Major Themes of Books• Talent Flow
– Performance yield-> Performance problems are inevitable
– Flow and change is also inevitable– Job Satisfaction is a key driver of talent flow
• High-Impact Hiring– The state of practice in hiring lags behind the state
of the art– Effective hiring is systematic, comprehensive and
performance-focused; an investment, not a cost– Avoiding problem employees is as critical as hiring
effective employees (and yet different)
• “Evidence-Based Management”
Perf Yield – Typical Interviewr = .14
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Perf Yield – “Good” Systemr = .36
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Why is Performance Yield so Low?
• Difficulty of job
• Limitations of hiring system– How selective you are
– Accuracy (validity) of hiring tools
• Bad decisions by applicant
• Changes in employee after hiring
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Successful Employees
Unsuccessful Employees
Base rate of success = 9/18, or 50%
Base rate of success = 14/18, or 78%
Easier Job
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Unsuccessful Employees
Successful Employees
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True Positives
False PositivesTrue Negatives
False Negatives
Success rate = 8/12, or 67%
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True Positives
False PositivesTrue Negatives
False Negatives
Success rate = 8/12, or 67%
Success rate = 5/6, or 80%
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Success rate = 73% (vs 67%)
(and no False Negatives)
r = .83 (vs. 67)
False Negatives True Positives
True Negatives False Positives
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Success rate = 73% (vs 67%)
Success rate = 100% (vs 80%)
False Negatives True Positives
True Negatives False Positives
So What Can You Do?• Increasing Yield
– Simplify job – Recruit more/better candidates– Use more valid hiring procedures– Help applicants make better decisions (RJPs)
• Coping with “Failures”– Training– Placement may be as important as selection– Over-hiring (continuous hiring)– Remove hiring mistakes– ?
Post-Hire Changes in Performance
• Relative rates of change in performance– From positive to negative – From negative to positive
• Relative rates of exit of high and low performers
More common!
Turnover generally higher among better performers!
WHY?
Summary: Why Hiring Failed
• Inadequate Process: 50%
• Inadequate Applicants: 14%
• Pressure to Hire Wrong Person: 13%• Limitations of Interviewer: 12%• Fooled by Applicant: 11%• Didn’t Explain Job: 3%
Why Hiring Failed
Inadequate Process (50%)
• Interviews: 15%
• Reference-checking: 13%
• Not enough time: 7%
• Wrong qualifications: 7%
• Not selective enough: 4%
Evidence-Based Practice
• Evidence-based medicine is a methodology for evaluating the validity of research in clinical medicine and applying the results to the care of individual patients. Evidence is gathered through systematic review of the literature, and is critically appraised. The results are then integrated with physician/patient decision making.
http://www.ebmny.org/thecentr2.html#WHY
Evidence-Based Practice & Project
• Develop a focused clinical question concerning the patient's problem(s)
• Search secondary databases and the primary literature for relevant articles
• Assess the validity and usefulness of those articles
• Judge the relevance to the individual patient
• Implement the findings in patient care
Why Performance Problems?• Hiring Issues
– Limitations of hiring system• Difficulty of job not much you can do• How selective you are Recruitment• Accuracy (validity) much can be done• Bad decisions by applicant RJPs?
• Obsolescence of skills Hire for ability; training
• Changes in employee behavior– reduce job dissatisfaction; encourage
constructive problem-solving
High Impact Hiring Principles• Systematic
• Comprehensive
• Performance-oriented– does it deliver better job performance?
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