1. What Successful Businesses are Doing

2. Companies that Prosper in Good Times and Difficult Times - 1. Understand what their customers want and need 2. Do the right things to consistently exceed customers expectations 3. Focus on the most important things to achieve These expectations 4. Incorporate this into a well defined strategy Aberdeen Group August 2007

3. Prosperous Companies Use this Strategy to Guide - 1. How they organize themselves 2. How they staff their organization 3. How they define what their people should do 4. How they invest in their human capital Aberdeen Group August 2007

4. The Challenges 1. Hire top performers 2. Develop present employees Stepping Stones or Stumbling Blocks 3. Managing employee performance 4. Planning for the future

5. WHAT ARE THEY USING? 1 Assessments tools for skill, fit & Attitude 2 Competency modeling 3 360 Multi-rater Feedback Succession planning tools 4 5 Performance planning tools They are using - Aberdeen Group August 2007

6. 1. Hiring Challenges Response Challenge Challenge Response 49% 53% 39% 52% Articulate behaviors and skill sets of top performers, so we can test and find people who match the job best Ability to compete for top talent in hiring or retention Inconsistent hiring practices across the organization Enhance screening to select the best candidates Aberdeen Group August 2007

7. 1. Hiring Challenges Response Challenge Challenge Response 35% 47% 34% 44% Improve candidate screening to screen out candidates who do fit the position requirements New hires are unprepared in knowledge or skills for the positions we fill Fail to prepare new hires sufficiently for the new position Create a talent pool from which to select candidates Aberdeen Group

8. Hire the right people W. Edward Deming said, “If a person is not performing as expected, it is probably because they have been miscast for the job.”

9. Who is Applying? A 36% increase in number of job applicants who are not eligible for rehire due to personality conflicts, disciplinary problems, theft and embezzlement. 7% of applicants had criminal record. 25% misrepresented their education and credential records. Avert Inc., 800,000 background checks

10. What is the Cause? What is the Cause? Eighty five percent of all job failures have to do with the lack of appropriate work habits, not technical skills… how the person does the job and what kind of habits they bring is in most cases more important to identify than technical skills. Dell Still, High Impact Hiring

11. Insanity in Hiring Michigan State University School of Business professors concluded a study recently that showed assessments were the most accurate means of predicting the performance of an individual. Assessments were rated four times more accurate than interviews.

12. Hire the Right People Jim Collins, Author of Built to Last said- “The right people are your most important asset and you can’t get the right behavior (performance) from the wrong people.” 50 to 70 percent of most job qualifications may be more inherent in personality than skill.

13. The Payoff is Enormous If you accurately assess a person’s soft skills, the payoff is enormous. You’ve not only landed a productive employee but freed the employee’s manager to do constructive, rather than remedial, coaching. “The first mistake that anybody in management makes is to assume that through training, incentives, or disciplinary action, you can change people who are not doing the job right. People can change, but in the end, we think, most people won’t.”

14. Hire Smart, Hire Right The use of pre-hire testing is a growing part of hiring The goal of improving the quality of each new employee is not to just get a better workforce, but to retain it, thus reducing hiring costs by reducing turnover

15. Testing Fears Two decades ago, corporations feared using pre-employment assessments could be grounds for lawsuits. Afraid they may unintentionally discriminate or have adverse impact on diverse populations. Today companies worry more about hiring malfeasance, than about testing malfeasance. Only 5 successful suits in the last 60 years of testing. SHRM reports that testing is the safest thing you can do. Aberdeen Group

16. Why Use Assessments? 68% of companies of 1000 plus ee’s Use assessments 57% agree that pre-hire assessments are a valuable strategy for employee retention Validated Assessments Work! 52% agree that tests have alerted them to potential problem hires 45% Agree testing distinguished poor from good hires Aberdeen Group August 2007

17. Who is Testing?

18. Assessment Usage Companies with 1000 plus ee’s Who is being Assessed? 52%Execs 40% C-Level 52% Hourly 66% Professional 64% Mid-Mgrs Text1 Aberdeen Group August 2007

19. $$ CHANGE IN 2008 EMPLOYEE RECRUITING BUDGET An average of 56% of employers increased their budget SHRM talent management survey

20. 2. Competency Usage Present Planned 35% 45% Plan to use tools to identify competencies Use tools to identify competencies Aberdeen Group August 2007

21. WHY COMPETENCY MANAGEMENT? 1. 5. Aligning workforce with business objectives 57% Increase retention/reduce turnover 24% 2. Improved workforce productivity 37% 3. Flexible and agile workforce 29% 4. Identify and develop Hi-Po workers earlier 27% Aberdeen Group August 2007

