Posts Tagged ‘employee turnover’

HR Metrics that Matter: Talent Acquisition

Thursday, March 2nd, 2017

Unlike many other functions, human resources has not been able to develop and/or sustain universally accepted performance metrics.  As a result, HR metrics often vary widely from company to company and industry to industry. Additionally, the metrics that are most commonly used are not always the best indicators of HR performance or impact.  In fact, HR leaders often make the mistake of using metrics that relate specifically to how well HR is performing administrative tasks.

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The following measures are geared toward measuring HR’s actual impact on the business.

1. Quality of Hire

This metric can be calculated from a combination of a number of factors, including: performance review ratings, actual job results, 9-box ratings, and 6-month Quality of Hire Evaluation Form to obtain the hiring manager’s perspective. You could also review hires that turned over, hires on the promotable list, and hires on the performance improvement list to help determine quality of hire.

2. Time to Fill Key Roles

Not all job openings are equal. In fact, some mission-critical positions carry a lot more weight than a ‘rank-and-file’ opening. Recruiters and HR business partners should prioritize their job openings so that the key roles get the greatest attention. It doesn’t really matter if your overall time-to-fill metric is only 30 days, if it is taking 3 times that long as that to fill key roles.

3. Onboarding Effectiveness

There are basically two simple ways to determine if your onboarding process is effective. The first way is to conduct a post-onboarding survey with new hires on or about 90 days after being brought onboard.

The second way to ensure that the first 90 days are properly scripted into a series of events aimed at supporting the new hire, and ensuring they have been given exposure to the right people.

By asking for completed and signed-off copies of the checklist, with signatures of both the new hire and manager, you improve the likelihood that the onboarding process will be taken seriously.

4. New Hire Dropout Rate

One way to tell how effective the organization is in terms of selecting, hiring, onboarding, and training new hires is to review turnover data. If the turnover rates for new hires (say the first 180 days) or newly hired (first year) are significantly higher that the remaining employee population, you likely have real issues.

Start by asking these questions:

  1. Are we presenting a realistic job preview during the interview process?
  2. Do we have properly trained interviewers asking the right questions?
  3. Are we doing a good job of checking references?
  4. Do we have our act together in terms of a scripted onboarding progression?
  5. Are the hiring managers effectively setting clear expectations?
  6. Have we met the commitments we agreed to during the ‘courting’ stage?
  7. Are we selecting based upon cultural fit?
  8. Do we involve coworkers in the interviewing process?

CAI members have access to all forms, tools, and templates for talent acquisition / recruiting / onboarding online at myCAI. Not a member? CAI can help you build an engaged, well-managed and low-risk workplace, give us a call at 919-878-9222 or visit www.capital.org/membership to learn more.

Tom Sheehan brings 20+ years of extensive, broad-based strategic, tactical and practical HR experience to CAI’s Advice & Resolution team.  He advises HR and other business leaders on talent management, organizational effectiveness, employee engagement, M&A’s, and employee relations.

 

For Millennials, Lack of Loyalty May Be a Sign of Neglect

Thursday, January 12th, 2017

The prevailing wisdom is that, in general, Millennials express little loyalty to their current employers and many are planning near-term exits. During the next year, if given the choice, 25% of Millennials would quit his or her current employer to join a new organization or to do something different. That figure increases to 44 % when the time frame is expanded to two years. (Source: Deloitte’s 2016 Millennial Survey)

This “loyalty challenge” is driven by a variety of factors, for example:

  1. Millennials feel underutilized and believe they’re not being developed as leaders.
  2. Millennials feel that most businesses have no ambition beyond profit, and there are distinct differences in what they believe the purpose of business should be and what they perceive it to currently be.
  3. Millennials often put their personal values ahead of organizational goals, and several have shunned
    assignments (and potential employers) that conflict with their beliefs.

Millennials have recently inched past the other generations to corner the largest share of the US labor market and a growing number now occupy senior positions. They are no longer leaders of tomorrow, but increasingly, leaders of today. We also recognize that Millennials are taking their values with them into the boardroom.

