Can They ? And Will They ?

1. Can They? And Will They? HR Leaders…. ‘Finding’ Employee Engagement Cuts the Cost of ‘Growing’ It

2. Things are changing… • Candidate screening tools are decades old • Based on research and development a half-century old • Sound research on “Can Do” competencies at the time • But, tied to an aged workplace and workforce • The workplace is different today • Technology has altered what jobs demand • A stagnant economy emphasizes cost control • What “explains performance” has changed • The workforce is different, too • Different generations – evolving wants • Shifting “Can Do” and “Will Do”needs • What “predicts performance”is evolving • Legal issues in hiring continue • Candidate screening creates legal challenges • Adverse impact is monitored more and more • “Equally valid/less adverse” is a standard

3. Also… employers are focusing more and more on the concept of ‘employee engagement’… • The HR world is paying more and more attention to ‘employee engagement’… • A driver for organization-wide surveys and action planning • A foundation for guiding investments in organization development work • A metric for holding management accountable • A norm for comparing organizations But, just what is ‘employee engagement’ – where does it come from? • Simply a new version of employee satisfaction surveys? • A true influencer of job performance… and things like retention? • The result of things the employer does to ‘grow’ people? • Something you can ‘find’ in a candidate?

4. The first thing we know… EMPLOYEE ENGAGEMENT IS A TWO-WAY STREET “Many view employee engagement as management’s job, but it also resides in an employee. Assessing ‘Will Do’ qualities in candidates helps hire those more likely to engage,” says Dr. Leaetta Hough, Chief Science Officer with HirePayoff™ “We know management-led actions play a role in growing employee engagement, but our research shows a major part of employee engagement resides within the employee. It’s a very simple fact – an organization’s level of employee engagement results from both whom it hires and, then, how it treats them,” concludes Dr. Hough. Visit www.hirepayoff.com to see the full story on EMPLOYEE ENGAGEMENT IS A TWO-WAY STREET

5. We believe… • 1 – ‘Employee engagement’ will continue to gain HR’s attention… • Low hiring volume puts more attention on the current workforce • Research is showing the concept has consequences • The marketplace is making it “the in thing”… and employers are spending • 2 – But attention will shift a bit… • It’s not purely an organization’s responsibility to ‘grow’ employee engagement • It’s a two-way street – ‘find’ those eager to engage, then make it ‘grow’ • Use both approaches to cut costs and raise the bar more quickly • 3 – ‘Employee engagement’ is entering the world of candidate screening… • Tools will target the concept of ‘eager to engage’ • Studies will show the ‘value added’ by such screening • IT analytic platforms will expand to track the payoff in ‘hiring for engagement’

6. First, what we’ve found to work with HirePayoff™as a screening tool… Gaining a view of the “whole candidate,” so we can predict overall outcomes on the job…

7. Adding to the tool’s assessment scales… Skill at Learning… and Applying What’s Learned Learns quickly and applies what’s learned. Sees quickly what needs to be done as the job unfolds and situations change. Sees patterns. Senses problems early and adapts what’s being done to avoid or solve problems. Builds on what’s been learned in the past. Drive to Succeed Takes a personal interest in growing capabilities and achieving results. Brings energy and ambition to the job. Plans, stays organized, and executes assignments without needing close direction. Accepts work assignments and targets as a personal responsibility. Taking the Lead Steps up and takes a lead role to get things done. Helps set targets, create plans, coach, and shape others’ behavior. Sets up an open, two-way dialogue to motivate, build trust, and shape decisions to drive performance results. Takes initiative. Team Play Puts work team ahead of personal interest. Cooperates, helps, and plays well with others. Connects by sharing ideas, workload, and credit to help create a team environment. Links with others, using connections to ‘get things done.’ Eager to Engage Brings an inclination to become involved with, committed to, and satisfied with the job. Will invest the emotional, mental, and physical energy needed and show a strong work ethic. Shows an emotional attachment to the job, colleagues, and the organization. Hitting Targets Composite Hits performance expectations, whether they involve manual, technical, sales, customer service, or problem solving activities. Works efficiently, making sure mistakes aren’t repeated and results improve over time. Engages with both the job and the organization.

