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Posts Tagged ‘ROI’

October 18, 2012

The Journey Into Effective Use of Assessment – How Long Does it Take?

The journey into effective use of assessment must be marked by patience and a long view to the horizon.

What is on your horizon? Better Hiring?

When viewed as measurement discipline for a business process called staffing, it brings to mind the time frame required to implement other strategic measurement systems.

It does not happen over night. But the dawn of a new day, with the prospect of positive business transformation can be beautiful.

The design-build-validation cycle requires about five to six months.
• Six weeks to collect job analysis data and define the eassessment specifications
• Six weeks to build the validation version of the assessment
• Six weeks to have hundreds of incumbents and performance rating managers complete the data collection
• Six weeks to conduct the analysis, document results, and prepare for implementation.

To document tangible results – measurable ROI – requires several business cycles to occur:
1. Hire a statistically significant number of new associates
2. Allow enough time to transpire so that proficient on-the-job performance metrics can be observed, collected, and analyzed.
3. The relationship among assessment scores and new hire performance can then be examined, shared (and celebrated!).
4. Recruiter/Hiring Manager behaviors can be reinforced or coached and corrected with the support of evidence.

Anecdotal insights and observation begin immediately – both pro and con. Change management must be sustained over time. The consistent caliber of new hires will be evident immediately through observation-based comparisons. The stream of new hires begins to deliver at a meaningful level as they achieve full competence and proficiency.

For the impact to contribute to business transformation – six months to multiple years.
A high need for immediate gratification is not addressed with a new employee selection system.

Having a partnership that values patience and a long view to what may lay beyond the horizon is essential.

We would be happy to discuss our experience making the journey of staffing process improvement with you.

September 10, 2012

Shaker Consulting Group Sponsors Oracle Taleo World 2012

Shaker Consulting Group, a Cleveland-based developer of custom simulations for pre-employment testing Shaker Consulting Group, is pleased to sponsor Oracle Taleo World 2012, the premier global talent conference, taking place on September 11-14, 2012 at the Chicago Hilton.

Shaker Sponsoring Taleo World


The current dynamic business environment is spurring many companies to look to at how their employee selection system contributes to their strategic plan.  This event will connect Oracle Taleo customers with prestigious businesses, HR and world leaders to provide insight into effective talent management practices.

Attendees will learn how Shaker Consulting Group, deploys their Virtual Job Tryout across a wide variety of industries and job families within industries such as retail, financial services, manufacturing, medical and health care, and consumer products.

The event is expected to draw more than 1,000 global talent management experts. Attendees will learn strategies to achieve success using a unified talent approach with recruiting, performance, development and compensation for a single view of talent.

Shaker Consulting Group will be conducting a demonstration in the Scene and Be Heard Theater for the entire conference at 6;10 pm on Tuesday in the Partner Fair, and available for individual consultations in booth #300.

Ask about our ROI calculators and take a few minutes to explore how the Virtual Job Tryout combines realistic job preview (RJP), and pre-employment testing in a company-branded message.

If you want to arrange a private meeting or obtain additional information please contact Joe Murphy at 888.458.7633

March 8, 2012

Shaker Consulting Group Sponsors NOHRC 2012 – Demos the Virtual Job Tryout

Shaker Consulting Group, is pleased to sponsor NOHRC 2012, the premier HR conference in Northern Ohio, taking place on March 9, 2012 at the Cleveland IX Center.

Want Hire Power? - Get and App for That!

The current dynamic business environment is spurring many companies to look to at how their employee selection system contributes to their strategic plan. The event will connect HR practitioners from prestigious business, with local and national thought leaders offering insight into effective talent management practices

Attendees will learn how Shaker Consulting Group deploys their Virtual Job Tryout across a wide variety of industries and job families to achieve staffing process improvement.

The event is expected to draw more than 500 human resource professionals. Attendees will learn strategies to align their HR practice such as the staffing process improvement with their strategic objectives.