While many Millennials have already attained senior positions, much remains to be done. More than six in
ten Millennials (63 %) say their “leadership skills are not being fully developed.” Unfortunately, little progress is being made in this area. When asked to rate the skills and attributes on which businesses place the most value (and are prepared to pay the highest salaries), Millennials pointed to “leadership” as being the most prized.

Millennials fully appreciate that leadership skills are important to business and recognize that, in this respect, their development may be far from complete. But, based on the current results, Millennials believe businesses are not doing enough to bridge the gap to ensure a new generation of business leaders is created. Need help with workforce strategy and planning? CAI can help!

Tom Sheehan brings 20+ years of extensive, broad-based strategic, tactical and practical HR experience to CAI’s Advice & Resolution team.  He advises HR and other business leaders on talent management, organizational effectiveness, employee engagement, M&A’s, and employee relations. 

Pay Attention to Causes of Preventable Employee Turnover

Tuesday, March 1st, 2016
Bruce Clarke, President and CEO

Bruce Clarke, President and CEO

The following post is by Bruce Clarke, CAI’s CEO and President. The article originally appeared in Bruce’s News and Observer column, The View from HR.

When employees leave their jobs, we in Human Resources call it turnover. Then we label it “voluntary” or “involuntary” and assign drop-down reasons like “higher pay.” These labels are more about what happened than why it happened. You want to know why, not just what.

Turnover has as many causes as there are managers and employees. These four causes of preventable talent loss need more attention.

“I didn’t know.”I did not know this job had so much travel, that I have to cold call, that there is so much pressure to produce, that the business is unsound, that my manager is inexperienced, that it requires weekend work” and so on. These things are discoverable during the interview and application processes. Both sides own the problem: employers tend to accentuate the positive and applicants want to appear eager. If everyone spent more time in interviews talking about the job realities (and not just the fun stuff), painful and expensive early turnover would be reduced.

“We never talked about it”. I am convinced much of the turnover among talented, experienced and high potential contributors is caused by a lack of communication. Sure, no workplace has every opportunity or salary level a key player needs. Leaving for a new role might make the most sense. Too often, a great employee leaves because they do not understand all the ways this workplace could be as good as or greener than the grass on the other side.

Whether the motive to leave is pain avoidance (manager, hours, stress, type of work) or opportunity seeking (responsibility, autonomy, flexibility, pay) open conversations with a trusted mentor/manager will either make the choice clearer or uncover alternatives meeting everyone’s needs. Great managers create an environment where employees feel comfortable discussing these big decisions in time to respond.

“I need a change.” Some people need change. What used to be challenging becomes routine. Without new challenges, the normal push and pull of any job seems futile. What is this all about? Why work this hard each day for the same set of problems, people, customers and results? This happens at all pay levels.

It should be easy to agree on fresh objectives, skills and behaviors the business truly needs. Even without a new role, finding better and more effective ways to do important things requires good communication and agreement. Your best people are hungry for this conversation.

This is an emotional decision. Sometimes, the decision to change jobs is mostly about pay, but usually emotion controls. Where will I enjoy my work more, where will I get new challenges, where will I have an impact on real people, where can I find a manager who knows how to manage? Employers that understand the importance of emotion in decisions to leave can address them proactively. The signs are usually present. Explaining turnover in primarily rational and economic terms misses the mark.

Of course there are often institutional reasons for turnover, but remember the individual, preventable and emotional reasons.

Creating a Better Background Check for Your Business

Thursday, October 15th, 2015
Kevin von der Lippe, Private Investigator

Kevin von der Lippe, Private Investigator

The following post is from CAI’s Kevin von der Lippe. He serves as CAI’s private investigator and leads the company’s Background Checking department.

Most companies do some sort of “background check” on their new hires — But most of the time… you get what you pay for.  How can you be sure that you are getting accurate information you actually need to make a good hiring decision?

The Basics

Performing a background check is your opportunity to independently verify the information that your applicant has provided.  Given the importance of the task, the verification process should extend beyond their stated skill set, and include even the most basic information such as the applicant’s name, address history, and vital statistics.  Be aware, product names for these type of searches may vary, but many companies refer to them as “SSN traces, address histories, or name histories.”