8. The second thing we know… ENGAGEMENT IS PREDICTABLE! “Sure, management plays a role in building employee engagement, but the evidence is clear – a large part of the load rests in who gets hired, ” says Dr. David Jones “…This is where the concept of payoff enters the discussion,” says Jones. “We’ve already demonstrated that HirePayoff’s™ 30-minute on-line selection tool predicts bottom-line performance. But now,” adds Jones, “it’s possible to put a third leg under the stool. Dr. Hough was right – HirePayoff™ employment testing for ‘Can Do / Will Do’ competencies forecasts employee engagement.” Visit www.hirepayoff.com to see the full story on ENGAGEMENT IS PREDICTABLE

9. An example… screening for “employee engagement”… The Four-Question Employee Engagement Summary Metric I am proud to tell people I work for my organization. I am willing to give extra effort to my organization to get the job done. Overall, I am extremely satisfied with my organization as a place to work. I would gladly refer a good friend or family member to my organization for employment. Note: Each item is answered with a 1-Strongly Disagree, 2-Disagree, 3-Agree, or 4-Strongly Agree response. The overall engagement score is computed by summing the four responses and converting the sum to a ‘percent of maximum’ score. • Collect HirePayoff™ assessment scores and job performance data • Measure employee engagement, as well • See how the concepts link with retail sales employees…

10. Screening for employee engagement (cont)… Disengaged (6%) Never likely to become engaged with the job or organization; management practices have little effect Disenchanted (28%) Possibly open to becoming engaged; management practices will have some influence Enrolled (30%) Joins the organization with a positive level of employee engagement on Day 1; management practices guide its retention Highly Engaged (34%) Joins the organization with a positive level of engagement; retains it, even if workplace events are a challenge • Use the four employee engagement items to assign current employees to four categories in the study. Results…

11. The Eager to Engage scalepredicts… 24% Increase 32% Reduction

12. The third thing we know… ENGAGEMENT PREDICTS! “HR analytics show screening for competencies and the likelihood of growing employee engagement produces a clear bottom line return,” says Dr. David Jones. “…When held to both the HirePayoff™ performance screening standard and the HirePayoff™ Eager to Engage standard, results showed clear bottom line payoff…the most distinguishing feature of Highly Engaged employees was how effectively they “Meet and Greet” customers… Highly Engaged employees perform higher overall, but customer interaction showed them most different from those who reported being Disengaged,” says Jones. Visit www.hirepayoff.com to see the full story on ENGAGEMENT PREDICTS!

13. Predicting performance and engagement… • 12% Higher • ‘End the Sale’ • Results 14% Higher ‘Overall’ Ratings 58% Higher ‘Likely To Advance’ Ratings Less Than 1 Chance in 20 of Being a ‘Top 20% of Performer’ Over 10 Times More Likely to be a ‘Bottom 20%’ Performer Those who ‘passed’ HirePayoff™screening standards… Those who ‘failed’ HirePayoff™ screening standards…

14. Predicting (cont)… Those who ‘passed’ Eager to Engage screening standards… 14 to 1 • Select among the Top 50% of Eager to Engage scores and raise the odds of finding “Highly Engaged vs. Disengaged” employees…. 63% • Select among the top 15% of Eager to Engage scores and raise the odds of finding ‘Highly Engaged” employees…. 51% • Select among the Top 50% of Eager to Engage scores and lower the likelihood of finding ‘Disengaged” employees…. 55% • Select among the Top 50% of Eager to Engage scores and lower the likelihood of finding ‘Disengaged or Disenchanted” employees….

15. Another thing… Overall Standard Deviation 9.33 -------------------- No Adverse Impact • Average scores on the ‘Eager to Engage’ assessment scale… • White 82 • Hispanic 82 • Black 80 • Male 82 • Female 81

16. The fourth thing we know… ‘FINDING’ ENGAGEMENT PAYS! “Why would an employer not focus as much on ‘finding’ as on ‘growing’ employee engagement?” asks Dr. David Jones. “Bottom line, why wouldn’t an HR or operations leader add the concept of finding engaged employees to the hiring process?” asks Jones. “Too, what if the employers’ turnover is in the 20%+ range; typical of lower-level positions, where engagement is so important and receives so much employer investment? Look at how quickly the organization’s overall workforce engagement could be increased via finding higher levels of engagement. Why spend resources only on growing employee engagement in such a setting?” Jones asks. Visit www.hirepayoff.com to see the full story on ‘FINDING’ ENGAGEMENT PAYS!