THE RIGHT PEOPLE Jim Collins Harvard Business Review

THE RIGHT PEOPLE Jim Collins, Harvard Business Review, says: “The old adage people are your most important asset is wrong, the right people are your most important asset”

THE RIGHT PEOPLE But even this is wrong, Bob says: “The old adage people are your most important asset is wrong, the right people in the right jobs at the right time are your most important asset”

GREAT (INTERNAL & EXTERNAL) RECRUITMENT Drives: Individual & organisational performance Succession planning (today’s recruits, tomorrows leaders) Long term business success

EMPLOYEE RECRUITMENT RESEARCH So many studies, so many remaining questions Multi variable process, risk is high Getting it consistently right is hard Mistakes are very costly

POOR RECRUITMENT COSTS More than 80% of employee turnover is caused by bad hiring decisions* It costs 1/3 rd of annual salary to replace a turnover (does not include intangible damage around loss of revenue, increased business costs, decreased employee morale)** * Harvard Business Review ** US Department of Labor

RECRUITMENT PREDICTORS (VALIDITY SCORES)* Age -0. 01 Interests 0. 10 Education 0. 08 -0. 10 Years of Experience 0. 18 -0. 20 Interviews -Unstructured 0. 09 -0. 18 -Structured 0. 26 -0. 34 Reference Checks 0. 26 -0. 38 Past Performance 0. 35 -0. 46 Job Knowledge Tests 0. 36 -0. 48 Realistic Job Previews 0. 36 -0. 48 Assessment Centres 0. 37 -0. 51 Psychological/Aptitude Tests 0. 51 -0. 54 *Source: various USA longitudinal research studies in particular from Michigan State University