Job Benchmarking – If the job could talk …
“A bad apple on a team costs you far more than just the labor costs of that person, it costs you the performance of the team.” – Bill J. Bonnstetter
What does it cost a company to hire a new employee? At the very least, companies must take into account the following:
- Cost of current loss of productivity associated with the departure of the previous employee who held the position
- Costs associated with the Human Resources department’s process for hiring a new employee
- Costs associated with advertising, utilizing recruiters, job sites, etc.
- Costs associated with the interviewing process time for the Human Resources department and the other interviewers
- Costs associated with training the new hire
Now let’s consider the additional costs associated with a wrong new hire:
The Harvard Business Review states that as much as 80% of employee turnover is due to bad hiring decisions. The U.S. Department of Labor currently estimates that the average cost of a bad hiring decision can equal 30% of the individual’s first year potential earnings. According to HR.com, 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.
So the bottom line is, it costs companies a lot of money to hire new employees and it costs them even more when they go through the process and hire an employee who doesn’t work out.
Last week I attended a three-day training boot camp as part of a certification process at the TTI Success Insights® headquarters in Scottsdale, Arizona. TTI Success Insights® provides computerized assessment tools and talent analytics systems. The certification process affords me the opportunity to administer the assessment tools which are used to help with coaching staff, assessing team effectiveness, improving sales teams, and hiring the right people. TTI has developed a job benchmarking process that utilizes these assessments and thus gives hiring managers, recruiters, and Human Resource professionals an additional tool to help them find the right candidate.
So how does the process work?
TTI Success Insights® has identified its Dimensions of Superior Performance consisting of emotional intelligence, intelligence, motivators, education & training, experiences, personal skills (competencies), acumen, and behavior. Their assessments measure five of the eight dimensions (intelligence, education & training, and experiences are not measured). Of the five dimensions, three of them – behaviors, motivators, and personal skills (competencies) – are used in the job benchmarking process.
Our current hiring process has built-in biases. Those biases include our own experience, education, and intelligence. We measure potential candidates consciously or subconsciously using these biases.
Add to that the amount of time it takes to find a potential candidate. In the current environment, we often see multiple candidates that are not remotely qualified for the position and we find candidates applying for multiple positions within a company hoping one works out.
The keys to the job benchmarking process are to identify the key accountabilities/responsibilities of the position and to eliminate as much personal bias as we can by utilizing the mindset, “If the job could talk, what would it say?” In other words, we want to benchmark the job, not the people who may be currently in the job.
Step 1 – Setup– Identify between three and seven Subject Matter Experts (SMEs). These are people who are currently performing the job, managing the job, are internal suppliers to the job, and/or are internal customers of the job – employees who will be able to help identify the key accountabilities of the position.
Step 2 – Key Accountabilities– SMEs participate in a brainstorming session to identify the key accountabilities of the position. Once a list has been created, these key accountabilities are grouped into categories, prioritized, and weighted as to the percentage or amount of time each accountability takes to perform.
Step 3 – Job Assessment Report– Using the key accountability information, each SME completes a TTI Success Insights® job assessment which presents 23 competencies and quantifies their importance to the specific position; 6 specific rewards/cultures, identifying sources of the position’s motivation; and 12 behavioral traits demanded of the position. The results of this is a combined report of all the SME input giving you a concise, detailed assessment of what kind of candidate the job requires.
Step 4 – Talent Assessment Report– Candidates complete TTI Success Insights® talent assessment which assesses the same 23 competencies, 6 rewards/cultures, and 12 behavioral traits. The number of candidates who take the assessments is determined by the company. Some companies have all the candidates take the assessments, others only have the candidates who have gone through the vetting process take the talent assessment.
Step 5 – Job/Talent Comparison– The Job/Talent Comparison report combines the individual candidate’s talent report with the job assessment report resulting in a side by side comparison of the competencies, motivators, and behavioral traits that the job needs with those that the candidates have to offer. The report provides an overall rating comparison and also details each individual competency, motivator, and behavioral trait.
Job benchmarking, and this particular process utilizing the assessments, gives companies insights and information that they wouldn’t otherwise have in order to get closer to hiring the best candidate possible. There is a cost associated with the benchmarking process and the use of the assessments, but nothing compared to the costs associated with hiring the wrong candidate.
Need assistance in establishing a job benchmarking process at your company? Check out WhiteRock Business Solutions below. We specialize in helping businesses. Our business is to help make your business better.
About the Author— Ron Feher is the Chief Improvement Officer at WhiteRock Business Solutions. He specializes as an interim COO/consultant by improving all aspects of business operations including day-to-day operations, coaching and mentoring, operational controls and procedures, and improving business processes. Ron is a certified value-added associate with TTI Success Insights® utilizing their behavioral, motivational, competency, and acumen assessments to help businesses hire, retain, and develop their team. WhiteRock is located in Orange County, California and can be found at www.whiterockbusiness.net, or contact Ron directly at firstname.lastname@example.org (949-466-0943). #smallbusiness #SMB #ttisuccessinsights #assessments #DISC @RonFeher