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Hiring from the Ground Up #WISHRM

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As a startup, we know what hiring from the ground up feels like, looks like and what it shouldn't be. Use these Wisconsin SHRM takeaways 2015 for your hiring initiatives.

Hiring is just one part of Human Resources, yet it’s one we’re constantly tinkering with because it sets the tone for the entire relationship. For growing companies, it’s something that can’t really be done wrong, or the consequences can be dire. Not scared of hiring? Think it’s not your problem? Consider these statistics:

- The average cost of a bad hiring decision can equal 30% of the individual’s first-year potential earnings. (From the US Department of Labor and Statistics)

- The successful aren’t immune, and they’ve had to learn from their mistakes. Zappos CEO, Tony Hsieh once estimated that his own bad hires have cost the company well over $100 million.

- 66% of employers said they experienced negative effects of bad hires in 2012. Of these employers, 37% said the bad hire negatively affected employee morale. Another 18% said the bad hire negatively impacted client relationships. And 10% said the bad hire caused a decrease in sales. (A study from the National Business Research Institute)

- 43% of respondents from the same NBRI study cited the need to fill the positions quickly as the main reason that bad hires are made.

- It costs $7,000 to replace a salaried employee, $10,000 to replace a mid-level employee, and $40,000 to replace a senior executive. (From HR.com)

- As much as 80% of employee turnover is due to bad hiring decisions. (From Harvard Business Review)

- 36% of 1,400 executives surveyed claimed that the leading factor of a failed hire, aside from performance problems, is a poor skills match. The second leading factor at 30% was unclear performance objectives. (Study done by Robert Half)

- 41% of companies polled by Vitamin T Staffing Firm estimated that a bad hire cost more than $25,000, and 1 in 4 said that it cost them over $50,000.

- SayIt Communications calculated the ROI of a bad hire at -298%.

- 75% of the demand to hire new employees is simply to replace workers who have left the company.

It’s enough to give recruitment and HR professionals “analysis paralysis”! Hiring for a start up may be very different than hiring for a large organization, but if anything it’s even more crucial, because while I have to follow the same guidelines and rules as ConAgra or Edelman, my resources are stretched farther, my “skin in the game” is much more and every payroll, including that of “mismatched” employees comes directly out of my pocket.

So too, with a smaller team. If I hire poorly, either I, or one of my other employees has to pick up the slack. The same is true in larger organizations, except in this case, you often don’t see the problem until it’s too late.

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Hiring from the Ground Up #WISHRM

