Hire the right people: Measured approach identifies the best in class

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Question:

โ€œEnjoyed your last column in BizTimes on human capital management (HCM). I wonder if you could expand on the โ€˜acquiring employeesโ€™ aspect of that column. I lead an engineering consulting firm and weโ€™ve had a hard time of late identifying front-line employees who are going to work out. Is there a way to be more scientific about this? Thanks!โ€

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Answer:

As some readers will recall, in my last column in the Sept. 14 issue of BizTimes Milwaukee, I addressed the concept of human capital management (HCM) as a means by which an organization might began to do a better job of harnessing the full potential of the people that it employs. I used an acronym, ARMED (Acquiring, Retaining, Managing, Educating, and Developing), to describe the key aspects of HCM. In this column, in response to the readerโ€™s question, I will talk about emerging trends in assessing talent (i.e., acquiring).

A few weeks ago, it was my privilege to address the meeting of the Wisconsin Chapter of the National Emergency Number Association (WI-NENA). At that meeting, I discussed some of the doโ€™s and donโ€™ts regarding hiring practices for emergency response employees. My basic message was that to do a good job hiring, you need to have a clear handle on the demands of the job and the organization in which the work takes place. After all, while the motto in real estate might be, โ€œlocation, location, location,โ€ in pursuing organizational effectiveness the motto must be, โ€œcontext, context, context!โ€

So, in simple terms, to do a good job selecting the right person to hire, you need to understand: (1) The work requirements; and (2) The worker requirements. A job analysis can be undertaken to document this information. If you do not have the time or resources to do this, you can always access O*Net (www.onetonline.org) to use this powerful tool that was developed under the sponsorship of the U.S. Department of Labor/Employment and Training Administration.

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With a good target at which to aim the selection process, you can pursue this best in class employee selection model, originally suggested by employment selection researcher Daniel Russell:

Step one: Sourcing and recruiting

A blended approach is suggested comprised of Internet sources, print advertisements, and community outreach.

Step two: Realistic job preview

In order to funnel down applicants in an efficient process, use of the technology-based efficiencies of our information age is encouraged. For example, a toll free number could be used in which callers receive information about the open position.

Step three: On-line, un-proctored testing

Web-based pre-employments tests (e.g., personality or ability tests) can help in eliminating unqualified candidates. An important caveat is that any test must be job-related. Good tests are supported by sound validity studies that demonstrate the relationship between test performance and job success.

Step four: Telephone interview

Structured interviews that target the key competencies underlying job success can be efficiently conducted via telephone. This minimizes costs associated with arranging face-to-face interviews with prospective employees who are not yet deemed to be finalists. Also, use of scoring criteria enhances predictive properties.

Step five: On-site, proctored testing

As the group of candidates narrows, it is desirable to gather additional data using position-relevant tests and measures. As part of a candidateโ€™s visit to the site, a mix of targeted, focused testing and interviewing (see step six below) is suggested.

Step six: Face-to-face interview

Use of structured, situation-based interviews is desirable. This approach is particularly effective if a panel of trained interviewers is used who make use of specific criteria in evaluating the responses that candidates offer.

Step seven: Background check and drug screen

To minimize risks, a background check simply makes good business sense. Use of drug screening is a common element for most organizations these days.

Step eight: Hiring and on-boarding

With steps one through seven successfully navigated, it is time to on-board the new hire. Hopefully, an equally thorough and rigorous process of assimilation follows the dynamic selection process.

While the eight-step model outlined above is, indeed, a โ€œbest practicesโ€ model, like anything else, it needs to be modified and calibrated to meet the unique aspects of your organization (context, context, context!). From where I sit, though, the business case for pursuing a more sophisticated approach to employment selection is a sound one. After all, even in these economic times, good people continue to be hard to find.

Looking ahead, Wisconsin faces a potential labor shortfall over the next decade due to a high percentage of baby boomers leaving its workforce. Yet, I firmly believe the need to be more selective is opposed by the need to โ€œfind somebody.โ€ Further, in this information age, more employees possess credentials. We must move beyond evaluating just technical qualifications!

In the final analysis, I offer these employment selection principles:

  • Aim high. Donโ€™t lower hiring standards merely to fill a vacancy.
  • Identify the core competencies that relate significantly to job success.
  • Increase the sophistication of the selection methodology.
  • Implement a uniform system across the organization.
  • Evaluate program effectiveness and make fine-tuning adjustments.

Daniel A. Schroeder, Ph.D., is president of Brookfield-based Organization Development Consultants Inc. (www.OD-Consultants.com). He can be reached at (262) 827-1901 or Dan.Schroeder@OD-Consultants.com

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