1. WORKFORCE DESIGNS Joe Davenport
Your Competitive Edge:
The
High Performance
Workforce
Presented by
Joe Davenport
WORKFORCE DESIGNS
Who is WORKFORCE DESIGNS?
Helps clients of all types build and retain a top performing
workforce
Is an outgrowth of 40 years of business / management
experience in a variety of industries
Was created to satisfy the need for better information to
make workforce management decisions
Is a strategic business partner with the recognized world
leader in employment evaluation and human resource
management assessment tools – Profiles
International, Inc.
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2. WORKFORCE DESIGNS Joe Davenport
Today’s Objectives
Learn how to:
Identify the characteristics of top performers
Select & retain the best people for your jobs
Maximize the performance of your current
personnel
Make great people decisions!
Change companies from good to GREAT!
People are Key!
Jim Collins, author of
Good to Great says:
Put the right people “on the bus”
Get the wrong people “off the bus”
Put the people in the right seats “on the bus”
“The bus” will take you where you want to go
People are the key to the success
of almost all endeavors . . .
Why should your business be any different?
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3. WORKFORCE DESIGNS Joe Davenport
Yin alone cannot arise
Yang alone cannot grow
Yin and Yang are divisible but
inseparable.
- ‘The Yellow Emperor’s Canon of Internal Medicine’
People & Processes are the Yin & Yang
of business, yet the ‘people’ component
receives little management attention
compared to the ‘processes’ component.
Why? . . . .
People Challenges
Most difficult to fix
– People are emotional
Hardest to isolate
– No line item on the financial statement
Recruiting cost
Turnover cost
Most costly
– Companies spend 50-80% of their gross revenue
on employee-related costs
– Lost opportunity cost
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4. WORKFORCE DESIGNS Joe Davenport
People Challenges
Most re-occurring
– Peter Drucker says 66% of hiring decisions prove to be
wrong in 12 months and the people who are mis-hired
seldom quit - they stay!
– 67% of employed people have positions in which they are
not happy
Most time-consuming
– Peter Drucker says 60% of management’s time is spent
fixing people problems and just 40% working to achieve
corporate goals
Additional research shows that when you fix your people problems, your
process problems will get fixed!
Have you ever hired or
promoted someone who
was not what he/she
appeared to be?
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5. WORKFORCE DESIGNS Joe Davenport
Have you ever hired or
promoted someone who
greatly exceeded your
expectations?
What was different
about the method
used to hire these people?
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6. WORKFORCE DESIGNS Joe Davenport
“If only I had known that . . .”
Predicting superior performance
is all about having
enough of the right information
when you make people decisions
Why do we continue to put
the wrong people in jobs?
We believe that poorly selected people are a normal part of
doing business
Our hiring practices may be too “instinctive” and not scientific
enough
We do not see our employees as the #1 asset in our company
We spend more time buying a computer than we do selecting
people
We think we can change people once we hire them
We use the “traditional” approach to hiring
What is the definition of insanity?
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7. WORKFORCE DESIGNS Joe Davenport
The ‘Traditional’ Selection Process
Skill Fit Company Fit
Education Attitudes
Training Values
Experience Demeanor
PAST
Skills Appearance
etc. PRESENT
Resume Integrity Cultural fit
Past Employment Interview
Background Check
The Interview
“63% of all hiring decisions
are made during
the first 4.3 minutes of an interview.”
– SHRM Study, reported in USA Today
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8. WORKFORCE DESIGNS Joe Davenport
Top 3 Reasons People Fail
Incompetence
Incompatibility
Dishonesty
How do you determine
these qualities
in your job candidates now?
Interviews have only a
14% success rate
for identifying
superior people!
Why?
– Hunter & Hunter “Validity & utility of Alternative Predictors of Job
Performance”. Psychological Bulletin, Vol. 96, No. 1. p90
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9. WORKFORCE DESIGNS Joe Davenport
Here is what you see
when you hire and promote.
Here is what
you get!
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10. WORKFORCE DESIGNS Joe Davenport
Many businesses just
can’t afford this risk!
How can you
minimize your risk?
Using Assessments
”The appropriate use of
professionally developed assessment
tools on average enables
organizations to make more effective
employment-related decisions than
the use of simple observation or
random decision making.”
“Testing and Assessment: An Employer’s Guide to Good Practices”
US Department of Labor - Employment and Training Administration
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11. WORKFORCE DESIGNS Joe Davenport
The Step One Survey II
Use to determine cultural/company fit
Measures candidate attitudes
– Integrity
– Reliability
– Work Ethic
– Substance abuse
Provides valuable information about a candidate
– Past employment
– Employment-related problems
– Illegal substance use
– Theft of employer’s money, property, data, etc.
