Title: Framework for the Course
1Framework for the Course
- MGMT 4020
- Hiring and Retaining Human Resources
2Major Themes of Books
- Talent Flow
- Performance yield-gt 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
3Perf Yield Typical Interview
4Perf Yield Good System
5Why 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
6Factors Affecting Hiring Success
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8Successful Employees
Unsuccessful Employees
Base rate of success 9/18, or 50
9Successful Employees
Unsuccessful Employees
Base rate of success 14/18, or 78
10Factors Affecting Hiring Success
- Selection Ratio
- (How selective you can be)
11True Positives
False Negatives
False Positives
True Negatives
Success rate 8/12, or 67
12True Positives
False Negatives
False Positives
True Negatives
Success rate 8/12, or 67 Success rate 5/6,
or 80
13Factors Affecting Hiring Success
- Validity of Hiring System
- (r .83 vs .63)
14r .83 (vs. 67)
False Negatives
True Positives
True Negatives
False Positives
Success rate 73 (vs 67) (and no False
Negatives)
15True Positives
False Negatives
True Negatives
False Positives
Success rate 73 (vs 67) Success rate 100
(vs 80)
16So 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
- ?
17Performance Yield over Time
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19Post-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?
20Study of Hiring Managers
Whats the secret to successful hiring?
21Summary Why Hiring Failed
- Inadequate Process 50
- Inadequate Applicants 14
- Pressure to Hire Wrong Person 13
- Limitations of Interviewer 12
- Fooled by Applicant 11
- Didnt Explain Job 3
22Why Hiring Failed
- Inadequate Process (50)
- Interviews 15
- Reference-checking 13
- Not enough time 7
- Wrong qualifications 7
- Not selective enough 4
23Evidence-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.htmlWHY
24Evidence-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
25Why 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
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27Three Models of Hiring
- Warm-Body Hiring
- Ritual Hiring
- High-Impact Hiring
28High Impact Hiring Principles
- Systematic
- Comprehensive
- Performance-oriented
- does it deliver better job performance?
29Steps to High Impact Hiring
- Understanding job performance
- Anticipating hiring needs
- Recruiting high potential applicants
- Comprehensive evaluation of applicants
- Performance-based decision-making