Drilling for Good Candidates

The current low unemployment rates and data mining have led to companies tossing out wider and wider nets to fill positions.  But, is all of this confusing activity with productivity?

This article (thanks to Dennis Adsit for bringing it to my attention) brings up some great reminders about some very solid things that employers should be doing (valid testing, structured interviews, etc.) and avoiding others (tech is NOT a magic bullet for recruitment and selection).  However, it also does a good job of challenging some basic assumptions about hiring, all of which can be evaluated.  These include:

  • Unless you are adding positions, why are you looking for so many outside candidates? One reason people leave companies is because they do not feel they have promotional opportunities.  One reason you are looking for so many outside candidates is that people quit.  Chicken, meet egg.
  • Taken a step further, HR really needs to test the effectiveness of its processes on an ongoing basis. If there is data to support that, in general, outside candidates perform better than those promoted, then keep on searching for them.  And you should probably revamp your entry level recruitment and hiring processes.  If not, then career development and taking steps to increase internal mobility will be more effective actions than scouring the universe of passive candidates for new hires.
  • Develop measures to evaluate the success of what you are doing. Few things frustrate me more than a client saying, “We cannot measure someone’s individual performance.”  Really? Does that mean the cost of turnover is the only reason you keep people in their jobs? Granted, it can take some time to measure output, but you can typically find ways of evaluating a person’s contribution to a team.  If a manager says, “I like/don’t think this person is effective” she should be able to say why.
  • Related to the above, don’t assume that a good process will always have the same effectiveness. As your business changes, recruiting and selection systems need to adapt as well.

I do not think that HR has to constantly be reinvented.  But, basic assumptions should occasionally be challenged.  It is only by measuring and evaluating our processes that we can truly improve them.

Putting Too Fine a Point On It

I will admit that I am more of a big picture person than a perfectionist.  Going through old blog posts would likely lead to the finding of some spelling errors and grammatical mistakes.  That does not bother me as long as I am getting my point across.  I also have a pretty good sense that I am in the minority of people who are willing to admit that I lack a big attention to detail.

At the same time, I also advise clients to use pre-employment tests that measure attention to detail and conscientiousness for those jobs that require it.  So, like other personality traits, it certainly has its place.  I’m just not the person you want looking for needles in haystacks.

So, this article definitely caught my attention.  Here’s the most important takeaway (at least to me) from the authors, “…the answer to the question ‘is perfect good?’ is that in total, perfectionism is likely not constructive at work.”  Given this, what are we really getting when a job candidate tells us that he is a perfectionist?

The data shows that we will get someone who will work long hours, but is not more likely to be engaged in the work.  Rather, perfectionists tend to burn out more than those who can let the little things slide.  This is particularly true of those whose perfectionism comes from a place of avoiding failure than those striving to be excellent.

Most importantly, when compared to supervisor ratings of job performance, y’know, the people the perfectionist is trying to impress, levels of perfectionism are not related.  That’s right—managers feel that the job performance of those who feel that good is good enough is the same as for those who choose to gild the lily.

From a selection perspective, a more subtle approach is called for.  There are some jobs (brain surgeon and quality inspector, to name two) where perfectionism is probably important and should be part of your assessment process.  However, it should not be considered a good universal predictor of performance.  One can easily imagine some jobs where being a perfectionist would be a negative predictor, such as creative jobs like marketing or app design. Also, when interviewing, if a candidate brags about her perfectionism, I would not get too excited.  She may be confusing activity for productivity.

The organizational implications here are straightforward: Having a culture of perfectionism will get you more hours, but not better performance, out of your team.  While not explicitly tested in the article, it is likely to also get you more turnover.  This is a reminder that we should be clear about quality expectations and work-life balance.

Selecting Managers Who Understand the Value of Praise

When I do leadership/management workshops, the first topic is always motivation.  While I am a big believer that motivation must come from within, managers can impact performance, in the short term, by effectively using rewards.

Years of research tells us that cash and other extrinsic rewards can be effective motivators for tasks where individual effort leads to individual results.  However, the bigger the distance between effort and results, the less value these incentives have.  Oh, and they also lose their effect over time.

