Written by Nathan Hewitt
Talent review: How hiring for performance upfront can shape future success
To find out how to use Recruitment Automation to ‘hire with heart’, we also have a great eBook on recruitment automation with humanity.
Start with the end in mind – always hire for performance first
Most people are very familiar with a performance review. It’s the annual anxiety fest when every employee has their performance assessed and rated, perhaps against benchmarks agreed at last year’s review or defined by their job description.
So is a talent review basically the same thing? Well yes and no. While a talent review will still see employees rated and ranked, the focus extends beyond current and recent performance to consider their potential as future leaders in senior or key roles within the business. It’s all about mapping an organisation’s business needs against the capabilities and potential of its people.
Talent review plays an essential role in business planning, pinpointing skill gaps and helping organisations to develop and retain their best talent.
Forward-thinking organisations believe that talent review is bigger than an annual event. Rather, it’s an essential part of an always-on process of talent management that fosters a high-performance culture from the very first engagement with employees.
Sapia’s Ai-enabled chat interview platform helps businesses to plan for future success by ensuring candidates with the very best potential are identified and engaged upfront. This approach provides talent momentum from the outset, ensuring every hire is building ‘bench strength’ and providing leaders with confidence that the next generation is ready to step-up and step-into key roles as needed.
How do you hire for the values and behaviours that result in high-performance?
It’s no secret that high performers and team leaders share certain personality traits and behaviours. In fact, it’s a science that organisations have long embraced in their pursuit of excellence and competitive advantage.
Since it was first published in 1962, The Myers-Briggs Type Indicator that classified 16 personality types has been at the heart of most personality assessments and recruitment science. Much of the appeal of Myers-Briggs was its simplicity in reducing complexity to concise descriptors. These descriptors may have sufficed when only human intelligence was doing the processing and decision-making.
But in an age of data, it’s a big compromise – a compromise in accuracy, nuance, and the real diversity of personality types that exist in our population. It’s also a compromise we no longer need to make.
Read: Hire for Values
Moving beyond the limitations of Myers-Briggs
Sapia is a leading innovator and advocate of leveraging data and technology to enhance the recruitment process. In developing our award-winning automated chat interview platform, our data science team looked at how we could move beyond the limits of Myers-Briggs personality testing.
Our data team fed text responses to interview questions from 85,000 job applicants into our personality classifier. Spread across two regions, the UK and Australia, 47% of applicants were identified as male, 53% as female.
Instead of the standard 16 personality types, we directed the machine to group the data into 400 unique personality groupings.
Identifying 400 unique personality groupings and how they could be usefully applied to decision-making is beyond the ability of the human brain… but not beyond technology. Using Natural Language Processing (NLP) and machine learning, our artificial-intelligence enabled platform got to work with findings that were both surprising and not surprising at all.
What did we find?
The ‘not surprising’ part of our research is that even at 400 groupings, there are distinct differences in personality profiles. It’s not surprising when you consider that humans are not linear beings and that our personalities are highly complex and nuanced.
The most surprising thing we discovered was that personality types by role were distinct. The personality profiles attracted to sales roles, for example, were noticeably different from the profiles attached to a carer role. Even more surprising were the imperceptible differences in the personality distribution across the 400 types between men and women – a sign of how conscious or unconscious biases can play into our decision processes.
What does the talent review look like?
Differentiated by size, sector, structure and history, every organisation is unique. So every talent review will be unique too. Talent reviews need to be designed around the specific needs of the business but generally will bring performance management, learning and development and succession planning together.
When senior leaders meet for a talent review, their principle objective is to talk about the performance of individual employees in their teams and how those employees might take on more responsible roles in the future. Through this process, the critical positions in an organisation will be identified. Critical positions mean any role that business operations would stop or be seriously compromised if no one was able to step into the role immediately.
Keep in mind that these critical roles may not necessarily be management roles and will also depend on the nature of the business. In a manufacturing business, for example, the chief engineer might be solely responsible for keeping a production line in working order. Talent reviews need to consider every employee across an organisation.
Talent review improves business focus
An ongoing talent review process not only matches an organisation’s talent to existing roles, but it also helps identify new roles that will need to be created to achieve plans for future growth or expansion. It’s also possible that as a company moves forward, key roles may change or even become redundant. The most successful businesses are dynamic and flexible.
