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To Make Better Hires, Learn What Predicts Success

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Hiring the best talent remains a persistent struggle for many companies. That’s because they are doing it wrong — often looking at the labor pool for carbon copies of people who are already successful in their roles. But that is being too demanding, particularly during a tight labor market. Instead, employers should borrow an approach from baseball, in which top teams track the performance of new hires and then search for the one or two skills or experiences that predicted their future success. For digital journalists, for instance, it might be the social engagement with published articles. To do this, companies must better connect hiring with performance management.

The current talent struggles of U.S. companies are hardly a new trend. A PwC survey dating 15 years back cited that 93% of CEOs recognized the need to change their strategy for attracting and retaining talent. If organizations have been trying to improve their hiring outcomes for so long, then why are so many still struggling? The short answer is that companies often spend too little time improving how they define and track performance.

A Lasting Problem

Recently, a number of executives have asked us if they still need to worry about recruiting as much given the signs of the economy softening. It’s true that economists expect the Federal Reserve to increase interest rates in an attempt to curb inflation, which is expected to increase unemployment. However, as Covid-19 has taught us, not every downturn is the same, and there are strong indications that hiring will continue to be a large obstacle for many companies.

In 2017 the U.S. Bureau of Labor Statistics issued a press release, stating that the number of unfilled jobs had reached 6.2 million, a historical high. That record was then surpassed in 2018 and then again in 2019 when the number of unfilled jobs reached 7.5 million. That number is now at 10.7 million, 43% higher than the prior record. As a result, there are currently two job openings for every person who is unemployed.

It seems unlikely that such a vast imbalance in the labor market will be resolved by even a recession. This is especially true for certain pockets of the economy that have a backlog of open roles due to Covid-19, and also for parts of the labor force, such as college graduates and other highly skilled professions, that have historically experienced relatively low unemployment even during economic downturns.

Companies have no choice — they must learn to hire better. So, how?

Emulate Moneyball, Not Frankenstein

In a knowledge-based economy individuals can contribute to organizations in an increasing number of ways. Envision a tech company with three successful product managers; Kate, John, and Aditi. Kate’s key to success is her data-driven approach to understanding customer needs, while John’s strength is an intuitive approach to product design and Aditi’s is her ability to empower her teams. As long as all three are successful, their employer is happy and gives them the freedom to do their work as they please.

The problem arises when their employer wants to hire a fourth product manager. Recognizing that all three product managers bring valuable skills to the organization, the tech firm writes the Kate+John+Aditi job description. This results in a Frankenstein talent strategy, focused on candidates who check the box on all dimensions as opposed to those with one clear superpower.

Compare this to the Moneyball approach to recruiting. While baseball players could contribute to the team in a number of ways, Billy Beane questioned the age-old quest for players who contributed to all of them. Instead Beane sought a portfolio of players, each making unique contributions. In other words, he reduced the number of criteria he expected his recruits to excel at. He did this by giving a lot of thought to what constituted success in each role. Note that he did not go with the broad definition of success, such as “helping us win the game in a variety of ways,” but instead focused on how each player could contribute to the team in a narrower dimension, such as how good their on-base percentage was. He then applied a razor-sharp focus to finding players who were net-positive contributors by outperforming on one or two criteria, even if it meant lacking in other dimensions.

A Case Study from Graduate School Admissions

We recently collaborated with a large U.S. university to reengineer its MBA admissions process. There was a long-standing belief in this school that the best predictor of a “good student” was the quantitative component of the GMAT. It’s a business school, after all, with rigorous requirements in courses like statistics, economics, and finance. Indeed, some faculty believed everything in the admissions process but quant GMAT was a waste of time. But we followed Billy Beane’s example and, instead of relying on this conventional wisdom, turned to historical data.

The first challenge was to articulate how the school defined performance. For example, should we define good performance as a student with stellar academic achievement or a good career outcome? Should we use starting salary as a proxy for a good career outcome or try to collect their compensation after a few years? How about students that go into meaningful jobs in sectors that don’t pay as well? Discussing these questions made us realize that desirable performance is multi-dimensional, with some dimensions easier to measure than others. We ended up using multiple proxies for even seemingly simple dimensions like academic performance.

