Lou Adler explains how to measure quality of hire, how to quantify it from an ROI standpoint, and how to maximize it. Learn more about LinkedIn Talent Solutions: http://linkd.in/1bgERGj Subscribe to the LinkedIn Talent Blog: http://linkd.in/18yp4Cg Follow the LinkedIn Talent Solutions page: http://linkd.in/1cNvIFT Tweet with us: http://bit.ly/HireOnLinkedIn

1. How to Measure and Maximize Quality of Hire … and Achieve an ROI > 500%!
Based on Lou Adler’s
Hire With Your Head and
The Essential Guide for Hiring & Getting Hired
Rev 814-A
ROI Calculator = budurl.com/QoHROI4

2. Mid-third
Strategy/Process/People
Raise Talent Bar
Existing Processes
Maintain Talent Level
Shortcuts/Random
Lower the Bar
Upper-third
Lower-third
Break Through the Talent Ceiling
Difference in Performance of People Hired
Max Speed &
Volume
Efficiency
& Minimize Cost
Max Quality
& ROI

3. Mid-third
Strategy/Process/People
Raise Talent Bar
Existing Processes
Maintain Talent Level
Shortcuts/Random
Lower the Bar
Upper-third
Lower-third
Break Through the Talent Ceiling
Difference in Performance of People Hired
Fill Seats Quickly
Hire Best Who Meet Filters
Hire Best Available

4. Business Process for Max QoH
Talent Partnership: Recruiter, Manager, Candidate
Performance Profiles
Careers, not Lateral Transfers
Talent-centric Sourcing
Target Best People – Deep Networks
Two-Question Interview
Evidence – Assess – Recruit – Defend
Integrated Recruiting
30% Solution – Career vs. Comp
ROI: Raise Talent Bar

5. What’s the ROI of a 15% Better Person?
Salary 100 people hired @ $100K each = $10mm
Avg Generate $24mm Profit per Year
Top 1/3 will generate $3.6mm/yr more or $14mm extra variable profit over 4 yrs
ROI = $14mm/Cost to Hire Top 1/3 200% to 700%
Profit to Salary Multiplier
$600K x 40% = $240K
$240K/$100K = $2.40

6. Requirements to Hire Top-Third
Different Strategy
Attract In vs. Weed Out
Different Processes
Benchmark the Best
Shift Sourcing Mix
More Passive
Talent Partnership
Recruiter & Manager
Solution vs. Transaction-based
Performance Metrics

7. Rethinking Talent Strategy
Is there a surplus of the best people or scarcity?
HAVE
GET
BECOME
DO
Surplus – Weed Out the Weak – Active – Best Who Apply
Scarcity – Attract the Best – Passive – Raise the Talent Bar
DO
BECOME
Hiring Manager Focus: DOING vs. HAVING
Top Candidate Focus: DOING & BECOMING vs. GETTING

8. Zone 1 Zone 2 Zone 3 Zone 4
Super Passive Explorers Tiptoers Very Active
Time
Growth and Impact
Extraordinary
Career Move
Significant
Career Move
Much Better
Job
Somewhat
Better Job
Increase Quality by Career Zone
Shift to Steeper Part of the Career Zone Curve
40% - Networking 40% - Email/ERP 20% - Ads
5%
20%
50%
25%

9. How Do You Find Your Best People?

10. Define Pre-Hire Quality
What’s the Real Job?
•Collaborate with sales rep to develop customer solutions at C-level in F500 companies
•Lead intense detailed product spec presentations to sophisticated buying groups
•Work with contracts to develop cost/price/margin analysis for $5mm+ programs
•Handle 3-6 major programs concurrently
This is not a job description. It’s a person description.

11. Conduct Pre-hire Performance Review

12. Conduct Pre-hire Performance Review
Question 1: Ask MSA question for job-related, team & individual tasks
Have candidate prepare a 360 work chart for team relations
TIME
IMPACT
Team
Individual
Ask many MSA questions to see growth over time

13. How to Measure Quality of Hire Pre- and Post
Rank in Comparison to Job
1.0 The Bottom Third
2.0 Middle Third
2.5 Current Average
3.0 Rock Solid: top 20%
4.0 Top-notch: top 10-15%
5.0 Rock Star: top 5%
Compare Pre- and Post-hire Results for Feedback and Process Improvements
ROI Calculator
budurl.com/ROICalc

14. Measure & Max Quality of Hire
What’s the ROI of a Top- third vs. Mid-third?

15. Performance-based Hiring
High-tech LinkedIn Recruiter & High-touch Performance-based Hiring Proof of Concept
lou@louadlergroup.com
ROI: Raise Talent Bar
Proof of Concept