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RPOTOTALTALENTCONSULTINGSEARCHResearchfromCieloandothersshowsthatcompaniesplacetremendousvalueontheabilitytopredictwhowillbecomeaqualityemployee.Thetroubleisthatfewhavebeenabletosuccessfullydefinewhatqualitymeansfortheirbusiness.Partofthechallengestemsfromthedisconnectthatexistsbetweentalentacquisitionandhiringmanagers,aswellasarelianceonsubjective,oftenanecdotal,feedbackthatisnotusefulforobjectivelyimprovingquality.Thegoodnewsis,youcanchangethatforyourcompanyandhelpitriseabove.Startingnow.9
0%ofbusinessleadersagreethatconsistentlydeliveringqualityhiresshouldbethetoppriorityfortalentacquisitionWHATISQUALITYOFHIRE?QualityofHireisagroupofmeaningfulmeasurements–uniquetoeachcompanyandrole–thatdefinesuccessinhiringandretainingtherighttalenttofuelthebusiness.Whenyoubreakthatdown,youget:MeaningfulMeasurementsDefineSuccessinHiringandRetainingTalentYouwanttomeasureelementsthatactuallycontributetotheorganization’ssuccess.Thesemayincludemetricssuchasretentionrate,timetoproductivity.Whatmakesthemmeaningfulisyourabilitytocountthemobjectivelyratherthansubjectively.Thedatayoumeasureshouldpointtoyourdefinitionofasuccessfulhire.Thinkoftheseaskeyperformanceindicatorsonanindividuallevel.Askyourselfwhatapersoninthisroleshouldbeachievingtoaddvaluetotheorganization.UniquetoEachCompanyandRoleFueltheBusinessNosinglecompanyorrolecandefinesuccessforanother.Thequalitymeasurementsforyourorganization’sgraphicdesigners,forinstance,willbedifferentthanthemeasurementsforyoursalesteam.ThroughQualityofHiremeasurements,youshouldnotonlyunderstandhowyourorganizationdefinessuccess,buthoweachindividualintheorganizationcontributestothat.Startingatthebusinesslevel,thendrillingdowntoHRandtherecruitingprocess,youwillbeabletodeterminethetypesofindividualswhowilladdvaluetoyourbusiness.Itdoesnotmatterhowothersdefinequalityifthosecharacteristicsarenottrueforyourorganizationortherolesyouareevaluating.3|CIELOTALENT.COMWHYMEASUREQUALITYOFHIRE?ToturndataintoausefultooltomeasureQualityofHire,startwiththissimplequestion:“Howdoesourorganizationdefinesuccess?”Thisisthelensthroughwhichyoumustchoosewhatdatatomeasure–aswellashowtomeasureit.ThenyouneedtoprovethatmeasuringQualityofHirewillbeworththetimeandeffort.EREreportsthatonly58%ofrecruitingdepartmentssaytheymeasureQualityofHire,sothisleavesatremendousopportunityforyourorganizationtostartmeasuringitandstandout.Fortunately,executivesacrosstheglobearefinallyacknowledginghowimportanttalentistotheirsuccess,somomentumisbuildingforputtingmoreQualityofHiremeasurementsinplace.Thisisvitalastheincreasingdemandfortoptalenthasmadequalitycandidateshardertofindthaneverbefore.“Ifyou’renotmeasuringQualityofHire,you’renothiringthebestpeople”-LouAdler,TheAdlerGroup4|CIELOTALENT.COMAnnualFinancialImpactofHighPerformersCreatingabaseofmetricstobenchmarkfromwillhelpyoupredictwhowillmakeaqualityemployeeinthefuture.ThisshouldmakeitclearthatmeasuringQualityofHireisessentialtoanorganization’scontinuedsuccess.+40%ProductivityinOperationsRoles+49%ProfitinGeneralManagementRoles+67%RevenueinSalesRolesTheimpactofpivotalemployeesisimportanttokeepinmindasyoudevelopaplantomeasurequality.Youmayfindthatitismorebeneficialtofocusonkeyrolesfirst,andthenexpandyourmeasurementslatertoothergroupsofemployees.AfteranalyzingtheHRdataofmorethan1,000companiesand20millionemployees,HewittAssociatesfoundthatwithamere10-pointincreaseinquality,aFortune500companycanincreaseitsbottomlinebybetween$70millionto$160millionoverthreeyears.UncoveringthefinancialimpactofQualityofHireonthebottomlineisnotalwayssimple,butthereisnoneedforyoutotacklethisonyourown.Youraccountingandfinancecolleaguesarevaluableallieswhocanhelpyoudeterminemoreprecisedollaramounts.Besuretobringthemonboardduringthisprocess.5|CIELOTALENT.COMCielo’sQualityofHireMeasurementContinuumisascaleofthewaysorganizationsmeasuretheirQualityofHirefrom“Most”to“Rare”basedontheproportionoforganizationsthatuseeachmeasurement.Organizationsmostoftenself-identifywiththe“Most”category,basingQualityofHireonwhetherthehiringmanagerispleasedwiththerecruiter’sperformance.Othersfallinthe“Many”category,feelingthattheirchosenmethodisretention–particularly90-dayandone-year.Apassionatebutsmallerminoritychoose“Some,”astheyfeelthatQualityofHireshouldbebasedonanewhire’sbusinesscontributionsspecifictotheirroleovertheirfirsttwoyears.HiringManagerSatisfactionꢀMOSTReducedAttrition�ꢁMANYOn-the-JobCompetencySOMEPersonalAchievementsꢂꢃFEWBusinessOutcomesRAREHiringManagerSatisfaction(Most)Morethananything,hiringmanagerswantconsistentqualityhiresfromtheirtalentacquisitionteams.So,trackingtheirsatisfactionisagoodwaytodeterminejusthowwellrecruitersarealigningwiththoseneedsandexpectations.Caseswherethereisimmediateconcern,suchaswithonboardingandshort-termattrition,willbecomeapparent.Overtimethiswillleadtotrendsbeingidentifiedthatcouldshowwhethertherearedifferencesinsatisfactionbasedonfactorssuchasphysicallocation,departmentorjobtypes.Itisimportanttokeepinmind,however,thatsatisfactionisasubjectivemeasurementdependentupontheopinion–andresponserate–ofindividualhiringmanagers.Whileitispossibletosometimesgetahintatlargertrendsorproblems,mostlyitissurfaceconcernsthatareidentified.ReducedAttrition(Many)Reducedattritionisagreatexampleofaquantifiablemetricwithclear,objectiveresults.Whileemployeeswhoarenotagoodfitdonotbenefitthecompanybystickingaround,keepingstrongemployeeslongersavesyoumoney.Ifahigh-performingemployeeleaveswithinthefirst6to12months(orworse,weeks),youlosethetimeandmoneyyouhaveinvestedinthem,apercentageoftheirsalary(typicallysomewhereintherangeof20%),plusthecostsofthevacancyandtorefilltherole.TrackingthisalsohastheaddedbenefitofimprovingyourEmployeeValueProposition(EVP)asyoulooktoattractmoreworkers.Theywillseethatthisisaplacewherepeoplecanstayandsucceed.7|CIELOTALENT.COMOn-the-JobCompetency(Some)Sayawebdeveloperatyourorganizationtypicallyreachesfullproductivitywithinthreeweeksofstartingajob.However,thereisonenewwebdeveloperwhotakessevenweekstoreachthatsamelevel.Compilingdataaboutyouraveragetime-to-productivitymakesthisaneasyredflagandprovidesyouwithabaselinefromwhichyoucangaugesubsequentimprovements.Errorratescansayalotaboutthequalityofanewhire.Whilehigherrorratesdonotnecessarilymeantheemployeeisunskilled,itmayindicatethattheyarenotagoodfitintheroleforwhichtheywerehired.Thismaybeespeciallyusefulforindividualsinfinancialroles,wherethereislittleroomforerror.Institutingskillsassessmentsand/orworksimulationsbasedonthesuccessofhighperformersisagoodwaytoensuretheindividualsbeinghiredarecapableofperformingtheirduties.Trackingthisdatadoesrequireacertainlevelofsophisticationandconsistencyinanorganization’srecruitmentprocess,soitwillnotworkforeveryone.Gettingtrueresultsrequirespatienceandanongoingeffort.PersonalAchievements(Few)Thismeasurealsorequiresaninvestmentoftimeandarecognitionthatsomerolesaretoofluidforusefulmeasurement.Butifitisdonewell,theresultsaredefinitive.Employeeswhoarehighlysatisfiedintheirroleandattheircompanyaremoreengagedandeffective.Theychallengethemselvestohitstretchgoals,getmoreinvolvedintheirworkcommunityandpushforbetterbusinessresults.Youwillseetrendsemergeandbeabletoidentifyhigh-performingemployees.Thereisalsotheopportunitytocorrelatesourcingmethodswithlevelsofperformance.Doemployeeswhorespondedtoacertainjobadvertisementendupperformingbetterthanemployeeswhowerereferred?Trackingthisdataopensupthepossibilityoffindingthatout.8|CIELOTALENT.COMBusinessOutcomes(Rare)MeasuringBusinessOutcomesresonateswellwiththeC-suiteandinvestors,anditiswell-suitedforhigh-volumerolesorseniorleaderswheremeasurableoutcomes–suchasrevenuegrowthandsales-per-hireareclearlydefined.Insalesroles,forinstance,whiletherearemanyvariables,theyultimatelyhavethesameobjective:bookingandgeneratingrevenue.Iftheaverageis10salesperquarter,andonesalespersononlyhastwosales,thenyouhavesomethingtoworkwith.Organizationsoftenseethemselvesinmultiplecontinuumcategories,aresultmostlikelytiedtoanorganization’sincreasedsophistication.Afterall,nomethodisbetterthananyother–theyareequallyvalidandmerelyidentifyhowanorganizationmeasuresvalue.Whichoftheseismostappropriatewillvarybycompany,departmentandrole.Whilethenumbersareobjective,whattheymeanisnotnecessarilyclear.Therecanbemanyotherfactorsthataffectbusinessoutcomesoutsideofrecruitmentmethods,butitisalmostalwaysagoodplacetostart.Ifthereisaqualityissue,takeitbacktotherecruitmentprocessandseewhatthevariableswerebetweentheperformingandunderperforminghires.DefiningandmeasuringQualityofHirecomeswithchallenges,butthebenefitsitbringsmakeitworthwhile.9|CIELOTALENT.COMHOWDOIOVERCOMECHALLENGESTOMEASURINGQUALITYOFHIRE?ArrivingataplacewhereyourorganizationisreadytomeasureQualityofHireandbenefitfromitdoesnotcomewithouteffort.Thetopfourchallengesare:1.Nocommonagreementoncriticalroles2.Difficultytrackingandreporting3.Perceptionsaresubjective4.ExpectationsareunclearThesechallengesoftenarisefromcompaniestryingtoevaluateallemployeestogether.Instead,startbyevaluatingonlythehighest-priorityroleswithinyourorganization,i.e.,thehighestrevenuegeneratorsor40%ofaprioritizedlist.Workingcloselywithhiringmanagersandseniorleaderstoarriveatconsistentandagreed-upondefinitionswillthenhelpkeepthepracticemanageablebymakingsureyouaregettingonlythemostmeaningfulandimpactfuldata.ItisalsocriticaltounderstandwhoshouldbeheldaccountableforintegratingQualityofHireintoanorganization.Seniorleaders,talentmanagement,talentacquisitionandhiringmanagersallplaycriticalrolesinansweringthefollowingquestions:•Whatareourmostcriticalrolesintheorganization?•Whatarethetraitsthatcorrelatemostdirectlywithqualityperformanceinthoseroles?•Howcanwequantifiablymeasurethosetraits?•Whenandhowoftenshouldthosemeasuresbeassessed?•Howcanweusewhatweknowtopredictfuturesuccess?10|CIELOTALENT.COMHOWCANIIMPROVEQUALITYOFHIRE?Wehavefoundsixcommonleversthatleadtostrongerhiringresults,improvedworkforceperformanceandbetterQualityofHire.Thereisnosilverbulletandnomagicformulathatworkineveryenvironment.Thesearesimplyareasyoucanmonitorandadjusttomakesureyouareonthebestpathtoqualityforyourorganization.1.EmployeeValuePropositionYourEmployeeValueProposition(EVP)istheprimarymessagecandidatesreceiveaboutyourcompanyasidefromyourpublicbrand,anditiskeytoachievingbetterQualityofHire.SmartEVPswillattractthecandidatesyouwantwhileturningawaythosewhowouldnotmakeagoodfit.Thinkofitasyourorganizationtakingasideintheclassic“TheBeatlesorTheRollingStones”debate–onesideappealstosomeindividualsmorethantheother.Therightmessagewillcreateanemotionalconnectionwithyourtargetaudienceandhighlightpointsofdifferencethatencouragethemtoworkforyourbusinessinsteadofanother.YouneedtomonitorandupdateyourEVPperiodically,butitisoneofthefewtoolsyoucanimplementthatwillbolsteryourrecruitmenteffortswhileyousleep.2.WorkforcePlanningWorkforceplanningandretentionmetricsincludethecostofturnover,workforcestability,workforcecapacity,turnoverrateandreason,voluntaryterminationbytopperformersandkeypositionturnoverrates.Tofurtherdevelopapictureofyourworkforcequality,considercollectingdataonnewbusinessgrowth,physicalworklocation,offshoring,economictrends,retireesandthetransferofknowledge.Therearetoolsavailablethatcanhelpyoutrackthesemetrics,includingservicessuchashumancapitalforecastingandretentiondiagnostics.Understandingthisdatawillhelpyoupredictyourfuturetalentneeds.11|CIELOTALENT.COM3.HiringManagerExperienceYourorganization’shiringmanagersdefinerecruitmentquality,whicharguablymakestheiropinionsthemostimportant.ButthereisoftenadisconnectbetweenHRandhiringmanagers.Cielo’sTalentAcquisition360researchshowsasignificantgapbetweentheexpectationsofhiringmanagersandtalentacquisition’sabilitytomeetthem.AccordingtoastudyperformedbytheCorporateExecutiveBoardRecruitingRoundtable,themajorityofrecruiters(57%)feelthathiringmanagersdonotunderstandrecruiting,whileanevenlargermajority(63%)ofhiringmanagersfeelthatrecruitersdonotunderstandthejobstheyaretryingtofill.Somethingisclearlybrokenbetweentalentacquisitionandhiringmanagers,soyoumustfindtherootofthisdisconnectandbridgethegaptotrulydeliverqualitytalent.4.TalentManagementWhiletraditionaltalentmanagementfocusesonhiringandturnover,today’stalentmanagementmustbemoreintegratedintothebusiness.Itmustlinkbusinessprioritiesandcriticalworkforceissuesanddriveresultsthroughorganizationalenhancements.Effectivetalentmanagementimprovesanorganizationthroughstrongsuccessionplanning,benchstrengthassessments,humancapitalmetricsyearoveryear,currentandfutureorganizationcharts,specialemphasisareas,employeeprofilesandactionplans.Thesearestrategicmeasuresanddatapointsthatarebecomingevenmoreimportantforproperlyanalyzingthequalityofyourhires.Withoutthem,youareessentiallycrossingyourfingersandhopingeverythingworksoutforthebest.12|CIELOTALENT.COM5.EmployeeOrientationAcasestudyfromTexasInstrumentsshowedthatemployeeswhocompleteorientationreachfullproductivity60daysfasterthanemployeeswhodonot.Corningfoundthat69%moreemployeesremainedatthesamecompanyafterthreeyearsiftheycompletedorientationcomparedtothosewhodidnot.Seeingasthevalueoftalentincreasesovertime,theimportanceofhavingemployeescompleteorientationshouldbeself-evident.Makesureyouhavearobustonboardingprogramtoconvertcandidatesintoemployeesandkeepyourqualityhiresinplace.6.Cost-Per-HireFirst-yearturnoverisoftenconsideredatellingindicatorofquality.AccordingtoPwCSaratoga,“Theaveragecostofturnoverfornewhiresisequivalenttooneandahalftimestheannualpayofthedepartingemployee.”Sowhileitmightbetemptingtospendlessperhiretoreducecosts,itactuallybecomesmoreexpensiveovertime.AccordingtoBersinbyDeloitte,doublingspendingperhireresultsin40%lessnewhireattritionand20%fastertimetofill.FindingtherightmixforyourorganizationcanhaveasubstantialimpactonyourQualityofHire.“Theoldadageaboutpeoplebeingyourgreatestassetisnottrue.Peoplearen’tyourgreatestasset.Therightpeopleare!”-JimCollins,Authorof“GoodtoGreat”13|CIELOTALENT.COMDefiningandmeasuringQualityofHirecertainlycomeswithchallenges,butitalsobringsbenefitsthatmakeitclearlyworththeeffort.ItisnotastretchtosaythatQualityofHireisessentialtoyourorganization’ssuccess.Accuratelymeasuring,leveragingandpredictingitaddsdividendstoyourbottomline.NosinglemetricperfectlydeterminesQualityofHire,soyoumuststartwithabasicunderstandingofthetraitsthatmattermosttoyourorganization–byrole–andincreaseyoursophisticationasyoulearn.UsingCielo’sQualityofHireContinuumonpage6willhelpyoudeterminethemetricsthatworkbestforyourorganization.Donotwaituntilyouthinkyouhaveperfectedtheprocesstoimplementmeasurements,oryouwillnevergetstarted.Beginwiththeendinmind
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