developing the high performance workforce 1 notes version

Developing the High Performance Workforce

Developing the High Performance Workforce

The right people can be the difference between success & failure, profit &

loss…

The right people can be the difference between success & failure, profit &

loss…

Is that too big a statement?Is that too big a statement?

.

‘‘Superior Superior Producers’Producers’

Top Top 16%16%

‘‘NonNonProducers’Producers’

Bottom Bottom 16%16%

‘‘Average Average Producers’Producers’

68%68%

Why does this matter? Why does this matter?

Unskilled / Semi-skilled

• ‘Average’ workers output = 19% more than ‘Non-producers’ • ‘Superior’ workers output = 19% more than ‘Average’ • ‘Superior’ workers output = 41% more than Non-producers’

Unskilled / Semi-skilled

• ‘Average’ workers output = 19% more than ‘Non-producers’ • ‘Superior’ workers output = 19% more than ‘Average’ • ‘Superior’ workers output = 41% more than Non-producers’

Skilled

• ‘Average’ workers output = 32% more than ‘Non-producers’ • ‘Superior’ workers output = 32% more than ‘Average’ • ‘Superior’ workers output = 74% more than Non-producers’

Skilled

• ‘Average’ workers output = 32% more than ‘Non-producers’ • ‘Superior’ workers output = 32% more than ‘Average’ • ‘Superior’ workers output = 74% more than Non-producers’

Management / Professional

• ‘Average’ workers output = 48% more than ‘Non-producers’ • ‘Superior’ workers output = 48% more than ‘Average’ • ‘Superior’ workers output = 119% more than ‘Non-producers’

Management / Professional

• ‘Average’ workers output = 48% more than ‘Non-producers’ • ‘Superior’ workers output = 48% more than ‘Average’ • ‘Superior’ workers output = 119% more than ‘Non-producers’

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

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

Imagine yours is a small company with…

Imagine yours is a small company with…

• 50 Unskilled / Semi-skilled workers• 25 Skilled Workers• 5 Managers

• 50 Unskilled / Semi-skilled workers• 25 Skilled Workers• 5 Managers

Cost of ‘Average’ vs. Cost of ‘Average’ vs. ‘Superior’ Performers‘Superior’ PerformersCost of ‘Average’ vs. Cost of ‘Average’ vs. ‘Superior’ Performers‘Superior’ Performers

X 0.19 =

Average Salary

Your cost per ‘Average’

No. in this category

X = Unskilled

Skilled

Total Exposure if all ‘average’ Total Exposure if all ‘average’ (total i + ii + iii)(total i + ii + iii)

(i)

Management

X 0.32 =

X = (ii)

X 0.48 =

X = (iii)

= (iv)

Your cost if all in this category ‘average’

£10,000 £1,900 50 £ 95,000

Percentage of ‘unproductive’ salary investment Percentage of ‘unproductive’ salary investment =

£20,000 £6,400 25 £160,000

£40,000 £19,000 5 £ 85,000

£340,000

28%

The Bottom LineThe Bottom Line

• These figures are not ‘worst case’: If any or all are below average, the loss for that position is doubled – but so is the potential for improvement

• Unless all of your people are ‘superior’ performers, you are losing money unnecessarily

• Regardless of how large or small your organisation 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

• These figures are not ‘worst case’: If any or all are below average, the loss for that position is doubled – but so is the potential for improvement

• Unless all of your people are ‘superior’ performers, you are losing money unnecessarily

• Regardless of how large or small your organisation 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

Your ChallengeYour Challenge

To ensure that every “people” decision your organisation makes -

whether recruiting, placement, promotion or development - is aimed at promoting ‘superior’

performance

To ensure that every “people” decision your organisation makes -

whether recruiting, placement, promotion or development - is aimed at promoting ‘superior’

performance

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.

Superior performers

fit their jobs because

they:•Can deal with the mental

demands of the business

•Are comfortable with the

demands of the

environment and the

people they work with

•Enjoy the work and are

motivated to do it

You get just two bites at ‘superior’ performance

You get just two bites at ‘superior’ performance

Coach the people you’ve gotCoach the people you’ve got

Place the right people first timePlace the right people first time

The information-gathering process for recruitment & promotion:

The information-gathering process for recruitment & promotion:

“Checking the past”“Checking the past” “..and reviewing the present”“..and reviewing the present”

…to predict future ‘superior’ performance…to predict future ‘superior’ performance

Company Fit Attitudes,Values,

Demeanour,Appearance,

Integrity

Skill FitEducation, Training,

Experience,Skills, Etc.

