It is possible for SMBs to leverage managed service programs. Here’s how.
By George Lanzano
Efficient utilization and management of a contingent workforce remains an area of focus for human resources leadership across all organizations. Due to ongoing issues with worker misclassification, the emerging impact of the Affordable Care Act, globalization, and cost savings pressures, this segment of the workforce is also being evaluated by procurement, legal, finance, and C-level stakeholders
It’s actually the complexity of SOW projects that make them ideal for vendor management systems.
By Peter Parks
Many organizations believe that vendor management systems (VMS) are only appropriate for the management of straight time-and-material engagements, and that statements of work (SOW) are just too complex for the software to handle.
SOWs are often viewed as in a different class, with many variables and higher fees
Pre-hire assessment tools that mine data
deliver true gold: the right candidate for the job.
By Ray Bixler
In today’s war for talent, finding qualified workers is becoming increasingly difficult. In fact, a recent study by Leadership IQ tracked 20,000 new hires and found that 46 percent failed within 18 months. The cost to replace an employee ranges from 50 to 150 percent of a position’s salary. Plus, these totals do not factor in the indirect costs of lost sales opportunities, lack of productivity, and lowered morale. It is clear: Make the wrong choice and your new employee will most likely impact the growth of your business, damage your team’s morale, and cause involuntarily turnover. On the other hand, make the right choice and your new employee has the potential to help your business grow, stay longer, and help the company succeed.
With so much riding on making the right hire, HR has had a recent increased interest in pre-hire performance assessments. A recent issue of Forbes listed evolving assessment science as one of the nine hottest trends in HR technology, and The Atlantic featured people analytics on its December cover, and how it is “already transforming how employers hire, fire, and promote.”
Most HR professionals would agree that past performance is the best predictor of future performance. According to the International Journal of Selection & Assessment, its peer- reviewed, published research shows that organizations that utilize pre-hire performance assessment data in their hiring process achieve clear benefits:
- Anticipate future performance. The higher the performance assessment rating, the better the supervisor performance review once on the job.
- Reduce turnover. Organizations have experience first- year turnover reductions as high as 69 percent.
- Improve satisfaction. By selecting employees with a track record of exceptional customer service, overall customer satisfaction scores increased by an average of 16 percent year-over-year. But there are some underlying issues with the traditional ways of conducting pre-hire assessments. Perhaps the most widespread bias in hiring today occurs subconsciously.
In a recent survey of some 500 hiring managers by The Corporate Executive Board, 74 percent of respondents reported that their most recent hire had a personality “similar to mine.” Lauren Rivera, a sociologist at Northwestern, spent parts of the three years from 2006 to 2008 interviewing professionals from elite investment banks, consultancies, and law firms about how they recruited, interviewed, and evaluated candidates. She concluded that among the most important factors driving their hiring recommendations were shared leisure interests.
What executives should be considering is data collected though a standardized assessment process. Reports that include skills the candidates have mastered, what traits and behaviors they positively display at work, and where they have developmental needs should be reviewed during the hiring process. Reference Checking Reinvented For decades, recruiters and hiring managers attempted to gather behavioral insights on candidates by calling references. But this practice is becoming extinct for a variety of reasons.
- References rarely provide any meaningful feedback. A few years ago, a SHRM study confirmed that because most organizations and individuals don’t want to be held liable for saying anything defamatory, they say nothing at all aside from verifying dates of employment.
- The process is extremely inefficient. “You’re it” telephone tag can take weeks to complete.
- The method is scientifically flawed. The data collection process is not standardized and produces inconsistent results, even when the references actually respond.
Organizations now have to the option to assess candidates’ past performance from references in a way that overcomes the legal, logistical, and scientific shortcomings of dealing with references by phone. Web-based pre-hire performance assessments can be initiated in minutes and completed in less than two days with no recruiter or hiring manager intervention. Research has shown that well-designed pre-hire assessments that gather and manage multi-rater feedback electronically deliver an 85 percent response rate while also mitigating legal risk inherent in phone-based referencing.
Using self-assessments in another path to improve or validate hiring decisions. They are designed to measure cognitive ability, personality traits, and technical, job-related skills. These solutions have the potential to provide valuable insight into candidates during the hiring process, yet shortcomings exist. One of the biggest and most common challenges of self-assessments is they only offers the candidate’s perspective, which, in the end, may be flawed.
Personality tests also have their strengths, but there are several weaknesses:
Organizations are using behavioral science to increase employee satisfaction, retention, and leadership potential.
By Jason Taylor
Every employee within an organization has a career arc that is referred to as the employee life cycle. Some employees have a very short life cycle, while other employees find opportunities that fulfill their career objectives for the long term
How to properly vet technology solutions for HR optimization.
By Paul Horalek
2014 brings with it a bevy of new regulatory changes and compliance measures, and these need to be addressed to avoid costly penalties. This is even more critical now as companies look to comply with mandates coming from the Affordable Care Act (ACA).
New guidelines like variable-hour tracking, summaries of benefits coverage and plan-reporting requirements will present significant hurdles for employers to follow
How to get the right numbers to raise HR’s strategic profile
By Julia Mench
Chief people officers and HR directors have historically played a critical role in organizations’ recruiting and internal HR efforts. Despite this role, they rarely found themselves at the corporate strategy table, especially during extensive, data-driven innovation conversations
The recruitment process outsourcing provider mergers with UK-based CPH.
With the growth of global enterprise comes the need for companies to have a global RPO partner with a central point of governance for streamlined multi-country delivery models. The merger accomplishes this and expands WilsonHCG and CPH’s global footprint across North and South America, EMEA and APAC. The combined organization has approximately 300 employees.
“Since 2012 we’ve been seeking a global partner that met our high expectations of quality and performance. Not only did CPH meet that criteria, but they are a natural culture fit for WilsonHCG. The decision to merge has been solidified during the last 18 months, as we learned more about each other’s values and ambitions,” said John Wilson, Founder and CEO of WilsonHCG and CEO of the combined organization. “Not only is the market dictating a need for global capabilities from a single vendor model, but our clients expressed a need for further on-site and in-market support around the world. Top talent is what powers companies across the globe, and our comprehensive human capital services and consultative recruitment delivery approach will provide an unparalleled talent acquisition solution for these organizations. Together, we will redefine human capital solutions by delivering high-touch, transformative recruitment services to our clients.”
We all live in a world populated by brands. Your company is worried about your consumer or customer brand, your social responsibility brand, HR, specifically your “employer brand.” Would you bet your job and career on your provider’s brand? Whether you want to or not, you will.
I am not advocating only engaging the largest provider companies for your needs
Leading the Leaders
Earlier this month, I had the opportunity to steal some minutes of three veritable industry leaders who will be speaking at our HRO Today Forum in May. I posed the same questions to the trio around the main challenges HR faces today, and discovered a common thread in their answers: leading the leaders.
When I asked Joe Cabral, senior vice president and CHRO for North Shore-LIJ Health System, about what is driving his talent management strategy, he said investing in leadership: “We are working on helping leaders become better leaders
The finalists for our first annual CHRO of the Year awards.
By The Editors
For our first annual CHRO of the Year awards, HRO Today is recognizing those CHROs with the capabilities to adapt to a competitive business environment in order to deliver the insight needed for HR transformation. We understand the importance of CHROs who drive workforce initiatives through innovation with measurable excellence in employee engagement and retention to prove it.
We have a roundup of incredible finalists. These CHROs are responsible for providing leadership to ensure talent acquisition and retention, business growth, and a culture that can lead in a global workforce.
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