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« June 2007 | Main | August 2007 »

July 25, 2007

Interview Training Leads to More Profits

Interview training for managers pays more dividends than just better hiring.  In a review of human resource practices at 50 large U.S. companies, Watson Wyatt found that 65 percent of companies with a highly engaged workforce provide interview training for managers, vs. 33 percent of companies with a less-engaged workforce.

Those with highly engaged workers also spend more time in preparing workers for their new jobs - 35 weeks to bring a new hire up to speed as opposed to only 15 weeks for those companies with low engagement.

Improvements in employee engagement also result from the simplest technique of explaining to a new employee why they were hired!  Fifty-two percent of high financial performers said they were offered such an explanation.  Less then 30 percent of low financial performers received the reason.

Read more about behavioral interviewing at Success Performance Solutions

July 23, 2007

HR Costs Increase 6 Percent a Year

Most Fortune 500 companies don't realize how much time and money they're spending on human resources, according to Hewitt Associates,a global human resources services firm.

A new report from Hewitt shows that HR costs have grown an average of 6 percent a year for the last five years, and are currently $2,436 per full-time employee. This amounts to more than $100 million a year in HR expenses for an average Fortune 500 company. In addition, HR is now spending nearly half of its time (43 percent) on administration and service.

Hewitt’s survey of 129 major U.S. companies shows that although they rely heavily on performance plans to determine employee pay increases (66 percent) and bonuses (47 percent), few organizations measure whether these performance plans are positively impacting their business. (Read more Profit Per Employee - Can HR Be Trusted By Management to Get The Job Done.)

Instead, many organizations simply measure their success by tracking whether paperwork is submitted on time (44 percent) or if their employees are satisfied with the program (36 percent). Meanwhile, nearly a third (30 percent) don’t measure the success of these programs at all.

Hewitt’s study also shows that as many as 84 percent of companies don’t believe their employee goals are fully aligned with their business goals. Organizations say improved managerial competency is critical in enhancing this connection. In fact, nearly three-fourths of companies believe their managers’ ability to coach employees toward goals requires the greatest improvement (73 percent), followed by their ability to have effective performance-based discussions and make related decisions (72 percent). Moreover, 67 percent of companies say their managers do a bad job handling poor performance, and another 73 percent believe their managers are not skilled at building high-performing teams.

July 19, 2007

Aging Bubble Leads to Global Perfect Labor Storm

Did you know......

7,918 people turn 60 each day.

........That amounts to 330 every hour.

The number of U.S. people age 55 and older will increase 73% by 2020.

.......The number of younger workers will grow only 5%.

There are now more people over 90 or 100 years old than in all of American history put together.

........By 2050 the number of centenarians will outnumber the current populations of cities such as Baltimore, Indianapolis, San Francisco, Boston or Denver.

The 50 and older population in the U.S. from 2000-2050 will grow at a rate 68 times faster than the rate of growth for the total population.

Almost 90% of the net increase in the traditional working age population is projected to occur in the age 55-64 group.

Over the next 15 years, 80 % of workforce growth in developed economies of North America, Europe and Asia will occur among people 50 years and older.

Trends and stats like this are just an inkling of the information you'll find in the revised, updated and expanded Perfect Labor Storm 2.0.  Keep watching this blog for more announcements about the book release and updated Perfect Storm Indicators or visit www.perfectlaborstorm.com.

Ira S. Wolfe, the author of Perfect Labor Storm and Perfect Labor Storm 2.0, is now scheduling keynotes and presentations for 2008 and 2009.  A few dates remain for fall 2007.  To schedule Ira to speak at your next meeting or event, call 800.803.4303 or email him direct at iwolfe@super-solutions.com

July 18, 2007

Employee/organization fit generates big gains in profit and reductions in turnover for small businesses

Every organization seems intent on finding skilled employees these days.  But focusing only on job skills might leave these companies a few employees short and a bit light on the profits. 

For several years, I've been encouraging managers to hire and promote employees based on a three-way fit:  job, team and company culture.  A study just released by Gevity, an HR outsourcing firm, and conducted in partnership with Dr. Christopher Collins of Cornell University’s Center for Advanced Human Resource Studies confirmed how certain HR management practices were positively related to workforce alignment and resulting firm performance.