In the end our team’s analysis found that quantitative GMAT scores are indeed a reliable predictor of applicants’ academic performance, but it also showed that verbal GMAT scores are as good if not better! Putting more weight on verbal tests scores was a simple shift in the admissions process, but one that lead to admitting a somewhat different student body. And doing things differently provides a competitive advantage relative to schools blindly following conventional wisdom.

How to Get There

Some business leaders we’ve spoken to recognize the need for a more analytical approach to hiring but are intimidated by how to get there. Defining and tracking performance doesn’t need to be a complicated, multi-year project where you start producing troves of new performance data. You often have the data you need; it just requires some hard thinking around how to utilize it.

Start by defining the outcomes you want to see for your team or organization. Then work creatively to measure those results and how to attribute those outcomes to the work of various individuals. The initial reaction from many executives, particularly in white collar industries, is that attributing such results to any single individual will be nearly impossible in their profession. However, more often than not we’ve been able to find ways to do this. A digital news site we worked with, for example, argued that a good news piece could come in many shapes and forms and therefore only relied on the instincts of their senior team to identify and try to recruit up-and-coming talent. We collaboratively came up with a few hypotheses on how to better identify future stars, and after testing these were able to show that the number of social media comments on previously published articles was a strong predictor of future success.

Where output data on desirable organizational results is truly not possible to define, input data on employee activities can be useful. A chair manufacturer we worked with was giving up revenues as it could not hire enough people to fulfill their orders. They also struggled with high employee attrition and high absence rates. Using their internal data, we were able to show that female workers — a heavily underrepresented group in the factory — had the least absences and were the most loyal workers. This helped them realize the root of their problem was that their recruitment process overlooked women and other qualified candidates, while favoring less productive men.

Yes, implementing the steps above will require your organization to set aside time to tackle complex topics that don’t have obvious answers. For example, should you define financial success for your company as revenue growth, margin growth or an increase in your share price? But in our experience these are conversations you should be having anyway. Because it’s work, not enough organizations do it. As in Moneyball, if you want significantly different results, you have to apply a significantly different approach to looking for talent. This seems obvious but it is in fact rare. To find better talent, begin at the end.

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Managing people

Four Effective Tips to Improve Labor Management in Companies

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Businesses worldwide are always on the hunt for ways to improve their processes and add more efficiency to day-to-day functions. Of course, labor management is one of the major aspects of every company that demands continuous attention and improvement.

Every business understands that effective labor management is essential when it comes to increasing the productivity, safety, and efficiency of every project. The managers bear all burden to ensure that the labor is working effectively to meet the needs of supply and demand chains.

Here are some effective ways to improve labor management in your company for the best of your business.

1. Use Standardized KPIs

It can be hard to hold someone accountable for their performance when there is no evidence to back up the claims. In such circumstances, the labor deserving of praise may be left out, and those who need improvement may continue to waste company time and resources. Of course, such practices can cost you a lot of time and money in the long run.

Hence, smart companies worldwide are using Key Performance Indicators (KPIs) as a tool for worker motivation and accountability. These indicators help them better understand why certain standardized goals exist and their role in making the company succeed.

2. Incorporate a Software

Managers have a lot on their shoulders in addition to managing the workforce. A few people cannot keep an eye on everyone throughout the day. They need Kaizen Software to find the best solution for labor management. This way, the managers can find time to pay attention to many more important matters.

Efficient management software is being used worldwide due to its countless benefits. They offer security, better communication, and enhanced tracking to make your business more efficient. Hence, your business will have a better opportunity to grow and bloom.

3. Ensure Safety at the Workplace

Every workspace has its own challenges. However, everyone can agree that industrial workers have more challenges when it comes to safety. After all, they are surrounded by heavy machinery and face increased chances of accidents, injuries, and even fatalities. Hence, it must be a top priority to make your workplace safer.

You can start by looking into the hazards in your workspace and minimizing them one by one. In addition, it is also important to ensure that all your workers have access to safety gear at all times. Caution can save more lives than building an elaborate regime to care for injured workers.

Managing industrial workforce

4. Keep Workers Posted

Whether a construction site or a chemical industry, there can be new hazards and precautions for workers every day. A little negligence in the workplace can lead to a regrettable accident. Hence, it is always a good idea to keep your workers informed about current events.