– Computer/Internet/Email abuse
Provides suggested interview questions based on
candidate’s assessment results
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12. WORKFORCE DESIGNS Joe Davenport
The Selection Process
Step One Survey II
Skill Fit Company Fit
Education Attitudes
Training Values
Experience Demeanor
PAST Skills Appearance PRESENT
Resume etc. Integrity Cultural fit
Past Employment Interview
Background Check
Information Resources for Hiring Decisions
100 Source: Psychological Bulletin Vol. 96, No. 1, August 1994,
Professor Mike Smith, University of Manchester
90
80
70
60
50
40
26%
30
20 14%
10
0 Interview + Background
Check
What other information might be useful?
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13. WORKFORCE DESIGNS Joe Davenport
The right people
can be the difference between:
Extinction & survival
Profit & loss
A good or a GREAT company
Does that see like too big a statement?
‘Poor’ ‘Average’ ‘Superior’
Performers Performers Performers
Bottom 16% Middle 68% Top 16%
Bell Curve
.
- Studies by Frank L. Schmidt and John E. Hunter
(well-respected personnel psychology researchers )
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14. WORKFORCE DESIGNS Joe Davenport
Why does this matter?
Unskilled / Semi-skilled
‘Average’ produce 19% more than ‘Poor’
‘Superior’ produce 19% more than ‘Average’
‘Superior’ produce 38% more than ‘Poor’
Skilled
‘Average’ produce 32% more than ‘Poor’
‘Superior’ produce 32% more than ‘Average’
‘Superior’ produce 64% more than ‘Poor’
Management / Professional
‘Average’ produce 48% more than ‘Poor’
‘Superior’ produce 48% more than ‘Average’
‘Superior’ produce 96% more than ‘Poor’
Source: “The validity and utility of selection methods in personnel psychology:
Practical and theoretical implications of 85 years of research findings”
Psychological Bulletin, Sept 1998, Vol. 124, No. 2, pp 262-274.
Example of Impact
Small Company with . . .
50 Unskilled / Semi-skilled Workers
25 Skilled Workers
10 Managers
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15. WORKFORCE DESIGNS Joe Davenport
Cost of ‘Average’
vs. ‘Superior’ Performers
Cost per # People in Cost if All
Estimated ‘Average’ this are
Salary Performer Category ‘Average’
Unskilled $20,000 X 0.19 = $3,800 X 50 = $190,000
Skilled $40,000 X 0.32 = $12,800 X 25 = $320,000
Management $60,000 X 0.48 = $28,000 X 10 = $280,000
Total Exposure if all ‘average’ = $790,000
Percentage of salary investment at risk = 30%
Implications
These figures are not ‘worst case’. If any or all are below
average the cost for that position is doubled – but so is the
potential for improvement.
Unless all your people are ‘superior’ performers, you are
incurring unnecessary costs.
Regardless how large or small your organization, the
potential losses are relatively large.
Every time you move performance in any single job from
‘average’ to ‘superior’ you have a measurable financial
impact.
This is the easiest strategy for making significant
improvements to your bottom line.
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16. WORKFORCE DESIGNS Joe Davenport
‘Poor’ ‘Average’ ‘Superior’
Performers Performers Performers
Bottom 16% Middle 68% Top 16%
OBJECTIVE #1: .
Move performers
from ‘Poor’ to ‘Average’
‘Average’ ‘Superior’
Performers Performers
Bottom 84% Top 16%
OBJECTIVE #2: .
Move performers from
‘Average’ to ‘Superior’
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17. WORKFORCE DESIGNS Joe Davenport
‘Superior’
Performers
100%
OBJECTIVE #3: .
Maintain ‘Superior’
performers in all positions
The Challenge
“If only I had known that Joe…”
Predicting superior performance is all about
having enough of the right information when
you make ‘people’ decisions
Use effective processes to ensure that EVERY
‘people’ decision - whether for hiring &
selection, placement, promotion or
development - is aimed at promoting ‘superior’
performance
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18. WORKFORCE DESIGNS Joe Davenport
When do people
perform at a
‘superior’
level?
“It’s not experience,
or college degrees,
or other accepted factors…
…(it) hinges
on fit with
the job.”
Source: Herbert M. Greenberg and Jeanne Greenberg, “Job
Matching for Better Sales Performance,” Harvard Business Review,
Vol. 58, No. 5.
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19. WORKFORCE DESIGNS Joe Davenport
Job Fit vs. Time
6 Months After Hire:
“… persons who had been matched, outperformed,
to a statistically significant degree,
those who had not been matched…”
14 Months After Hire:
“Moreover,
the differences widened after 14 months”
Source: Herbert M. Greenberg and Jeanne Greenberg, “Job Matching for
Better Sales Performance,” Harvard Business Review, Vol. 58, No. 5.