  1. HIRING FROM THE GROUND UP
  2. I’M MAREN
  3. ABOUT RBM
  4. HIRING
  5. 1st YEAR EARNINGS 30%
  6. MILLION IN COST $100
  7. NEGATIVE EFFECTS 66%
  8. NEED TO FILL QUICKLY 43%
  9. TO REPLACE A SENIOR EXEC $40,000
  10. EMPLOYEE TURNOVER 80%
  11. POOR SKILLS MATCH 36%
  12. BAD HIRE COST = $25-50K 41%
  13. ROI OF A BAD HIRE -298%
  14. DEMAND TO REPLACE 75%
  15. IT’S MORE CRUCIAL
  16. PICK UP THE SLACK
  17. CASE IN POINT
  18. THE TIME THIEF
  19. I REACHED OUT…
  20. PICK UP THE SLACK MY JAW DROPPED
  21. NEARLY 200 HOURS
  22. LAUNCHED INVESTIGATION
  23. AFTER A FEW DAYS…
  24. THEN THE REAL STORY BEGAN
  25. A WRITTEN APPEAL WON
  26. HIRING IS IMPORTANT
  27. FATE HAD OTHER PLANS
  28. IT SEESAWED
  29. IDENTIFY THE ROLE
  30. IT’S EASY TO LET BUSY-NESS DRIVE
  31. THE ISSUE WILL MULTIPLY
  32. MAKE IT SOUND AMAZING
  33. LESSON 1: don’t hire friends & family
  34. OF REFERRALS APPLY… 7%
  35. OF ALL HIRES… 40%
  36. DON’T TAKE MY WORD FOR IT…
  37. NEARLY 200 HOURS
  38. THAT’S LUCK
  39. SHE LEFT RED BRANCH MEDIA
  40. IF YOU’RE GOING TO HIRE FAMILY & FRIENDS…
  41. RESOURCES: FREE OR LOW COST ATS
  42. LESSON 2: BE CRYSTAL CLEAR ABOUT EXPECTATIONS
  43. +
  44. THAT’S LUCKDOING WHAT YOU LOVE TAKES HARD WORK
  45. GET THE EDUCATION
  46. “BE BETTER”
  47. You get to be on Twitter all day and get PAID for it!
  48. You are on call from the time business opens on the east coast until it closes on the west coast!
  49. NO TIME FOR EXCUSES OR HOLDING THEIR HAND
  50. BE HONEST
  51. ATTRACT PEOPLE THAT WILL THRIVE IN YOUR ENVIRONMENT
  52. RESOURCES: JOB ADS, PHONE OR VIDEO SCREENS, A CULTURAL FAQ PAGE, & PRIMER FOR INTERVIEWS
  53. LESSON 3: Skills Pay the Bills but Work Ethic Rules
  54. How do you test for skills and work ethic?
  55. By giving assignments before you’ve hired
  56. EQUATION FOR A GREAT PRE-HIRE SKILLS TEST A PROBLEM + BACKGROUND INFO ON THE WEB + SPECIFIC SET OF TIME AND PARAMETERS + A DELIVERABLE =
  57. GAUGES THE WORK ETHIC 1
  58. Assess the ability to follow direction 2
  59. LINES LIKE: -INCLUDE word “Marketing Manager” -EMAIL & TWEET WHY YOU’RE THE RIGHT PERSON FOR THE JOB -DON’T SUBMIT A RESUME
  60. It shows if they can do the work 3
  61. RESOURCES: VIDEO INTERVIEWING TOOLS, AN ONLINE ASSESSMENT, OR YOUR OWN (CONSISTENT) PROCESSES
  62. LESSON 4: find the right ones for you
  63. THE ONES WHO SURVIVE, ADAPT
  64. LEARNING TO IDENTIFY
  65. ATTRIBUTES OF PEOPLE
  66. A TOOL CALLED VITRU
  67. KERRY AND SHALEY
  68. RESOURCES: GALLUP STRENGTHSFINDER, VITRU (FREE), ROUNDPEGG, GOOD.CO
  69. LESSON 5: make their first day, the best first day possible
  70. DON’T SET ONBOARDING MILESTONES 60%
  71. 1GET THE PAPERWORK OUT OF THE WAY (OR BETTER YET, GET A SYSTEM THAT REQURES NO PAPERWORK)
  72. 2 HAVE THEIR COMPUTER AND PHONE READY BEFORE DAY ONE
  73. 3ASSIGN THEM A MENTOR AND GIVE THEM SPECIFIC THINGS TO GO OVER DURING THEIR TIME TOGETHER
  74. 4 IF YOU HAVE VALUES, STATE THEM AND THEN ASK THE MENTOR TO SHOW THESE VALUES IN ACTION WITHIN THE COMPANY
  75. 5SHOW THEM AROUND THE BUILDING AND INTRODUCE THEM TO THEIR TEAM MEMBERS AND PEOPLE THEY WILL SEE REGULARLY
  76. 6 HAVE SOMEONE HELP THEM SET UP THEIR EMAIL, SOCIAL ACCOUNTS AND INTRANET
  77. 7HAVE A COLLEAGUE IN THEIR DEPARTMENT SHOW THEM THE BASIC TASKS RELATED TO THEIR JOBS (IF APPLICABLE)
  78. 8 AT THE END OF THE DAY, ROUND THEM UP FOR AN INSPIRE SPEECH AND ANSWER ANY QUESTIONS THEY HAVE
  79. LESSON 6: know when you’re wrong
  80. PEOPLE YOU CAN’T HIRE
  81. IT MIGHT BE YOUR FAULT
  82. CHANGE THEIR TEAM
  83. CHANGE THEIR WORKING ARRANGEMENTS (PART TIME WFH)
  84. CHANGE THEIR ROLE
  85. CHANGE THEIR SUPERVISOR
  86. CHANGE YOUR EXPECTATIONS
  87. CHANGE THEIR ENVIRONMENT
  88. CHANGE THEIR SENIORITY
  89. GO AWAY
  90. WORK THROUGH SOMETHING
  91. LESSONS INFINITY: PERFORMANCE AND INPUT
  92. GAUGE PERFORMANCE
  93. DISCUSS REALITY
  94. THOUGHTS ON CANDIDATES
  95. QUESTIONS? ?
  96. WHERE TO FIND ME ON SOCIAL /REDBRANCHMEDIA /MARENHOGAN /MARENHOGAN /+MARENHOGAN REDBRANCHMEDIA.COM MARENATED.COM /REDBRANCHMEDIA REDBRANCHMEDIA.TUMBLR.COM
  97. SOURCES: http://greenjobinterview.com/2014/01/10-important-statistics-on-bad-hiring-decisions/ http://upstarthr.com/firing-employees-who-are-unproductive/ http://thenextweb.com/entrepreneur/2014/07/30/hiring-friends-business-boon-bust/ https://hbr.org/resources/pdfs/comm/achievers/hbr_achievers_report_sep13.pdf http://www.clickboarding.com/do-you-know-the-difference-between-ineffective-and-effective-onboarding/ http://recruiterbox.com/blog/how-to-humanize-your-job-descriptions/

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