What Successful Businessesare Doing
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Transcript of What Successful Businessesare Doing
Colorado Assessments, LLC800-223-6567
What Successful Businesses are Doing
Companies that Prosper in Good Times and Difficult Times -
Incorporate this into a well defined strategy4.
Focus on the most important things to achieveThese expectations3.
Do the right things to consistently exceed customersexpectations2.
Understand what their customers want and need1.
Aberdeen Group August 2007
Prosperous Companies Use this Strategy to Guide -
How they invest in their human capital 4.
How they define what their people should do3.
How they staff their organization2.
How they organize themselves1.
Aberdeen Group August 2007
The Challenges
SteppingStones or Stumbling
Blocks
1. Hire top performers
2. Develop present employees
3. Managing employee performance
4. Planning for the future
WHAT ARE THEY USING?
1 Assessments tools for skill, fit & Attitude
2 Competency modeling
3 360 Multi-rater Feedback
4 Succession planning tools
5 Performance planning tools
They are using -
Aberdeen Group August 2007
1. Hiring Challenges
Challenge Response Challenge Response
49% 53% 39% 52%
Ability to compete for top talent in hiring or retention
Articulate behaviors and skill sets of top performers, so we can test and find people who match the job best
Inconsistent hiring practices across the organization
Enhance screening to select the best candidates
Aberdeen Group August 2007
1. Hiring Challenges
Challenge Response Challenge Response
35% 47% 34% 44%
New hires are unprepared in knowledge or skills for the positions we fill
Improve candidate screening to screen out candidates who do fit the position requirements
Fail to prepare new hires sufficiently for the new position
Create a talent pool from which to select candidates
Aberdeen Group
Hire the right people
W. Edward Deming said,
“If a person is not performing as expected, it is probably because they have been miscast for the job.”
Who is Applying?
Avert Inc., 800,000 background checks
A 36% increase in number of job applicants who are not eligible for rehire due to personality conflicts, disciplinary problems, theft and embezzlement.7% of applicants had criminal record.25% misrepresented their education and credential records.
What is the Cause?
Eighty five percent of all job failures have to do with the lack of appropriate work habits, not technical skills… how the person does the job and what kind of habits they bring is in most cases more important to identify than technical skills.
Dell Still, High Impact Hiring
What is the Cause?
Insanity in Hiring
Michigan State University School of Business professors concluded a study recently that showed assessments were the most accurate means of predicting the performance of an individual.
Assessments were rated four times more accurate than interviews.
Hire the Right People
Jim Collins, Author of Built to Last said- “The right people are your most important asset and you can’t get the right behavior (performance) from the wrong people.”
50 to 70 percent of most job qualifications may be more inherent in personality than skill.
The Payoff is Enormous
If you accurately assess a person’s soft skills, the payoff is enormous. You’ve not only landed a productive employee but freed the employee’s manager to do constructive, rather than remedial, coaching.
“The first mistake that anybody in management makes is to assume that through training, incentives, or disciplinary action, you can change people who are not doing the job right. People can change, but in the end, we think, most people won’t.”
Hire Smart, Hire Right
The use of pre-hire testing is a growing part of hiring
The goal of improving the quality of each new employee is not to just get a better workforce, but to
retain it, thus reducing hiring costs by reducing turnover
Testing Fears
Two decades ago, corporations feared using pre-employment assessments could be grounds for lawsuits.
Afraid they may unintentionally discriminate or have adverse impact on diverse populations.
Today companies worry more about hiring malfeasance, than about testing malfeasance.
Only 5 successful suits in the last 60 years of testing. SHRM reports that testing is the safest thing you can do.
Aberdeen Group
Why Use Assessments?
ValidatedAssessments
Work!
68% of companies of 1000 plus ee’sUse assessments
52% agree that tests have alerted them to potential problem hires
Aberdeen Group August 2007
57% agree that pre-hire assessments are a valuable strategy for employee retention
45% Agree testing distinguished poor from good hires
Assessment Usage
Companies with 1000 plus ee’s
Who is beingAssessed?
40%C-Level
52%Execs
66%Professional
52%HourlyText1
64%Mid-Mgrs
Aberdeen Group August 2007
$$ CHANGE IN 2008 EMPLOYEE RECRUITING BUDGET
An average of 56% of employers increased their budget
SHRM talent management survey
2. Competency Usage
Present Planned
35%
Plan to use tools to identify
competencies
45%
Use tools to identify
competencies
Aberdeen Group August 2007
WHY COMPETENCY MANAGEMENT?
Identify and develop Hi-Po workers earlier 27%4.
Flexible and agile workforce 29%3.
Improved workforce productivity 37%2.
Aligning workforce with business objectives 57%1.
Aberdeen Group August 2007
Increase retention/reduce turnover 24%5.