Knowledge about company procedures and safety rules can reduce insecurity among workers and increase their efficiency. It is best to let your workers know that all their questions will be answered. This way, they can feel more comfortable seeking your guidance instead of finding out by trial and error.

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10 Key Strategies for Managing and Engaging your Employees

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Effective employee management and engagement are crucial for small businesses to foster a positive work environment, maximize productivity, and retain top talent. Small business owners need to prioritize their employees’ well-being, provide growth opportunities, and create a culture that promotes engagement and collaboration.

Here, we will explore ten strategies and practices for employee management and engagement in small businesses.

1. Clear Communication and Expectations

Clear communication is vital to set expectations and ensure alignment between the business and its employees. Regularly communicate goals, priorities, and performance expectations to your team. Provide feedback and recognition for their achievements and address any concerns or issues promptly. Encourage an open-door policy and create channels for open dialogue and feedback.

2. Training and Development Opportunities

Investing in training and development opportunities for your employees demonstrates your commitment to their growth and success. Identify areas where employees can benefit from additional skills or knowledge and provide relevant training programs. This can include workshops, conferences, online courses, or mentoring programs. Encourage a culture of continuous learning and support employees’ professional development.

3. Employee Recognition and Rewards

Recognizing and rewarding employee contributions is essential for fostering motivation and engagement. Implement a recognition program that acknowledges outstanding performance, teamwork, and achievements. This can include verbal praise, written appreciation, or tangible rewards such as bonuses or incentives. Regularly celebrate milestones and accomplishments to show appreciation for your employees’ hard work.

4. Work-Life Balance and Well-being

Promote a healthy work-life balance and prioritize employee well-being. Offer flexible work arrangements when possible, such as remote work options or flexible scheduling. Encourage breaks and time off to prevent burnout. Provide resources and support for physical and mental well-being, such as access to wellness programs or employee assistance programs. Show genuine care and support for your employees’ overall well-being.

5. Foster a Collaborative and Inclusive Culture

Create a collaborative and inclusive culture that values diversity and fosters teamwork. Encourage open communication, idea sharing, and collaboration among employees. Foster an environment where everyone feels valued, respected, and included. Embrace diverse perspectives and leverage the unique strengths of your team members to drive innovation and growth.

Getting feedback on employees

6. Performance Management and Feedback

Establish a robust performance management system to set clear goals, provide regular feedback, and evaluate employee performance. Implement regular performance reviews to discuss progress, identify development areas, and set new objectives. Provide constructive feedback that focuses on both strengths and areas for improvement to support employee growth.

7. Empowerment and Autonomy

Encourage autonomy and empower employees to take ownership of their work. Delegate responsibilities and provide them with the necessary resources and authority to make decisions. Encourage innovation and creativity by allowing employees to explore new ideas and approaches. Trust their expertise and provide guidance when needed.

8. Career Growth and Advancement

Support your employees’ career growth and advancement within the organization. Provide opportunities for skill development, such as stretch assignments or cross-functional projects. Offer mentorship programs or coaching to help employees navigate their career paths. Create a clear path for advancement and communicate the potential growth opportunities available to them.

9. Team Building and Social Activities

Organize team-building activities and social events to foster strong relationships among your employees. This can include off-site retreats, team lunches, or recreational activities. Encourage team bonding and camaraderie to enhance collaboration and create a positive work culture.

10. Continuous Improvement

Establish a culture of continuous feedback and improvement. Encourage regular check-ins between managers and employees to discuss progress, challenges, and goals. Solicit feedback from employees on processes, policies, and workplace initiatives. Actively listen to their suggestions and make necessary improvements to enhance the work environment.

Employee management meeting

Takeaway

Effective employee management and engagement are critical for small businesses to thrive. By prioritizing clear communication, providing training and development opportunities, recognizing and rewarding employee contributions, promoting work-life balance and well-being, fostering a collaborative and inclusive culture, and implementing additional strategies such as performance management, empowerment, career growth, team building, and continuous feedback, small business owners can create a positive and engaging work environment.

Investing in your employees’ success and happiness not only benefits them individually but also contributes to the overall success and growth of your small business.

