Employee Performance Enhancement In today s challenging economic environment, many employers have been reluctant to make significant changes or investments. However, technology has afforded employers the opportunity to make cost effective investments in the development of their existing talent which can generate immediate returns from critical human capital. Most employers are interested in helping current employees achieve their highest levels of success, if only to avoid the costs associated with turnover. Turnover costs can easily reach 150% of the employee s annual compensation figure. The cost will be significantly higher (200% to 250% of annual compensation) for managerial and sales positions. To put this into perspective, let's assume the average salary of employees in a given company is $50,000 per year. Taking the cost of turnover at 150% of salary, the cost of turnover is then $75,000 per employee who leaves the company. For the mid-sized company of 1,000 employees who has a 10% annual rate of turnover, the annual cost of turnover is $7.5 million! Do you know any CEO who would not want to add $7.5 million to their revenue? And, by the way, most of that figure would be carried over to the profit line as well. What about the company with 10,000 employees? The cost of turnover equals $75 million! Obviously, investing in the development of existing employees can have a significant impact on an organization s bottom line, and the turnover costs referenced here don t address the productivity gains that can result from developing employees for greater levels of performance. Given the potential cost savings and productivity increases, it only makes sense for organizational leaders to consider the technology available to reduce turnover of the people that the organization would like to keep and develop the performance of all people employed in the organization. Selecting Really Great People: Many employers struggle to select the talent needed to drive their businesses forward. Since human capital is an organization s greatest asset it is critical that employers take the time to stand back and look at new ways to screen and hire talent. Of equal benefit is the fact that many of the processes and tools available to employers to select top performing new hires can be used to improve the performance of their existing workforce. In the past, most employers defined training and development of their workforce in terms of improving the skills required to perform the job requirements regardless of the level and type of position in the organization. However, this approach often does not work because it does not take into account whether an employee has the aptitudes and traits needed to perform at an optimum level in their position. Trying to train people who lack the traits needed for success in a position simply may not work.
Let s look at what influences how a person behaves: 1) Genetics- dictate eye color, skin, bone structure, height, and some behavioral traits etc. 2) Biochemistry- related to diet, physical activity or lack thereof, and drugs (prescription and nonprescription) ingested and 3) Environmental- past and current environmental conditions the person has lived and worked in These three factors come together to create the behavioral output of an individual. While genetics cannot be changed after birth, biochemical and environmental factors certainly change and as they do, so may the behavior of the individual on the job and in life in general. A person s behaviors, combined with mental abilities, determine how the individual learns, assimilates information, and applies that information in life and/or job situations. Employers have historically placed too little emphasis on the behaviors and mental aptitudes of their employees when considering determining management training and development needs. An individual must have the appropriate mental aptitudes and behavioral traits that are essential to successful performance of their particular job if he or she is to respond favorably to management training and development. This is true whether the position is at the executive or hourly rate level. Therefore the case is made to evaluate where the person compares mentally and behaviorally to the requirements of the job, and if a perfect fit does not exist as it often doesn t, then determine what can be done to develop the individual for more successful job performance and how best to accomplish that objective. By comparing an employee to other employees in a job category who are meeting and exceeding the expectations of the employer in that job category, management can identify where the individuals who are not performing at the level of the highly successful performers are deficient, and determine the areas in need of attention for training, motivation and development. With this approach, management can learn exactly what needs to be done and how to best manage and develop an employee s performance after comparison to the successful performers. This unique approach results in a benchmark of the aptitudes and traits required for successful job performance. A benchmark is derived by one of the flowing three approaches: There are three ways in which a benchmark may be derived for a particular job: 1. Deriving benchmarks specific to the organization (Custom): In this approach, the employer chooses people who are successful within a job and those successful employees, in turn, complete an assessment in order to identify what skills and talents and their levels correlate directly to successful job performance. The assessment scores of the test group of successful employees are analyzed to derive a benchmark which identifies
