How to Avoid Bad Hires Through Reference Checking
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You can listen to today’s webinar using your computer’s speakers or by dialing into the teleconference. To join the teleconference, dial 1.650.479.3208 and enter access code: 924 523 772 #. You will hear music until the seminar begins.
How to Avoid Bad Hires Through Reference Checking
- 1. You can listen to today’s webinar using your computer’s speakers or you may dial into the teleconference. If you would like to join the teleconference, please dial 1.650.479.3208 and enter access code: 924 523 772 #. You will be on music hold until the seminar begins. #TMwebinar
- 2. Speaker: Jack Kramer Vice President SkillSurvey Moderator: Kellye Whitney Managing Editor Talent Management magazine #TMwebinar
- 3. • Q&A – Click on the Q&A icon on your floating toolbar on the top of your screen. – Type in your question in the space at the bottom. – Click on “Send.” #TMwebinar
- 4. Polling Polling question will appear in the “Polling” panel. Select your response and click on “Submit.” #TMwebinar
- 5. 1. Will I receive a copy of the slides after the webinar? YES 2. Will I receive a copy of the webinar recording? YES Please allow up to 2 business days to receive these materials. #TMwebinar
- 6. Kellye Whitney Managing Editor Talent Management magazine #TMwebinar
- 7. Jack Kramer Vice President SkillSurvey #TMwebinar
- 8. How to Avoid Bad-Hires Through Reference-Checking SkillSurvey Pre‐Hire 360™ Revolutionized Assessments for Business
- 9. The History of a Reference Check • Historically – One of the most important steps – Hiring managers talked to previous managers • How are they day to day? • Nuances? • What challenges do they have and what can I do to make them A+ players? • Actionable Information – Will it help make a decision? – Will it screen out or have candidate rise to the top? – Will this information help this person succeed? – Will this information predict behavior?
- 10. Historical Phone Checking Necessary for making informed hiring decision
- 11. History of Reference Checking Effectiveness Can we make it relevant again? Actionable Should it be? Information 1970’s 1980’s 1990’s 2000 2010 Reference Checking Past 40 Years
- 12. The Lawyers Get Involved • The 1990’s and the new millennium – Legal issues arise – HR cracks down and bans reference checking – Outsource the process – check the box – Or worse – stop doing it – If you do try and reference check: • Countless hours of phone mail tag, email tag, phone mail tag • Weeks and weeks of time – All for no actionable information
- 13. What is the Problem? • Most candidates do a nice job presenting themselves during interviews – All are team players – All show up for work and don’t text, sit on Facebook all day – Most are ethical and always do the right thing • Most candidates are well rehearsed in the question/response mode – Books, job seeker sites – Experience interviewing all the time • Your only view today is from the candidate’s perspective – Really need a true 360 review from those who saw the behavior in the past
- 14. Impact of a Bad Hire • Bad Hire has an impact • Various by organization and by job role – Hard dollar cost – base salary, benefits, on board training, exit costs – Internal team turmoil – Customer satisfaction – Compliance (Finance – SOX issues and the Fed’s) • For sales roles – Cost of lost revenue – Asset is time – time is lost forever • For clinical roles – HCAHPS and reimbursements
- 15. Can You Guess What This Number Represents? $23,160,000
- 16. Let’s Look at the Statistics • SkillSurvey Customers had 3,500 + sales candidates • Evaluate competencies and behaviors • Scientific and predictive • 11 % or 386 candidates were high risk and potentially avoided • If you took average cost per sales $60,000 x 386 candidates =
- 17. Stats Speak for Themselves $23,160,000
- 18. From Candidate Perspective – Today’s Approach Phone interview I’m a Team Player Recruiter Face to Face Candidate I interview well I’m terrific Resume Personality / Behavior I work really hard, weekends Assessments too!
- 19. From Reference Perspective – Today’s Approach Phone interview She’ a Team Player Recruiter Face to Face Reference She works hard Resume She’s terrific Personality / Behavior Assessments I would hire her again, yes!