Current & Planned Competency Use
Present Planned Present Planned
55% 43% 36% 52%
Identify knowledge gaps that can be resolved with learning
Identify knowledge gaps that can be resolved with learning
Define common behaviors of top performers
Define common behaviors of top performers
Aberdeen Group August 2007
Current & Planned Competency Use
Present Planned Present Planned
37% 50% 33% 46%
Leverage workers who display desired competencies
Create career paths with matching competencies
Leverage workers who display desired competencies
Create career paths with matching competencies
Aberdeen Group August 2007
3. 360 Multi-Rater feedback
Surveys that are completed by one’s boss, staff, team members, co-workers or customers.
Feedback comes from multiple sources.
Not a self assessment only process Surveys that provide feedback that
indicate how effectively the person is performing specific job-related skills and practices.
360 Feedback Assessment Surveys or Multi-Rater Surveys refer to…
Value of 360’s
Help individuals improvetheir performance
Help organizations align theday to day performance of their people
with strategic goals
As individuals become effective,so does the organization
Feedback from 360 surveys can be the
single most effective catalyst to individual
growth and development when used properly
360° Applications
Self Development
Leadership Development
Performance Appraisal/Management
Coaching and Counseling
Career Development Team Building
Succession Planning
Sales Development
360°: Practical Benefits
Catalyst for Change Personal Professional
Consequences of behavior, actions
Identify barriers to career development
Increase Influence with Others
Identify strengths to build upon
Identify areas for development
Work more effectively with others
Continuous improvement Personal Professional
“GAP” Analysis Survey
Dual Scale
Effectiveness is determined by comparing the
Current Practices against the
Expectations or Needs of others the person works
with an to use applicant
tracking system in hiring process
Uses two scales (or questions) to
gather data about the person’s
current practices (how often am I doing this now)
and the expectations or needs of others
(how often should I be doing
this now)
Aberdeen Group August 2007
Advantage of Dual Scale
AThe feedback results focus the rater’s real and immediate needs
BThe message “your people want more (or less) of a practice” is easier for a person to understand, accept and to respond
C Shows what the “Majority “ wants
4. TALENT MANAGEMENT/SUCCESSION PLANNING
Companies who are doing succession planning or plan to do succession planning
74%74%
74%
74%
Aberdeen Group August 2007
Talent Management/Succession Planning Priorities
Top Priority Not a Priority
76% 24%
EMPLOYEE DEVELOPMENT $$ CHANGE IN BUDGET
An average of 59% of employers plan to increase their budget
SHRM talent management survey
Why Succession Plan?
Need to evaluate top talent
Unexpected loss ofkey leaders
Problem findingsuccessful managementcandidates
Improve company’s benchstrength in key positions
Reduce the cost ofreplacing employees
Identify Hi-Po candidates- early and have plan for retaining top talent
What Are Companies Doing?
51%Use leadership development tools
50%
34%Offer executive coaching
DOffer external leadership development programs28%
23%Offer mentorship programs
Position succession planning as a KEY to retention strategy
Why Are Companies Doing It?
82%Create culture that makes an individual want to join
80%
77%Align employees with the mission and vision of the organization
DCreate a culture that will make employees want to stay with the organization
72%
70%Place the right people in the right jobs
Create a culture that values an employees’ work
5. Performance Management
77%ensure managers involve employees in the goals definition process
70%Have standardized employee performance ratings across the organization to ensure consistency with reviews
68%Employees understand how their individual performance affects organizational goals
Performance Management
What Is Driving It?
54% 37% 27% 27%
Align ee goals and
development activities to business priorities
Create a performance
culture
Increase productivity of
current workforce
Develop leadership
and management
pipeline
Aberdeen Group
Performance Management
Best-in-Class organizations are 55% more likely than all other organizations to have their managers define and communicate individual employee goals and expectations within or before the first week of the employee’s start date.
Three quarters of Best-in-Class organizations ensure that managers involve ee’s in the goal definition process. They establish common ground pertaining to performance expectations and create a sense of personal ownership of the goals by ee’s.
Performance Management
Best-in Class organizations have established mechanisms to ensure that managers provide ee’s with clear and consistent performance feedback.
They hold managers accountable for the management of their subordinates’ performance.
This helps maintain the critical line of communication between ee’s and their managers, builds trust between both parties and provides a mutual sense of ownership and accountability in the process.
Achieving Performance Management
Best-in-Class OrganizationsReinforce ee performance with supportive resources such as linking pay to performance, providing mentors or coaches and establishing a consistent line of communication between ee’s
and their immediate supervisors
Laggard OrganizationsTend to focus their efforts on establishing better goal setting
processes and suffer from inconsistencies and lack of accountability; which have a direct impact on ee morale,
performance and retention
Performance Management
ImprovingPerformanceManagement
Standardize employee performance ratings across the organization
Define the metrics against which your organization will measure employee performance
Aberdeen Group August 2007
Involve employees in their development and goal planning
Educate employees on how their personal performance affects the organization’s goals
Colorado Assessments, LLC800-223-6567