Below are two articles that I thought you
could use as you think about attracting and
hiring the right people in
your company. One summarizes the recommendations
of a Pennsylvania Bio trade association panel
on Human Capital's Effect on Financial
Performance
that I recently moderated. The other is from
my strategic alliance partner, Delta
Consultants, on the roll that expert
assessments play in ensuring a top-notched team.
Does Human Capital Impact a Company's Financial Performance?
By Jim Geier, President, Human Capital
Consulting Partners
How many times have you asked yourself:
- "How important is it to have a human
capital or people strategy for my company?"
- "Does hiring and developing the right
people have a direct impact on my business?"
- "What key parts of the human capital
strategy should my company focus on first?"
These questions were addressed recently at
the monthly breakfast program for
Pennsylvania Bio, the statewide trade
association representing Pennsylvania's
bioscience industry, where I moderated a
session entitled, "Human Capital-Driving
Growth and Value through Human Capital." To
an audience of more than 160 biosciences
professionals, this panel of industry and
private equity professionals shared their
experiences, challenges, and solutions in
dealing with the people issues that face
early, mid, and fully integrated biosciences
companies.
The consensus of the panel was that when
developing a human capital strategy, a company
should focus first on:
- Culture
- Identifying and Attracting the Right
People
- Building a Cohesive Team
It was clear from the panel discussion that
regardless of the stage a biotech company
finds itself, people issues are common to all
companies and getting them right is crucial
to success. In summary, the panel stated that
the following human capital issues must be
addressed if you want your company to succeed:
- Spend time developing a people
strategy: it's a good investment.
- Understand the type culture you want
and drive it throughout your organization in
everything you do.
- Define upfront the requirements and
competencies needed for a job to be sure you
hire the "right person."
- Ensure that job candidates get to meet
as many people as possible during the
interview process to ensure they are a "good
fit" for the new team.
- Consider using a formal assessment
process to insure that a candidate's fit is
right for the job, team, and company
culture.
- If the people processes and programs
are done right they will have a direct impact
on your bottom line. (A global workforce
study covering over 90,000 workers in 18
countries conducted by professional services
firm Towers Perrin confirmed that companies
with the highest levels of employee
engagement increase operating income and
earnings per share.)
More articles and presentations on developing sound Human Capital strategies
Assessment Tests Contribute to Sound Selection
By Dr. Mickey Fineberg, Managing Partner, Delta
Consultants
A note from Jim Geier:
Bottom line-people are an organization's
most valuable asset. Attract, hiring, and
developing the right people will lead to
business success. However, many times
organizations struggle with, "How do I know
if this person is right for the job?" As
discussed during the PA BIO breakfast
program, assessments are one way to assist
you in answering this question. To explain
how the assessment process works and its
impact on increasing the success rate in
hiring the right person, I have asked one of
my strategic alliance partners, Dr. Mickey
Fineberg of Delta Consultants, to give his
insights based on 30 years of selection testing.
When you're starting up, running, or
participating in building an enterprise,
there is nothing more rewarding (other than
profitable growth) than knowing you have the
people playing the right roles with the right
skills, styles, and attitudes. Nothing is
more frustrating than the realization that
you've made the wrong choice. You might also
be aware that with the wrong choice comes the
penalty of two- to three-times base salary
when considering training and orientation
costs, lower productivity, missed
opportunities, and the adverse impact on
other people's morale and performance.
Increasing Success-Prediction
Power
A well-conceived test program
adds 25 to 35%
success-prediction power to the other
important elements of screening that include
experiential review, interviewing, and
referencing (including various background
checks). In essence, assessment provides a
dimension of critical information that cannot
be determined reliably by the other pieces
when it comes to identifying and selecting
the best possible people.
Essentially, selecting great people is a
combination of using one's mind and gut or
applying both science and art. Experienced
business psychologists optimize both and
enable their clients to do as well. In this
sense, a business psychologist understands
assessments, their strengths and limitations,
and how to interpret various test results
(along with interview impressions) to
determine how people will actually think and
act in the role through which they are
expected to contribute. And, the psychologist
(or test consultant) will help clients avoid
the pitfall of falling in love in the first
ten minutes and spending the rest of their
time defending their choice.
Checks and Balances
It is most
effective to use multiple
tests-aptitudes, preferences, values,
attitudes, and styles-that complement and
check and balance each other, along with
psychologist involvement. A psychologist's
involvement can include in-person or
telephone interview and assessment, or
depending on the job, client consultation
(without candidate contact) on an assessment
package that is selected based on job content
or performance-based validity.
Single published assessments that are on the
market, despite whether they purport to being
tied to a job analysis, might be okay for
ruling out already unacceptable people but
are less potent at predicting those who will
be truly successful from the standpoint of
job competency and environmental or culture
expectations. The lack of or limited
involvement of a seasoned business
psychologist also limits the capacity to
predict a truly successful contribution as
well as to provide proactive insight on how
to maximize development and retention.
A comprehensive assessment package and the
right level of psychologist involvement can
enable the projection of future potential and
the most opportunistic career track beyond
the entry position. Assessment can enable
sound promotional decisions and development
strategies for those who are perceived as
having succession potential or the capacity
to take on bigger or broader responsibilities.
More on Delta Consultants
I hope this information will help you
formulate your approach in dealing with your
human capital issues. If you are interested
in other Human Capital Consulting Partners
articles, please visit our Resource
center.
If Human Capital Consulting Partners can be
of any assistance in helping you solve your
people problems, contact us at 215-244-8110
or info@hccpartners.com.
Sincerely,
Jim Geier
Human Capital Consulting Partners
phone:
215-244-8110