- 20. A New Perspective – The New Paradigm Phone interview Work Ethic Face to Face Dependability Integrity Recruiter Resume Teamwork Personality References Personality / Behavior Interpersonal Skills Assessments
- 21. Comparison Online Solution Typical Phone Check More references 5+ business references 2 to 3 50% of which are former or current Supervisors Faster 1 to 2 days 5 to 10 days Guide Hiring Managers Previous managers assisting in No leading interview Pauses a hiring decision 5% ‐ 10% of candidates < 1% of candidates? Passive sourcing tools 5 references per candidate – Not Applicable warm leads Compliant/Legal Risk Supports compliance with EEOC Uncertain/Inconsistent and OFCCP
- 22. Why You and a Better Process? • Improve – Quality of Hire – Hiring Manager’s Interview Effectiveness – Efficiency – Passive Sourcing • Drive – Compliance and Consistency • Elevate Recruitment’s Role
- 23. Improve Quality of Hire SkillSurvey References Perceive That 10-15 % or more of Candidates Have Great Developmental Need 5-10 % Avoidable, High Risk Candidates Great Developmental Need 10‐15 % Coachable, Moderate Risk Candidates Moderat e = Interview and on‐boarding assistance 80-85 % Minimal 0 10 20 30 40 50 60 70 80 Percent
- 24. Improve Hiring Manager’s Interview Effectiveness • Lack of consistency for hiring managers • Managers looking for differences in candidates • Probing questions driven by previous managers’ comments
- 27. Improve Efficiency – Time and Money Screen to top 3 candidates Recruiters Source Candidates
- 28. Exclusive Case Study: Improved Efficiency – Time and Money • Improve efficiency – time and money • Six Sigma From 60 work weeks to 4.8 Solution resulted in a 92% Reduction in Time Spent reference checking 60 50 Work weeks to reference check 40 2,272 job 30 candidates 20 10 0 Telephone SkillSurvey
- 29. Passive Sourcing by the Numbers Talent Pipeline and Funnel • Multiplier Effect Based on 100 300 1,500 Number of Candidates Screened Job opening Candidate Reference • Builds Automatically s s Industry Professionals with Whom To Network and Source • “Great People Know Great People” • “Warm Lead” vs. “Cold Lead” An organization 3 candidates 3 candidates 65% of the 1,500 contacts opt in to learn about future 1 2 3 4 has 100 job apply on average SkillSurveyed and career opportunities. 1,500 x .35 = 525 + passive openings for each job = 300 provide 5 references candidates candidates each = 1,500 potential contacts
- 30. Risk and Compliance Management Science Compliance Risk
- 31. Reliability and Validity – Why? • Without understandable data, you cannot ensure a fair and equal assessment. • Can you prove your practices are not discriminatory, even accidentally? • The risks are massive, and can damage an organization and destroy a brand.
- 32. Increase Compliance and Consistency • It is all about the science ‐ Validity of survey questions – Do the questions validate what you are actually asking? – Do the questions help predict future behavior? – Are the questions being asked in a way that reduces risk? • Sample question – What high school did you go to? • SkillSurvey reference feedback shows no differences between sub‐groups – Helps support your efforts to remain EEOC and OFCCP compliant • Standardized process
- 33. Why You and a Better Process? • Clear ROI for Finance and Budgets – Quality of Hire – Turnover – Efficiency – Passive Sourcing • Elevate Recruitment’s Role
- 34. 1 minute 5 minutes 2 seconds 10 minutes
- 35. Survey Availability Job Level ► Entry- Hourly Clerical Professional Supervisor Manager Executive ▼Job Family Level General Production Sales Marketing IT Operations Customer Service R&D Admin Finance Legal HR Engineering Education Healthcare
- 43. Step 2: Candidate Enters References From: org name Recruiting Automated Email From Sent: Thursday, November 06, 2008 12:57 PM To: Patrick T Recruiter to Candidate Subject: org name Selection Process Information Explaining the Process Dear Patrick T, Thank you for your continued interest in the Major Account Sales position with org name. As already explained to you, a critical step in the selection process is reference checking. org name uses web-based reference checking for this purpose. Please click on the link below. It will open a web page where you will input your reference. You will also be able to review a sample of the questions being asked and the email that will be sent to your references. Your references will be emailed a reference survey and their responses will be submitted directly back to SkillSurvey. No one will see your references' individual responses because all responses are electronically aggregated together to produce one summary report. Note that all references will be responding as individuals, not as representatives of any company or organization. Please click on the following link (URL) to begin: http://eref.skillsurvey.com//CandidateUtilities/EOC.aspx?
- 44. Step 2c: Candidate Confirms References and Signs Legal Waiver Proof of Consent “…I hereby release any such person, their company, and any affiliated officers, directors, agents, and employees from any and all claims I may have arising out of the disclosure of such information…”
- 46. Job‐Specific, Behaviorally‐Based Would you like to learn more about job openings at Your Co name?
- 52. Professionalism
- 58. Why You and a Better Process? • Clear ROI for Finance and Budgets – Quality of Hire – Turnover – Efficiency – Passive Sourcing • Quickly Implement and Easy “Win” for HR • Elevate Recruitment’s Role in the Organization
- 59. Sample Clients
- 60. SkillSurvey Usage and Growth Page 60
- 61. About Us: SkillSurvey • Providing Reference Solutions since 2002 • Inventor of web‐based reference checking – Patent pending • 34,000 + Candidates in January 2013 – January 2012 – 23,000 + – Over 2,000,000 people experienced the SkillSurvey process • 700+ customers • 300 surveys in current inventory – 23 different job families – Cynthia Hedricks, PhD, Chief Analytics Officer – 91 Surveys for Healthcare roles, 22 Surveys for IT roles, 12 for Sales roles, 10 for Customer Service roles, 22 for Finance roles, 15 for Retail roles Page 61
- 62. Contact SkillSurvey www.skillsurvey.com Jack Kramer, Vice President Field Operations jkramer@skillsurvey.com 610‐947‐6300 x 1203
- 63. Jack Kramer Vice President SkillSurvey #TMwebinar
- 64. Join Our Next TM Webinar The Crowdsourced Performance Review Tuesday, March 19, 2013 TM Webinars start at 2 p.m. Eastern / 11 a.m. Pacific Register for upcoming TM Webinars at www.talentmgt.com/webinars Join the Talent Management magazine Network http://network.talentmgt.com/ #TMwebinar