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Build a Strong Learning Culture on Your Team

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When Kendra Grant’s team was charged with designing and delivering learning experiences for 90,000 Walmart Canada associates, she knew as a senior learning-and-design director that the landscape of corporate learning needs was constantly changing. “Over time,” says Grant, now the principal of her own L&D practice, “we acknowledged that many of the problems we saw such as lack of engagement and lack of retention were a result of the design process and not the fault of the learners.”

If you are in a leadership role in your organization, you more than likely share this problem. Technology and society are driving changes faster than your people can adapt. According to the OECD, 1.1 billion jobs will be disrupted in the next five years. Employees the world over require upskilling (learning to improve current work) and reskilling (learning to do new types of work). Some organizations are heeding the signs and investing heavily in learning and development: Walmart, for example, is investing $1 billion into reskilling its workforce, and McDonald’s has spent $165 million over the past eight years to prepare 72,000 employees for upward mobility. The Association for Talent Development’s most recent study found the average organization spends almost $1,300 per employee on professional learning. Microsoft’s CEO, Satya Nadella, exhorts everyone to be a “learn-it-all.”

Workers of today need to prepare for what they’ll be doing tomorrow. But how can they adapt effectively if their work is changing in real time? What skills can they learn now that will support them in the face of a volatile and ambiguous future? And how can their employers support them?

There’s a simple but not easy answer to all of these questions. Employers have to help employees become expert learners — people with the will to learn, the skill to do it effectively, and the ability to apply that learning in ways that positively impact their performance and that of their teams.

Still Wearing Blinders

Traditionally, learning within organizations has been driven by a single department. In a general attempt to motivate and support employee development, the learning-and-development team — which sometimes consists of just one person — acts as an order filler for operations managers and leadership, providing formal learning support, such as classroom training and online modules. Frequently, these efforts are augmented by tuition assistance for degree and certificate programs at institutes of higher education. In recent years, companies have created digital “learning-management systems” or “learning-experience platforms” that offer a Netflix-style menu of learning content that employees can access on-demand and at their own pace.

Unfortunately, however, these approaches to employee learning are not up today’s challenge, for a few reasons:

A day late and a dollar short. Content creation lags significantly behind the need for that content, making the content available less relevant to current needs. Also, when an employee needs new knowledge and skills now, a course next month isn’t helpful.

One-size-fits-none. Every learner is unique, with varied strengths, experiences, and challenges. Every learner works in different contexts, thus requiring greater personalization to support meaningful learning and improvement.

A lack of support for application. Pushing out content can impart new information, but developing effective skills requires coaching, reinforcement, and opportunities for safe, authentic practice.

A cultural disconnect. Leaders can say they value learning, but according to Deloitte, workers actually have less than 1% of their time available for learning. Further, learning can be messy, because it requires that people try new things and make mistakes. If an organization punishes people for those mistakes, as some do, people will shy away from learning.

Learner experience and identity. Not everyone thinks of themselves as a lifelong learner, nor do they all have the skills to learn and apply learning effectively. Further, biases in development programs may reinforce the notion that only some people are capable of learning and therefore worth the investment. This bias is communicated to workers.

There Is a Solution

We need to address these barriers to learning in order to meet the challenges of today and the future. Learning, after all, is what enables people to adapt to change and even become drivers of change. But, as Matthew Daniel has recently noted on the Chief Learning Officer website, even if people want to learn they may not know what to learn — or how to learn.

Expert learning requires two key conditions. The first is context. People need the time and space to learn. They need timely, actionable feedback; opportunities for collaboration; and just-in-time support to convert new knowledge and skills into measurable performance improvement. Then there’s capacity. Each person has talents, strengths, interests, challenges, and experiences that influence how they engage with, make sense of, and apply new knowledge and skills. We can’t assume everyone has developed the requisite learning skills and behaviors, and we can’t effectively gauge learning capacity in advance. However, we can help all people become expert learners, by providing them with options to learn and apply key learning behaviors rooted in a framework known as the Universal Design for Learning.

UDL, as it’s often called, was first devised in the 1990s by researchers and clinicians at the nonprofit learning organization CAST, Inc., under the direction of the neuropsychologist David Rose, of the Harvard Graduate School of Education. Today it’s endorsed in federal education legislation as a means for supporting inclusive, impactful learning for all learners. That includes workforce preparation and training. In essence, UDL helps us embrace the differences between learners — their variability in strengths, interests, attitudes, cultures, and more — by setting firm, challenging goals and allowing for flexible pathways to meet those goals.

