what successful businessesare doing

Colorado Assessments, LLC800-223-6567

What Successful Businesses are Doing

Companies that Prosper in Good Times and Difficult Times -

Incorporate this into a well defined strategy4.

Focus on the most important things to achieveThese expectations3.

Do the right things to consistently exceed customersexpectations2.

Understand what their customers want and need1.

Aberdeen Group August 2007

Prosperous Companies Use this Strategy to Guide -

How they invest in their human capital 4.

How they define what their people should do3.

How they staff their organization2.

How they organize themselves1.


The Challenges

SteppingStones or Stumbling

Blocks

1. Hire top performers

2. Develop present employees

3. Managing employee performance

4. Planning for the future

WHAT ARE THEY USING?

1 Assessments tools for skill, fit & Attitude

2 Competency modeling

3 360 Multi-rater Feedback

4 Succession planning tools

5 Performance planning tools

They are using -


1. Hiring Challenges

Challenge Response Challenge Response

49% 53% 39% 52%

Ability to compete for top talent in hiring or retention

Articulate behaviors and skill sets of top performers, so we can test and find people who match the job best

Inconsistent hiring practices across the organization

Enhance screening to select the best candidates


1. Hiring Challenges

Challenge Response Challenge Response

35% 47% 34% 44%

New hires are unprepared in knowledge or skills for the positions we fill

Improve candidate screening to screen out candidates who do fit the position requirements

Fail to prepare new hires sufficiently for the new position

Create a talent pool from which to select candidates

Aberdeen Group

Hire the right people

W. Edward Deming said,

“If a person is not performing as expected, it is probably because they have been miscast for the job.”

Who is Applying?

Avert Inc., 800,000 background checks

A 36% increase in number of job applicants who are not eligible for rehire due to personality conflicts, disciplinary problems, theft and embezzlement.7% of applicants had criminal record.25% misrepresented their education and credential records.

What is the Cause?

Eighty five percent of all job failures have to do with the lack of appropriate work habits, not technical skills… how the person does the job and what kind of habits they bring is in most cases more important to identify than technical skills.

Dell Still, High Impact Hiring

What is the Cause?

Insanity in Hiring

Michigan State University School of Business professors concluded a study recently that showed assessments were the most accurate means of predicting the performance of an individual.

Assessments were rated four times more accurate than interviews.

Hire the Right People

Jim Collins, Author of Built to Last said- “The right people are your most important asset and you can’t get the right behavior (performance) from the wrong people.”

50 to 70 percent of most job qualifications may be more inherent in personality than skill.

The Payoff is Enormous

If you accurately assess a person’s soft skills, the payoff is enormous. You’ve not only landed a productive employee but freed the employee’s manager to do constructive, rather than remedial, coaching.

“The first mistake that anybody in management makes is to assume that through training, incentives, or disciplinary action, you can change people who are not doing the job right. People can change, but in the end, we think, most people won’t.”

Hire Smart, Hire Right

The use of pre-hire testing is a growing part of hiring

The goal of improving the quality of each new employee is not to just get a better workforce, but to

retain it, thus reducing hiring costs by reducing turnover

Testing Fears

Two decades ago, corporations feared using pre-employment assessments could be grounds for lawsuits.

Afraid they may unintentionally discriminate or have adverse impact on diverse populations.

Today companies worry more about hiring malfeasance, than about testing malfeasance.

Only 5 successful suits in the last 60 years of testing. SHRM reports that testing is the safest thing you can do.

Aberdeen Group

Why Use Assessments?

ValidatedAssessments

Work!

68% of companies of 1000 plus ee’sUse assessments

52% agree that tests have alerted them to potential problem hires


57% agree that pre-hire assessments are a valuable strategy for employee retention

45% Agree testing distinguished poor from good hires

Who is Testing?

http://www.mayoclinic.org/

http://www.lifecore.com/default.asp

Assessment Usage

Companies with 1000 plus ee’s

Who is beingAssessed?

40%C-Level

52%Execs

66%Professional

52%HourlyText1

64%Mid-Mgrs


$$ CHANGE IN 2008 EMPLOYEE RECRUITING BUDGET

An average of 56% of employers increased their budget

SHRM talent management survey

2. Competency Usage

Present Planned

35%

Plan to use tools to identify

competencies

45%

Use tools to identify

competencies


WHY COMPETENCY MANAGEMENT?

Identify and develop Hi-Po workers earlier 27%4.

Flexible and agile workforce 29%3.

Improved workforce productivity 37%2.

Aligning workforce with business objectives 57%1.


Increase retention/reduce turnover 24%5.