22. Current & Planned Competency Use Present Planned Present Planned 55% 43% 36% 52% Identify knowledge gaps that can be resolved with learning Identify knowledge gaps that can be resolved with learning Define common behaviors of top performers Define common behaviors of top performers Aberdeen Group August 2007

23. Current & Planned Competency Use Present Planned Present Planned 37% 50% 33% 46% Leverage workers who display desired competencies Leverage workers who display desired competencies Create career paths with matching competencies Create career paths with matching competencies Aberdeen Group August 2007

25. Feedback comes from multiple sources.

26. Not a self assessment only process

28. 360° Applications Self Development Leadership Development Performance Appraisal/Management Coaching and Counseling Career Development Team Building Succession Planning Sales Development

29. 360°: Practical Benefits Catalyst for Change Personal Professional Consequences of behavior, actions Identify barriers to career development Increase Influence with Others Identify strengths to build upon Identify areas for development Work more effectively with others Continuous improvement Personal Professional

30. “GAP” Analysis Survey Dual Scale Uses two scales (or questions) to gather data about the person’s current practices (how often am I doing this now) and the expectations or needs of others (how often should I be doing this now) Effectiveness is determined by comparing the Current Practices against the Expectations or Needs of others the person works with an to use applicant tracking system in hiring process Aberdeen Group August 2007

31. Advantage of Dual Scale The feedback results focus the rater’s real and immediate needs A The message “your people want more (or less) of a practice” is easier for a person to understand, accept and to respond B C Shows what the “Majority “ wants

32. 74% Companies who are doing succession planning or plan to do succession planning 74% 74% 74% 4. TALENT MANAGEMENT/SUCCESSION PLANNING Aberdeen Group August 2007

33. Talent Management/Succession Planning Priorities 24% 76% Top Priority Not a Priority

34. EMPLOYEE DEVELOPMENT $$ CHANGE IN BUDGET An average of 59% of employers plan to increase their budget SHRM talent management survey

35. Why Succession Plan? Need to evaluate top talent Unexpected loss of key leaders Problem finding successful management candidates Reduce the cost of replacing employees Identify Hi-Po candidates- early and have plan for retaining top talent Improve company’s bench strength in key positions

36. What Are Companies Doing? 51% 50% 34% Use leadership development tools Position succession planning as a KEY to retention strategy Offer executive coaching 28% D Offer external leadership development programs 23% Offer mentorship programs

37. Why Are Companies Doing It? 82% 80% 77% Create culture that makes an individual want to join Create a culture that values an employees’ work Align employees with the mission and vision of the organization 72% Create a culture that will make employees want to stay with the organization D 70% Place the right people in the right jobs

38. 5. Performance Management ensure managers involve employees in the goals definition process 77% Have standardized employee performance ratings across the organization to ensure consistency with reviews 70% Employees understand how their individual performance affects organizational goals 68%

39. Performance Management Is What Driving It? 54% 37% 27% 27% Develop leadership and management pipeline Align ee goals and development activities to business priorities Create a performance culture Increase productivity of current workforce Aberdeen Group

40. Performance Management Best-in-Class organizations are 55% more likely than all other organizations to have their managers define and communicate individual employee goals and expectations within or before the first week of the employee’s start date. Three quarters of Best-in-Class organizations ensure that managers involve ee’s in the goal definition process. They establish common ground pertaining to performance expectations and create a sense of personal ownership of the goals by ee’s.

41. Performance Management Best-in Class organizations have established mechanisms to ensure that managers provide ee’s with clear and consistent performance feedback. They hold managers accountable for the management of their subordinates’ performance. This helps maintain the critical line of communication between ee’s and their managers, builds trust between both parties and provides a mutual sense of ownership and accountability in the process.

42. Achieving Performance Management Best-in-Class Organizations Reinforce ee performance with supportive resources such as linking pay to performance, providing mentors or coaches and establishing a consistent line of communication between ee’s and their immediate supervisors Laggard Organizations Tend to focus their efforts on establishing better goal setting processes and suffer from inconsistencies and lack of accountability; which have a direct impact on ee morale, performance and retention

43. Performance Management Standardize employee performance ratings across the organization Involve employees in their development and goal planning Improving Performance Management Define the metrics against which your organization will measure employee performance Educate employees on how their personal performance affects the organization’s goals Aberdeen Group August 2007

44. Thank You !