A structured review process reviews employees in terms of key strengths, career ambitions and readiness for promotion. Talent reviews provide a forum for a range of important conversations that every organisation interested in best practice needs to have:
- What matters most to our organisation?
- What are our business objectives?
- Does our existing talent pool and policy align with business strategy?
- Are our managers reviewing performance and potential in the best way possible, without favour or bias?
- Are we doing enough to support our people’s learning, development and growth?
- Do we have the right continuous performance management process in place?
- Are we identifying and recruiting the talent at the early career stage with identified potential to be the leaders of the future?
- Is our business (or part of the business) at risk without appropriate successors?
- What needs to be done to mitigate any risk?
- Do we need to embed new values and improve culture?
Planning a talent review
There is a range of methods that organisations use to assess their employees for talent reviews. While some will arrive at a ranking or score, others may use a more nuanced approach to assessing their talent.
Talent reviews can often reveal glaring disparity and bias in team leaders’ expectations of employees and how they rate them. An agreed and standardised approach across the organisation is essential. By ensuring employee expectations are aligned among leaders and cultural values are socialised across the organisation, potential friction around accountability can be diffused.
Rank and yank – what not to do
Though their ranking process has long been dropped, Jack Welch, the celebrated or controversial (pick your own path!) CEO of General Electric once insisted on an evaluation that reduced every employee’s performance to a number. Following evaluations each year, the lowest ranking 10% were fired across the business. In contemporary business, this ‘rank and yank’ approach would not be considered best-practice HR.
The 9-box performance and potential matrix
A less controversial ranking for employees is the 9-box matrix. This commonly-used assessment tool assigns employees to one of nine boxes on a grid that on one axis rates their performance (underperformance, effective performance, outstanding performance) and on the other rates their potential (low, medium, high). Employees ranked in the box where outstanding performance and high potential meet are those assessed most likely to be future leaders.
What matters most – agreeing your assessment criteria for hiring
Taking a step back from the talent review process, Sapia has worked to solve and improve the frontier problem of every recruiter and every employer – how to get the right talent on board sooner.
With policies and process to put the best candidates in place every time, ongoing talent management and talent reviews can be more streamlined and rewarding for employers and employees alike.
The first step to creating a step-change in the process is ensuring that everyone is assessing talent on the same criteria. These need to align with your organisation’s specific needs and values, which are ideally defined and documented as part of your business, brand and employer brand plans.
How Sapia helps you get to the best talent (much faster)
While Sapia’s early data breakthroughs were based on 85,000 interview responses, machine learning and artificial intelligence means that our platform never stops learning. Today, our Ai-powered platform has analysed more than 165 million words in text-based interviews from more than 700,000 candidates.
Continuous learning means that Sapia can help recruiters and employers make smarter, evidence-based employment decisions at the early career stage.
Within our science-based approach, behavioural interview questions are tailored around the agreed assessment criteria for the role. These questions are related to past behaviour to reliably assess personality traits. They can be customised to the specific role family – sales, retail, customer service etc– and aligned to the organisation’s agreed values and characteristics that will define their leaders of tomorrow.
Sapia’s bespoke Ai-platform analyses candidates’ responses across a range of criteria including readability, text structure, semantic alignment, sentiment and personality to identify candidates with the best future potential.
Nurturing your talent culture
Making the wrong choices for future leaders can put your business at risk. At times of talent review, careers can be derailed and employees demotivated. A properly executed talent management process that begins with smarter recruitment choices is one of the best investments in the future of your business.
The insights delivered through a disciplined, standardised and ongoing process of talent assessment can be used at both organisational and managerial levels to drive your business forward. Creating a culture of high performance begins with best practice in early career candidate assessment. With Sapia’s platform as a key element, a robust talent review and management process will work to:
- support continuous performance management
- deliver robust succession planning
- optimise talent performance
- support skills assessments and gaps analysis
- lift employee retention
- support talent development and career pathways
- drive employee engagement through career conversations
- inform talent planning and decisions with better data
- embed culture and values throughout your organisation
This article is presented by Sapia as part of our mission to promote best practice in contemporary recruiting and HR. Our Ai-enabled text chat interview platform can help any organisation identify future leaders while providing candidates with an efficient, empowering and enjoyable experience. The user satisfaction rate for our award-winning platform is 99%.
