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    Hiring The Right Talent

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    Companies face the challenge of identifying and retaining the right talent. Companies must reevaluate their current hiring and training processes. The right talent can hurt an organization in production costs alone.

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    Hiring The Right Talent

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    rawansdn
    31 views3 pages
    Companies face the challenge of identifying and retaining the right talent. Companies must reevaluate their current hiring and training processes. The right talent can hurt an organization in production costs alone.

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    Hiring the Right Talent

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    Companies face the challenge of identifying and retaining the right talent. Companies must reevaluate their current hiring and training processes. The right talent can hurt an organization in production costs alone.

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    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    31 views3 pages

    Hiring The Right Talent

    Uploaded by

    rawansdn
    Companies face the challenge of identifying and retaining the right talent. Companies must reevaluate their current hiring and training processes. The right talent can hurt an organization in production costs alone.

    Copyright:

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    Hiring the Right Talent

    Collector, Jan 2010 by Grace, Emily


    http://www.bnet.com/ Examining recruitment and hiring processes helps companies retain the best employees In every industry, companies face the challenge of identifiying and retaining the right talent. There are many inherent costs associated with hiring the wrong talent, including increased turnover, management concerns, morale problems and production issues. To select the right person for the job, companies must reevaluate their current hiring and training processes. "The biggest problem organizations are facing is having the wrong talent in the wrong seats," said Chris Young, founder and CEO of The Rainmaker Group in Bismarck, N.D., during an ACA-sponsored teleseminar on high achievers. "It is the silent bottom-line killer." During his presentation, Young explained how the wrong talent can hurt an organization in production costs alone. In his example, he outlined a breakdown of talent collection performance: * The top 20 percent collect $ 1 65,000 per year. * The middle 60 percent collect $120,000 per year. * The bottom 20 percent collect $95,000 per year. In this example, the difference between a top 20 percent performer and a bottom 20 percent performer is $70,000 per year. If a company with 50 collectors replaced the bottom 20 percent of its performers with middle performers, it could improve collections by $250,000 per year. That number only grows with the number of employees in an organization. What if a company replaced the bottom 20 percent with top 20 percent performers? There is one problem with this calculation. Collection departments measure revenue, not what should or could have been. To make dramatic improvement in talent production costs, companies should implement strategic talent management decisions to help realize their lost revenue opportunities. The first step is to make the commitment to select better talent. Hiring is a critical strategic decision. It sounds easy, but everyone in the organization has to be on the same page, and hiring should involve most departments within the company, including the CEO, human resources and lower-level management.

    Next, Young suggested measuring the cost of the current status quo and taking a look at team member performance. Using a spreadsheet to rank collector performance will separate the high and low achievers. Young suggested averaging the performance numbers over a 12 -month period, only taking data from team members who have been with the organization for at least 12 months due to the high turnover rate. After looking at the status quo, start analyzing the organization's bottom 20 percent, middle 60 percent and top 20 percent performers. Understanding and identifying the traits possessed by high achievers can be a great way to benchmark different positions. The traits are usually identifiable and unique. When benchmarking job positions, consider the behaviors, values and attributes of the high achievers. What do they believe in? Do they only want to make money? Do they beh eve consumers who owe money should pay it, or do they want to help? One of Young's favorite interview questions is to ask candidates their philosophy on debt. Once important high -performer traits have been identified, companies should only select and retain people who possess those traits. 'Tve seen organizations keep talent who have been there since the beginning of time or have weathered a battle,'' Young said. "The fact of the matter is if people are not fit for the job, they will not produce WeIl." Developing performance maximization plans for talent is the next strategic decision. Young believes every team member should be on a coaching program. The program can be as simple as keeping the last three months of production numbers in front of employees, encouraging them and giving them techniques on how to improve. Discussing coaching techniques can help increase production and reduce turnover. Regularly comparing performance levels against other co-workers (with or without names) can hold employees accountable and keep a top performer from falling to a middle performer. "If someone has a bad day, week or month, someone should notice," Young said. "The sooner it is noticed, the more quickly you can get that team member back on track." Removing low performers quickly is the last step. Low performers require more attention by management. Higher performers notice the extra attention and morale issues ensue. "The bottom line is organizations don't remove low performers quickly enough," Young said. "If you're ever wondering if you should let talent go, ask yourself if you would hire them again. If the answer is no, get them out of the organization." So why do organizations hire the wrong talent? Human bias often plays a role. Human beings have a tendency to like people who are like them. Also, many times a seat needs to be filled and managers use their gut instincts to make a hire. The traditional interview process does not always achieve the best results.

    "One of the most costly decisions hiring managers make is measuring interviewing ability rather than job competency," said Carletta Neal, senior consultant for The Omnia Group in Tampa, FIa. "The reality is that the traits applicants exhibit during an interview can be misleading and may cause you to make bad hiring decisions - ones that will lead to frequent and costly employee turnover."

    A Michigan State University-School of Business study researched the different steps organizations can take in the hiring process to improve the likelihood of a successful hire: * Interviews alone - 14 percent accuracy. * Interviews and reference checks - 26 percent accuracy. * Behavior-based personality assessment, reference checks and interviews - 38 percent accuracy. * Assessment of values, plus above steps - 54 percent accuracy. * Benchmarking the job using personal attributes, plus above steps - 75 percent accuracy. There are more than 2,000 personality assessment tools in the marketplace. Some vendors offer analysts who can compare the candidates responses to job benchmarks submitted by the client and write assessments based on similarities or dissimilarities found. By investing in these tools, companies can make better hiring and retention decisions that can improve their bottom line. "Whether you're looking to hire, promote or develop a succession plan, it pays to know all you can about an employee," Neal said. "To do anything less puts you, your staff, your customers and your entire business at risk!" Emily Grace is ACA Internationals communications speciahst. Copyright ACA International Jan 2010 Provided by ProQuest Information and Learning Company. All rights Reserved

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