You have to be wiser than ever before
Estimates are that there were about 73.5 million baby boomers born between 1946 and 1964. The estimates for Generation X born between 1965 and 1979 are 48.1 million. Ten thousand boomers turn 65 each day.
If traditional retirement patterns continue, the numbers suggest there are not enough experienced people to rise up to fill all the retiring positions. The next in line are Generation Y or millennials born between 1980 and 2000. There are 80 million in this age group. While the increase in numbers is positive, the issue is that many experienced workers are leaving the workforce faster than employees can gain the necessary experience. Fortunately, technology and innovation are moving quickly to provide alternative solutions to current workforce patterns.
Is the candidate pool drying up for responsible positions?
With the unemployment rate down to 4.1% as of October 2017, hiring and retaining talent will continue to be a growing challenge for employers. This is particularly the case for small to mid-sized business owners as the competition for talent is getting tighter in larger corporations. Considering the statistics shared above, finding and keeping good people requires new insights from readily available data driven tools.
Hiring is an investment activity
Clients, customers, patients and patrons are our highest priority,
but our people are our most valuable investments.
The U.S. Department of Labor estimates that the average cost of a bad hire is between 25% and 30% of that hire’s first year earnings. This reinforces that no organization can afford to make bad hires. This statistic strongly suggests that strengthening the recruiting process is essential, not optional.
In a 2015 Recruitment and Retention Trends Survey by Predictive Index, LLC, a company that empowers businesses across the globe, CEO Mike Zani indicated “that when looking to bring in new hires, most organizations are still primarily focusing on the expected more ‘concrete’ areas of candidates’ skills, experience, and education.”
But what are the principle causes of employees quitting companies?
Predictive Index tells us:
- Behavior Needs – While the more “concrete” and obvious criteria can be easily reviewed, the “softer” criteria such as personality and behavior needs are not being assessed as often or accurately. This results in disconnects.
- Misrepresentation – Smaller companies report candidate misrepresentation as the primary reason why new hires don’t work out. Most smaller companies rely primarily on less structured interviews or skills, experience and education representations and not the use of cognitive behavior assessments and knowledge/skill testing.
- Weak Supervisors – Many companies in the survey indicated they have lost top performers owing to conflicts with peers or managers who may not be best qualified for what they do (not the right person in the right role).
Is there a better way to assess current and future employees?
Certainly we need to consider previous experience and specific skills for a given position. But insights from behavioral assessments can be significantly more accurate in predicting how well a candidate will perform within a specific role, culture, and ultimately how well they will execute on a daily basis.
There is a growing need to supplement traditional thinking when it comes to selecting candidates for jobs. These insights are gained in minutes and have a profound impact on how to not only assess near term behavior but can predict long term performance based on the motivating needs that are observed. This is the best form of investment risk analysis and mitigation for your people investment decisions.
It is equally important in ongoing assessments of existing employees, management and leadership in mid-sized companies. Are you confident that you have the right people with the right skills in the right positions? These predictive behavior assessments can provide insightful answers.
A “need to have” vs. a “wish to have”…
Today, for current employees as well as recruiting candidates, we can now predict future behavior that will directly impact their skill development, attitudes and performance. All of my clients and their employees have benefited tremendously from behavior predictability. Sales efforts improve. Operations are streamlined. Recruiting and retention is more precise. Customer experiences are more enjoyable, and self-accountability increases.
These insights with today’s technology are instantaneous. The benefits are both immediate and long-term. Most importantly, the cost is insignificant and the payback is incredibly high.
Make smart investments with high returns and make them a lot easier. You will be glad you did.