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You can try out Sapia’s Chat Interview right now – here – or leave us your details to get a personalised demo
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The Candidate Experience Playbook
To find out how to improve candidate experience using Recruitment Automation, we have a great eBook on candidate experience.
Hiring with heart is good for business: candidate experience in C-19 times. Sapia launches its Candidate Experience eBook. This book provides an insight into the changing face of the candidate experience.
If there was ever a time for our profession to show humanity for the job searchers, that time is now. Unemployment in Australia has passed a two-decade high. The trend is similar for other countries. That means there are a lot more candidates in the market looking for work.
With so many more candidates, the experience of a recruiting process matters more. What are candidates experiencing? Are they respected, regardless of whether they got the job or not? Is their application appreciated. Are they acknowledged for that?
This may be the time to rethink your candidate experience strategy.
Here are two big reasons to prioritise improving candidates’ experience:
1. There is a much higher value attached to it – both for candidates and your organisation.
This story won’t be unfamiliar to you: An Australian based consulting firm advertised for a Management Consultant and decided to withdraw the advert after 298 candidates had applied. That was in their first week of advertising.
When candidate supply outstrips demand, that is bound to happen. Inundation of your Talent Acquisition team becomes an every-day thing. Employers are feeling swamped with job applications.
Being effective is much harder when there are more candidates to get through every day.
High-volume recruiting issues become further aggravated when two additional dynamics come into play:
>> When the role for which you are hiring requires a relatively low skill level.
In the example provided above, the Management Consultant role had several essential requirements which should have limited applications. Included in the applicant list were hoteliers, baristas, waiting-staff and cabin crew (it’s heartbreaking). So when it comes to roles with a much lower barrier to entry, the application numbers can quadruple.
The traditional ‘high-volume low-skill role’ has now become excruciatingly high-volume. This trend is being seen across recruitment for roles like customer service staff, retail assistants and contact centre staff.
>>When your organisation is a (well-loved) consumer brand.
Frequently, candidates will apply to work for brands that they love. Fans of Apple products, work for Apple. They also apply to work and get rejected in their millions. So, how do you keep people as fans of your brand when around 98% of them will be rejected in the recruiting process? That’s not only a recruiting issue – it’s a marketing issue too.
Thousands of organisations and their Talent Acquisition teams are grappling with both dynamics right now.
The combination of unemployment and being in Covid-19 lockdown means that consumer buying is being impacted. Their confidence is down. Buying is also down. With people applying for more jobs and spending less as consumers, the hat has somewhat switched. For many who were consumers, they have now become candidates. That may be how they are currently experiencing your brand. As candidates first, customers second.
If customers are candidates and candidates are customers, is there a reason for their experience to be fundamentally different?
Candidate experience is defined as the perception of a job seeker about an organisation and their brand based on their interactions during the recruiting process. Customer experience is the impression your customers have of your brand as a whole throughout all aspects of the buyer’s journey.
Is there a difference? It’s all about how the human feels when interacting with your brand. A person is a person, regardless of the hat they are wearing at the time!
All about the human experience.
Millions, even billions, of dollars are spent each year by organisations crafting a positive brand presence and customer experience. Organisations have flipped 180 degrees to become passionately customer-centric. It makes sense to do so. Put your customers first, and that goes straight to the bottom line.
What is perhaps less recognised is the loss of revenue and customer loyalty which is directly attributed to negative candidate experiences.
How about those loyal customers who want to work for your brand? They eagerly apply for a job only to get rejected.
2. Candidate Experience improvements have become super easy to implement.
For those who have tried in the past, you may well know that it can take an extraordinarily long time to ‘define’ a Candidate Experience strategy, create its metrics, find a budget and then execute on it.
Have a look inside the ‘too hard’ basket and there you may well find many thousands of well-meaning ‘candidate experience’ initiatives, that are still lying dormant! So many want to focus on candidate experience, but may shy away from doing so. This is because it’s perceived as time-consuming and expensive.
Plus, right now there is so much on which CHROs need to focus. From ensuring workers’ wellbeing to enabling remote working. Who has the time to also worry about the experiences of candidates?
However, that has changed. Boosting candidate experience is no longer too hard, too expensive, nor too time-consuming. Technology becomes more manageable, quicker and cheaper over time. Also (borrowing from Moore’s law), its value to users grows exponentially.
