Given high unemployment, financial regulations and escalating healthcare costs, the uncertain economy remains the number one driver behind Human Capital Management efforts. Efficiency is a paramount concern for talent initiatives in this economy and organizations need to balance cost-savings with quality investments.

Historically recruiting was measured on its ability to fill positions as quickly and cost-effectively as possible. Today, organizations can no longer afford a bad hire when based on recent data, the average estimated cost of replacing a sales rep is $34,420. Organizations that need to achieve results must focus on quality of hire. The balance of cost-savings and quality is essential to making the organization more efficient.

The study identified the following as top challenges faced by many organizations today:

• Achieving organizational growth goals
• Employee retention
• Lack of key skills in workforce
• Changes in demographics (retirement of baby boomers)
• Difficulty transferring knowledge within workforce

Although today’s organizations face some difficult challenges and choices, taking time to reevaluate and update processes used to identify and manage talent will help move organizations forward in 2012.

Article provided by Aberdeen Group: Aberdeen.Research@aberdeenreport.com

Selecting the right employee

But most employers still use the traditional method – Gut Feeling

“Most selection decisions are still made in the first 5 minutes of the interview and are often based on the gut feelings of the interviewer,” says Dee Mayer.

Gut Feeling hires result in low productivity and high turnover.

Profiles to Partners works with each client to select  the most qualified job candidate using our Develop, Discover, Decide system. Within the Discovery Phase, we make extensive use of behavioural-pattern analysis to probe the job applicant for specific examples of their past.

The reason is simple: The best predictor of a job applicant’s future work behavior is their past work behavior.

Profiles to Partners works with client companies of all sizes to understand, adopt, and enact the following Smart Interviewing Best Practices:

• Plan a logical, structured interview that includes pre-planned interview questions
• Develop an interview plan based on thorough knowledge of the job
• Use behavioral-based questions that probe specific life-history events that can then be used to determine the presence or absence of a skill
• Use interviewing techniques that help maintain interviewer control
• Understand the questions that cannot be legally asked in the interview process

Armed with the skills outlined above, you should execute each interview by:

Refraining from judging an applicant on gut feeling by: asking rapport-building questions;  discussing the job; taking notes and explaining why; asking specific, open-ended questions to get specific answers; allowing for silence if necessary; maintaining control; getting contrary evidence and evaluating.

“It is a dramatic turnaround,” says Louis Smith, president of FltOps.com, a website that provides career and financial planning for pilots. “Pilot hiring was severely depressed in the last three years. The next 10 years will be the exact opposite, with the longest and largest pilot hiring boom in the history of the industry.”

The demand for pilots will be so great that the industry could ultimately face a shortage, sparking fierce competition among airlines across the globe vying for candidates qualified to fill their cockpits. Where is our pipeline of new pilots going to come from, and how are we going to finance them?”

The hiring surge is being fueled by several factors:

• The rapid growth of travel in Asia, which is on track to surpass North America as the largest air travel market in the world;
• A looming wave of pilot retirements in the USA;
• Proposed changes to rules that could increase the time pilots must train, rest and work;
• And increasing demand for air travel within the USA as the economy improves.

Across the USA, the need for pilots will be sparked by increasing passenger demand, and perhaps most significantly, an exodus of senior pilots that is expected to start next year, as a large wave of pilots hits the age of 65, which is the mandatory retirement age for airline pilots under federal law.

As worldwide competition for pilots begins to heat up, some overseas carriers are making dramatic overtures to fill their cockpits. Emirates, the Dubai-based carrier, will hire more than 500 pilots by April 2012, says Michael Keating, the airline’s flight crew resourcing specialist. The carrier already employs roughly 300 Americans as pilots, and is visiting job fairs in New York City and Las Vegas to seek candidates.

The compensation package for these pilots includes perks such as a chauffeur-driven car to and from work, an education allowance for the pilot’s family, and profit sharing.

The average starting salary for a pilot at a regional carrier is roughly $21,000 a year, while the most senior captain, flying the largest plane at a major airline, typically makes more than $186,000 a year, according to FltOps.com.

Sean Cassidy, a pilot for Alaska Airlines and first vice president of the Air Line Pilots Association International, which represents more than 53,000 pilots in the USA and Canada, says that “whether or not we can meet the pilot hiring needs domestically depends on how robust the hiring process is and how lucrative it is to attract new entrants into the industry, especially at the regional level.”

Source: USA Today/Travel

What characteristics should you look for in future leaders of your company?

Perhaps you have staff members with the desire to become owners. Look for those who share your vision and have a tendency toward entrepreneurship. Watch for those who step up to organize company events, volunteer for community activities, and represent the company at important functions.

First, consider that although people may have a tendency toward or away from leadership, leaders can be developed. And leadership development is now your job if you are to enhance value in your company.

Here are some things to look for:

• Who shares your vision?
• Who is highly motivated?
• Who contributes extra effort (beyond 8 to 5 work day)?
• Who loves their job?
• Who is highly committed to and connects well with your clients?
• Who does the staff and business community contact to resolve issues?