The findings should be immediate reading, especially for small businesses.   Overall, companies that followed a person-organization fit showed significanlty higher firm performance than did companies following a person-job fit strategy. Results of the 243 small business study suggested that firms have 7.5% higher revenue growth, 6.1% higher profit growth, and 17.1% lower turnover when following a hiring strategy of attracting, finding and selecting employees that are a fit to the culture and values of the organization.

When person-fit/organization fit is integrated with a self-management strategy, - as opposed to a controlling management strategy - as well as implementing a family-like environment/community, the results for retailers are nothing short of remarkable - 74.7% lower turnover! They are not alone. Low-skilled services enjoyed 57.9% lower turnover and manufacturing watched 19.4% fewer employees walk out the door.

A few key take-aways from the study include:

  • Select employees based on their ability to do the job (or have the potential to learn to do it).
  • Select employees who can work effectively with other employees.
  • Select employees based on their overall fit with the organization's values.

In other words, fit employees to the job, on the team and in the culture and watch your profits go up and turnover go down.

Success Performance Solutions has set a new standard for hiring success using best practice assessments for fitting the right employees to your organization's values. Simplify the complexity of talent management by calling 800.803.4303 or visiting www.super-solutions.com.

Full results and executive summaries of all Gevity research are available at http://www.gevity.com/resource_center/gevity_institute.html.

July 16, 2007

Workforce Shortages Not Just In Your Backyard

Did you know....

In the year 2000, Mexico and Germany had roughly equivalent workforce populations. 

........By the year 2030, Mexico will have a working-age population that is twice the size of Germany.

In the European Union, the number of people aged 20-59 years will decrease by 25%, or over 57 million, between 2000 and 2050.

.......During the same period, the amount of people over the age of 60 will increase by 43 million.

Japan will have to increase its immigration rate 11-fold to make up for its low fertility rate.

……while Southeast Asia will see its workforce grow by 58 percent within the next 30 years.

In India, the number of working-age people will increase by 335 million by 2030………

......……almost as much as the total working-age population of the EU and the United States combined.

Trends and stats like this are just an inkling of the information you'll find in the revised, updated and expanded Perfect Labor Storm 2.0.  Keep watching this blog for more announcements about the book release and updated Perfect Storm Indicators or visit www.perfectlaborstorm.com.

Ira S. Wolfe, the author of Perfect Labor Storm and Perfect Labor Storm 2.0, is now scheduling keynotes and presentations for 2008 and 2009.  A few dates remain for fall 2007.  To schedule Ira to speak at your next meeting or event, call 800.803.4303 or email him direct at iwolfe@super-solutions.com

July 12, 2007

Perfect Labor Storm 2.0 release set for October 2007

Did you know....

If you took every single job in the U.S. today and shipped it to China . . .

       .......China would still have a labor surplus.

China's Generation Y accounts for nearly one-sixth of the Chinese population, equivalent to two-thirds of the entire U.S. population. 

By 2025 more than 75 % of the workforce in India will be from Generation Y and younger generations.

In the United States, Gen Y and younger will make up just less than 60 %.

Trends and stats like this are just an inkling of the information you'll find in the revised, updated and expanded Perfect Labor Storm 2.0.  Keep watching this blog for more announcements about the book release and updated Perfect Storm Indicators or visit www.perfectlaborstorm.com.

Solving the "Resu-mess" Backlog

For individuals in search of a new job or career, it is as easy as Copy, Paste, and Submit. Job opportunities abound for skilled workers.   Internet recruiting has progressed from simply e-mailing a resume to candidates submitting video resumes and podcasts. But as with many technologies, convenience often drags complexity along with it.

Just like the neighbor attending an open house just to get a peek at how the people on the other side of the street live, an increasing number of job candidates are just "shopping". Add those to the serious
candidates looking for better opportunities and hiring managers are receiving a massive influx of resumes - an HR administrative nightmare I call the "resu-mess".

