Framework for the Course

1. Framework for the Course MGMT 4020 Hiring and Retaining Human Resources

2. Major Themes of Books • Talent Flow • Performance yield-> Performance problems are inevitable • Flow and change is also inevitable • Job Satisfaction is a key driver of talent flow • High-Impact Hiring • The state of practice in hiring lags behind the state of the art • Effective hiring is systematic, comprehensive and performance-focused; an investment, not a cost • Avoiding problem employees is as critical as hiring effective employees (and yet different) • “Evidence-Based Management”

3. Perf Yield – Typical Interview

4. Perf Yield – “Good” System

5. Why is Performance Yield so Low? • Difficulty of job • Limitations of hiring system • How selective you are • Accuracy (validity) of hiring tools • Bad decisions by applicant • Changes in employee after hiring

6. Factors Affecting Hiring Success Difficulty of Job

8. Successful Employees Unsuccessful Employees Base rate of success = 9/18, or 50%

9. Successful Employees Unsuccessful Employees Base rate of success = 14/18, or 78%

10. Factors Affecting Hiring Success Selection Ratio (How selective you can be)

11. False Negatives True Positives True Negatives False Positives Success rate = 8/12, or 67%

12. True Positives False Negatives True Negatives False Positives Success rate = 8/12, or 67% Success rate = 5/6, or 80%

13. Factors Affecting Hiring Success Validity of Hiring System (r = .83 vs .63)

14. r = .83 (vs. 67) False Negatives True Positives True Negatives False Positives Success rate = 73% (vs 67%) (and no False Negatives)

15. True Positives False Negatives True Negatives False Positives Success rate = 73% (vs 67%) Success rate = 100% (vs 80%)

16. So What Can You Do? • Increasing Yield • Simplify job • Recruit more/better candidates • Use more valid hiring procedures • Help applicants make better decisions (RJPs) • Coping with “Failures” • Training • Placement may be as important as selection • Over-hiring (continuous hiring) • Remove hiring mistakes • ?

17. Performance Yield over Time

18. Post-Hire Changes in Performance • Relative rates of change in performance • From positive to negative • From negative to positive • Relative rates of exit of high and low performers More common! Turnover generally higher among better performers! WHY?

19. Study of Hiring Managers What’s the “secret” to successful hiring?

20. Summary: Why Hiring Failed • Inadequate Process: 50% • Inadequate Applicants: 14% • Pressure to Hire Wrong Person: 13% • Limitations of Interviewer: 12% • Fooled by Applicant: 11% • Didn’t Explain Job: 3%

21. Why Hiring Failed Inadequate Process (50%) • Interviews: 15% • Reference-checking: 13% • Not enough time: 7% • Wrong qualifications: 7% • Not selective enough: 4%

22. Evidence-Based Practice • Evidence-based medicine is a methodology for evaluating the validity of research in clinical medicine and applying the results to the care of individual patients. Evidence is gathered through systematic review of the literature, and is critically appraised.  The results are then integrated with physician/patient decision making. http://www.ebmny.org/thecentr2.html#WHY

23. Evidence-Based Practice & Project • Develop a focused clinical question concerning the patient's problem(s) • Search secondary databases and the primary literature for relevant articles • Assess the validity and usefulness of those articles • Judge the relevance to the individual patient • Implement the findings in patient care

24. Why Performance Problems? • Hiring Issues • Limitations of hiring system • Difficulty of job  not much you can do • How selective you are  Recruitment • Accuracy (validity)  much can be done • Bad decisions by applicant  RJPs? • Obsolescence of skills •  Hire for ability; training • Changes in employee behavior •  reduce job dissatisfaction; encourage constructive problem-solving

26. Three Models of Hiring • Warm-Body Hiring • Ritual Hiring • High-Impact Hiring

27. High Impact Hiring Principles • Systematic • Comprehensive • Performance-oriented • does it deliver better job performance?

28. Steps to High Impact Hiring • Understanding job performance • Anticipating hiring needs • Recruiting high potential applicants • Comprehensive evaluation of applicants • Performance-based decision-making