With a verified name and address history in hand, you now have the name/names to search for criminal history as well as the jurisdiction(s) to do so. The availability of criminal records varies among states.  To ensure that you are getting the most up-to-date information, CAI recommends that you request criminal records that are pulled directly from official repositories (e.g. courthouses).  Some states, like North Carolina, have excellent statewide indexes administered by the court system.  However, some other states lack the technology, or access to do so.  As a result, many background checking companies sell database products under names like “Nationwide Criminal, National Criminal or Multi-State Criminal records,” but it’s important to know that most of these databases are from a third-party collection of criminal records, not an actual courthouse. While database searches CAN provide a broad net when searching for records, it’s usually at the expense of missing information and being out of date.  As a result, CAI recommends that you reserve these database inquiries as a supplemental search.

How many jurisdictions you search depends upon the sensitivity of the job you are trying to fill.  Most companies look at a seven year address window — as revealed by the SSN trace — to provide an outline of where to search.  Remember, be consistent with the time period you choose to search. Check the applicant’s employment history.  It is very important that you look for gaps in the employment history and you get satisfactory (and confirmed) answers for any idle time.  CAI recommends that you check all former employers within the window you set, and ask specifically about: dates of employment, job title, salary; duties, if the applicant was involved with any violence, and any specifically job related requirements.  As a side note, always look up the phone number for references.  It is common for applicants to provide bogus numbers to ensure they get “good” references.  You should be cautious of toll free number for former employers.

Focus

With the basics of identity, references and criminal record behind you, focus on job specific requirements.  You should tailor your background check to fit the needs of the position that you want to fill.  For some jobs, you will want to confirm that the applicant has the necessary education to be successful at the job.  You should check the diploma or degree as well as the schools’ accreditation.  It’s not enough that a school claims to be “accredited” these days, there are several “diploma mills” that create bogus accreditation’s for an organization.  Always check the accreditation against the U.S. Department of Educations approved list at: http://www.ed.gov/admins/finaid/accred/index.html.

Will your applicant drive a company vehicle, or does the job require driving as part of the regular job duties (like driving to the post office)?  If so, it is a great idea to confirm that you applicant is fully licensed to drive, and has a good driving record.  A motor vehicle report will provide at a minimum a three year driving record for your applicant.  In most cases, it will also include tickets received while your applicant was out of his/her home state.

If your applicant is going to handle money, or has access to credit, or sensitive information (e.g. account numbers, SSNs, etc.) then it may be a good idea to check your applicant’s financial credit file.  If your applicant cannot demonstrate that they can manage their own personal finances, what expectation should you have that they can manage your company’s money?

Specialized

Beyond the standard checks, there are a lot of specialized searches that you may choose to utilize to ensure that you make the best hiring decision.  This is especially true if you are hiring for employees that will be working on government contracts.  It is not uncommon for the contracts to require searches of federal criminal record, debarment lists, and the terrorist watch list.  Many schools require sex offender list searches as well.

Although performing a background check is usually one of the final stages in the hiring process when we’re ready to hire someone, it’s a crucial that you get it right… the first time.  Generally speaking, most companies and HR professionals perform background checks, but the majority of them are under a false impression that all background checks are the same – not true.

Remember, it’s not just a background checking service that you’re entrusting this company to perform, it’s also the safety and longevity of your entire company. Don’t just “check-the-box” and go with the lowest cost provider, make sure they’re using reliable and up-to-date databases, checking for any discrepancies and providing you with the individualized feedback you need to make the best possible decision for your company. Resist the temptation to rush through this important step. Turnover is costly and hiring the wrong person could be deadly. After all, most people fail at jobs for reasons other than lack of skill…reasons that could easily be uncovered with a properly administered background check.

Our Background Checking Team will help you uncover everything you need to know about your job applicants and employees. If you would like to talk about your company’s specific needs, please call Kevin W. von der Lippe at (336) 899-1150 or by e-mail at kevin.vonderlippe@capital.org.

Use Effective Measures to Engage Your Workforce and Reduce Turnover

Tuesday, July 19th, 2011

A key factor in reducing employee turnover and retaining top talent is ensuring that your staff members are engaged in their work and the company. Employees who are engaged are not only satisfied in their positions, but they often go above and beyond to help themselves and their organizations succeed. However, recent statistics show that the majority of American workers are currently disengaged with their jobs.