They also stay longer
– saving a fortune With
Without
on recruitment & training costs! Job
Job
Match Match
High Turnover Industry
% left / fired after 6 months 46% 24%
% left / fired after 14 months 57% 28%
Low Turnover Industry
% left / fired after 6 months 25% 5%
% left / fired after 14 months 34% 8%
Source: Herbert M. Greenberg and Jeanne Greenberg, “Job Matching for
Better Sales Performance,” Harvard Business Review, Vol. 58, No. 5.
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20. WORKFORCE DESIGNS Joe Davenport
“…companies will
need to reorient their
recruitment and
selection processes
by hiring “for fit”
rather than mere
credentials…”
“Contented Cows Give Better Milk”
Milk”
Bill Catlette & Richard Hadden
Two Opportunities to Job Match
for Superior performance
Place the right people in the right
job the first time
Evaluate existing employees to
determine where they best fit
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21. WORKFORCE DESIGNS Joe Davenport
The Selection Process
Step One Survey II
Company Fit
Skill Fit
Education Attitudes
Training Values
Experience Demeanor
PAST Skills Appearance PRESENT
Resume etc. Integrity Cultural fit
Past Employment Interview
Background Check
Job Match
Personality
Abilities
FUTURE Interests
… helps predict ‘superior’ performance
Information Resources for Hiring Decisions
100 Source: Psychological Bulletin Vol. 96, No. 1, August 1994,
Professor Mike Smith, University of Manchester
of Manchester
90
80 75%
66%
70
60 54%
50 38%
40
26%
30
20 14%
10
0 Interview + Background + Personality + Mental + Interests + Job Matching
Check & Behavior Abilities & Motivators
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22. WORKFORCE DESIGNS Joe Davenport
The Total Person
10% - Good But Limited Information:
Skills, Experience & Company Match
90% - Essence of the
Total Person:
Thinking Style
Occupational Interests
Behavioral Traits
Job Fit
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23. WORKFORCE DESIGNS Joe Davenport
Thinking Style
Learning Index 1 2 3 4 5 6 7 8 9 10
1 2 3 4 5 6 7 8 9 10
Can she cope with the
Verbal Skill
Verbal Reasoning 1 2 3 4 5 6 7 8 9 10
mental demands? Numerical Ability 1 2 3 4 5 6 7 8 9 10
Numeric Reasoning 1 2 3 4 5 6 7 8 9 10
Behavioral Traits
Energy Level 1 2 3 4 5 6 7 8 9 10
Assertiveness 1 2 3 4 5 6 7 8 9 10
Will she be comfortable in
Sociability 1 2 3 4 5 6 7 8 9 10
Manageability 1 2 3 4 5 6 7 8 9 10
the job environment? Attitude 1 2 3 4 5 6 7 8 9 10
Decisiveness 1 2 3 4 5 6 7 8 9 10
Accommodating 1 2 3 4 5 6 7 8 9 10
Independence 1 2 3 4 5 6 7 8 9 10
Objective Judgment 1 2 3 4 5 6 7 8 9 10
Occupational Interests
Enterprising 1 2 3 4 5 6 7 8 9 10
Is she motivated by this Financial/Admin 1 2 3 4 5 6 7 8 9 10
kind of work? People Service 1 2 3 4 5 6 7 8 9 10
Technical 1 2 3 4 5 6 7 8 9 10
Mechanical 1 2 3 4 5 6 7 8 9 10
Creative 1 2 3 4 5 6 7 8 9 10
Learning Index
Learning, reasoning and problem solving approach
1 2 3 4 5 6 7 8 9 10
ONE ONE
GALLON GALLON
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24. WORKFORCE DESIGNS Joe Davenport
Thinking Style
The Learning Index
Verbal Skill
1
1
2
2
3
3
4
4
5
5
6
6
7
7
8
8
9
9
10
10
Job Match Verbal Reasoning
Numerical Ability
1
1
2
2
3
3
4
4
5
5
6
6
7
7
8
8
9
9
10
10
Pattern Numeric Reasoning 1 2 3 4 5 6 7 8 9 10
Behavioral Traits
Energy Level 1 2 3 4 5 6 7 8 9 10
Assertiveness 1 2 3 4 5 6 7 8 9 10
Sociability 1 2 3 4 5 6 7 8 9 10
Shaded areas Manageability 1 2 3 4 5 6 7 8 9 10
indicate Attitude 1 2 3 4 5 6 7 8 9 10
