Implementing People Analytics
Michael Cavaretta, Lead Data Scientist (before data science was cool) at Ford Motor Co. crafted a striking article on the fundamentals of analytics. With over 15 years experience, Michael points out the most critical question that is too often overlooked, “so what?”
Many analytics presentations crash and burn because no one answered the question, “so what?”
We often talk about the power of people analytics and the potential it holds for business large and small. Michael even makes note in his piece, “Anytime you look at business metrics there is an opportunity to use analytics. A hot area right now is the application of big data and analytics to HR processes.”
It’s clear that human resources and hiring are itching for a revolution – but without defined strategy, many firms will fail. Continue reading
The business case for people analytics
Most recruitment processes are simple:
You send in a resume
A human reads it and decides they like the words on the page enough to interview you
They bring you in for an interview and have a few people that are not well trained
in interviewing, ask you questions
The firm makes decisions based on the personality
of the applicant and interviewer
1 in 3 new hires leave within 12 months
On the flip side, rejected candidates can go on to become extremely successful, leaving firms sorry they missed the chance when they had it. Continue reading
What do people hate about salespeople?
A new survey by the American Management Association found the biggest mistakes salespeople make include:
Being too pushy (24%)
Not taking “no” for an answer (23%)
Not listening (18%)
Let’s see what the data tell us on how not to hire salespeople who use these ineffective tactics.
Sales mistake #1: Being too pushy
Extraversion – being assertive, enthusiastic, and social – is considered a necessary trait for sales. But salespeople can be too extraverted, which ends up hurting their performance. Research has found that it’s the middle of the pack, the so-called ambiverts, that tend to be most successful in sales. Continue reading
A recent CareerBuilder survey of 5,013 employees found that 75% were either actively looking for or open to new opportunities. That’s a big potential candidate pool out there.
If you’re currently hiring or thinking of hiring, here’s what you can do to attract the best job candidates.
Job seekers are following the money
CareerBuilder’s survey found the number one reason people look for a new job is “higher base salary.” SAP’s survey of 2,872 employees found the number one factor that employees value at work is “competitive compensation.” LinkedIn’s survey of 7,530 members who recently changed jobs found the number one reason that would convince them to change jobs is “better compensation and benefits. Continue reading
Yesterday, the CEO of Zenefits, Parker Conrad, made my dreams come true by rejecting a job candidate in a very public – and controversial – manner. Uh, what. Why exactly does this make me happy?
Because it’s a perfect case study of what the research shows are the effects of employer brand: working for lower pay at a strong brand (Uber) instead of a comparatively weaker brand for higher pay (Zenefits) as an investment into your future higher earnings at a different company (Google). As a researcher, I love it when that happens!
In sales and marketing terms, working for a strong brand is the job seeker equivalent of landing a logo. Continue reading
One of the biggest complaints about job interviews is that candidates can misrepresent themselves, which can lead to a bad hire. So how can you tell if a job candidate is lying during an interview? Spoiler: You can’t. Not really.
But the research reveals that there are some clues we can use to decide whether someone is telling us the truth.
We’re bad at detecting lies
In a series of experiments, Professor Roulin and colleagues tested how well people were at detecting when someone was lying to them in an interview. Job interviewers were able to correctly detect when a job candidate was lying only 13-22% of the time. Continue reading
The Harvard Business Review recently published a great article featuring research on the sales compensation that best motivates salespeople. I know how busy you are so I wrote this handy summary for you instead.
The best part? Designing a sales comp plan that maximizes your revenue doesn’t have to be complicated.
Caps on commissions. Research suggests capping commission, a standard feature of sales comp plans, decreases high performers’ motivation and effort. You’re basically telling your sales team: you’re making us too much money, you can stop now.
Racheting quotas. There’s a lot of disagreement about whether you should increase a sales rep’s annual quota if they exceeded it in the previous year, but doing so can upset high performers who may view this as unfair. Continue reading
There’s a common belief that in order to be truly successful, salespeople need to be passionate. While I’m not arguing that’s not true, quite frankly, passion doesn’t pay the bills.
The truth is that compensation still matters, and it matters a lot. While selling can be extremely rewarding and fun, it’s also demanding and stressful. That’s why it’s no accident that salespeople tend to be among the highest paid employees in a company.
So employers: Do you know what salespeople really want when it comes to compensation? Let’s take a look at the numbers.
How much salespeople typically get paid
Although average salaries are going to vary widely based on numerous factors such as quota, the industry, and the product/service itself, we can get a hint at what typical sales compensation looks like. Continue reading
The costs of replacing a highly paid employee can be up to 213% of their annual salary. For sales in particular, research has found the average cost of replacing a failed sales hire is $114,957.
With such high costs associated with a single hiring mistake, it’s not surprising that people tend to follow the hire slow, fire fast mantra. But what’s missing from this decision is an analysis of the opportunity costs of not hiring.
What do these opportunity costs consist of? The potential sales revenue and market share you’ve lost out on by not hiring a sales rep. Continue reading
There’s an oft-repeated statistic in the startup world: More than 95% of startups fail.
Now that we have that cheerful news out of the way, do those crazy perks that startups offer when hiring actually make a difference when it comes to its survival?
A new study aimed to find out.
Why startups offer perks when hiring
Companies advertise their perks when hiring because of the belief that they build a sense of reciprocity between the employees and the company, which motivates employees to perform better and increases their commitment to stay. Offering perks is a popular hiring tactic because it’s perceived as a relatively cost-effective and flexible way for a startup to do so. Continue reading