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The Total View
Facts, tips, and tools to help you hire, manage, and motivate top-performing employees.
March 24, 2004
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in this
issue
-- Six Sigma - Isn't it time HR gets serious about turnover?
-- Imagine what it would be like to eliminate the headaches,
logjams and paperwork when screening candidates. . .
-- Perfect Labor Storm Alerts #101 to #105
-- New! TotalView Corporate Coach
-- Retailer Aims at Reducing Turnover More Than 16 Percent
with SELECT
-- How Often Do You Find Yourself Saying, "What Questions
Should I Ask During An Interview?"
-- Just the facts: Murphy's Law
-- A wealth of knowledge awaits you -- View back issues online.
Greetings:
Are you
a small to medium size business that is wasting too much time
on reviewing resumes of candidates who end up being unqualified
for the job? Imagine the time and money that you can save
if you were able to automate the employee application and
pre-screening process. Be sure to check out Total APS (tm)
described further down in this issue.
The
Total View is written and published each Wednesday by Ira
S. Wolfe, founder of Success Performance Solutions. (Yes,
Ira writes every article, every week!) and is distributed
with permission by The Chrysalis Corporation.
Ira
S. Wolfe ©2004 - All Rights Reserved. Reprints and other
distribution by permission only.
To learn
more about The Chrysalis Corporation or to read back
issues of The Total View, visit our website at www.chrys aliscor poration.com
Six Sigma - Isn't it time HR gets serious
about turnover?
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Many
companies believe that dealing with turnover and disgruntled
employees is just part of the cost of doing business. But
that is faulty logic.
In the
1980s many business believed errors and product defects were
just part of doing business, too. Then in 1989 Motorola announced
a five year goal of reducing manufacturing defects. They called
the plan Six Sigma.
Six Sigma
is a statistical concept. It measures the quality of a process
in terms of defects. Achieving six sigma means your process
is delivering only 3.4 defects per million opportunities.
During
the 1990s many organizations improved quality and reduced
costs by billions of dollars. General Electrice added more
than $2 billion to the bottom line in 1999 alone.
Motorola
saved more than $16 billion in the first 12 years of its Six
Sigma efforts.
Ford reported
more than $1 billion saved since 2000.
Six Sigma
strives for zero defects. Since zero defects are nearly impossible.
Six Sigma set a goal of 99.9997% - just .0003% short of zero
defects.
A sigma
represents 691462.5 defects per million opportunities. This
translates to a percentage of nondefective outputs of only
30.854%.
A process
functioning at the three sigma level means you're allowing
66807.2 errors per million opportunities, or delivering 93.319%
nondefective outputs.
Many might
consider this 94% accuracy as good enough. That is of course
unless you are one of those unlucky vacationers to arrive
on vacation without a stitch of clothes other than what is
on your back because your airlines lost your luggage. You
see, the baggage handling quality of many airlines is operating
at three sigma.
The airlines
are not alone. Most organizations in the U.S. are operating
at three to four sigma quality levels. This means they could
be losing up to 25% of their total revenue due to processes
that deliver too many defects.
By now
you might be thinking, "I agree Six Sigma is a good thing
but what the heck does it have to do with human resources?"
The annualized
rate of turnover in many organizations runs between 15 and
20%. Healthcare systems average between 13 and 27%. In several
industries like hospitality and call centers, turnover rates
of 50, 60 and even 100% are considered acceptable "by industry
standards".
By Six
Sigma standards, these organizations are operating at three,
two and even one sigma in the people management areas.
With compensation
and benefits costing organizations from 20 to 50 percent of
total operating costs, global competitiveness driving down
margins, employee skill shortages driving up competition,
you would think that organizations would begin to "believe"
in Six Sigma to control the runaway costs of human resources
processes.
But they
don't. Many human resource professionals resist even the thought
of having metrics imposed metrics on their own performance.
Worse, many organizations allow them to get away with it.
These efforts to avoid accountability for organizationally
challanging problems such as turnover has been estimated to
cost their organizations between 20 and 40% of budget.
Achieving
zero defect may be improbable when it comes to recruiting
and retaining people. But accepting quality levels in the
one and two sigma levels for employee turnover and retention
is no longer acceptable for any organization.
CriteriaOne:
The Six Sigma of Selection and Performance Management? Avoid
Hiring and Promoting the Wrong Employee with The Whole Person
Approach - CriteriaOne Training for managers and consultants
who want to learn to identify, select and retain talent- April
21-23, 2004.
