fitInterview
PASTResumePast EmploymentBackground Check
Step One Survey II
… helps predict ‘superior’ performance
Interview + BackgroundCheck
Information Resources for Hiring DecisionsSource: Psychological Bulletin Vol. 96, No. 1, August 1994, Professor Mike Smith, University of Manchester
14%26%
0102030405060708090
100
+ Personality & Behavior
38%
+ MentalAbilities
54%
+ Interests & Motivators
66%
+ Job Matching
75%
Source: Psychological Bulletin Vol. 96, No. 1, August 1994, Professor Mike Smith, University of Manchester
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10% - Good But Limited Information:
90% - Essence of the Total Person:
Skills, Experience & Company Match
Thinking Style
Occupational Interests
Behavioral Traits
Job Fit
The Total PersonThe Total Person
WORKFORCE DESIGNS Joe Davenport
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Can she cope with the mental demands?
Will she be comfortable in the job environment?
Is she motivated by this kind of work?
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Thinking Style
Occupational Interests
Behavioral Traits
Learning IndexVerbal Skill
Verbal ReasoningNumerical Ability
Numeric Reasoning
EnterprisingFinancial/Admin
People ServiceTechnical
MechanicalCreative
Energy LevelAssertiveness
SociabilityManageability
AttitudeDecisiveness
AccommodatingIndependence
Objective Judgment
1 2 3 4 5 6 7 8 9 10
Learning Index
Learning, reasoning and problem solving approach
ONEONEGALLONGALLON
ONEONEGALLONGALLON
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The Job Match
Pattern
Shaded areasindicate
the Job Match Pattern
Job Match Patternsshow requirements
for the jobsin your company
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Thinking Style
Occupational Interests
Behavioral Traits
Learning IndexVerbal Skill
Verbal ReasoningNumerical Ability
Numeric Reasoning
EnterprisingFinancial/Admin
People ServiceTechnical
MechanicalCreative
Energy LevelAssertiveness
SociabilityManageability
AttitudeDecisiveness
AccommodatingIndependence
Objective Judgment
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Thinking Style
Occupational Interests
Behavioral Traits
Learning IndexVerbal Skill
Verbal ReasoningNumerical Ability
Numeric Reasoning
EnterprisingFinancial/Admin
People ServiceTechnical
MechanicalCreative
Energy LevelAssertiveness
SociabilityManageability
AttitudeDecisiveness
AccommodatingIndependence
Objective Judgment
GoodJob Match
WORKFORCE DESIGNS Joe Davenport
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Thinking Style
Occupational Interests
Behavioral Traits
Learning IndexVerbal Skill
Verbal ReasoningNumerical Ability
Numeric Reasoning
EnterprisingFinancial/Admin
People ServiceTechnical
MechanicalCreative
Energy LevelAssertiveness
SociabilityManageability
AttitudeDecisiveness
AccommodatingIndependence
Objective Judgment
QuestionableJob Match
WORKFORCE DESIGNS Joe Davenport
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Job MatchPersonality
AbilitiesInterestsFUTURE
Improved Selection ProcessImproved Selection Process
Company FitAttitudesValues
DemeanorAppearance
Integrity
Skill FitEducation
TrainingExperience
Skillsetc.
PRESENTCultural fitInterview
PASTResumePast EmploymentBackground Check
Step One Survey II
… helps predict ‘superior’ performance
The Profile XT
Two Opportunities to Job MatchTwo Opportunities to Job Matchfor for SuperiorSuperior performanceperformance
Place the right people in the right job the first time
Evaluate existing employees to determine where they best fit
WORKFORCE DESIGNS Joe Davenport
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Talent Shortage is IncreasingTalent Shortage is Increasing
Recap
Unless you are confident all your people are ‘superior’performers you have great potential for bottom line gains
Regardless how large or small your organization, your potential for savings and productivity increases are great
Every time you move an employee’s performance from ‘average’ to ‘superior’ you enjoy a measurable financial impact
Questions?
WORKFORCE DESIGNS Joe Davenport
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WORKFORCE DESIGNSEmployee Selection, Retention & Management Solutions
277 South High Street • Cortland, OH 44410
Tel: 330.638.1881 • Fax: 330.638.1882
Email: [email protected]
Web: www.workforcedesigns.com