the skills and talents exhibited by the test group. This benchmark can then be utilized to objectively project performance on the job, since it is based on individuals who are successfully performing the job. 2. Deriving benchmarks through an industrial database (Database): If an employer cannot or does not wish to derive an organization specific benchmark, a database is available which contains hundreds of benchmarks derived through the process described under option 1 above. Employers may simply choose an already established benchmark from the database maintained by CRI. 3. Deriving benchmarks through job description questionnaire (Questionnaire): The employer may choose to review the job description and complete the "Benchmark Questionnaire online. This process will allow the employer to identify the characteristics and the levels of those characteristics essential within the individual to successfully perform the requirements of the job. Of the three different approaches to setting a benchmark, assessing successful people in the job who are currently meeting and exceeding an employer s objectives in that job then comparing either applicants to that benchmark or the people in the job or the people in the job now is the preferred approach for deriving appropriate training and development suggestions. This approach is known as a concurrent validation study and an example of one such study follows. ABC ENTERPRISE SOFTWARE SALES STUDY August 24, 2015 CRI has agreed to compile a study of seven outstanding enterprise software salespeople who are considered top performers at ABC Enterprise. Mental Abilities Mental Acuity- The individuals that participated in this study all scored to be average or above average in mental acuity which indicates that they are all capable of completing at least fouryear college curriculum or much higher. With that they all are consistent learners with strong reasoning and problem-solving skills. Translating this to this position, they should all be able to learn the various products and benefits as well as work to relate said benefits to clients and prospects. Therefore the ideal benchmark for this position has been set at 5-9. Memory Recall- All of the salespeople displayed an interest in keeping up with current events as they relate to the organization and their job. This aptitude reflects their observation skills and awareness of what is going on in the world around them. It also enables them to anticipate any economic or social trends that will affect their marketing and/or sales tactics. The benchmark for Memory Recall has been set at 7-9.
Vocabulary- As a sales person, the ability to communicate effectively is essential, which is indicated by the strong scores of this group. It is likely that they are often asked to explain products and services as well as persuade clients and prospects to buy into them. Thus, we suggest that future salespeople also have the ability to communicate in both written and verbal form; the desired benchmark has been set at 5-8. Numerical Perception- All of the participants have the ability to identify minute details and specifically numerical values. This will aid them when dealing with numbers of any kind including sales quotas, financial statements, or reports. Therefore, the ideal benchmark for this dimension is 5-8. Behavioral Traits Energy/Drive- Advantageous to this position the majority of participants exhibit good levels of energy and drive. This enables them to be proactive and displays their ability to be on the go, promoting business for Francisco Partners. They also have the ability to concentrate and follow through on projects as well as thrive in sales positions due to likely attentiveness. We suggest that future Enterprise Software Salespeople inhibit this same level of drive and urgency with their work and that they score within the 4-6 range in Energy/Drive. Flexibility- The salespeople display strong character strength, integrity, and work ethic. This demonstrates their consistent nature when making decisions and interacting with co-workers. It is likely that they will be well-respected by those they work with and be an overall good representation of Francisco Partners, whether they are in the office or holding a meeting with a client or prospect. They will consistently adhere to company norms and work to build a solid foundation with salespeople and the clients they will be working with. Therefore the benchmark has been set at 4-7. Emotional Development- This group scored to have a good or very good level of ego and emotional development. At this level, they tend to be emotionally mature, persistent in their work, and confident in their position and knowledge thereof. The sales people may be a bit over-tolerant and patient at times, but considering they are simply offering suggestions and guidance to sales people this seems to work to their advantage. Accordingly, the benchmark for this role has been set at 6-8. Assertiveness- Overall, the participants are fairly assertive. They are able to give directions as necessary and generally have no qualms about offering their opinion or suggestions. Considering the nature of this position, this work to their advantage in that they are able to be decisive and confident, giving people honest, direct information. It would be in the best interest of Francisco Partners to hire future salespeople based on his level of assertiveness, with the benchmark set from 6-8.