the Job Match Pattern
Decisiveness 1 2 3 4 5 6 7 8 9 10
Accommodating 1 2 3 4 5 6 7 8 9 10
Independence 1 2 3 4 5 6 7 8 9 10
Job Match Patterns Objective Judgment 1 2 3 4 5 6 7 8 9 10
show requirements Occupational Interests
for the jobs Enterprising
Financial/Admin
1 2 3 4 5 6 7 8 9 10
1 2 3 4 5 6 7 8 9 10
in your company People Service 1 2 3 4 5 6 7 8 9 10
Technical 1 2 3 4 5 6 7 8 9 10
Mechanical 1 2 3 4 5 6 7 8 9 10
Creative 1 2 3 4 5 6 7 8 9 10
Thinking Style
1 2 3 4 5 6 7 8 9 10
Good Learning Index
Verbal Skill
Verbal Reasoning
1
1
2
2
3
3
4
4
5
5
6
6
7
7
8
8
9
9
10
10
Job Match Numerical Ability
Numeric Reasoning
1
1
2
2
3
3
4
4
5
5
6
6
7
7
8
8
9
9
10
10
Behavioral Traits
Energy Level 1 2 3 4 5 6 7 8 9 10
Assertiveness 1 2 3 4 5 6 7 8 9 10
Sociability 1 2 3 4 5 6 7 8 9 10
Manageability 1 2 3 4 5 6 7 8 9 10
Attitude 1 2 3 4 5 6 7 8 9 10
Decisiveness 1 2 3 4 5 6 7 8 9 10
Accommodating 1 2 3 4 5 6 7 8 9 10
Independence 1 2 3 4 5 6 7 8 9 10
Objective Judgment 1 2 3 4 5 6 7 8 9 10
Occupational Interests
Enterprising 1 2 3 4 5 6 7 8 9 10
Financial/Admin 1 2 3 4 5 6 7 8 9 10
People Service 1 2 3 4 5 6 7 8 9 10
Technical 1 2 3 4 5 6 7 8 9 10
Mechanical 1 2 3 4 5 6 7 8 9 10
Creative 1 2 3 4 5 6 7 8 9 10
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25. WORKFORCE DESIGNS Joe Davenport
Thinking Style
1 2 3 4 5 6 7 8 9 10
Questionable Learning Index
Verbal Skill
Verbal Reasoning
1
1
2
2
3
3
4
4
5
5
6
6
7
7
8
8
9
9
10
10
Job Match Numerical Ability
Numeric Reasoning
1
1
2
2
3
3
4
4
5
5
6
6
7
7
8
8
9
9
10
10
Behavioral Traits
Energy Level 1 2 3 4 5 6 7 8 9 10
Assertiveness 1 2 3 4 5 6 7 8 9 10
Sociability 1 2 3 4 5 6 7 8 9 10
Manageability 1 2 3 4 5 6 7 8 9 10
Attitude 1 2 3 4 5 6 7 8 9 10
Decisiveness 1 2 3 4 5 6 7 8 9 10
Accommodating 1 2 3 4 5 6 7 8 9 10
Independence 1 2 3 4 5 6 7 8 9 10
Objective Judgment 1 2 3 4 5 6 7 8 9 10
Occupational Interests
Enterprising 1 2 3 4 5 6 7 8 9 10
Financial/Admin 1 2 3 4 5 6 7 8 9 10
People Service 1 2 3 4 5 6 7 8 9 10
Technical 1 2 3 4 5 6 7 8 9 10
Mechanical 1 2 3 4 5 6 7 8 9 10
Creative 1 2 3 4 5 6 7 8 9 10
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26. WORKFORCE DESIGNS Joe Davenport
Improved Selection Process
Step One Survey II
Company Fit
Skill Fit
Education Attitudes
Training Values
Experience Demeanor
PAST Skills Appearance PRESENT
Resume etc. Integrity Cultural fit
Past Employment Interview
Background Check
Job Match
Personality
Abilities The Profile XT
FUTURE Interests
… helps predict ‘superior’ performance
Two Opportunities to Job Match
for Superior performance
Place the right people in the right
job the first time
Evaluate existing employees to
determine where they best fit
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27. WORKFORCE DESIGNS Joe Davenport
Talent Shortage is Increasing
Recap
Unless you are confident all your people are ‘superior’
performers you have great potential for bottom line
gains
Regardless how large or small your organization, your
potential for savings and productivity increases are
great
Every time you move an employee’s performance from
‘average’ to ‘superior’ you enjoy a measurable financial
impact
Questions?
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28. WORKFORCE DESIGNS Joe Davenport
WORKFORCE DESIGNS
Employee Selection, Retention & Management Solutions
277 South High Street • Cortland, OH 44410
Tel: 330.638.1881 • Fax: 330.638.1882
Email: info@workforcedesigns.com
Web: www.workforcedesigns.com
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