Shaker Consulting Group will be located at booth #407 in the Exhibit Hall. Ask for a copy of our presentation Three Paths to Return On Investment (ROI).

Take a few minutes to explore a demonstration and learn how the Virtual Job Tryout combines realistic job preview (RJP) and pre-employment testing in a company branded message.

To arrange a private meeting or obtain additional information please email Joe Muprhy, Vice President, at joe.murphy@shakercg.com.

January 30, 2011

Do We Need Internal Recruiting? Ask the CFO.

Kevin Wheeler posted an article on ERE that got the recruiting community fired up.  He asked, “Do we need Internal Recruting at all?”  His premise seems to rest with effectiveness, accountability and differentiation that a recruiting function may or may not deliver.

With 32 comments as of this post, it ranks near the top of the charts for getting folks riled up.

Here are my two cents, with a few more details than what I posted on ERE.

The dialogue is all good.  It may be like the question about cars, is it better to buy or lease?  And the answer is: It depends.

Kevin’s main point may really be rooted in economics.  When an internal team has the same mandate to measure, track and report economic impact that an external provider does, there is most likely performance parity.

Unfortunately, the issue lies with the fact that many CFOs and CEOs do not hold internal recruiting teams accountable to document contribution and deliver continuous staffing process improvement.  And without a mandate for economic accountability, the accounting infrastructure to document contribution is often lacking.  A vice president of sales or manufacturing would never be allowed to operate with the poor economic reporting and accounting infrastructure that is deployed for the business process of recruiting.  As such, it is common for internal recruiting teams to use ATS based reporting, thus relying on activity based measures instead of economic measures.

Henry David Thoreau gives us words to ponder for this situation: “It is not enough to be busy, so are the ants.  The question is, what are we busy about?”

One gauge we use to explore the economic accountability of a recruiting team is how literate they are about job-specific performance metrics and how quickly they can access data sets of performance metrics.  Ask a staffing professional, internal or external, if they measure and report on the cost of time to proficiency (total investment from sourcing to self-sufficient performance) for the position with the highest hiring volume.  Ask who owns the budget for staffing waste.  The answers to those questions reveal a great deal about the accountability expectations set by the CFO and CEO for recruiting.

Reporting on days to fill, requisitions open, requisitions per recruiter, and opinion-based quality of hire while good to know are a bit like busy ant metrics.  Recruiters with economic accountability use HR analytics to document and report reductions in staffing waste and rework, increased yield in new hire productivity, reduced time to proficiency, increases in job family average performance metrics and the like. 

From my experience, corporate resources flow to those who build a good business case and then document return on investment.  Outside providers have to do this to earn repeat business.  The best internal providers do so as well. Here is an example of how Key Bank documented high ROI from using pre-employment testing as a form of measurement rigor to reduce staffing waste.

December 2, 2010

Are You a Passive or Active Recruiter?

So much digital dust has been sprinkled over the candidate side of this question.  But, as a recruiter, where do you reside?

Candidates who are not engaged in looking for a career change, and who wait for an e-mail or phone call to consider a job are often called passive.  Using that same logic, are recruiters who use post and hope, and wait for candidates to fill up their applicant tracking system passive recruiters?  That might be considered an unfair or inappropriately simple definition for passive recruiters.

What criterion transforms a candidate into the active camp?

Applying for one job?  Three or more jobs?
One job in the last five years.  Five jobs in the last year? 
How about those candidates who develop a spray and pray resume distribution machine, ah yes, those are truly active candidates. 
How about creating a profile on LinkedIn or other social media? Does investing energy to be visible to digital detectives constitute active?
How about candidates who set up a job agent to alert them of the ideal opportunity?  Does that count as active?  Or is that really passive, waiting and hoping the ideal job miraculously shows up in their in-box?

I offer a few ideas for consideration on the topic of passive recruiters.