Potential owners must contribute to the company by being successful project managers as well as having the ability to lead a group, department, particular client, or specialty area. They must also perform with a high level of independence. You should expect to play a support role as needed, but they should come to you with recommendations—for example, “Here is how I’d approach this problem. What do you think?” instead of “I’ve got a problem, what should I do?”

Finally, keep in mind that no one is going to do the job the same way you did. You must realize that there is not just one way (your way) of managing and leading the company. Your role must shift to that of mentor, advisor, and trainer of the future leaders of the company. With your support and guidance, they can successfully focus on marketing and producing high-quality products/services for your clients.

You must realize that your role shifts to that of a mentor…your job is not to do the work for the new leaders but to direct them as they learn how to do the work. And remember, this “learning experience” takes time, so plan ahead!

Source: H.Edmund Bergeron, LLS, PE
Image by: Master isolated images

Project Leaders come in many different varieties…there is no “one-size-fits-all” formula for directing projects. That being said, a project leader’s success will depend on their ability to align vision with execution. Great project leaders focus on deploying the necessary resources at the right time to achieve desired results. If you want to make sure you’ve selected the right project leader, keep a watchful eye out for the following five characteristics:

1. EGOS ARE IN CHECK - The best project leaders readily put their own egos aside and aren’t above getting their hands dirty to help other team members accomplish their tasks.  Successful leaders are content to work behind the scenes, orchestrating the offense while others do most of the scoring. They know their people will be more willing to work if their leader is also seen working on the team’s behalf.

2. RELATIONSHIP BUILDERS – Great project leaders know how to identify key external players. It’s crucial to know who has the ultimate power to green-light funding and other important high-level aspects of a project. They are usually good at working with assistants and middle managers who will actually be using the product being developed or service being provided.

3. GREAT COMMUNICATORS – Good communication is critical when directing projects. Using silence strategically to keep the team members involved and engaged can be very powerful. Equally important is having the courage and integrity to “call things as they see them.” Successful project leaders are also able to make meetings a meaningful time and place to exchange information, identify solutions to problems and discuss new ideas.

4. SAVVY NEGOTIATORS – Great project leaders know how to handle difficult negotiations. They are in control of their emotions and have the ability to remain calm and listen to both sides of a situation before making recommendations or decisions. By modeling a collaborative decision-making process, they are often successful in gaining mutual agreement.

5. PASSIONATE – Some of the best project leaders are the ones that are truly passionate about success.  They work tirelessly to see the project and their team succeed. While they are open the new ideas and willing to “adjust the strategy” when necessary, they do not give up…great leaders refuse to lose.

It’s important to point out that great project leaders not only typically have all five of these qualities, but also have the wisdom and insight to know when to use them.

Are you in a position of selecting a leader for your project? What characteristics do you think will be most valuable for your organization?  Comments welcome!

All of us know these “giants”….leaders that stand out in crowds, who have risen to the top and who accomplish significantly more than their peers.  It is inspiring when organizations overcome tough challenges guided by leaders who genuinely inspire greatness in the work environment. Authentic leaders protect the self-worth of all working professionals and value an employee’s drive to achieve extraordinary things.

With growing complexities in corporate America, “giants” at every level will need to embrace the challenges and create successes within their organizations.  More than ever, today’s companies need leaders who are effective at unlocking the giant in others…and within themselves. These leaders, who reflect greater cohesive role modeling and are prepared to make brave decisions, act quickly and honorably, and demonstrate a profound respect for people and stakeholders, will take their organizations to a new level of greatness.

Who are the “giants” in your organization?  Have you taken the time to ensure they have the tools to continue developing themselves and those around them?  If you don’t spend time ensuring the growth and happiness of your giants, they become good targets for recruiters and could one day end up leading one of your competitors organizations.

Source: The Infusion Group, LLC

One of the best ways to assess the effectiveness of a leader is to observe the others around him or her. If the person is in demand, if others feel they would not be as effective in their positions without them, if people will actually follow direction from this person without hesitation, then you probably have identified a good leader.

Here are five metrics we suggest when assessing your leaders:

1. FINANCIAL
How much has the company grown under the leader’s vision? (revenues, profitability, cash on books, sales pipeline)

2. DECISION MAKING SKILLS
What is the impact of decisions made by the leadership to the bottom-line?
(Financial, customer value, business process, staff learning and growth)

3. FUTURE LEADER DEVELOPMENT
What is the percentage of next generation leaders developed by this person or team?  What is the rate of turnover?  How many employees under this leadership have been successfully promoted into higher positions?

4. STRATEGIC PLANS IMPLEMENTED
What percentage of governing ideas, strategies, operational plans, contingency plans and individual plans have been implemented in the time period allotted?

5. RELATIONSHIPS
How many valuable partnerships have been developed or strengthened by the leader that truly benefits the organization?

Senior leadership needs to be involved in selecting leaders.

Hire for leadership, not just functional or academic expertise.
Are you looking for someone with great IT skills hoping that they will also turn out to be good leaders? Even when a high level of technical or scientific proficiency is required, look for experts who also have the desire and potential to lead others and help them grow into those roles.

Learn about the person’s values and behavior before hiring.
What values and behaviors must someone have in order to succeed in your company? And once you have them identified, are you screening potential candidates for those specific behaviors? Well designed screening processes, assessments and interview tools can assist in identifying competencies like ability to work with a team, interpersonal skills, ethics, intellectual capacity and temperament. It is also often helpful to include situational questions to assess a person’s behavior in a given situation.

Be willing to bring in outside talent when necessary but take steps to ensure successful assimilation into your culture.
While it’s nice to promote from within the company, sometimes it is necessary to recruit outside leaders at higher organizational levels. In this situation, it is very important to consider that new leadership may change the culture of the organization. Therefore, it is essential that you do the necessary research to find talent that will be a good “fit” in your organization. Once new leadership is in place, visible signs of support from the top levels of the organization is essential.

Be honest about who has the greatest leadership potential and develop them.
Do not get locked into predetermined “stars” in your organization. Keep your eyes open for others whose leadership talent might emerge later. Keep in mind that while high potential leaders deliver results, results alone do not indicate high potential. Make use of objective assessment data to determine who has the potential to rise to the highest levels of your organization and do all you can to accelerate their growth.

Sources: The Talent Masters, Bill Conaty and Ram Charan, BNET, SHRM

Give frequent and honest feedback.  John Baldoni,  author of Lead Your Boss: The Subtle Art of Managing Up says that leadership is all about perception.   If leaders do not know how they are perceived, their performance will suffer.  However, the higher up in an organization a leader sits, the harder it is for them to receive honest feedback.  But trust doesn’t simply happen, which is why feedback-friendly cultures are very intentional about creating practices and methods that foster specific, candid, and robust comments about performance from everyone on the team—regardless of rank.  Feedback about behavior—carefully noted, and delivered in an atmosphere of trust—is the engine that drives a culture of continuous learning and high performance.

Make talent development an explicit part of every leader’s job and hold them accountable for it. Leaders show the importance of developing other leaders largely by example.  Every company struggles to grow talent so leaders, especially, need to know their own people and what makes them tick.  They should be held responsible for their teams and the growth of even more future leaders.  Some companies even tie compensation to a leader’s ability to grow other people.

Provide intellectual opportunities for additional growth. True leaders continuously work to build their skills and relationships, their personal traits and judgments.  Experience is a great teacher but leaders need intellectual stimulation to really excel.   The best leaders are those that are the most effective. Effectiveness is based on a number of things, and requires a diversified and varied skill set. Anyone who believes they do not need to learn any more can never be a true leader because true leaders understand that every organization needs to evolve for its time, and every leader must evolve his thinking to adapt to new things he might learn.

SOURCES: The Talent Masters, Lead Your Boss, Harvard Business Review

The $220,000 Project Manager

Not salary. That’s what he cost the firm in revenue, rework and concessions.

Before coming to us, a client of ours hired a project manager for several high profile projects. This project manager mismanaged projects, alienated co-workers and vendors and angered customers. The employee was terminated but the damage was done.

Our client estimated the cost in lost revenue, rework and concessions to customers was $220,000. Add in the costs of hiring, the employee’s salary, benefit and training, lost productivity of other employees, executive time spent solving the problem and impact on customers, and the total cost came to at least $550,000.

The root cause of this hiring mistake? According to our client, the cause could be attributed to inferior, incomplete information about the person during the hiring process.

Business Development Manager bolts after just nine months.

Consequently, very little business was developed. Could this have been avoided?

A well-known search firm placed a business development manager with a company. The goal was crystal clear: generate at least $500,000 in new gross revenue.

Instead, the manager quit after nine months on the job and generated only $90,000 in revenue. The loss column was staggering.

$45,000 in base salary
$9,000 in commissions
$2,125 in sales support personnel
$55,000 spent on marketing and sales materials
$18,000 in recruiting expenses

That’s not even counting the opportunity lost, which the company estimated at $300,000 in lost revenue with no sales leads in the pipeline.

The company came to us. As our client, we customized our Profiles…to Partners Candidate Match eValuation program to include company/position specific questionnaires, job simulation exercises, and a detailed psychometric assessment. These tools also helped determine the candidate’s motivation and commitment level, giving our client a much greater degree of certainty regarding the candidate’s intentions.

A startup hires an Executive Assistant. Ultimately, they had to let her go.

Along with thousands of dollars in salary, benefits, training and recruiting costs.

Two years before we met this client, they were a busy startup in need of help. They turned to a staffing company who sent over an executive assistant. Things were great at first. The new hire was efficient and jumped right in. She reorganized the files, set up new tracking and recordkeeping procedures and helped create an employee manual, among other things.

However, senior managers began to complain about her attitude. Other employees started to avoid her. Even outside parties complained about their treatment.  The company brought the matter to her attention and sent her to a training class, among other corrective strategies.

Ultimately, our client had to let the executive assistant go. That one hiring mistake cost the company at least three times her salary. Was it avoidable?  YES!

[HOW TO AVOID COSTLY HIRING MISTAKES]

Profiles to Partners Candidate Match eValuation System (eVal) goes well beyond any screening process offered by a traditional staffing company.