Archive for Quality of Hire
To the list of things that people either love or hate — Tom Brady, cats, brussels sprouts — we can safely add reference checks. Fans see them as a sure-fire way to uncover candidates’ abilities and to learn if they are likely to be a phenom or a fiasco. Haters, on the other hand, find them to be a complete waste of time.
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Cash bonuses. Management training and college tuition. Free knives and hotel stays. An appetizer for an application — or, better put, an app for an app.
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The announcement that effective COVID-19 vaccines had been developed was cause for both celebration and relief. But with vaccine rollouts well underway, companies around the world are now facing a dilemma: whether or not to mandate that current employees and new hires get the vaccine before returning to the workplace.
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After the release of the latest U.S. jobs report, pundits, politicians, and journalists alike have been theorizing as to why the numbers were so disappointing. After all, across the country vaccination rates are trending up, lockdown restrictions are easing or lifting entirely, and businesses and offices are opening up.
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The past year has been a difficult one for managers. Burnout is on the rise and managers have had to take on many new responsibilities outside of their normal job purview, especially as the pandemic has blurred the lines between employees’ work and personal lives.
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In a 2017 report, researchers from Harvard Business School, Accenture, and Grads of Life discovered that in the United States alone, 6 million middle-skills jobs were at risk of “degree inflation” — the practice of requiring or preferring a college degree for jobs previously held by people without one. This not only created unnecessary barriers to entry for countless skilled job seekers but also made it harder for companies to hire, with two-thirds of employers struggling to fill these roles.
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As part of the research for the 4th edition of Hire with Your Head I asked the #1 OFCCP/EEO legal authority in the U.S. to validate the entire Performance-based Hiring process.
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More than 40 years ago the #1 recruiter in the world told me that applicant control was the key to making 2-3X as many placements per month. It took me one full year to master the technique but my placement rate soared by over 3X during the next 18 months as a result. More importantly, 75% of these candidates who were subsequently placed over the next 25+ years (more than 600 people!) were either assigned to stretch projects or got promoted during the first year. Just as important, less than 10% left during the first year.
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I was just finishing up the 4th edition of Hire with Your Head (Wiley, Q3 2021) when a call came in from a talent leader asking about the cost for training her 30-35 hiring managers to implement Performance-based Hiring at her company.
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Over the past 40+ years I've interviewed thousands of candidates for manager, director and VP level positions. Very few of these candidates actually applied for the job being filled at the time. Most were found via LinkedIn or a referral. Nonetheless, I was dumbfounded that many of these people weren’t great interviewees, yet most were all remarkable people doing their jobs.
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One of our clients asked if we could develop a short version of Performance-based Hiring that hiring managers would actually use. Three questions seemed to do the trick as long as the hiring manager first defined job success as five or six key performance objectives (KPOs).
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After years of interviewing and tracking hundreds of people post-hire, it became obvious that most candidates get hired based on criteria that doesn’t predict success: typically, their individual contributor skills, depth of technical skills, an ability to interview well and their personality. The problem with this is that when they underperform it’s largely due to their lack of soft skills; poor decision making; weak organizational ability; inability to fit with the team, manager or company culture; and lack of motivation to do the actual work required.
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While asking a bunch of standard behavioral questions might help eliminate weak candidates, that approach will backfire when interviewing the strongest candidates. In fact, I’ll contend that with just two basic questions you can accurately predict ability, motivation, fit, performance and potential. One question involves digging into the candidate’s major accomplishments, the other how the person would figure out how to solve a realistic job-related problem.
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One of my first posts on this LinkedIn Influencer site, The Most Important Interview Question of All Time, was read by more than 1.5 million people. It’s still worth checking out. Following is the quick summary with a helpful twist for job seekers.
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If a candidate accepts an offer largely based on the title, compensation and location, a Win-Win Hiring outcome is unlikely. Win-Win Hiring means the hiring manager is happy with the person’s performance on the one-year anniversary date and the new employee still finds the job motivating and satisfying. Achieving this positive outcome requires a lot of effort before, during and after the interview by everyone involved, especially the job seeker.
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I thought you’d be interested in a story about how one company figured out how to attract stronger and more diverse talent for some senior technical roles using an unusual approach.
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In part 1 of this series, I suggested that in order to increase interviewing accuracy beyond the 65% standard of behavioral interviewing, you needed to first ask this question when opening up a new job requisition
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In part 1 of this series, I suggested that in order to increase interviewing accuracy beyond the 65% standard of behavioral interviewing, you needed to first ask this question when opening up a new job requisition
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At the beginning of a recent corporate recruiter workshop a hiring manager I had worked with previously at LinkedIn, asked if he could tell a Performance-based Hiring interviewing story.
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While writing my book, The Essential Guide for Hiring & Getting Hired, I found it challenging to write the section about “Getting Hired” since my target audience was primarily hiring managers, interviewers, and recruiters. But I felt the “Getting Hired” part was important to add in order to give job seekers a chance to take control of the interview whenever they felt they weren’t being fairly assessed.
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I tell hiring managers that if a candidate accepts an offer largely based on the title, compensation and location a Win-Win Hiring outcome is problematic. Job seekers need to be equally concerned.
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Win-Win Hiring means that after the first year both the hiring manager and the person hired still agree it was the right decision with no regrets.
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A recent post on CNBC indicated that Amazon’s Jeff Bezos’ is “obsessed” with a bias for action decision-making style. To see if you, those you know and those you might hire possess this critical trait, answer these questions using this 1-5 scale before reading further.
