For a quarter of a century, Human Resources departments have grappled with quantifying the elusive ‘Quality of Hire’—a metric that, until recently, seemed more like a mirage than a measurable figure. It’s often been considered the Holy Grail of HR metrics due to its direct impact on an organization’s success. But why is Quality of Hire so critical, and how has it remained so evasive over the years?
The "Win-Win" Performance-based Hiring Articles, Insights and Podcasts
With AI, there’s a new math for hiring. It turns out everyone can now be in the top half of the top half. To get there candidates and hiring managers both need to be more discriminating and make wiser decisions. Getting to the top 10% takes a little more effort. For some it’s worth it.
When creating a talent acquisition strategy it’s important to note that about 20-25% of those in the workforce are always actively looking for another job. This is the group companies need to target to fill open jobs as rapidly as possible. There’s another 20-25% who are always proactively passive. Don’t even attempt to contact these people unless you’ve worked with the person before. Given this, it’s obvious the candidates you’ll want to hire for your most important roles are in the other 50-60%. While this is the ideal talent market, these people won’t respond to your emails or calls unless you become an expert at passive candidate recruiting. This involves a number of critical skills, in particular:
The traditional interview process has been shown to be unreliable in predicting job performance, often due to bias, lack of training and a focus on surface-level characteristics. The Performance-based Interview (PBI) is a natural language approach that seeks to assess an individual’s competency, fit and motivation by asking them to describe their past performance in specific situations. Studies have shown that the PBI is a more accurate predictor of job performance than other interview methods, making it a valuable tool for organizations seeking to hire the best candidates. Moreover, the PBI can be used to assess candidates at all levels of experience, making it an ideal method for career development and succession planning.
While it’s hard to believe that a single hiring mistake could cost a company $400 thousand, it’s not so hard to believe when looking at this table showing the incremental profit contribution of employees at these well-known companies. The idea behind this table is that it shows the full financial and business impact a person has on a company, rather than just considering the person’s compensation package.
This chapter is about controlling interviewer bias. It is the most important chapter in the book since more hiring mistakes are made due to bias than any other cause. In fact, if you read only this chapter before conducting another interview and use these techniques for overcoming bias, you’ll reduce you’re hiring mistakes by at least 50%. (See graphic below.)
Simply put, if you describe work as a series of performance objectives rather than a list of skills, experiences and competencies you can attract a broader pool of more diverse and high potential talent.
On September 22, 2021, the 4th edition of Hire with Your Head will be published by John Wiley & Sons. As part of the totally revised edition, I reviewed some of my favorite posts from the past few years and incorporated them in the new book. The following is a slight rewrite of one that appeared on LinkedIn’s Talent Blog a few years ago.