The Right People

1. The Right People Jim Collins, Harvard Business Review, says: “The old adage people are your most important asset is wrong, the right people are your most important asset”

2. The Right People But even this is wrong, Bob says: “The old adage people are your most important asset is wrong, the right people in the right jobs at the right time are your most important asset”

3. Great (INTERNAL & EXTERNAL) Recruitment Drives: • Individual & organisational performance • Succession planning (today’s recruits, tomorrows leaders) • Long term business success

4. Employee Recruitment Research • So many studies, so many remaining questions • Multi variable process, risk is high • Getting it consistently right is hard • Mistakes are very costly

5. Poor Recruitment Costs • More than 80% of employee turnover is caused by bad hiring decisions* • It costs 1/3rd of annual salary to replace a turnover (does not include intangible damage around loss of revenue, increased business costs, decreased employee morale)** * Harvard Business Review ** US Department of Labor

6. Recruitment Predictors (Validity Scores)* • Age -0.01 • Interests 0.10 • Education 0.08-0.10 • Years of Experience 0.18-0.20 • Interviews -Unstructured 0.09-0.18 -Structured 0.26-0.34 • Reference Checks 0.26-0.38 • Past Performance 0.35-0.46 • Job Knowledge Tests 0.36-0.48 • Realistic Job Previews 0.36-0.48 • Assessment Centres 0.37-0.51 • Psychological/Aptitude Tests 0.51-0.54 *Source: various USA longitudinal research studies in particular from Michigan State University