This newsletter has been created for job seekers, recruiters and hiring managers who want to learn how to conduct an objective performance-based interview. This specific article is designed to help candidates prepare for this type of interview which involves having candidates describe major accomplishments most comparable to the performance needs of the job. Here’s the short course for those who want to understand the background underlying this methodology.
The "Win-Win" Performance-based Hiring Articles, Insights and Podcasts
When the demand for outstanding talent outstrips the supply, you must break away from traditional HR constraints that inadvertently put a lid on the quality of the people seen and hired. (FYI, we discuss these controversial ideas at our monthly Hire with Your Head book club meetings. Please join us.)
Hiring a new team member always carries its risks, especially when the candidate is someone you’ve never worked with before.
On my first search assignment for a plant manager for an automotive products company the President of the group handed me an almost traditional job description. The almost part was that it was hand-written. The traditional part was that it was filled with the standard jargon listing skills, experience, academic requirements and the omnipresent “must have” competency, “be results driven.”
Last week at our Hire with Your Head book club event I proclaimed that it was easy to predict a new hire’s first year success and satisfaction on the start date based on the person’s answer to this one question.
It turns out that the actual cost of hiring people who wind up in the bottom half is at least $100 thousand per bad decision and for managers it’s a big multiple of that! This is based on the fact that the average revenue per employee for those in the Fortune 500 is $1 million with a variable margin about 40% or $400 thousand.
I asked ChatGPT to write a story about the legal and diversity hiring implications of using Performance-based Hiring based on this whitepaper from Littler. I was shocked by the story it wrote with such a simple prompt.
I asked ChatGPT to write a story based on this post and the image below. It seems quite relevant today given that fact that most people are unhappy with their jobs. The theme: Time is your most valuable, don’t waste it. Given that. I’d rank number five as the most important. – LA, August 21, 2023.
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.
Many years ago I worked with LinkedIn on preparing a video highlighting the importance of developing a hiring strategy based on attracting the best rather than one designed to filter out the weak. It turns out that without the right talent strategy it’s not possible to hire more leaders on a consistent basis. Chance, hope, the latest technology or job boards won’t help. While the message in the video is still true today, most people will have some Catch-22 excuse why it won’t work.