how to avoid bad hires through reference checking
DESCRIPTION
How often have you hired someone with a great track record who turned out to be a bad hire? By discovering what a candidate’s previous managers and colleagues candidly say about his or her work style, skills and behaviors, you can objectively assess the candidate’s ability to be a top performer. Through this session, you will learn how technology has introduced a way for talent acquisition professionals to capture behavioral feedback from five references in just two days for each job candidate, and how to avoid candidates who score low with references. Also, see an overview of how this technology infuses compliance, consistency, reliability and validity into each reference check and obtains feedback that identifies candidates’ developmental needs. What will participants learn? How to improve quality of hire by avoiding candidates who score low with references. How to capture behavioral feedback from five references in two days for each candidate. How to infuse compliance, consistency, reliability and validity into each reference check.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
Personality / Behavior Assessments
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
Personality / Behavior Assessments
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
No
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
Great
Percent
Dev
elop
men
tal N
eed
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
0
10
20
30
40
50
60
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
100
Candidates
300
References
1,500
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
– Passive Sourcing
• Elevate Recruitment’s Role
Why You and a Better Process?
1 minute
5 minutes
10 minutes
2 seconds
Survey AvailabilityJob Level ►
▼Job Family Entry-Level
Hourly Clerical Professional Supervisor Manager Executive
General
Production
Sales
Marketing
IT
Operations
CustomerService
R&D
Admin
Finance
Legal
HR
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
Validated Candidate – Good Fit
Pause or Avoid this Candidate – Low Scoring
Professionalism
Interpersonal Skills
Patient Satisfaction ‐ HCAHPS
Verbatim Comments
Verbatim Comments
Passive Candidate Database
• Clear ROI for Finance and Budgets– Quality of Hire
– Turnover
– Efficiency
– Passive Sourcing
• Quickly Implement and Easy “Win” for HR
• Elevate Recruitment’s Role in the Organization
Why You and a Better Process?
Sample Clients
Page 60
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
Page 61
Contact SkillSurvey
www.skillsurvey.com
Jack Kramer, Vice President Field Operations
610‐947‐6300 x 1203
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Jack KramerVice PresidentSkillSurvey
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