When employing UDL in creating learning experiences, you’re encouraged to think of learning as a set of behaviors and skills that exist on a continuum from novice to expert. Novice learning is primarily guided by external forces: Novices learn what they’re told, when they’re told, for the reasons given to them. They are the type of learners whom top-down, one-size-fits-all training was meant to serve. A distinct step above the novice level is self-directed learning, where learners take the initiative for their own learning, making decisions about what, when, and how to learn.

Expert learning takes things to another level, by adding in specific learning skills and a focus on strategic performance improvement. Expert learners have the will and skill to learn, can identify ways to leverage that learning into impact, and are always looking for new challenges and ways to improve their skills. They are the learners best able to adapt to the rapidly changing modern workplace.

How Expert Learners Improve Outcomes

Building a strong learning culture that focuses on capacity and context can give companies a strategic advantage. Let’s consider why.

First, employees who are skilled learners can more readily innovate, for what is innovation if not the learning how to solve a problem in a new way? A person focused on continuous improvement rarely settles for “We’ve always done it this way.” Expert learners can identify emerging knowledge and skill needs and generate new knowledge to meet those needs.

Next, learning fuels employee engagement. Employer-supported learning is a key driver of retention, particularly when learning is visibly linked to employee development — that is, upward mobility. Creating a culture that supports people to learn and own their improvement makes improvement a common cause between the employees and the organization. Further, a visible emphasis on learning can be key to attracting new talent, with Gen Z and Millennial workers citing learning and upward mobility as key motivators in selecting job opportunities.

Finally, investing in learning is just that: an investment. According to Gallup, companies that invest in employee development increase profitability by 11%.

Building a Culture of Expert Learners

Building a culture of expert learning is a complex undertaking. There are, however, some foundational practices, aligned with UDL, that leaders and teams can engage in as they work to develop support an expert learning culture.

Adopt a learning philosophy and stick to it.

A learning philosophy is a codification of what the organization believes about learning, including its value, the responsibilities of each person related to learning, and the methods by which the organization will support its employees to learn and improve.

Consider the philosophy of the United States Marine Corps, where learning is literally a survival skill. In 2020, the USMC published Marine Corps Doctrinal Publication 7: Learning, or the MCDP 7, which tells all Marines, from the lowest-ranking enlisted member to the commandant, that they have a professional responsibility to learn. It also lays out the necessary conditions for learning, requiring each Marine to contribute to and leverage those conditions. All Marines are told they can’t rely on a training department of some sort but instead have to define and own their roles as learners. “Continuous learning is essential,” USMC Commandant Gen. D.H. Berger writes in the MCDP-7, “… because it enables Marines to quickly recognize changing conditions in the battlespace, adapt, and make timely decisions against a thinking enemy.”

Audit your culture for barriers to learning.

With your learning philosophy in place, make sure the collective behaviors, practices, and systems of your organization — and particularly the behaviors of your leaders — model and support the tenets of that philosophy. Examine what learning currently looks like in your organization and begin addressing common barriers. Provide time and resources for learning and regularly reinforcing the value of learning. Incentivize experimentation, collaboration, and knowledge-sharing. Promote team learning over individual knowledge-hoarding. Link learning to development by creating clear pathways for skill development and promotion. And enlist frontline employees and managers to more quickly identify learning needs and potential solutions.

Be flexible.

To act like expert learners, particularly in selecting and strategically applying learning, people need flexibility in when and how they learn. New approaches, such as learner-cluster design and the modern-learning–ecosystem framework, acknowledge variability among learners, providing them options that best suit their learning needs, and close the gap between formal learning and where learning happens most — on the job.

* * *

Change is constant, and the need for adaptability extends beyond leaders to every level of the organization. When employees own their improvement, they can better anticipate, communicate, and meet their upskilling and reskilling needs. As Kendra Grant pointed out in describing her work with Walmart, many barriers to improvement that are thought to be internal to learners are really external — they’re flaws in the design. UDL helps us focus on what works for people rather than on what’s not working in them. By providing the right context and supporting capacity, we can make expert learning become the skill that fills the skills gap.

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