We all spend countless time, money, and resources focused on the critical aspect of hiring the right people. However, how much time do you put into measuring the results? Usually, the results come from the negative impact of hiring the wrong people and the costs associated with re-hiring and re-training employees.
While there are dozens of specific things you can do to improve your hiring, many of which I have blogged about in detail, here is one of the simplest ways, courtesy of Jack Welch, the former CEO of General Electric.
He calls it the “Hiring Batting Average,” or the HBA. It may be one of your most critical long-term ratios to measure.
Here is how it works:
o Every candidate must be interviewed by at least three managers beyond any HR or personnel interviews. Each interviewee rates the candidate “Hire” or “Don’t Hire,” — nothing in the middle.
o Six months down the road, each new hire is evaluated against expectations by his or her manager. Are they “Below,” “Meets” or “Exceeds” expectations?
o Now keep this data and you will soon find out which interviewers are on target.
Give them each their HBA. If Kayla recommended 10 people and 8 of those exceeded expectations, she earned an HBA of .800. Give Kayla a bonus and keep her involved. If Kyle recommended 10 people and only 4 of those succeeded, his HBA is .400. No bonus, stop his interviews and put him on an interviewing “Plan for Improvement.”
Your goal is always to find the very best interviewers. It is their intuition which you are measuring. Use it!
Shawn Stewart is the Operations Manager at Gainesville Health and Fitness Center. Contact him at shawns@ghfc.com.
