Why are Traditional Hiring Interviews so Unreliable?

Filed Under (Interviewing) by admin on 03-03-2009

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Why do employees – hired by the same methods, doing the same job, and managed by the same person – perform so differently? Dependency on the traditional one-on-one unstructured interview is a prime reason.

Let’s first define the “Traditional Interview”…

1. Traditional interviews are always unstructured, that is the hiring manager sits across the table from the candidate and has a general chat – often in an unstructured environment like the local coffee shop.

2. Interview questions tend to seek opinions, not explicit example of pasted behaviour.

3. The interview is one-on-one, inviting judgement of future performance on emotional and bias grounds. This environment also encourages too much talking from the interviewer and not enough listening.

4. The interview process is not “scored” and specific notes are not taken. If several of these unstructured interviews are performed, the hiring manager must rely on his or her memory in the final analysis and usually this will be based on appearance and likability – not the specific attributes and abilities needed to be successful in the job.

Besides being the most expensive  tool (management time) in the selection process, the unstructured interview is also the least valid – between .05 and .15 – so at best you’ll get it right one out of every six interviews. The structured interview jumps validity to between .40 and .60 – much better, but still the toss of a coin.

Traditional interviewing practices are historically and scientifically proven to be poor predictors of success on the job. Why?

1. Bias of the interviewer(s). No two interviewers assess the candidate’s  responses the same way. That’s why research tells us to have two or more interviewers.

2. The candidate’s responses to interview questions are affected by the environment in which they are interviewed and by the rapport established with the interviewer. The interview must be conducted in a “business environment” with no interruptions.

3. Many questions don’t accurately measure what you want them to measure. Most questions seek opinions, not evidence of past behaviour. Interview questions must be behaviourally based and be aligned to the core group of performance factors related to the role.

4. The responses sound and feel good, but they are not predictive of job success. Managers continue to assess on gut feel. Just because a person dresses well, looks attractive, talks we’ll and acts confidently doesn’t necessarily imply they can do the job. Remember, at interview the candidate is on their best behaviour, what you see is the best you will ever see them!

Statistics show, when it comes to applying for a job you can fool all the people some of the time. I read a frightening statement in Fortune Magazine recently that at least half of all new hires in US businesses don’t work out. Likewise, the US Dept of Commerce reports that 30% of business failures are due to poor hiring practices. I can’t find a similar measure for NZ, but I think we would be no different.

So, how can you hire with more accuracy for less cost?

For the sake of this example, let’s assume your cost of hiring equals $7500. Using scientific evidence on the validity of interview types, what is the real cost to hire the right employee based on the type of interview conducted?

Traditional Interview

% of right hire successes = 14%; Real cost adjusted for miss-hires = $53,571

Team Interview (but unstructured)

% of right hire successes = 35%; Real cost adjusted for miss-hires = $21,429

Behavioural Interview (with 2 or more interviewers)

% of right hire successes = 55%; Real cost adjusted for miss-hires = $13,636

Source: The Tax Advisor, September 1996

Summary

The above cost clearly demonstrate a 75% cost savings when you move from a traditional unstructured interview to a multi-rated behavioural based structured interview. And that’s just the interview -Imagine what happens when we add a valid personality/mental ability profile and a structured background and reference check!

Just like sport, when it comes to hiring new staff, the unprepared, untrained and over confident will pay the price after the event is over.

The manager who hires a person without a natural job match and hopes he/she can overcome the new employee’s shortcomings with training and coaching might as well try to train a turkey to climb a tree – would it be easier to hire a squirrel?

The 3 Key Personal Branding Challenges

Filed Under (Personal Branding) by admin on 03-03-2009

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In the complex society we live in today, is has become imperative to ensure that your personal brand is a vibrant and well-rounded one. This always sounds much easier said than done but then, it is the reality and you just have to deal with it. A personal brand is something you cannot ignore…actually you can, only it will be at your peril. That said, the best path to follow is that which leads to a well-cultivated and maintained personal brand.

I mentioned that we live in complex times. We can no longer afford to take things for granted as people are far more aware of what we do than we may know. I ran a Google search on a term a while back and shockingly, it returned a number of results which were not positive for a popular soccer player. Sadly, the search was not even on him at all! The point is; people are talking and we may not be able to influence what they are saying after the discussion starts but then, we can do so before it starts.

One other example which readily comes to mind is the Chris Brown/Rihanna saga. It was unfortunate as the damage was done not just by the continued indiscretion of both parties in leaking damaging pictures to hurt each other but more by the endless commentaries. Again, these commentaries were not run by either party but by third parties. Any search done at the time and even now on either Rihanna or Brown was sure to unearth very damaging materials which have little or nothing to do with their musical careers. I have outlined some of the key challenges which personal brands face today.

Communication. There are so many means of communicating today that it has become even more challenging to influence people. A little incident can lead to a deluge of posts on a site about a person and if it isn’t positive, then the result will likely be horrible. Consistency. The extremely diverse nature of the society today certainly makes consistency difficult but it has to be done. You cannot afford to become a chameleon by changing your fundamental tenets all the time. Character. A strong personal brand has character and must continue to deliver on this across all media as at times of major tests, the issue which determines how you will ride it out is the character.

Start Job-Hopping

Filed Under (Job Search Guidance) by admin on 03-03-2009

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Remember when job-hopping was anathema? Well, you better take today’s hot new non-traditional career advice . . . start job-hopping!

Things have changed. The economy is booming, Younger job seekers are much more ambitious and almost instinctively understand that if they want to get ahead,. . . if they’re heading for the top, they have to job hop.

It’s really all part of the 21st Century job market and the dramatic changes that have occurred especially since 9/11 and Katrina. The old-fashioned job search approaches simply don’t work anymore. If you’ve been busy writing a traditional resume and then mass distributing it to job sites, job listings, a bunch of companies, some agencies and recruiters . . . well, you already know what I mean.

You’re probably sitting around nervously waiting for the phone to ring. Or hoping today’s mail will bring that priceless invitation to an interview instead of the more usual TNT (thanks-but-no-thanks) letter.

Non-traditional career advice is the solution to your job search dilemma. It makes you get in tune with today’s sophisticated job marketplace. You need to understand the employers aren’t interested in what you used to do for someone else (as outlined in your resume). They expect you to come forward with some understanding of the corporate goals are.

And they are impressed when you’ve done your research and come up with an ability to address your next boss’ personal requirements. This evidence of your commitment to excellence goes much further than a resume. It’s just another piece of non-traditional career advice.

So does a commitment to job-hopping. Curtis Crawford, author of “Corporate Rise: The X Principles of Extreme Personal Leadership,” advises that the more versatile you are, the more likely you are to move up. What’s more, he recommends:

1. Don’t be afraid to be visibly ambitious. In the past, ambition was confused with arrogance and ruthlessness–getting to the top at any cost. Ambition is achieving your goal the right way–honestly, ethically, all the while gaining the respect of your subordinates, peers and management.

2. Avoid getting stuck in one job. Avoid becoming a specialist which means you’re pigeonholed as being able to do only one thing well. That specialist thinking flew years ago–but not anymore.

3. Make significant contributions. Just moving through different jobs is not enough. Take jobs that provide platforms for you to make significant contributions. It means getting involved in critical areas such as product development, financial management, technological improvements, or improving production or distribution.

This departure from old-fashioned thinking is just one of the many exciting pieces of non-traditional career advice. It’s part of the amazing new alternative thinking that is consistent with expectations in today’s job marketplace!