Using Employee Profiling To Win The War For Talent

1. Using Employee Profiling To Win The War For Talent Presented By David Reynolds Executive General Manager – Consulting Chandler Macleod Australasia

2. Session Objectives • Define Employee Profiling • Explain its growing popularity and use • Outline the different Employee Profiling options available • Demonstrate how organisations can use Employee Profiling to help win the war for talent

3. Who is Chandler Macleod? • Australia’s leading firm of people consultants • Established in 1959 • Employ over 700 people across 70 offices in Australasia • Specialise in people attraction, assessment, development and impact initiatives • Focus on helping our client partners maximise people performance and manage risk • Profile 8000+ employees each year

4. ‘Management Speak’ “We expected that Good to Great leaders start out by setting a new vision and strategy. We found out instead that they first got the right people on the bus, the wrong people off the bus, the right people in the right seats – and then they figured out where to drive it”. Good to Great – Jim Collins

5. What is Employee Profiling? Understanding the individual Understanding the organisation

6. Employment Trends Unemployment Trends General Employment Trends (Year to April 2006) • Employment increased to 10,079,800 • Unemployment decreased to 543,100 • Unemployment rate stable at 5.1%

7. National Employment Forecast May 2006 Quarter • Australian labour market growth will slow • Skills shortage and high demand = rising wages • WA skills shortage now the worst on record • State and Federal Governments issuing infrastructure projects warnings • Queensland and Western Australia will account for almost half of all new jobs created

8. What Does This Mean for Employers? • In short “War for Talent”! • Skills shortages, coupled with high demand, are driving wages higher • Employers and recruitment firms are finding it increasingly difficult to find and retain talented employees • Suitable applications to recruitment advertising continues to fall • Newspaper “Positions Vacant” adverts are attracting as little as 5-10 responses • Your competitors are targeting your talented employees, right now!

9. Average Salary Increase in Output Increase in ROI Job Level Unskilled $40k 19% $7,600 Skilled $70k 32% $22,400 Management 48% $48,000 $100k Did You Know That… • Replacing an employee in the first year costs up to 3 times their salary • Selecting a top performer can mean significant impact on your people investment

10. Did You Know That… TOP THIRD PERFORMERS MAKE YOU MONEY MIDDLE THIRD PERFORMERS MAINTAIN STATUS QUO BOTTOM THIRD PERFORMERS LOSE YOU MONEY

11. Did You Know That… • When managers were asked: Q:”If you knew at the time of hire what you now know, would you rehire? A: 32% of current staff would not be rehired!

12. The Cost of Getting it Wrong • Recruitment is not a perfect science…in the people business, mistakes can occur • The cost of hiring the wrong person includes: • Salary cost of payout/notice period • Lost productivity (of the hired person and co-worker overload) • Lost productivity (morale drop of co-workers and teams) • Re-hire costs • Learning curve ‘productivity lag’ of new starter • Re-training costs • Loss of intellectual capital

13. Common Problems in Selection • Important information is missed • Applicant data is misinterpreted • Biases and stereotypes affect judgement • Decisions are made too quickly • Too much reliance on interview • Pressure to fill positions affects judgement • Interviewer’s hiring decisions not systematic • Availability of candidates affect judgement

14. Incorrect Decision Correct Decision CORRECT DECISION INCORRECT DECISION Suitable Candidate The person “looks right and is right” - obvious hire, can demand higher salary The person “looks wrong and is right” - missed opportunity Unsuitable Candidate The person “looks wrong and is wrong” - risk avoided The person “looks right and is wrong” - management problem The Case for Employee Profiling

15. Understanding the Person Abilities Cognitive or intellectual abilities. Some are learned or formalised, others are more innate. Knowledge, Skills and Experience This information is gathered through standard recruitment steps Temperament Behaviour in a particular situation and the use of personal resources Based on habits, feelings, attitudes and emotions Interests Effects both performance and job satisfaction StandardRecruitment CM Assessment

