Decision Science in Employee Selection

A recent Wall Street Journal article titled “What’s Your Algorithm?” starts off with the words, “We are ruined by our own biases.” That statement rings true in all aspects of business, especially when talking about finding and hiring the right people for your company. Decision Science is a new trend that is quickly taking the place of gut feel to reduce human biases in our decision-making. How can you leverage data and Decision Science to systematically hire the right employees?

For decades the standard approach for hiring was to base decisions on the collective opinions from a handful of subject matter experts. The objective was to have subject matter experts determine what they “think” is needed to be successful on a particular job. Once collected, those opinions were the basis of all selection decisions. Fundamentally the opinions were used to select a few different types of assessments and maybe create some interview questions, both of which would eventually be used to hire new employees. As expected, this process resulted in very limited success in hiring individuals who objectively produced more (based on data) and increased employee retention (based on tenure).

The best hiring decisions are based not on what anyone “thinks” is needed to be successful, but instead what is “known” to be successful based on actual non-biased data. In Decision Science data can be leveraged to provide companies with selection models based on actual data related to the position (not opinions). Decision Science can be assisted by subject matter experts who provide information on the quantity, quality, and accuracy of actual job performance data. Then it’s the job of Decision Science to leverage performance data to identify the behavioral patterns most conducive to success in the specific position in the specific company. Gone are the days when you have to rely on a handful of opinions to drive your decisions. Instead, Decision Science provides a probability model based on objective performance data that will factually deliver the candidate with the highest probability of success and longer tenure in the job.

How are you using Decision Science to reduce biases in the selection process?

Building a Real Team is an HR Challenge

Forget Corporate America, degrees, developmental courses, books, or even online education. It seems like one of the best places to study and learn about team dynamics comes from youth coaching. It always shocks me how much I learn from working with youth sports teams.

Currently, I am coaching a youth basketball team that appears to have some good talent for the age group. Across the board, the team members have experience and athletic ability.The players are smart and very coachable. We started the season with a 3-0 record with wins by double digit margins in each game. All the players were actively scoring points and contributing.

Then came the fourth game, and our best player was not able to attend. It was amazing to watch the dynamics unfold--literally. There had been instances in prior games where the best player was not on the floor and the team did great. But in his absence I learned a lot about my team’s mental state. He is a very good player, but there are other good players on the team as well. In my non-professional coaching opinion, the team had begun to identify itself with the best player instead of as a tight unit.

It is not uncommon for teams to have an overreliance on one individual performer. By definition, that is not a team, nor are the individuals maximizing their ability and contribution to the overall good. A strong team should be just as effective without the stand-out performer. Have you seen your team operate without the stand-out? Is there an overreliance on one individual? Can employee development programs help? Add a comment and let's start a discussion.

As you may have guessed, we lost that fourth game. But I was encouraged at our next practice because each player stepped up and progressed beyond their comfort level. I am excited to see our next performance as the team realizes we are much more than one player.

How to Avoid Information Overload in the Employee Assessment Process

Most human resources departments do a good job of tracking employee metrics. In many cases, however, the sheer volume of data collected exceeds management’s capacity to effectively analyze and act upon it. Ironically, this inefficiency often leads to demands for even more data despite the lack of a clear objective of how to use the information to increase employee performance or sales.

The “analysis paralysis” phenomenon leads to increasingly more time being spent on data analysis than on actually using it to improve processes and performance. In the worst case scenario, it can ultimately lead to lower productivity and higher turnover rates.

The key to overcoming analysis paralysis is collecting the right data.

Businesses often invest significant resources collecting information that is not directly linked to their specific strategic business objectives and priorities – a process that can be extremely time consuming and ultimately of little value. By having a firm grasp of the company’s objectives prior to beginning the data collection process, the human resources department will be much more efficient and will deliver data that supports those objectives and strategies.

It’s also important to provide managers with streamlined online dashboards that provide instant access to aggregated data.

In addition to showing managers the areas that need improvement, it’s equally important to provide them with a roadmap on how to attain their performance goals. By integrating internal data and survey results dashboards, you will provide managers with an easily accessible and understandable action plan that can significantly increase their chances of success and help reduce employee turnover.

Finally, by linking employee performance metrics to business performance and critical decisions, many businesses also uncover powerful correlations between survey data and other business outcomes. Advanced analytics can lead to enhanced customer and employee satisfaction, and higher profit margins.

By implementing an employee assessment strategy that is aligned with your business objectives, you’ll be able to provide more valuable, actionable information to your managers and have a more positive impact across your entire enterprise.

Do you have thoughts on other ways to avoid “analysis paralysis”?  Please post your comment below.

Reverse Mentoring

 

It is no secret that mentoring programs are a powerful way to train and develop employees. Mentoring helps to promote a collaborative atmosphere in the workplace while transferring knowledge and experience from one employee to another. It builds a relationship between managers and employees, making the former more accessible and approachable. 

Have you ever considered, though, the reverse effect of mentoring? What happens when the “mentee” becomes the “mentor!” Think of the possibilities: leveraging social media outlets to identify new talent, learning about workplace issues, discovering employee's aspirations, and so on… Anytime a mentor/mentee relationship becomes mutually beneficial the value will automatically expand way beyond expectations. I personally experience reverse mentoring most every day. Have you seen reverse mentoring in action? Take a look at this article on the topic, and feel free to share your experiences!

Reverse Mentoring Cracks Workplace: Top Managers Get Advice on Social Media, Workplace Issues From Young Workers

Pre-Employment Assessment Software Streamlines Candidate Selection Process, Reduces Costs

With unemployment rates lingering above nine percent, competition for open positions has become increasingly fierce and many businesses simply don’t have the time needed to accurately screen and hire new employees.

Although the abundance of job candidates might seem like a benefit for employers, sorting through hundreds of unqualified candidates in order to find the right person for the job has become an increasingly time-consuming and costly proposition for many businesses.

To help streamline the process, an increasing number of companies have begun using third-party pre-employment assessment software.  In fact, the pre-employment assessment market has reportedly grown by fifteen percent over the last year.

By performing in-depth behavioral analyses of the company’s current top performers, and creating candidate interview questions specifically designed to identify the same behavioral traits in those applying for the same position, third-party employee assessment providers achieve far greater accuracy in matching the best candidate for the position.   

Companies that partner with third-party employee assessment software providers typically see a statistical increase in productivity and a reduction in employee turnover over time which translates into a healthy ROI.

The wealth of data gathered can also be used to improve the overall candidate interview process, and help the company identify future career paths.

Although the use of pre-employment assessment software can be beneficial to virtually any business, large or small, enterprises that employ upwards of forty employees in the same role stand to gain the most.  

How is your business coping with the abundance of job candidates caused by the current economic climate?  Please share your thoughts by posting a comment below.