Top Candidates Greatly Impact Business Performance
In part 1 of this topic we presented Gallup research that revealed when companies select the top 20% of candidates based on a scientific assessment, they frequently positively impact business performance:
- 59% less turnover
- 21% higher profitability
- 10% higher customer metrics
- 17% higher productivity
- 41% less absenteeism
- 70% fewer safety incidents
Additionally, Gallup's research shows that hiring managers are not good at predicting top candidates because of unconscious bias. Learned biases that hinder rational decisions include conformity bias, affinity bias, gender bias, age bias, to name a few, and all lead to bad hiring decisions. Numerous psychological studies related to this topic conclude that 90% of the hiring decision is emotional.
Get hiring right the first time by understanding turnover triggers and using talent assessments to evaluate talent.
According to Randstad research, the top five reasons people leave or consider leaving an employer are:
- Low compensation. Dissatisfaction with pay becomes more important as workers advance in their careers and want compensation that matches their skill level and expertise.
- Limited career path. Limited or non-existent career growth opportunities will have high achievers and mid-career employees proactively look elsewhere for advancement. Career lattice opportunities are as important as hierarchical career progression.
- Work-life balance issues. Inflexible work hours and location add to workplace pressures that negatively impact personal life is a factor in high turnover.
- Insufficient challenges. Disengagement happens when employees feel their skills are not being recognized.
- Poor leadership. Losing confidence in supervisors or leadership often makes employees disconnect, or even resign than try to resolve workplace challenges.
For top performers, impetus to leave an organization includes failure to deliver an experience that motivates them, engages them and aligns their personal and professional aspiration, (Lauren Mason, principal and strategic lead for Mercer's Global Rewards Practice, HR Drive) Other factors that contribute to turnover are boredom, dislike of a manager or frustration with the company’s direction. In another quote, Denise Moulton, VP of talent and research at Bersin, Deloitte Consulting LLC, said “Employees are looking for more than a paycheck, they are looking for meaningful work and an opportunity to grow their skills. Employees want a career path and need to understand what success looks like today and in the future."
Hire Right on the Front-End
Hiring right on the front-end of the recruiting funnel. Understanding the turnover triggers specific to your company and job role. For example, do the requirements of the job lend itself to flexible hours or remote work? Does your organization have a robust and transparent inner-mobility program that encourages career exploration?
Provide a realistic job preview and using talent assessment tools to mitigate bias and predict fit. Resumes and job descriptions are marketing tools used to attract not match best-fit talent to job roles. In the subsequent screening and interview process, hiring managers and other interviewers often reinforce their existing biases when evaluating candidates. Mitigate bias by using talent assessment tools that are scientifically validated and able to predict workplace behavior and outcomes that are important to the job role and the company. Starting with your job description through the interview, hire and onboarding process - ask yourself are the promises made to the candidate fully realized?