The wise manager knows that recognition, praise, and other behaviors that lead to intrinsic rewards are much more powerful. This article provides a good synopsis on how to use a combination of intrinsic and extrinsic rewards.

While there tends to be a strong focus on rewards, something that gets overlooked is how to select managers who already have this insight.  Sure, most can learn it. But, I would think that there are traits that predict how well a person rewards employees.  Three of these would include:

  • A person with a high level of agreeableness is usually warm, friendly, and tactful. They generally have an optimistic view of human nature and get along well with others.  People high on this trait are likely to want to make others feel engaged in their work.
  • Generous people are the ones who give more than is expected of them.  Giving a reward to another person is an act that provides praise or a reward to another person when it could be kept to oneself.
  • View of Employees. Managers who have a “your paycheck is your reward” mentality are not likely to give out a lot of praise.  Those who recognize people as individuals, and learn what their needs are, will be much more likely to provide meaningful motivators.

By making motivational skills part of the valid selection process, we are more likely to hire managers who will seek out opportunities to reward results.  Appropriate use of such techniques will lead to more engaged and productive employees.  They are less likely to turnover, which is critical in our current low unemployment economy.

Celebrating (Painful) Learning

In a previous post I talked about using the Marshmallow Challenge to provide insight into cultures that support risk taking.  Taking the stigma out of making mistakes is one way to encourage creativity.

Taking this to the next level are FUN nights (note that curse words figure prominently into the article).  This is where entrepreneurs are encouraged to share their failures with others.  The thought is that the process makes people more relatable than if they only share your successes.  The promoters feel this leads to better networking among the members.

Organizations could adopt this approach as well, but it would take a bit of a balancing act.  Most companies want their executives to be approachable, but also want them seen as competent.  Employees want to avoid being branded as “the person who had the bad experience.”

The key is to not just share stories of failure.  Rather, talk about growth. When executives reveal experiences about what they learned from mistakes, others can see that risk taking, and the inevitable missteps that come with it, are part of the process of becoming successful.

From a selection perspective, there are traits you can look for in hiring potential leaders who are pre-disposed to this kind of learning.  One is openness to experience.  The other is self-confidence.  Validating these types of measures will help you hire people who are willing to confront their mistakes and share their lessons with others.

Can we Predict Karma in Applicants?

We would all like to think that doing well towards others will benefit us in this (and future?) life.  At the same time, capitalism can encourage some people to act entirely in their self-interest in order to get ahead and create efficient organizations.  So, should we hire good or successful people?

Altruism is a part of the “Big 5” personality construct of Agreeableness.  In business settings, we would consider it how much a person makes other feel welcome versus looking down on others.  Agreeableness has been established as a reasonably good predictor of job performance.

In this study, researchers dug into altruism and how it affected life outcomes, including income.  There are two things that I found interesting and useful about their results:

  • We should not be surprised that altruism leads to financial success in environments that involve teamwork. Working with others is about making 2+2=5 and people need to be willing to think about others to make that happen.  It is important to note that this research did not look at specific occupations.  One can see how altruism would be a bigger plus for some professions (health care) but not in others (sales).
  • Generally, the results showed a straight-line relationship between altruistic motivations and income. However, when looking at altruistic behaviors, there was a point where there could be too much of a good thing an income went down among those who reported the most altruistic behaviors.  This is important from a selection perspective because if you were to use a personality measure (Compared to most people I know, I am very altruistic.), you would want to score it as higher is better.  However, if using a biodata approach (How many times have you given your time to someone else in the past year?), then a curvilinear scoring may be more accurate.

Of course, deciding on any pre-employment screen first requires a good job analysis first.  This study provides an interesting window into how one sub-facet of personality can potentially be predictive of important job behaviors.

It also reminds us to look at the value of pro-social behaviors in the workplace and look for opportunities for employees to do them together.  It builds a culture of altruism that may also lead to greater business success.

