How to Avoid Bad Hires Through Reference Checking

transcript

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Speaker: Jack KramerVice PresidentSkillSurvey

Moderator: Kellye Whitney Managing EditorTalent Management magazine

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Kellye WhitneyManaging EditorTalent Management magazine

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Jack KramerVice PresidentSkillSurvey

Revolutionized Assessments for Business

How to Avoid Bad-Hires Through Reference-Checking

SkillSurvey Pre‐Hire 360™

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?

Necessary for making informed hiring decision

Historical Phone Checking

History of Reference Checking Effectiveness

Actionable Information

Reference Checking Past 40 Years1990’s1970’s 20001980’s 2010

Can we make it relevant again?

Should it be?

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

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

• 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

Impact of a Bad Hire

$23,160,000

Can You Guess What This Number Represents?

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 =

$23,160,000

Stats Speak for Themselves

Phone interview

Face to Face

Personality / Behavior Assessments

Resume

From Candidate Perspective – Today’s Approach

I’m terrific

I work really hard, weekends too!

I interview well

I’m a Team Player

Recruiter Candidate

Phone interview

Face to Face

Resume

From Reference Perspective – Today’s Approach

She’s terrific

I would hire her again, yes!

She works hard

She’ a Team Player

Recruiter Reference

Phone interview

Face to Face

Resume

A New Perspective – The New Paradigm

Dependability

Interpersonal Skills

Personality

Work Ethic

Teamwork

Integrity

References

Recruiter

ComparisonOnline Solution Typical Phone Check

More references 5+ business references50% of which are former or

current Supervisors

2 to 3

Faster 1 to 2 days 5 to 10 days

Guide Hiring Managers Previous managers assisting in leading interview

Pauses a hiring decision 5% ‐ 10% of candidates < 1% of candidates?

Passive sourcing tools 5 references per candidate –warm leads

Not Applicable

Compliant/Legal Risk Supports compliance with EEOC and OFCCP

Uncertain/Inconsistent

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

Improve Quality of Hire

0 10 20 30 40 50 60 70 80

Minimal

Moderate

Percent

SkillSurvey References Perceive That 10-15 % or more ofCandidates Have Great Developmental Need

5-10 % Avoidable, High Risk Candidates

10‐15 % Coachable, Moderate Risk Candidates = Interview and on‐boarding assistance

80-85 %

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

Patient Satisfaction ‐ HCAHPS

Behavioral Interview Questions

Improve Efficiency – Time and Money

Recruiters Sou

rce Ca

ndidates

Screen to top 3 candidates

• Improve efficiency – time and money

• Six Sigma From 60 work weeks to 4.8

Telephone SkillSurvey

Work weeks to reference check

2,272 job candidates

Solution resulted in a 92% Reduction in Time Spent reference checking

Exclusive Case Study: Improved Efficiency – Time and Money

Passive Sourcing by the Numbers

Job opening

Candidates

References

An organization has 100 job openings

3 candidates apply on average for each job = 300candidates

3 candidates SkillSurveyed and provide 5 references each = 1,500 potential contacts

65% of the 1,500 contacts opt in to learn about future career opportunities. 1,500 x .35 = 525 + passive candidates

1 2 3 4

Talent Pipeline and Funnel• Multiplier Effect Based on Number of Candidates Screened

• Builds Automatically

Industry Professionals with Whom To Network and Source

• “Great People Know Great People”

• “Warm Lead” vs. “Cold Lead”

Science Compliance Risk

Risk and Compliance Management

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.

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

• Clear ROI for Finance and Budgets– Quality of Hire

– Turnover

– Efficiency

• Elevate Recruitment’s Role

1 minute

5 minutes

10 minutes

2 seconds

Survey AvailabilityJob Level ►

▼Job Family Entry-Level

Hourly Clerical Professional Supervisor Manager Executive

General

Production

Marketing

Operations

CustomerService

Finance

Engineering

Education

Healthcare

Step 1: Enter Candidate Data

Step 1a: Select Survey

Send email to candidate

Sample Libraries: Finance

Other Libraries: IT

Other Libraries: Customer Service

Other Libraries: Healthcare

Step 1a: Select Survey

Send email to candidate

From: org name Recruiting Sent: Thursday, November 06, 2008 12:57 PMTo: Patrick TSubject: org name Selection Process Information

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?

Step 2: Candidate Enters References

Automated Email From Recruiter to Candidate Explaining the Process

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…”

The Surveys: Job‐Specific, Behaviorally‐Based Questions

Job‐Specific, Behaviorally‐Based

Would you like to learn more about job openings at Your Co name?

Drive Warm Candidates to Career Page

Step 4: Aggregate Reference Responses into Actionable Intel

Validated Candidate – Good Fit

Pause or Avoid this Candidate – Low Scoring

Professionalism

Interpersonal Skills

Patient Satisfaction ‐ HCAHPS

Verbatim Comments

Passive Candidate Database

• Clear ROI for Finance and Budgets– Quality of Hire

– Turnover

– Efficiency

• Quickly Implement and Easy “Win” for HR

• Elevate Recruitment’s Role in the Organization

Sample Clients

SkillSurvey Usage and Growth

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

Contact SkillSurvey

www.skillsurvey.com

Jack Kramer, Vice President Field Operations

jkramer@skillsurvey.com

610‐947‐6300 x 1203

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Jack KramerVice PresidentSkillSurvey

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How to Avoid Bad Hires Through Reference Checking

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