Current & Planned Competency Use

Present Planned Present Planned

55% 43% 36% 52%

Identify knowledge gaps that can be resolved with learning

Identify knowledge gaps that can be resolved with learning

Define common behaviors of top performers

Define common behaviors of top performers


Current & Planned Competency Use

Present Planned Present Planned

37% 50% 33% 46%

Leverage workers who display desired competencies

Create career paths with matching competencies

Leverage workers who display desired competencies

Create career paths with matching competencies


3. 360 Multi-Rater feedback

Surveys that are completed by one’s boss, staff, team members, co-workers or customers.

Feedback comes from multiple sources.

Not a self assessment only process Surveys that provide feedback that

indicate how effectively the person is performing specific job-related skills and practices.

360 Feedback Assessment Surveys or Multi-Rater Surveys refer to…

Value of 360’s

Help individuals improvetheir performance

Help organizations align theday to day performance of their people

with strategic goals

As individuals become effective,so does the organization

Feedback from 360 surveys can be the

single most effective catalyst to individual

growth and development when used properly

360° Applications

Self Development

Leadership Development

Performance Appraisal/Management

Coaching and Counseling

Career Development Team Building

Succession Planning

Sales Development

360°: Practical Benefits

Catalyst for Change Personal Professional

Consequences of behavior, actions

Identify barriers to career development

Increase Influence with Others

Identify strengths to build upon

Identify areas for development

Work more effectively with others

Continuous improvement Personal Professional

“GAP” Analysis Survey

Dual Scale

Effectiveness is determined by comparing the

Current Practices against the

Expectations or Needs of others the person works

with an to use applicant

tracking system in hiring process

Uses two scales (or questions) to

gather data about the person’s

current practices (how often am I doing this now)

and the expectations or needs of others

(how often should I be doing

this now)


Advantage of Dual Scale

AThe feedback results focus the rater’s real and immediate needs

BThe message “your people want more (or less) of a practice” is easier for a person to understand, accept and to respond

C Shows what the “Majority “ wants

4. TALENT MANAGEMENT/SUCCESSION PLANNING

Companies who are doing succession planning or plan to do succession planning

74%74%

74%

74%


Talent Management/Succession Planning Priorities

Top Priority Not a Priority

76% 24%

EMPLOYEE DEVELOPMENT $$ CHANGE IN BUDGET

An average of 59% of employers plan to increase their budget

SHRM talent management survey

Why Succession Plan?

Need to evaluate top talent

Unexpected loss ofkey leaders

Problem findingsuccessful managementcandidates

Improve company’s benchstrength in key positions

Reduce the cost ofreplacing employees

Identify Hi-Po candidates- early and have plan for retaining top talent

What Are Companies Doing?

51%Use leadership development tools

50%

34%Offer executive coaching

DOffer external leadership development programs28%

23%Offer mentorship programs

Position succession planning as a KEY to retention strategy

Why Are Companies Doing It?

82%Create culture that makes an individual want to join

80%

77%Align employees with the mission and vision of the organization

DCreate a culture that will make employees want to stay with the organization

72%

70%Place the right people in the right jobs

Create a culture that values an employees’ work

5. Performance Management

77%ensure managers involve employees in the goals definition process

70%Have standardized employee performance ratings across the organization to ensure consistency with reviews

68%Employees understand how their individual performance affects organizational goals

Performance Management

What Is Driving It?

54% 37% 27% 27%

Align ee goals and

development activities to business priorities

Create a performance

culture

Increase productivity of

current workforce

Develop leadership

and management

pipeline

Aberdeen Group


Best-in-Class organizations are 55% more likely than all other organizations to have their managers define and communicate individual employee goals and expectations within or before the first week of the employee’s start date.

Three quarters of Best-in-Class organizations ensure that managers involve ee’s in the goal definition process. They establish common ground pertaining to performance expectations and create a sense of personal ownership of the goals by ee’s.


Best-in Class organizations have established mechanisms to ensure that managers provide ee’s with clear and consistent performance feedback.

They hold managers accountable for the management of their subordinates’ performance.

This helps maintain the critical line of communication between ee’s and their managers, builds trust between both parties and provides a mutual sense of ownership and accountability in the process.

Achieving Performance Management

Best-in-Class OrganizationsReinforce ee performance with supportive resources such as linking pay to performance, providing mentors or coaches and establishing a consistent line of communication between ee’s

and their immediate supervisors

Laggard OrganizationsTend to focus their efforts on establishing better goal setting

processes and suffer from inconsistencies and lack of accountability; which have a direct impact on ee morale,

performance and retention


ImprovingPerformanceManagement

Standardize employee performance ratings across the organization

Define the metrics against which your organization will measure employee performance


Involve employees in their development and goal planning

Educate employees on how their personal performance affects the organization’s goals

Colorado Assessments, LLC800-223-6567

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