PI WorldWIde recruitment and retention trends survey Q2 2015

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1 PI Worldwide Recruitment and Retention Trends Survey Q2 2015

2 Respondent Details Industries Variety of industries, with the majority of respondents from Business Support and Logistics, Education, Finance and Financial Services, Healthcare and Manufacturing Department Line Management, OD/ Learning, Recruitment, other 28% HR 72% VP and above 17.8% Manager 36.3% Business (1 to 250 employees) 40% role Number of respondents Total: 287 Other 17.8% Director 27.5% -Sized Business (251 to 1,000 employees) 22% -Sized Business (1,001+ employees) 38% 2

3 businesses believe they excel in hiring and retaining employees businesses, more so than medium and large, feel confident in retaining and hiring employees, but find internal communications challenging. Rank the order of how you feel your company excels in the following (1 = weakest, 5 = strongest): Strongest Weakest Hiring and Retaining the Right Talent Growth Strategy and Change Management Internal Communication Effective Team and Leadership Development Fostering Culture Over the past year, how would you categorize your new hire retention rate? 44% 10% 35% 18% 25% 18% Below Average Average Above Average 3 46% 47% 57%

4 Biggest talent management challenge for small businesses is finding/sourcing people businesses struggle with finding/sourcing (attracting) the right talent, whereas medium and large organizations see finding/sourcing and retention as equally challenging. When it comes to talent management, what s the biggest problem for your company? Finding/sourcing (attracting) 65% 45% 40% Interviewing and selecting 10% 10% 10% Retaining top performers 19% 42% 42% I don t know 5% 3% 8% 4

5 businesses make more successful hires than most, but THERE IS still room for improvement businesses report a greater percentage of successful hires than medium and large companies, but more than half of the respondents consider only 40 79% of their hires to be successful. businesses report a much larger percentage of bad hires. What percentage of your new hires would you consider to be successful hires? 20% 26% 21% Percentage of hires that are successful 43% 43% 47% 80% or more 37% 31% 60 79% All the rest Percentage of respondents from small companies Percentage of respondents from medium companies Percentage of respondents from large companies 32% 5

6 Almost 50% of unsuccessful hires due to behavioral discrepancies or inadequate skills When asked why a new hire wasn t a fit, almost half (47%) of all companies cited either behavioral discrepancies or inadequate skills as the reason. However, companies still rely primarily on interviews and less than 40% use behavioral or personality assessments, or knowledge/skills tests. Why don t new hires work out? 35% 30% 25% 20% 15% 10% 5% Behavioral Inadequate Job description Interview Employee discrepancies skills didn t match process was misrepresented expectations not effective his/herself 6

7 Interviews still king to all other vetting methods, less than 50% use other tools or methods to help Which tools do you use to vet candidates? 100% 80% 60% 40% 20% Job Cognitive Knowledge Face-to-face Personality Workforce None of simulations assessments and skills interviews or behavioral analytics the above tests assessments 7

8 Skills, experience and education dominate job descriptions, soft skills lacking Companies of all sizes are not including soft criteria, such as personalities and behaviors, in their job descriptions. They re inadvertently narrowing their own candidate pools by concentrating on only the hard criteria. What do you define in your hiring criteria/job description? (check all that apply) 100% 62% 91% Skills needed 53% 32% 46% Behavior required 88% 49% 72% Past experience 46% 27% 28% Personality attributes 89% 52% 82% Education level 8

9 Shallow pool of candidates is seen as a major pain point by companies of all sizes Which aspects of your hiring process do you feel could be improved? (check all that apply) More accurate job descriptions More thorough candidate screening More detailed interview questions Finding a better candidate pool Nothing needs to be improved 9

10 Almost 75% of large companies have lost a top performer due to a poor performer A significant portion of companies of all sizes report losing top performers due to the actions of poor performers. And while small and medium businesses terminate poor fits, large companies opt to do nothing more frequently than terminate. Has a top performer ever left due to the actions of a poor performer? 60% 40% 26% 74% 42% 58% Yes No 10

11 Almost 20% Do nothing with poor fits How do you deal with a poor fit? Shift employee Offer peer and Offer skills Terminate the Do nothing to different role management training employee coaching 11

12 Companies of all sizes use job-specific training to address gaps in their workforces, more so than coaching Job-specific training is the #1 way organizations are dealing with workforce gaps, with mentoring and coaching second, but ¼ of small companies have no formal process. How do you address gaps in your current workforce? (check all that apply) 66% 40% 57% 74% 41% 69% 44% 28% 51% 36% 24% 28% Mentoring and coaching Job-specific training General skills training Job shadowing No formal process 26% 13% 20% 12

13 Over 50% still using bonuses and public recognition as major employee motivators Motivating through bonuses appears to be at odds with compensation as the #1 reason for turnover. Career development is also a big challenge for companies of all sizes. Beyond regular comp, how do you motivate your employees? (check all that apply) Bonus Comp time Early promotions Early performance reviews Public recognition/ acknowledgement No additional rewards 13

14 Compensation and lack of career development primary reasons for voluntary turnover Please select the three most common reasons someone voluntarily leaves your company Compensation Conflict with peers Conflict with managers Change of management or culture Poor job fit Lack of recognition Insufficient onboarding Lack of career development 14

15 Most companies have informal meetings on a monthly basis r companies are moving toward a twice yearly performance review schedule, and tend to meet weekly as teams. How often do you meet informally with teams to discuss performance? Daily Weekly Monthly Quarterly Semi-annually Annually I don t know 15

16 Over 60% of companies hold annual performance reviews no follow up in between How often do formal performance reviews take place? 3% 2% 16% 3% 2% 32% 14% 3% 5% 21% 64% 63% Once a year Twice a year Quarterly Monthly 70% 16 No formal process

17 ABOUT PI Worldwide Serving more than 8,000 clients across 142 countries and delivering solutions in 77 languages, PI Worldwide empowers business leaders to truly understand what drives workplace behaviors. With scientific validation and a 60-year proven track record, our proprietary Predictive Index system functions as the heart of our behavior and skills assessments, people analytics software, and instructor-led management workshops. Business challenges big and small are no match for our unique approach to client education and knowledge transfer, which ensures swift adoption, direct ROI, and high impact on performance metrics. Each year, 2.5 million PI assessments are administered and over 7,000 professionals are trained in our workshops. Visit to learn how our solutions can help you find and select the right talent, reduce employee turnover, develop managers and leaders, and increase employee engagement. Follow PI Worldwide! linkedin.com/company/pi-worldwide twitter.com/piworldwide facebook.com/piworldwide youtube.com/user/piworldwide

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