Passive recruiters:
Rely on resumes and social media profiles to screen candidates
Only use the demographic profile and contact information section of their ATS/CRM
Measure sourcing effectiveness by candidate volume/traffic
Begin an interview without written, competency based questions
Use fundamentally the same methods of candidate evaluation for high volume hiring and one-off searches
Worry about requisition load and back-log

On the other hand, active recruiters engage in very different activities when it comes to managing the business process called staffing.  Active recruiters understand the staffing process is ripe with metrics that document yield, performance variation, and contribution to the business plan.  Active recruiters partner with finance, accounting and database specialists to measure, monitor, and improve the yield or results from their business process. Active recruiters document the return on investment from their use of corporate resources – people and dollars.

Active recruiters:
Perform a Pareto Analysis of their current and future hiring requirements to appropriately allocate resources to the demand
Develop Realistic Job Previews for their highest volume jobs
Implement the weighted-scoring candidate screening questions in their ATS
Use objective candidate evaluation methods such as simulations and assessments to get better candidate data and quantify applicant qualifications
Deployed some form of objective pre-employment assessment for jobs with over 100 incumbents
Conducted in-house validation analysis for all jobs with more than 100 incumbents
Calculated (not estimated) the cost of on-boarding, or investment in time to proficiency for the one to three jobs with the highest volume of hiring in their company
Documented the cost of staffing waste and re-work from 90 day turnover for key positions with early retention challenges
Conducted a new hire performance variation analysis to document trends and outcomes in quality of hire measures
Developed written interview questions for each competency they evaluate
Deployed behaviorally anchored rating scales for evaluating candidate interview responses
Document quality of hire and yield by source from social media

The list goes on. 

Each of these items represents a effective practice for staffing process improvement, supported with research.  Active recruiters go beyond opinion and anecdote, they want evidence, documentation of impact and favorable trends on their metrics dashboards.

And remember the words of Henry David Thoreau :
“It is not enough to be busy, so are the ants.  The question is, what are we busy about?”

If you would like to learn more about optimizing your level of active recruiting, give us a call.

November 9, 2010

Simulations and Selection Science: Interview with Mike Hudy, Ph.D. Part Two

In Part One of the Interview with Mike Hudy, he discussed the demands and opportunities I/O Psychologist face in developing simulation for pre-employment testing.  In this conclusion, Mike offers a few suggestions on how to determine if a simulation may be appropriate for staffing process improvement in your organization.

What considerations should a company examine in deciding if a simulation would be appropriate for one of their jobs?

There are several factors to consider when examining if a simulation makes sense.  If you have jobs with more than 100 incumbents, building a business case for simulations is typically pretty easy.  Another factor is hiring volume. If you will hire more than 100 people into the same job in a year, simulations can make a significant contribution. 

An additional factor would be the complexity of the job itself.  This variable is often under-valued prior to a thorough job analysis.  The more complex the job, the more complex the demands are on the pre-employment assessment. 

The last and a very important factor to consider in the use of simulations is the candidate experience.  As general rule, candidates find simulations engaging, a more valuable way of presenting their capabilities and companies who use simulations stand out in a positive way from other places the candidate may be applying. 

In short, simulations such as the Virtual Job Tryout add selection science value across a range of factors that have a positive impact on staffing process improvement.

 Part One

September 22, 2010

Virtual Job Tryout® Customer Survey AND iPAD GIVEAWAY!

We here at Shaker Consulting Group are extremely excited to announce our first annual Virtual Job Tryout® (VJT) Customer Survey! The feedback of our end-users is very important to us, and as a way to say ‘thank you’, one lucky survey participant will win a brand-spanking new Apple iPad!  All you have to do is complete our short survey, and share your brilliant hiring-process ideas. You do of course have to be a current VJT user (sorry Shaker employees, but you don’t count!), and if your company policy prevents you from accepting the iPad, we will make a donation to a charitable organization of your choosing instead.

Improving your employee selection process is important to us. We want to collect your ideas to help improve the ROI you get from the Virtual Job Tryout.

Watch your inbox for our survey link, which is being released now. And watch this space for our report on what we learn as we analyze your responses (of course, we will keep your name confidential). We can’t wait to hear what you have to say!