No longer do managers receive a dozen or so of resumes mailed or faxed from a single ad in the Sunday classifieds. They are greeted daily with hundreds of emails clogging inboxes from Internet job postings. After years of cutting back on the size of human resource departments or just adding more and more responsibilities on the shoulders of the HR generalists and recruiters, it is fair to say that reviewing and processing these resumes is like having eight lanes of traffic exiting onto a two-lane side-street. This translates into a bottleneck at the hiring tollgate.

The bottleneck leads to two devastating business mistakes – the urge to cut back on advertising in order to avoid getting too many resumes and not responding promptly to candidates.

In order to manage the resu-mess, successful recruitment marketing strategies are being derailed by the voluminous response of applicants. Managers reduce the number of job boards and other media
outlets on which they advertise to better manage the number of applications. This strategy is tantamount to HR suicide. Considering today's challenge of finding the right candidate in a shrinking talent pool, throwing out the widest net possible, not cutting back, is in the best interest of employers.

But more resumes aren’t necessarily better without automating the process. Few managers, human resource professionals and assistants have the time to screen the applications, call the candidates, do the voice mail dance, complete phone interviews, schedule face-to-face interviews, check references, complete background checks and so on.

This leads to the second mistake. While managers and HR staff are attempting to weed out the unqualified or disinterested applicants, high-demand qualified candidates are being overlooked and turned off by slow response times, cumbersome hiring hurdles, and inexperienced interviewers.

If first impressions skew a top candidate's opinion of your company, then the reputation of many organizations is abysmal. Administrative overload is creating backlogs and feeding the chief complaint of job seekers - poor communication and follow-up. Based on the 2007 Staffing.org survey of nearly 500,000 job seekers, ratings for communication and follow-up after applying for a job was a pitiful "1"
(poor) out of a 5-point scale.

Managers are at a crossroads. Business didn’t used to be as complex as it is today. But many organizations still insist on using the techniques of yester-year to solve today's problems. Candidates hire professional resume writers. They search the Internet for information about your company. They download dozens and dozens of answers to the most common interview questions. Yet managers are still doing interviews on the fly, relying on gut instinct and an exaggerated resume to make the final hiring decisions. What can an organization do to attract more candidates and simplify the complex process of recruiting and hiring?

Simplify the application process.

Streamlining recruitment, hiring quickly, and selecting the right people are no longer options but key growth strategies.

An effective applicant solution has many pieces, including applicant tracking, screening, testing, interviewing, and background checks. All of these components must mesh with business processes and create an end-to-end solution.

To first attract and then actually hire the best talent, making the entire application process as convenient as possible is critical. Prospective employees should be able to fill out an application at a
Web site, and any tests or profiling tools should be available through the Web or by phone.

Clients of Success Performance Solutions have been using Total-APS, an online applicant processing system, comparable to those used by the Fortune 1000s but now affordable and easy-to-use for even the small business owner.

Total APS allows managers to create job specific filter questions (such as "Are you available to work weekends including Saturdays and Sundays?” or, “Have you completed a two-year or four year degree?”) as well as behavioral and competency based questions, allowing candidates
to self-qualify or disqualify themselves, and avoiding many needless phone calls to unqualified, unmotivated and uninterested candidates.

Total APS also automates follow-up responses to candidates who are disqualified and reminders to qualified candidates who need to complete personality assessments or provide additional information.

A case in point: A client, a small real estate broker, recently received 131 applicants to her job ad. Of those 131, only 23 were qualified based on her customized criteria. Had she not utilized the
Total APS she would have had to sift through 131 resumes – and she still wouldn’t have known which of her candidates met her basic criteria. The ease in which she was able to identify the best
candidates prompted her to e-mail us and say, “I love you guys! You are so worth your money!”

A well-designed applicant processing system is like the EZ-Pass of human resources. It can help organizations filter and process résumés quickly and provide a central repository for potential candidates. When the system aligns with business processes, it's possible to identify talent more quickly and reduce hiring time. The net result is that you can snatch talented individuals before your competitors do.

For more information about streamlining your recruiting and hiring process including the Total APS, please visit our online demo or contact us at 800-803-4303.