16. Performance Co-operative Working structures Skills Knowledge Experience Can Do Ability Aptitude Performance Management Systems Want to Satisfaction Interests Organisational Adaptiveness How to Temperament Power/Politics/ Culture Motivation Calibre of Leadership Employee Engagement The Formula For Behaviour BEHAVIOUR PERSON ENVIRONMENT = fn ( X )

17. “Management Speak” “We expected that Good to Great leaders start out by setting a new vision and strategy. We found instead that they first got the right people on the bus, the wrong people off the bus, the right people in the right seats - and then they figured out where to drive it.” Good to Great, Jim Collins

18. “Management Speak” % Importance of Success FactorsTom Peters www.tompeters.com/slides/uploaded/Talent50_101305.ppt

19. Performance & Productivity Jim’s “Right People”… Tom’s “Passionate People”… Performance & Productivity: the constant effort to increase the number of stars, get the best from the core and move low performers as fast as you can

20. The Value of Employee Profiling

21. Techniques to Measure BehaviourPredictability Ratings

22. Best Fit Concept BEHAVIOUR PERSON ENVIRONMENT = fn ( X ) Performance Skills Knowledge Experience • Behavioural Interviews • Work Sample tests Can Do Ability Aptitude • Cognitive Ability appraisal Want to Satisfaction Interests • Behavioural Interviews • Personality questionnaires • Reference checking How to Temperament Motivation Employee Engagement

23. The Use of Employee Profiling • Organisations are increasingly using psychometric assessment to select the right person for the right job: • Do they have the skills and abilities to do the job? • Are they motivated to do the job? • Will they be motivated to stay with the organisation? • Will they fit within the culture? • Will they do the right thing by the organisation?

24. Testing for Skills and Abilities • Specialist tests • Verbal and Numerical Reasoning • Mechanical Reasoning • Understanding Instructions • Visual Checking • Fault Finding • Spatial Checking • Technical Understanding • Abstract Reasoning • Work simulations- including role plays, in-tray exercises, presentations

25. Assessment for ‘Fit’ • Use a personality scale to assess what makes the person tick: • Teamwork • Commitment • Work ethic • Safety focus • Focus on detail • Ability to work autonomously • Ability to take the initiative • Perseverance • Results focus • Integrity • Motivation for the role • How to manage the person • How to keep them motivated

26. Employee Profiling Innvovations CM developed the ESP, a leading edge system that provides information on the strenghts and weaknessess of an individual in relation to different roles in the organisation The ESP provides a report that includes: • shortlist of jobs that best fit their soft skills including a comprehensive job fit report • job fit reports of employer specific jobs and local skill shortages • Training & development suggestions

27. Understanding the job fit of a candidate and their potential for different roles in your organisation

28. How ESP works Suitability of candidate for other roles (across and higher up the organisational structure) Suitability of candidate for a particular role in their organisation Provision of management and training advice in case there is a gap between job requirements and the candidate’s profile ?

29. How ESP works The ability to listen and understand spoken instructions

30. How ESP works Pre-tasks • Consent • Moving Through the Tasks • A Short Practice Task • Questionnaire Entry Level - Skilled • Humm Wadsworth Temperament Scale • Working with Numbers (SHL NWP2) • Understanding Instructions (SHL VWP1) • Reasoning (SHL DC3.1R ) Professional • Humm Wadsworth Temperament Scale • Numerical Reasoning (SHL NMG2004) • Reasoning (SHL DC3.1R) • Verbal Reasoning (SHL VMG2004)

31. Profiling Against Multiple Roles

32. Innovation Features • Evaluation of all staff possible • Against universally-accepted Employability Skills • Produces Degree of Fit to Role report, not percentile numbers • Online, on-site, on demand • Instant access to all reports • Average assessment time for both entry and professional level assessments reduced by 40% • Assess once – apply each time a decision is required against any role

33. Questions ?…