Imagine what it would be like to eliminate
the headaches, logjams and paperwork when screening candidates.
. .
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Well stop imagining -- introducing Total APS
(tm). If you feel like the guy in the photo to the left, read
on.
Within minutes, you can have your job posted
to the SPS Online Job Board. You send your candidates to the
Board where they submit their resume, cover letter and respond
to a series of customized filter questions. No more opening
resumes, answering phone calls from candidates, screening
and interviewing unqualified candidates. All you need to do
is log into your account, check how many applicants applied,
review their qualifications and contact only those candidates
who "pass" your screening filters.
You can even select from three different personality
assessments:
FirstView, a 15 minute indicator of
basic job fit for 15 different job positions
CBI, a highly effective 15- minute
assessment of honesty, integrity, dependability and tendencies
toward aggressiveness and sexual harassment.
TotalView,
the definitive indicator of high performer job fit. This assessment
can be benchmarked specifically for any job.
Total APS is available on a pay per-hire
basis for 30 or 60 days at an unbeatable cost! You can screen
5 people or 50 people all at the same low cost, until
you find the right person for the job!
For larger organizations or smaller businesses
faced with high turnover or seasonal jobs, Total APS is
also available for annual unlimited use licenses (based
on number of positions and number of employees).
Follow
this link to learn more about how Total APS(tm) can help
you automate your recruitment process and save your hiring
managers time and money. Then contact us for an online demonstration
of the system.
Perfect Labor Storm Alerts #101 to #105
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Fact #101
Only
one in ten workers has a clear line of sight between his or
her task and company goals.
Fact
#102
Only
50 percent of employees feel they follow through with discipline
on their key priorities. (What would you pay a taxi driver
who spent only 50% of the time trying to reach your destination?)
Source: Stephen Covey and Harris Interactive
Fact #103
The cost
of replacing a senior executive averages two to five times
his or her annual salary.
Source:
Training and Development, February 2004
Fact
#104
17 percent
of employees are actively disengaged from their job - they
don't see the link between their performance and company profitability.
Source: U.S. Employee Engagement Index
Fact #105
By 2010,
nearly 30% or 765,000 of our nation's public school teachers
will retire.
Source: U.S. Dept. of Education
Order
your copy of The Perfect Labor Storm Fact Book today!
New! TotalView Corporate Coach
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TotalView Corporate Coach reports provide
information that will assist a manager or coach in understanding
an employee's unique profile. It also provides each employee
with a better understanding of him or herself.
The report provides insight into the employee's
personality profile and important work related characteristics
such as their:
Leadership
Style
Preference
for change
Approach
to Conflict
Approach
to Self-Promotion
Preference
for Salary or Commission
Approach
to Listening
and more
-
TotalView Corporate Coach is intended to
assist the coaching or mentoring relationship by providing
a starting point for meaningful discussion about an employee's
values, needs and objectives. Further, the report assists
the Coach in asking pertinent questions and providing relative
feedback and ideas that are tailored for the employee.
The TotalView Corporate Coach Assessment
was specifically designed to provide general work related
information that will initiate a positive and effective
coaching or mentoring experience.
TotalView Corporate Coach produces two unique
reports: one for the coach and one for the employee/mentee.
Follow
this link to view a sample TotalView Corporate Coach report.
Retailer Aims at Reducing Turnover
More Than 16 Percent with SELECT
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With retail stores in over 130 locations
and 600- plus employees and a revolving door of retail sales
associates, you can only imagine the frustration level in
the boardroom of one of the largest rental-purchase retailers
in North America.
In search of a solution in late 2002, management
turned their sights to using a pre-employment assessment.
On their laundry list of requirements for a screening tool
was validity for retail stores, availability in multiple
languages, cost-effectiveness, and on-line delivery.
We recommended the SELECT Associate System.
With versions for Sales Associates, Sales Managers, and
Van Drivers, the SELECT Associate System was an easy choice.
SELECT Associate System pre-screens candidates
for work integrity factors such as absenteeism, honesty,
and substance abuse and performance factors like customer
service attitude, energy level, initiative, acceptance of
diversity and others.
After
twelve months, 500 job candidates and a comparative analysis
of both the hired and hired-and- terminated employees, several
high risk factors began to separate the successful hires
from the disappointing terminations. By identifying the
highest risk factors for terminated employees, our client
anticipates a reduction of between 16 and 33 percent of
bad hires by simply avoiding those candidates who "flag"
the performance factors of initiative, energy, and positive
service attitude. (A flag in the SELECT system is generated
when a candidate answers a series of statements in such
a way that exposes a risky attitude or counter-productive
behavior.)