September 17, 2010

Pre-employment Testing in the Experience Economy

Charles Handler wrote about the movement from test to experience in his ERE article.  It was a great invitation to consider the candidate experience.  John Sullivan wrote a few years ago about how career web sites are boring candidates. It may actually be worse.  Applying may have total disregard or abuse in the candidate experience. While some corporate careers pages have added a touch of pizzazz with videos and testimonials, the actual application and pre-employment assessment components continue to be ignored by many, but not all.

I spoke on Pre-employment Testing in the Experience Economy at the SHRM Staffing Management Conference in Orlando this year.  The premise was that candidates expect more.  More information, more engagement, more use of multi-media, more insight into the job and culture.  More support to their decision making process.  Simulations offer the candidate a lot more of what they seek in learning about and applying for a job, or even better yet, a career.

 At Taleo World this week, I had a conversation with an individual who’s firm just implemented a long standing, yet very traditional assessment.  She recently completed the assessment herself and without all the emotional embellishments, this is how she described it: “The questions were stupid!”  “There did not seem to be any relevance to the questions.”    I asked her:  “How do you think your candidates will feel about completing the assessment?  It made her eyes pop out.  It was as if this was the first time anyone had invited her to consider the candidate experience.

Pine and Gilmore have been writing about the experience economy since 1999.   There is a lot business in general and recruiting in particular can learn from their research and point of view.  They suggest we consider and evaluate an experience with two continuum variables: interface and immersion.

Interface is the type of interaction the candidate is offered.  At one end of the continuum is read and watch, the other end comprise choices and interactions.  Examples would be reading a job description to typing, clicking radio buttons, dropping, dragging among options.

Immersion addresses degrees of cognitive, emotional, and physical engagement.

At one end is attending to, studying, absorbing information, at the other end is active processing, raised emotional and physical participation.   Examples would be examining a puzzle to racing to complete a timed exercise.

Creating a matrix that overlays these to continuum provides an evaluation framework to determine the nature of an experience.  The diagram below sets out four types of experiences: Educated, Entertained, Enthused and Engaged.

Candidate Experience Evaluation Matrix

Educated – Traditional media, Web 1.0

Entertained – Video games and cut and paste, drop and drag

Enthused – Movies and Videos with a compelling message, realistic job previews (RJP)

Engaged – Challenging mental and physical tasks, Wii and other dynamic games

Simulations as pre-employment assessment draw the candidate immediately into a high interface, high immersion experience, thus delivering a cognitive, physical and most importantly, an emotionally charged experience.  

  • Selection assessment exercises that can be deployed in simulations include activities such as:
  • Situational judgment – listen and choose what to say next in a challenging conversation
  • Problem solving – information look-up task from an interactive information source
  • Diagnosis – use rule-based logic to determine fault or errors
  • Business acumen – reasoning with financial statements under time pressure
  • Keyboarding – data entry and accuracy, under time pressure
  • Visual estimation – quick calculation of quantities from pictures or illustrations
  • Productive thinking – idea generation capacity in finite time frames
  • Prioritization – compare and differentiate among competing resources

And the list goes on.  Web 2.0 and emerging interactive technologies affords companies the opportunity to deliver a candidate evaluation experience that engages, informs and satisfies their desire for more from the application process. Simulations make it easy to deliver a multi-measure evaluation. Therefore the power and accuracy of selection science available from simulation based pre-employment testing cannot be achieved with conventional assessments. The return-in-investment (ROI) from implementing a simuation can be huge.  Some approaches to project the impact can be explored with these ROI calculators.

Very few organizations evaluate the candidate experience. Candidates are not given a chance to describe their reaction to the application process.  However, they do think about it, they do have opinions about it and it does impact how they think and feel about your company.  Candidates who experience a simulation as part of the application process have a lot to say.  Read some of their feedback here.

Virtual Job Tryout is a simulation for pre-employment assessment.  Each is custom built and validated for a specific job. Candidates find this type of experience highly rewarding, very job relevant and are willing to talk about it in a positive manner.

