Hiring Superior Performers

Your Presenter today is Fred Tiencken, a Partner of SBI : 

Your Presenter today is Fred Tiencken, a Partner of SBI

Hiring Superior Performers : 

Hiring Superior Performers

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The right people can be the difference between extinction & survival, profit & loss… …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’ 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 Workers 10 Managers

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X 0.19 = Average Salary? Your cost per ‘Average’ = Unskilled Skilled Total Exposure if all ‘average’ (total i + ii + iii) (i) Management X 0.32 = X = (ii) X 0.48 = X = (iii) = (iv) Cost of ‘Average’ vs. ‘Superior’ Performers Your cost if all in this category ‘average’ Percentage of salary investment at risk = $40,000 $12,800 25 $320,000 $60,000 $28,000 10 $280,000 $790,000 30%

Implications : 

Implications 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 Challenge

When do people perform at a ‘superior’ level? : 

When do people perform at a ‘superior’ level?

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“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.

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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”

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Source: Herbert M. Greenberg and Jeanne Greenberg, “Job Matching for Better Sales Performance,” Harvard Business Review, Vol. 58, No. 5. Without Job Match They also stay longer – saving a fortune on recruitment costs! Low Turnover Industry High Turnover Industry % left / fired after 6 months 46% % left / fired after 14 months 57% % left / fired after 6 months 25% % left / fired after 14 months 34%

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“…companies will need to reorient their recruitment and selection processes by hiring “for fit” rather than mere credentials…” “Contented Cows Give Better Milk” Bill Catlette & Richard Hadden

You get just two bites at Superior performance : 

You get just two bites at Superior performance Place the right people the first time Coach the people you’ve got

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Have you ever hired or promoted someone who did not live up to your expectations?

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Have you ever hired or promoted someone who greatly exceeded your expectations?

How different were the processes used in these two cases? : 

How different were the processes used in these two cases?

“If only I had known that Joe…” : 

“If only I had known that Joe…” …predicting superior performance is all about having enough of the right information when you make people decisions

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? “Checking the Past” The Selection Process is... & “Reviewing the Present” “…to predict future ‘superior’ performance”

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Here’s what you see & hire/promote… Here’s what you get! Here’s what you see, hire & promote

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Here’s what you see, hire & promote Here’s what you get!

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No business can afford the risk!

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…in predicting ‘superior’ performance The missing third is...

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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

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Heads or Tails?

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Interview The closer to 100% information the better… What other information might be useful?

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Interview + Background Check What other information might be useful? The closer to 100% information the better…

“…(it) hinges on fit with the job…” : 

“…(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:

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What happens if you don’t put the right people in the right jobs?

The Impact of Poor Job Fit : 

The Impact of Poor Job Fit Source: Gallup

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Interview + Background Check What other information might be useful? The closer to 100% information the better…

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Interview + Background Check + Personality & behavior The closer to 100% information the better…

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Interview + Background Check + Personality & behavior + Mental Abilities The closer to 100% information the better…

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Interview + Background Check + Personality & behavior + Mental Abilities + Interests & Motivators The closer to 100% information the better…

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Interview + Background Check + Personality & behavior + Mental Abilities + Interests & Motivators + Job Matching The closer to 100% information the better…

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Fred Tiencken Tel: (863) 439-3631 Cell: (407) 435-6865 Web: www.staffbuilders.net

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End of Part One (15 minute break)