Reducing Bias Through Structure

Finding examples of racial or gender bias in hiring or job evaluations is not hard.  The latest comes from a survey of lawyers.  My sense is that the results did not come from a random sample of attorneys, so I would not quote the group differences as gospel.  The authors recommended some specific ways that law firms and companies that hire lawyers can correct the bias in their HR processes.  There were two things I took from the study:

  • Many, but not all, of the recommendations came from a solid research base. It was good to see that their hiring suggestions included behaviorally based interviews, skills based assessments, and using behavioral definitions of culture.  Each of these suggestions introduces objectively and structure into the hiring process.
  • Given that attorneys have either brought employment lawsuits or have had to defend companies against them since 1964, did it really take this long to come up with some hiring process recommendations?

My consulting experience tells me that people who hire for professional jobs seem to think there is more magic and intuition in selection than those who staff for other types of positions.  This is especially true when hiring for a job they used to have.  They could not be more wrong.  Every job has a set of critical skills and abilities required to do it well.  It is possible to objectively measure these in candidates.  Doing so will likely reduce bias.

Who Should Identify and Develop the Non-College Workforce?

On some occasions I have mentioned that companies that need blue-collar workers are in a tough spot. Their jobs are not very sexy to the millennial or Gen Z workforces who prefer tech jobs.  Also, because lifetime wages are significantly higher for jobs that require a bachelor’s degree, parents and high school students tend to have a much more favorable attitude towards going to college than training in a vocation, which is reflected in college application statistics.  We are currently in the midst of low unemployment which makes recruitment for blue collar jobs even more difficult.

Companies should think about this as a long-term, rather than an immediate, issue.  This article talks about how some firms are dipping into high schools to begin identifying students who might not desire (or be qualified for) 4 additional years of school and providing them with what used to be called vocational training.

Of course, if a specific company or industry designs the career education programs (read: vocational), there is a danger of the training being too narrow.  However, no public school in its right mind would ever turn down private money that helps kids get jobs.  And we don’t seem to have a problem with it at the college level where business schools take money (and input) from big employers and provide the students with internships.

The economy goes in cycles and it is not a matter of if, but when, the economy slows and there won’t be the same worker shortage.  However, the trend towards more interest in college and tech jobs will continue for the foreseeable future.  This means that employers of skilled, but not college educated, workers will have to find more ways to create a larger labor pool to find the talent they need.  They can do this by:

  • Aligning with local high schools and community colleges to create curriculum that is broad enough that provides students with career options, but specific enough to allow for an easy transfer from school to the employer.
  • Gauge the interests of students as they enter the program. Interest inventories are an under-utilized selection tool.  This is especially true for entry level employees.  If I’m not interested in social activities, I probably should not be on the wait staff at a restaurant, even if I need the money.  But, if I’d rather work with things than people, then becoming a welder might be up my alley. Validating these types of tests can be a good way to predict potential success by placing students in areas where they are more likely to do well.
  • Provide lifetime learning programs. One thing we know about millennials and Gen Z is that rewarding them for learning is a powerful incentive. Companies should show new recruits all of the opportunities they could potentially have, not just the ones in their trade.

Companies that need skilled blue-collar workers can no longer passively expect a deep talent pool to be available.  Rather, they should take action to identify and develop potential employees.  This will require partnerships, better pre-employment screening, and having developmental programs.  It may not solve the immediate problem, but it will ensure that they have the necessary talent in the future.

Adapting to Changes in Job Duties

I wrote a couple of months ago about how McDonald’s is changing the cognitive requirements of some of its jobs by adding channels for customers to order food. I argued that such a development should get them thinking about who they hire and how they train new employees.

If you have recently wandered into one of their stores, you probably noticed that, if it is not too busy, a McDonald’s employee may bring you your order. OK, this is not particularly revolutionary. But, to quote a franchisee in an article, “We’re bringing the employees from behind the counter out front to engage, in a more personal way, with our customers.” Maybe I am making more out of this particular example than it warrants, but this strikes me a really upping the customer service requirements of a McDonald’s employee. And I am guessing that a fair amount of the employees are not going to meet it. It’s just not what they signed up for.

This is not about whether McDonald’s employees are capable of providing the additional service or whether their ability to do it well affects the customer experience and/or sales. Rather, it appears to be an example of company changing job requirements and then assuming that people hired using a process that does not account for the new skills will be able to carry out the new duties.