Questioning/Probing- All in all, the sales people scored within the average segment of the population regarding their questioning skills. This indicates that they have the ability to trust people and yet ask secondary questions in order to determine various details of a situation prior to making a decision or recommendation. This will aid in making logical suggestions to clients and prospects as well as utilize information to seek ways to improve business functions and procedures. Therefore, the ideal benchmark for this dimension is 4-5. Motivation- Typical of sales based positions the participants scored to have highly ambitious natures and will likely push for change an innovation in the workplace. They understand the importance of an evolution in the job and tend to want recognition for their work efforts. The salespeople tend to be most motivated by commissions or incentives and prefer a job that provides such. With that in mind, the benchmark has been set at 6-9, since this is a key component in highly productive sales people. A GRAPHIC DEPTICTION OF THE SCORES OF THE TOP PERFORMERS FOLLOWS
ABC Enterprise Software Sales
To establish the benchmark that aids in effective training and development of existing employees, an employer needs to utilize a validated assessment specifically developed for such use. A good assessment encompasses various tests to establish the mental aptitudes of an individual contrasted to the mental requirements of the job, as well as a measurement of various personality factors related to the job. One such assessment is the Achiever. The Achiever provides an independent, objective analysis of an individual to the requirements needed to successfully perform the job. The Achiever report contains succinct information to let the employer know which employee is the best choice for transfer or promotion and how to focus training and management of an employee to achieve greater success faster. The Achiever and the sales oriented Sales Achiever measure the following traits: Mental Abilities - Mental Acuity- intelligence, learning speed, and the ability to apply knowledge - Business Terminology- knowledge and use of business terminology - Memory Recall- awareness of industry trends and current events as they relate to the job - Vocabulary- knowledge and use of general English vocabulary - Numerical Perception- ability to handle numerically related tasks quickly and accurately - Mechanical Interest- interest in mechanical and technical devices Personality Dimensions - Energy - measures the drive and energy level of the individual relative to job requirements - Flexibility- measures the character strength, integrity, reliability and dependability of the person - Organization- personal orientation to plan and utilize time wisely - Communication- ability to interact and build relationships with people - Emotional Development- Ego, self-esteem, self-confidence and ability to handle pressure - Assertiveness- strength and determination to assert one s dominance - Competitiveness- measures an individual s preference for teamwork or desire to compete on an individual basis - Mental Toughness- psychological toughness to mitigate stress and challenging situations - Questioning/Probing- instinct to ask questions rather than accept information at face-value - Motivation- identifies whether an individual is motivated by job security, steady hours and salary or whether they are motivated by incentives and risk oriented By assessing a person s mental aptitudes and behavioral traits relative to job requirements, employers can have a better understanding of the individual s training and development needs. Further, the Achiever has the added benefit of identifying how the individual is most likely to respond to hard and soft skills training to improve job performance. For example, if an employee s need for interaction is greater than the job requirements, the Achiever provides simple development suggestions the individual can implement to improve this behavioral aspect of their performance in the job in question. By implementing a comprehensive approach that encompasses online assessments for job fit, employers will have much greater success ensuring that training and development is targeted to the right areas.
Keep Them Happy Lastly, keeping your good employees happy is critical. Often times people leave a job not because the dislike the organization, or their co-workers or their compensation, but rather they don t believe that they have any influence on how the job is to be performed or they have doubts about whether the job is essential. Thus, it is highly important to get your employees involved and get their input about the job. A highly effective approach for gaining an employee s input is to have that individual list the 10 most important items in the job and then rank them in priority order. The employee s manager should do the same and the two of them then conduct a meeting to compare their lists and derive a final listing that encompasses their combined thoughts on how the job is to be best performed and which job duties are most important. This meeting is also a good time to have the CRI employee performance improvement report at your fingertips. Simply have the employee complete the Achiever questionnaire online and provide CRI with a job description, and CRI will in turn by the following business day provide a confidential report to the employer reflecting a n objective opinion on how the person matches the job and what their development needs are with suggestions as to how to best accomplish them. Another tip for keeping good employees happy and motivated is the regular use of rewards. Certainly expressing your appreciation verbally is important, but material rewards are always appreciated. It s easy to buy a dinner certificate to a nice restaurant or a gift card and give it to the employee as a thank you for the good job that they do. Another option is a piece of jewelry which is something that the employee can keep for years and show off to their friends, family and fellow employees. If this is an area of interest, please request rewards jewelry list which will enable you to select a price category to select from or forward the list to your employee to choose an item that they would like to have from the list from the financial category you ve chosen. Action Plan To implement the approach to employee development outlined in this paper, you simply need to follow this action plan: 1. Use an objective job fit assessment like the Achiever to assess existing top performers to derive a benchmark of success 2. Use the assessment with success benchmark to ensure your are selecting the right person for the job to begin with 3. Assess existing employees against the success benchmark to determine areas in need of development 4. Keep employees happy by giving them input into how to best perform their jobs and reward them for successful performance