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6 Myths to Effective Hiring

Selecting Unique High performing TalentHelping both large and small companies to select potential high performers for their team is one of our core strengths. Since 1990, I’ve seen and heard a number of comments – both full of wisdom and some lacking in thought.

The most important thing to focus upon in the hiring process is upgrading the talent level within your organization. This is the KEY to creating a high performance culture and improving your work environment. You know it is the quality of your teams and individuals that make the competitive difference in today’s marketplace.

Complacency in any area of the hiring and selection process can limit the effectiveness of the hiring process.

Based upon all my interaction with hiring managers and human resource executives, there are six universal myths I want to expose and discuss today. So, here are the Six Myths to Effective Hiring Processes…

Hiring a High Performance Person?

Recently I was listening to an expert of high performance talk about how to find high performers for your team. It was very interesting listening to how he built his team to service all his customers around the globe.

Seems he has learned how to narrow the search using only one primary question. And, yes, he does ask for all the traditional information along with the candidates resume and stuff. Yet, this one question is his silver bullet question.

Assuming you also are looking for high performers here is the key question…

Having Government Contracts and Using Assessments?

The only reason to read this insights advice today is if you answer this question with a positive “yes” response. The question is simply…

Do You Currently Have Government Contracts AND Use Assessments within Your Organization?

When answering yes, you have placed a target upon your back regarding an EEOC agency ruling known in the industry as the “Adverse Impact” ruling.

You may be thinking – well this is something for HR or our Labor Attorney. As the say in the world of sports – Not So Fast My Friend!” This is a law or ruling which can cause you significant financial fines. Just ask 3M which just paid a $12 million fine because they could not prove compliance with this rule. Now, in my book a $12 million fine is a significant risk if you have no knowledge about this rule. Yet, it only counts if you are selling to a government institution or agency (including the military).

Job Matching is NOT a Dating Service – Maybe it Should Be

I know this is an off beat title for a business service, yet, to me it hits the right nerve for getting people to think about the hiring process.

Dating services are unique and a little mysterious for anyone who has not used one (like me). The principles they use is to MATCH people to improve the probabilities of a long term relationship. Actually, that sounds like a very good purpose when you look around at all the unhappy relationships and bad marriages.

In the world of business, the dating game is expanded to both finding excellent talent for your organization and finding prospects and customers who match your ideal customer profile for excellent business relationships.

Today, I want to focus upon the Job Matching function for hiring and selection of superior talent.

The True Cost Factors of Employee Turnover

Recently I was in a conversion with an executive about the cost of turnover in his organization and realized this executive had no understanding to the true cost of his turnover problem. If you are only looking at the salary loss or replacement, then you are short sighted on the other factors involved.

Yes, salary lost is the main factor as is the benefit packages you offer to your employees. Then there are another eight factors to look into when calculating the true cost of turnover. These factors can be quite large when you get them all added up. And, you need to know the true cost of employee turnover – if you want to get motivated to proper fix the problem.

Here are the Eight Factors involved in Employee Turnover…

How Assessments Help You Hire High Performers

Often I have discussions regarding the use of assessments in the hiring and selection process. And during my discussions I run into third camps of thought.

Two camps are dangerous or less than reliable while the third camp of thought is the most effective and desirable for the good of an enterprise. In my opinion, the first two camps of thought usually lead to high turnover or compliance issues.

So, let’s review the three camps of thought regarding the use of assessments…

Look Out for “Adverse Impact” and the EEOC

One of the most aggressive Federal Agencies is using a legal precedence  to “proactively” go after organizations to discover any type of discrimination taking place in your organization. They are looking for discrimination based upon gender, race, disability or veteran status.

The basis of the Adverse Impact (also known as Disparate Impact) is the “80 percent” rule. This 80 percent rule is applied to any particular employment practice they target to determine if there are unlawful disparate impact in the selection practices.

As an Executive for any large organization, you should place this item on the front burner of things to check out with your human resources group and possibly your legal advisers. Why? Because the fines can be huge depending upon the size of your organization AND there are retroactive over several years.

One company who recently learned their “adverse impact” lesson was 3M receiving a $12 million fine due to the selection process of their Six Sigma process. The EEOC found their selection system discriminated against their older employees.

Several people have asked “how does this 80% rule work?”

Important Message… Work Now to Retain Your Top Performers

Every CEO or business owner should know who his or her top performers are.  Every department manager and division manager should also know each top performer by name and by motivation type. Why motivation type?   Because we all have intrinsic motivators that make us tick (or not!)

Many organizations have found it necessary to cut training expenses in this troubled economy.  Critically reviewing expenses is very smart business.  Cutting training expenses for your top performers, or A-Players, is not good business!   Why?   Because your top performers usually work circles around average employees!   Your “A Players” have an inner drive to succeed.  When the labor market improves, smart companies will have already established smart initiatives to retain top talent!

Some ways to hold on to your Top Performers:

It is Time to Watch Your Retention Rates

Recently spoke to a new college graduate of computer science, who informed me about a new wave of job seekers. When I asked exactly what he meant by “new wave” I was told the real job competition is coming from people who have jobs currently and are looking for new positions with different companies.

So, the bottom line is while the unemployed are still looking for jobs in record numbers, they are competing with experienced people who have jobs currently. In fact, many of these job seekers are looking for lateral positions – even at the base level positions.

While this information is disturbing, it is expected. Why is it expected you may ask?