Changing skills requirements is a good thing. It shows adaptation to technology and customer needs and makes the work experience more interesting for people in repetitive jobs. But, companies cannot assume that the incumbents can magically adapt without training and revised performance expectations.

This change also requires updating validation selection processes. Whether it means increasing the weight given to certain aspects or validating a new test, we must adapt our workforce to new job requirements on the front end. As jobs change, hiring practices should as well.

Technology and customers are big drivers of change in the skills, abilities, and personality characteristics required of employees. Smart companies not only redesign work to account for this, but they also update how they train and hire to help their workforce adapt.

Escape Room Selection

Over the weekend I had a chance to go through an escape room (not as scary as it sounds). An escape room is a physical adventure game in which players solve a series of puzzles and riddles using clues, hints, and strategy to complete the objectives. This one was setup so that the team (there were 9 of us) had to solve a variety of number, word, and logic problems related to a theme in order to find clues and “escape” the room. This required a great deal of team work as some problems required information from a variety of sources and there were a good number to be solved in 50 minutes. We were able to escape within the given time (yay us!).

The process reminded me in some ways of an Assessment Center (AC). An AC is a process of evaluating complex skills and abilities in a variety of methods. Normally, a majority of the assessments are in realistic situations, as opposed to only paper-and-pencil, ones. You can see how the escape room experience reminded me of this.

Even though the eventual success of the group relied on teamwork, there were many opportunities to observe individual performance. For instance:

1) Leadership. Who spent time organizing the task (Where should we start? Should we break into small teams?) and who spent his/her time following?

2) Facilitation. Was there someone who kept time, tracked which puzzles still needed solving, and helped the group communicate?

3) Problem Solving. Who actually solved the puzzles?

4) Communication. It was easy to observe who was sharing information with others and who the good listeners were.

It would have been possible to video record, or otherwise gather behaviors, and score them for selection purposed. Or, provide the team and individuals with feedback for development purposes.

If I sound confident about using something like this, which in the case of my puzzle was not anywhere close to a work environment, it’s because I am. The AC method has consistently been found to predict performance and not have adverse impact. Effective ones have participants interact in a business situation other than their own so that job knowledge/experience does not play a big role. This creates an equal footing for all participants and gives a clearer assessment of their skills and abilities.

The escape room added elements of gamification from the facilitator, which is different than most live ACs. Of course, many online assessments have added gamification to their design (though with mixed results).
It was good to see this type of creativity in allowing people to show their skills. Particularly since so many innovations in assessments are focused so much on technology.

Adapting Selection Systems After the Robots Take Over

I am not sure that any HR futurist can tell us how many jobs will be displaced by automation over the next 5, 10, or 20 years. The answer is clearly more than zero. The latest example of this can be read here. The theme of the article is, “Really, a formula can make predictions better than a person’s intuition?” In psychology (well, industrial psychology), we have only known this since the mid-1950s (see this book), so I can see why the idea is just catching on.

Any kind of judgment that is made based on accumulating data will ALWAYS be more accurate over time when done by a machine than a person. This is because the machine is not biased by what has happened most recently, how impacted it is by the decision, how attractive the others who are involved are, etc. While this type of analysis is somewhat difficult for people to do consistently well, it is simple math for a computer. There is really no reason, besides stroking someone’s ego, to have humans do it.

As computers continue to remove the computational portions of jobs, such as analyzing trends, making buying decisions, they will impact HR in the following ways:

• Fewer customer facing jobs to manage, but more IT related ones.

• Many of the remaining jobs will require less cognitive ability and more interpersonal skills. This is because these employees could potentially spend more time meeting specific customer needs and being the interface between end users and the algorithms.

• The key predictors of job success would potentially become conscientiousness, agreeableness, and customer service orientation rather than problem solving ability.

• Developing a validating a different set of pre-employment tests.

• Recruiters will need to source people with very specific skills (cognitive ability for programmers and willingness to get along with others for many other jobs).

The challenge to industrial psychology continues to be developing more valid measures of personality. Tests of cognitive ability predict job performance about twice as well as those of “soft” skills, even in those that already have a high personality component (such as customer service). This also means developing better measures of performance (e.g., how interpersonal skills impact business outcomes).

Or, maybe the robots will do it for us.

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