The
most predictive factor was in the area of initiative, defined
as the ability to assert oneself and "take responsibility."
33 percent of hired-and-then- terminated sales associates
"flagged" initiative. An undesirable score indicates a lack
of confidence and overdependence on others for help and
assistance. A desirable score shows individuals with self-confidence
and self-reliance and could "take control" when necessary.
17 percent
of the terminated sales associates "flagged" energy. An
undesirable score indicates a slow pace, low stamina or
low energy reserve. A desirable score indicates a drive
to get the job done, the proverbial self-starter.
17 percent
of the terminated sales associates also "flagged" positive
sales attitude, defined as having a positive outlook on
customers and the sales/service role. An undesirable score
indicates defensiveness and a negative attitude toward customers.
A desirable response indicates a positive, confident personality
projected to customers, displaying a confidence in his/her
ability to influence results.
What
was the Achilles heel of the Retail Sales Manager? Energy!
An amazing 56 percent, or more than 1 out of every 2 terminated
managers, "flagged" energy.
The
value of using pre-employment assessments is obvious when
you consider the convenience and low cost of screening out
high-risk employees as early in the hiring process as possible
compared to the high cost of hiring mistakes. What organizations
and HR managers often overlook is the depth of knowledge
available by studying and comparing assessment results and
response trends. A review of hiring and terminations patterns
provides valuable insights into how to raise the quality
of employees who are hired and reducing the number of early
terminations.
In addition
to the reports generated by SELECT and other assessment
tools such as Counter-Productive Behavior Index, FirstView(tm)
and TotalView(tm) Assessments, managers receive a list of
recommended interview questions based on the responses of
the candidates. These questions help keep managers focused
on critical incidents and job-related behaviors and ultimately
help avoid hiring mistakes. SELECT, Counter-Productive Behavior
Index, FirstView and TotalView can be taken online or administered
on paper (and scored online after the candidate leaves).
To
learn more about the SELECT Associate System, follow this
link.
How
Often Do You Find Yourself Saying, "What Questions Should
I Ask During An Interview?"
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Ask
no more with Interview Generator(r). Interviewers need to
know what to look for in a candidate's response. Online
Interview Generator(r) pairs specific "target behaviors"
to over 60 competency based interview questions.
Online
Interview Generator(r) (IG) allows users to create company
and job specific customized behavioral interview guides
in minutes. Satisfied IG users include hiring managers,
employers, human resources professionals, and consultants.
As an
IG user, you can choose an already developed interview guide
from our Job Library of over 40 standard job titles (from
Administrative Assistant to COO), then quickly and easily
edit to fit your open job. Or, you can choose to design
your own interview guide from "scratch" using our extensive
database of 65 competencies, and over 1,500 different target
behaviors (interview "answers"), and corresponding interview
questions.
IG is
extremely versatile and flexible - it can be used for selection
in every industry, business and organizational environment.
IG is inexpensive and cost- effective; clients can purchase
interview units separately, or through a site license.
Interested
in a no-obligation online demo? Email us to Schedule a Virtual Tour Of Interview Generator. Ask about Performance
(Review) Facilitator, too. In the comments box, type "Interview
Generator".
View
a sample Interview Guide created with Interview Generator.
Just the facts: Murphy's Law
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If anything
can go wrong, it will. That is Murphy's Law. But who was
Murphy? The term was coined in 1949. The Murphy in question
is Captain Ed Murphy, a development engineer assigned to
Colonel J.P. Stapp's research on the rocket sleds that tested
the limits of human endurance of high acceleration at Edwards
Field, Calfornia. Murphy was referring to a particular technician,
whose name has been lost to history, who had wired a piece
of equipment incorrectly when he remarked, "if there is
any way to to do things wrong, he will." A few weeks later
in a press conference, Stapp credited his program's safety
record to planning for Murphy's Law. The rest was history.
A wealth of knowledge awaits you -- View back issues
online.
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If you or a colleague has missed an issue of The
Total View, you can easily catch up on your reading by visiting
The Total View archive section of our web site which is
loaded with trends, forecasts, and facts related to hiring,
managing, and motivating top performers.
Feel
free to forward this link to your staff, your clients, or
even your boss. They'll thank you for it.
Follow
this link to view previous issues of The Total View.
Contact Information
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email: mike@chrysaliscorporation.com
voice: 229-257-0665
web: http://www.chrysaliscorporation.com
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