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While inquiring about the status of a hiring manager interview training proposal, a client told me she would get back to me as soon as they got their budget approved for next year. As part of our discussion, I asked how much they included in their budget for bad hires.
My client’s answer was that she hadn’t given this much thought, but she was intrigued by the idea. She also asked how she could figure out the cost of bad hires since it was an obvious and recurring cost, but one that was hard to put a number to. Some of the cost was taken by the legal department, but most of it was in lost performance and hard to even begin to calculate.
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In my supposed semi-retired state, I’ve been asked to help some PE and VC boards hire a number of C-level officers. Most of the job descriptions sent my way start with the classic laundry list of “must-have” experiences and competencies. As a result, they all get my classic response: “This is not a job description, it’s a person description. Let’s put the person description in the parking lot and first define the work the person needs to do to be considered successful.”
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Separating sourcing from recruiting never made a lot of sense to me. Many sourcers never even talk to candidates and just pass a list of names to a recruiter. But the best candidates, whether they’re active or passive job seekers, always have multiple opportunities and convincing them your opportunity is worth considering involves just as much recruiting as sourcing. So the key is to do both to keep the best people engaged throughout the hiring process — and if you do make an offer, it shouldn’t be tied to a big increase in compensation. Here’s how to get started:
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One of the factors in our Recruiter Competency Model is the ability to be able to assess technical competency and intrinsic motivation in a one-hour interview. In an earlier post someone commented that this was not possible. I begged to differ and offered this advice:
Here are some of the live and forward-looking metrics I’d use to achieve a Win-Win Hiring goal using SmartRecruiters’ Net Hiring Score as a target:
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Gallup offers some after-the-fact fixes which, as far as I’m concerned, are too late to do much good. To me the cause of the problem is much more obvious: The wrong people were hired in the first place!
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Take a moment to consider the following: If your company hires 100 people in the next 12 months, that’s an annual increase in compensation costs of at least $10 million if you factor in an average total compensation of $100,000 per person. Clearly, the total cost of hiring dwarfs the cost per hire, and no matter how you cut it, that’s a lot of money. Unfortunately, much of this spend will be wasted by hiring the wrong people.
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Early in my career, I had the good fortune to work as a financial analyst for a Fortune 50 company. During a meeting where the president of a $2 billion group was presenting his business plan for the next year, he was lambasted by the corporate CEO with the following:
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To set the record straight, I believe that providing an extraordinary candidate experience for serious and well-qualified candidates is essential. After all, you’re affecting these people’s lives and it’s important for them to have all the information they need to make the right career decision.
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I’ve long contended that personality style tests like Predictive Index, DISC and Myers-Briggs are inappropriate for screening candidates in or out before they’re interviewed. The problem is that these tests measure preferences, not competencies. More important, most people can modify their preferred style to meet the needs of the situation, something not even considered by these types of questionnaires. As a result, there are just too many false positives and false negatives to make these types of tests good enough for filtering candidates early in the hiring process.
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In my 40+ years of recruiting, I’ve learned that recruiters often make a critical mistake in assessing a candidate for a position. Simply put, they think a candidate’s motivation to get the job (such as being prepared and on-time for the interview) is the same as their drive to do the job once they’re hired.
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Whether a person will accept a job offer, reject it, or back out later should never come as a surprise. Any surprise factor can be avoided as long as you follow some fundamental recruiting techniques.
The most important: Never make an offer you’re not absolutely sure will be accepted.
Underlying this rule is the need to test every component of an offer to determine if the candidate will accept it before formalizing the offer in writing.
Testing can be as simple as asking the candidate if he/she would accept a fair offer and be able to start by a certain date. Any evasiveness is a clue the offer won’t be accepted.
A more formal approach to testing involves getting “yes” answers to the ten following questions. It’s important to note that getting a “no” is not a bad thing. Converting the “no” into a “yes” is called recruiting.
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With the birth of the Internet and job boards in the 1990s and the emergence of ATS around 2000, the high-touch, “quality is #1” approach was losing favor. Companies thought they could “win the war for talent” using technology to reduce the cost per hire.
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Three weeks ago, I met with a bunch of CEOs who are members of Vistage, an organization helping small and mid-size companies grow and manage their businesses. One of their biggest challenges is finding and hiring the right people. At the meeting, they all complained that the recruiters they were using were inadequate. They said few understood the job requirements or the company and all presented too many average candidates.
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My first search assignment – more than 40 years ago – was for a plant manager for an automotive parts manufacturing company. There was no job description for the role, so when I met the company president, I asked this one question:
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The reason hiring acquaintances is more predictable is that these people are hired based on their known performance doing comparable work in comparable situations. Strangers, on the other hand, don’t get this free pass. Instead, they’re first screened on their level of skills, experiences and academic background and then assessed in large measure on the quality of their presentation skills, first impression and personality.
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Raising the talent bar involves consistently hiring people who are in the top half of their peer group. If this is a strategic talent acquisition goal for your company, you need to consider these fundamental truths about hiring people who are already in the top half:
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As long as the work is reasonably comparable, a track record of preparing well-thought-out plans and successfully executing them time and again is the best evidence you can have for promoting or assigning a person to a bigger job. Getting this evidence is a little bit harder for someone you haven’t worked with before since bias, the use of unstructured interviews and lack of understanding of real job needs prevents an accurate assessment.
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While a professional phone screen won’t solve these problems, it will identify their root cause. That’s why every recruiter and hiring manager needs to master the phone screen before implementing any other hiring initiative.
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Lou Adler’s Fourth Edition Book
Hire with Your Head
is coming in September 2021