If you would like to deliver a more engaging candidate experience and deliver a more results oriented recruiter experience, give me a call  216.292.0202

August 18, 2010

Staffing Waste: Rework – Part V of VII

Every time your company experiences a false start, rework is required to recruit and train the replacement hire. Put another way, rework doubles the cost of on-boarding for each false start.

Rework doubles time, dollars and effort to achieve proficiency

The False Start Waste and Rework ROI Calculator allows you to play with your own data or experiment with a hypothetical example of how this doubling-effect would look at a company with 100 false starts annually. Feel free to input your own data, too. The numbers may surprise you.

 As you can see, rework is a hard cost that’s interrelated with false starts. So the recom­mendations discussed in the previous article, Staffing Waste: False Starts, would also be applicable for developing ways to reduce waste due to staffing rework.

In a recent client project for staffing process improvement  in call centers and retail financial services, the use the Virtual Job Tryout for pre-employment testing reduced rework from 90 day new hire turnover by over 50%.  In one position alone, the documented first year savings from higher retention exceeded $1.7 M.  This high ROI project used HR analytics to identify candidate evaluation data with a correlation to career stability and job-fit. 

Reducing staffing waste and rework can have a dramatic impact on the bottom line.
Part I, Part II, Part III, Part IVPart VI, Part VII

August 3, 2010

Staffing Waste: False Starts – Part IV of VII

New hires that terminate prior to achieving minimum performance standards are called false starts in the pre-employment testing industry. Typically, these are people who separate from your organization for one reason or another within 90 to 120 days. And if you’re anything like 78% of HR departments we’ve surveyed (see Fig. 1) your common practice is to report turnover as a percentage.

Fig. 1 Turnover reported as a percentage obscures accountability and hides cost

The problem with reporting turnover as a percentage is that no one owns the waste. A percentage obscures the financial implications and when reported at the company level, it obscures accountability. This means no one owns the responsibility for properly man­aging and reducing false starts. Not you, not your department, not the managers of the department experiencing the highest rate of turnover.

For example, if you reported that during the last year your organization experienced 9% turnover, you might assume that things are in line with industry norms. But if you take a closer look at those false starts, perhaps you would discover that of the reported 9% company-wide turnover, 70% came from one department in the form of false starts, separated in less than 60 days on the job. Each individual false start will mostly likely require a replacement. Plus, the loss in productivity, team and hiring manager frustration, and investment in recruiting and training for each replacement will cost the company thousands of dollars. Now that paints a very different picture than “9% turnover.” (See False Start Waste and Rework ROI Calculator)

If turnover is not measured, does it happen? 80% of companies do not measure 120 day turnover.  (see Fig. 2)  Where else in your company would a business process with high waste costs not be measured, managed and receive the focus of reduction efforts?

Fig.2 Companies not measuring false starts and staffing waste

Following are some action steps to help you reduce staffing waste from false starts, and to help you shift your paradigm from, “Turnover is a percentage that no one owns,” to, “False starts are a form of staffing waste that I’m accountable for reducing.”

First, you can identify the jobs with the highest level of false starts. Using the head count or turnover report in your human resource information system (HRIS), you can do a quick query of individuals with a tenure less than 120 days.

Next, start documenting the cost of on-boarding. If your company embraces Six Sigma, team up with a green belt or black belt on a project to address this. Form a cross-functional team with the hiring managers and the training department to understand the true financial implications—dollars invested—of on-boarding for the first 120 days. Once these figures are known, you could begin working directly with the CFO to identify the budget codes related to various on-boarding activities. Then you’ll be able to create reports that track and report the cost of on-boarding and document the waste from false starts.

By approaching the cost of on-boarding with greater analytical literacy and accountability as described here, you’ll be able to continuously monitor and report staffing waste to the executives within your organization. With someone now owning the responsibility for reducing staffing waste from false starts, ROI can be calculated and improvements to the bottom line can be realized. And you may want to take credit for that.

Part I, Part II, Part IIIPart V, Part VI, Part VII

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