There are many factors that turn employees who were once top achievers into those who only complete their work to get it done. Some engagement drainers include lack of individual recognition, inadequate feedback or poor managerial practices. Organizations that do not take the necessary steps to connect their workforce with the company’s overall mission will have a hard time keeping their staff around. Companies that have a high level of employee engagement achieve better business results.

The following are measures your company can take to increase employee engagement and reduce workforce turnover:

  1. Why are People Leaving? Before rolling out an employee engagement plan, company leaders should actively research why people leave their organization. Knowing your turnover rate and the areas in which people leave the most will help you uncover issues that are affecting employee engagement.
  2. Find the Culprit Before the Exit Interview. Exit Interviews are beneficial because they reveal a number of reasons for why employees choose to resign. Unfortunately, supervisors and managers only get this information when the employee has put in his or her last-day notice. To keep staff members satisfied before they decide to depart, implement Stay Interviews at least once per year. This meeting allows employees to discuss with their supervisor the factors that could potentially cause them to search for a new job.
  3. Communicate! Communicate! Communicate! A lack of communication is often cited as a reason for why employees quit. Provide multiple communication channels for workers at all levels to utilize. Managers and supervisors should meet with their employees multiple times per year to provide and receive feedback. These meetings should encourage staff members to speak freely about their goals and concerns.
  4. Manage Job Expectations. Losing employees within the first year of their hire date is an incredible loss in time and money for an organization. Many times the reasons for a worker’s short tenure are inaccurate job descriptions and unrealistic expectations and goals. Clearly define positions and their accompanying responsibilities when soliciting new hires. Additionally, when interviewing candidates, make them well aware of the position’s potential unfavorable aspects. Do not sugar coat.

CAI’s 2011 Compensation and Benefits Conference will provide additional tips and information for retaining top employees and creating a more engaged work environment through a well-thought-out, total rewards strategy.  Register today at www.capital.org/compconf.

Photo source: Woodley wonderworks

Human Resources Certification is an Advantage

Tuesday, February 1st, 2011

HR Certification Institute (HRCI) Executive Director Mary Power was recently interviewed regarding the importance that employers place upon HR-certified applicants. A study conducted by HRCI showed 96 percent of hiring employers indicated that certification was an advantage for HR applicants and 91 percent felt it was an advantage for employees seeking promotion in HR.

According to the study, certification provides benefits for both companies and individuals. From the company standpoint, improvements were reported in customer satisfaction, employee engagement, turnover and profits.

In addition, employers and certified HR professionals indicated that certification:

  • Increases employee knowledge
  • Ensures HR knowledge is up to date
  • Demonstrates employee commitment to HR
  • Is good for the reputation of the organization
  • Increases employees’ confidence in their ability to do the job
  • Shows the organization takes HR seriously
  • Gives employees greater trust and confidence in the HR department
  • Makes HR professionals think more strategically

Every few years, the HR Certification exams are evaluated and updated to be certain they remain relevant to the real world of HR and that eligibility requirements are in line with professional certification standards. The new eligibility requirements for 2011 are as follows:

PHR (Professional in Human Resources) Eligibility
1 year of demonstrated professional HR experience with a Master’s degree or higher;
2 years of demonstrated professional HR experience with a Bachelor’s degree; or
4 years of demonstrated professional HR experience with less than a Bachelor’s degree.

SPHR (Senior Professional in Human Resources) Eligibility
4 years of demonstrated professional HR experience with a Master’s degree or higher;
5 years of demonstrated professional HR experience with a Bachelor’s degree; or
7 years of demonstrated professional HR experience with less than a Bachelor’s degree.

GPHR (Global Professional in Human Resources) Eligibility
2 years of demonstrated global professional HR experience with a Master’s degree or higher;
3 years of demonstrated professional HR experience (with 2 of the 3 being global HR experience) with a Bachelor’s degree; or
4 years of demonstrated professional HR experience (with 2 of the 4 being global HR experience) with less than a Bachelor’s degree.

CAI provides PHR, SPHR and GPHR certification study courses, both in person and web-based.  Please see www.capital.org for additional information.

Photo Source: Wikimedia Commons