Candidate Experience Playbook: Hire with Heart
The good news is that for those organisations who genuinely want to improve candidate experience, it has become much easier to do so. Finally, it is possible to give great experiences at scale while also driving down costs and improving efficiencies.
Win-win is easily attainable. In the Sapia Candidate Experience Playbook, read how organisations are hiring with heart. All by creating positive experiences for candidates while also decreasing the workload for the hiring team.
Blog
Fairness Comes When You Replace Humans With Machines
In an earlier blog, we talked about HR’s role in managing business risk. Today we turn our focus on one risk area that occupies CHRO’s, CEOs and Boards- the risk presented by bias and how to maximise fairness by removing bias.
Despite all the attention generated by International Women’s Day year a few months back and year on year, and myriad other initiatives, Boards, CEO’s and CHRO’s know that bias goes beyond gender and fixing it requires more than a training session or two.
Humans are full of bias and none of us like admitting that.
Most of us would not even know when are being biased…
‘I just had a feeling he wasn’t going to be any good’
‘he just wasn’t a good culture fit’
‘she just doesn’t have the requisite experience’
‘we had such an awesome interview, we could have chatted forever we had so much in common ‘
Bias in recruitment is even less measured and reported on than quality of hire.
It starts with having the data. The data revolution has been happening for decades in every other function but where is the data around recruitment?
- Do you know if there is bias in screening? hiring? promotion?
- Do the leaders and Board know those stats?
- When you run your 5000 graduate applicants through a personality assessment do you probe HR on what the success profile is that is defining screening criteria?
- Is that profile preferring a certain type (eg over-indexed to qualities like drive, initiative, agility) or does it balance out hiring to include some of those all-important cultural traits like empathy and humility?
- Is your hiring profile going to give you more ‘Satya’s’ or more ‘Travis’s’?
More on bias measurement later…
How can bias be removed from people decisions?
Daniel Kahneman, Psychologist & Nobel Laureate, has this to say about managing bias in human decision-making.
“When making decisions, think of options as if they were candidates. Break them up into dimensions and evaluate each dimension separately. Then – delay forming an intuition too quickly. Instead, focus on the separate points, and when you have the full profile, then you can develop your intuition.”
Regarded as the father of behavioural economics, after 5 decades of research he has concluded that the research is unequivocal: When it comes to decision-making, algorithms are superior to people
For further reading on how AI can remove bias in recruitment, download our whitepaper here.
Blog
The future of HR! Be the change you want to see
Are you an HR visionary, a fast follower, a sceptic or even a laggard?
How do you want to be remembered in your organisation?
2020 was tough for everyone, but in some way, HR had some unique challenges. Workplaces were uprooted across the globe and at a velocity, no one was prepared for.
From crisis comes opportunity and did HR in your organisation grab that opportunity to accelerate transformation?
Did they:
- Automate the obvious processes that suck up organisational time, such as candidate screening?
- Invest in Ai tools to interrupt bias at the top of the funnel now that we are becoming more aware of the systemic unconscious and conscious bias?
- Treat candidates just like your business treats its customers by revolutionising the candidate journey and experience – ending ghosting of candidates?
Inertia is not a strategy.
In the life of a business, especially a start-up, your growth is defined by your ability to find the innovators and early adopters to lead the change, and then the fast followers to scale and mostly trying to avoid the laggards.
Most organisations now say publicly and internally that their success is down to their people-finding, hiring, developing and retaining that talent.
For many organisations, the talent pool has now gone global.
What has changed in your organisation to tap into a wider pool of talent, which will also help your diversity agenda, core to your innovation agenda?
For many organisations, the volume of applicants has gone up as the unemployment rate goes up.
What has changed in your organisation to automate screening to be able to move fast to get the best talent and save your organisations a huge invisible cost- screening all those candidates?
For so many of us, the Black Lives Matter movement has brought a social responsibility that is expected of companies to promote your brand as one that supports inclusivity and equity.
What kind of technology does your organisation use to take action on what you are saying and screen talent fairly at scale?
Values-based hiring and hiring for culture creation is now on the agenda for most sophisticated businesses.
How has the HR team embedded your values in your hiring and promotion?
If you really truly care about treating the candidate like your customers, read this.
If you are tired of talk and ready for action on creating inclusive workplaces and processes, read this.