Superior Performance- The Information GapSuperior Performance- The Information Gap
Session #1Session #1
The right people can be the difference between
extinction & survival, profit & loss…
The right people can be the difference between
extinction & survival, profit & loss…
…Seem too big a statement?…Seem too big a statement?
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 = 38% more than Non-producers’
Skilled ‘Average’ workers output = 32% more than ‘Non-producers’ ‘Superior’ workers output = 32% more than ‘Average’ ‘Superior’ workers output = 64% more than Non-producers’
Management / Professional ‘Average’ workers output = 48% more than ‘Non-producers’ ‘Superior’ workers output = 48% more than ‘Average’ ‘Superior’ workers output = 96% 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 = 38% more than Non-producers’
Skilled ‘Average’ workers output = 32% more than ‘Non-producers’ ‘Superior’ workers output = 32% more than ‘Average’ ‘Superior’ workers output = 64% more than Non-producers’
Management / Professional ‘Average’ workers output = 48% more than ‘Non-producers’ ‘Superior’ workers output = 48% more than ‘Average’ ‘Superior’ workers output = 96% 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.
Imagine yours is a small company with…
Imagine yours is a small company with…
50 Unskilled / Semi-skilled workers
25 Skilled Workers10 Managers
50 Unskilled / Semi-skilled workers
25 Skilled Workers10 Managers
X 0.19 =
Average Salary?
Your cost per ‘Average’
# 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)
Cost of ‘Average’ vs. ‘Superior’ PerformersCost of ‘Average’ vs. ‘Superior’ Performers
Your cost if all in this category ‘average’
$20,000 $3,800 50 $190,000
Percentage of salary investment at riskPercentage of salary investment at risk =
$40,000 $12,800 25 $320,000
$60,000 $28,000 10 $280,000
$790,000
30%
ImplicationsImplications 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 your people are ‘superior’ performers, you are losing money unnecessarily
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
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 your people are ‘superior’ performers, you are losing money unnecessarily
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
To ensure that every “people” decision – whether hiring, placement, promotional or development is aimed at
promoting ‘superior’ performance in at least one of your positions
To ensure that every “people” decision – whether hiring, placement, promotional or development is aimed at
promoting ‘superior’ performance in at least one of your positions
Your ChallengeYour Challenge
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.
6 Months After Hire:
“…persons who had been matched outperformed to a statistically significant
degree, those who had not been matched…”
14 Months After Hire:
“Moreover, the differences widened after 14 months”
Source: Herbert M. Greenberg and Jeanne Greenberg, “Job Matching forBetter Sales Performance,” Harvard Business Review, Vol. 58, No. 5.
Source: Herbert M. Greenberg and Jeanne Greenberg, “Job Matching forBetter Sales Performance,” Harvard Business Review, Vol. 58, No. 5.
WithoutWithoutJob Job
MatchMatch
They also stay longer – saving a fortune on recruitment costs!
WithWithJob Job
MatchMatch
24%24%28%28%
5%5%8%8%
Low Turnover IndustryLow Turnover Industry
High Turnover IndustryHigh Turnover Industry
% left / fired after 6 months% left / fired after 6 months 46%46% % left / fired after 14 months 57%% left / fired after 14 months 57%
% left / fired after 6 months 25%% left / fired after 6 months 25% % left / fired after 14 months 34%% left / fired after 14 months 34%
“…“…companies will companies will need to reorient their need to reorient their
recruitment and recruitment and selection processes selection processes
by hiring “for fit” by hiring “for fit” rather than mere rather than mere
credentials…”credentials…”
““Contented Cows Give Better Milk”Contented Cows Give Better Milk”Bill Catlette & Richard HaddenBill Catlette & Richard Hadden
You get just two bites You get just two bites at at SuperiorSuperior performance performance
Place the right people the first time
Coach the people you’ve got
Have you ever hired or promoted
someone who did not live up to your
expectations?
Have you ever hired or promoted someone
who greatly exceeded your expectations?
How different were How different were the processes used in the processes used in
these two cases?these two cases?
“If only I had known that Joe…”
…predicting superior performance is all about having enough of the right information when you
make people decisions
Company Fit Attitudes,Values,
Demeanor,Appearance,
Integrity
?
Skill FitEducation, Training,
Experience,Skills, Etc.
“Checking the Past”
The Selection Process is...
& “Reviewing the Present”
“…to predict future ‘superior’ performance”
Here’s what you see & hire/promote…
Here’s what you get!
Here’s what you see & hire/promote…
Here’s what you see & hire/promote…
Here’s what you get!
No business can afford the risk!
Company Fit Attitudes,Values,
Demeanor,Appearance,
Integrity
…in predicting ‘superior’ performance
The missing third is...
Job MatchPersonality,
Abilities,Interests
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
Heads or Tails?Heads or Tails?
14%
0
10
20
30
40
50
60
70
80
90
100
Interview
The closer to 100% information the better…
What other information might be useful?
14%
26%
0
10
20
30
40
50
60
70
80
90
100
Interview + BackgroundCheck
What other information might be useful?
The closer to 100% information the better…
“…(it) hinges on fit with the job…”
• Can deal with the mental demands of the position
• Are comfortable with the demands of the environment and people they must work with
• Enjoy the work and are motivated to do it
‘Superior’ producers fit their jobs and:
What happens if What happens if you don’t put the you don’t put the
right people in the right people in the right jobs?right jobs?
The Impact of Poor Job Fit
Source: Gallup
14%
26%
0
10
20
30
40
50
60
70
80
90
100
Interview + BackgroundCheck
What other information might be useful?
The closer to 100% information the better…
14%
26%
38%
0
10
20
30
40
50
60
70
80
90
100
Interview + BackgroundCheck
+ Personality & behavior
The closer to 100% information the better…
14%
26%
38%
54%
0
10
20
30
40
50
60
70
80
90
100
Interview + BackgroundCheck
+ Personality & behavior
+ MentalAbilities
The closer to 100% information the better…
14%
26%
38%
54%
66%
0
10
20
30
40
50
60
70
80
90
100
Interview + BackgroundCheck
+ Personality & behavior
+ MentalAbilities
+ Interests & Motivators
The closer to 100% information the better…
14%
26%
38%
54%
66%75%
0
10
20
30
40
50
60
70
80
90
100
Interview + BackgroundCheck
+ Personality & behavior
+ MentalAbilities
+ Interests & Motivators
+ Job Matching
The closer to 100% information the better…
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