Interviews have a 14% success rate in identifying superior people!

Hunter & Hunter “Validity & Utility of Alternative Predictors of Job Performance”. Psychological Bulletin, Vol. 96, No. 1. p90

With that process, here’s what you see

& recruit/promote…

Here’s what you get!

& here’s what you get!

With that process, here’s what you see

& recruit/promote…

No business can afford the risk!

Company Fit Attitudes,Values,

Demeanour,Appearance,

Integrity

Job FitPersonality,

Abilities,Interests

There is a missing third element that is essential…

There is a missing third element that is essential…

…for predicting future ‘superior’ performance…for predicting future ‘superior’ performance

Skill FitEducation, Training,

Experience,Skills, Etc.

So how do you achieve Job Fit?

So how do you achieve Job Fit?

It’s all about information• Objective information about the job Job Pattern

• Objective information about the candidate Assessment

• Comparison of the two Job Matching

It’s all about information• Objective information about the job Job Pattern

• Objective information about the candidate Assessment

• Comparison of the two Job Matching

But what information can you gather?

And what do you do with it?

But what information can you gather?

And what do you do with it?

What information can you gather?

What information can you gather?

What information can you gather?

What information can you gather?

Heads or Tails?Heads or Tails?

What information can you gather?

What information can you gather?

What information can you gather?

What information can you gather?

What information can you gather?

What information can you gather?

What information can you gather?

What information can you gather?

How do you gather it?How do you gather it?

All of this information is available

by using the right assessment

tools to support the recruitment, development and promotion

decision-making process

All of this information is available

by using the right assessment

tools to support the recruitment, development and promotion

decision-making process

And there’s a bonusAnd there’s a bonus

As well as performing better, job-matched staff also stay longer – saving a

fortune in recruitment costs

As well as performing better, job-matched staff also stay longer – saving a

fortune in recruitment costs

Source: Herbert M. Greenberg and Jeanne Greenberg, “Job Matching forBetter Sales Performance,” Harvard Business Review, Vol. 58, No. 5.

WithoutWithoutJob Job

MatchMatch

WithWithJob Job

MatchMatch

Low Turnover IndustryLow Turnover Industry

High Turnover IndustryHigh Turnover Industry

% left / fired after 6 months% left / fired after 6 months 46%46% 24% 24% % left / fired after 14 months % left / fired after 14 months 57% 57% 28% 28%

% left / fired after 6 months 25% 5%% left / fired after 6 months 25% 5% % left / fired after 14 months 34% 8%% left / fired after 14 months 34% 8%

What happens if you don’t put the right people in the right jobs?

What happens if you don’t put the right people in the right jobs?

What happens if you don’t put the right people in the right jobs?

The impact of poor job fitThe impact of poor job fit

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

USA

Canada

Ger

man

y

Japan

Gre

at B

ritain

France

Austra

lia

New Zea

land

Chile

Singap

ore

Engaged

Not Engaged

Actively Disengaged

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

USA

Canada

Ger

man

y

Japan

Gre

at B

ritain

France

Austra

lia

New Zea

land

Chile

Singap

ore

Engaged

Not Engaged

Actively Disengaged

Source: GallupSource: Gallup

Next steps: what should you do?

Next steps: what should you do?

• Identify your superior and bottom performers• Profile your superior performers (SPs)• Coach bottom and average performers for

better performance using SP profile• Do not invest in development without a clear

connection to superior performance• Promote/succession plan using SP profile• Recruit using SP profile• Review SP profile every quarter

• Identify your superior and bottom performers• Profile your superior performers (SPs)• Coach bottom and average performers for

better performance using SP profile• Do not invest in development without a clear

connection to superior performance• Promote/succession plan using SP profile• Recruit using SP profile• Review SP profile every quarter

Next steps: what should you do?

Next steps: what should you do?

• Start measuring performance in every job• Establish objective ‘pers’ for every position• Implement measurement of productivity

against these ‘pers’

• Quantify productivity gaps and target improvements

• Monitor continually for improved productivity

• Start measuring performance in every job• Establish objective ‘pers’ for every position• Implement measurement of productivity

against these ‘pers’

• Quantify productivity gaps and target improvements

• Monitor continually for improved productivity

Next steps: what should you do?

Next steps: what should you do?

Let’s talk!Let’s talk!