ROI and the Talent Acquisition Pipeline Jonathan M. Canger Verizon Wireless [e-mail]

1
ROI and the Talent Acquisition
PipelineJonathan M. CangerVerizon
Wirelessjonathan.m.canger_at_verizonwireless.com
USF HR ROI 2007 Conference Tampa, FL February
15, 2007
2
A Biased, Condensed History of the World (of HR)
1. Industrial Revolution (late18th Century)
- First factories with large s of workers.
Labor viewed as a commodity 2. Scientific
Management /Engineering (Late 19th Century)
- Frederick Taylor time and motion / industrial
engineering studies. 3. Industrial Psychology
(Early 20th Century) - Hugo Munsterburg
applied new science of Psychology to workplace.
- World War I Testing US Army Alpha and
Beta classification tests. 4. Human Relations
Movement (1920s)- Western Electric Hawthorne
Studies Morale Satisfaction Research. 5.
Globalization Technology (1980s)- Downsizing
MA s People as largest expense. 6. HR as a
Business Partner/Driver (1990s-today) -
Workforce 2000, Demographic Shifts,
Globalization, Technology - McKinsey War for
Talent/ Employer of Choice - Pfeffer,
Huselid, Ulrich, Watson-Wyatt HR drives
business success
3
Not So Fast View From MBAs
1. Some Very Successful Companies have Some
Dubious HR Practices 2. Some Not-So-Successful
Companies Received HR-Related Awards 3.
Companies Known For the Most Extreme HR Programs
Almost All Died 4. Some Successful Companies
Cited Their Need to Cheapen Their HR Practices
5. Some Firms Completely Outsource HR
6. Some Firms Dont Have HR Today well focus
on an area thats been shown to be related to
business success in the Watson Wyatt and other
HR-ROI research studies AND one in which I/O
Psychology has been working for decades
Employee Selection
4
I/O Psych Selection Metrics Not The Language of
Business

• Validity (relationship between scores on test
  and scores on job performance or turnover)
• Expectancy (change in superior or some other
  category of employee)
• Utility ( value of change in an employees
  performance)

5
Testing is only one step in a process
Staffing Process
6
which Is fed by Sourcing...
SOURCING
Staffing Process
7
..whose output (new employees) is oriented and
trained
SOURCING
Staffing Process
On-boarding Process
On-Boarding
Training
Orientation
8
and finally delivered to the business
SOURCING
Staffing Process
On-boarding Process
On-Boarding
Training
Orientation
9
to subsequently do things which create value or
havoc.
SOURCING
Staffing Process
On-boarding Process
On-Boarding
Training
Orientation
Performance Outcomes

1. Stay or Leave
2. High or Low Job Performance
3. Good or Bad Citizenship Performance
4. Low vs. High Absenteeism Tardiness
5. Good vs. Poor Customer Service
6. Follow or Ignore Policies and Rules
7. Embrace or Block Change
8. Recommend or Badmouth Companys Products and
   Services
9. Recommend or Badmouth Company as a place to work

10
Each Step Has Costs, and Impacts Subsequent Steps
and Outcomes
SOURCING
Staffing Process
On-boarding Process
On-Boarding
Training
Orientation
Performance Outcomes

1. Stay or Leave
2. High or Low Job Performance
3. Good or Bad Citizenship Performance
4. Low vs. High Absenteeism Tardiness
5. Good vs. Poor Customer Service
6. Follow or Ignore Policies and Rules
7. Embrace or Block Change
8. Recommend or Badmouth Companys Products and
   Services
9. Recommend or Badmouth Company as a place to work

11
An Example of the Cost Side of The Equation
If 1,000 candidates are delivered from sourcing
1000
840
512
240
141
95
87
10
25
30
33
33
20
100
10,000
21,000
15,360
7,980
4,635
1,900
8,700
The above process will yield 64 new employees to
on-boarding, at a cost of 69,575, or 1,087 per
hire
Note Above number are for illustrative purposes
only. They do not represent actual Verizon
Wireless Results
12
Re-engineered Process
1000
490
255
168
102
95
0
25
30
66
20
100
0
12,250
7,650
11,088
2,040
9,500
Note Above number are for illustrative purposes
only. They do not represent actual Verizon
Wireless Results
13
Re-engineered Process
If the same 1,000 candidates are delivered from
sourcing
1000
490
255
168
102
95
0
25
30
66
20
100
0
12,250
7,650
11,088
2,040
9,500
Note Above number are for illustrative purposes
only. They do not represent actual Verizon
Wireless Results
The new process will yield 81 new employees to
on-boarding, at a cost of 42,528, or 525 per
hire And if you only needed 64 (vs. 81)
employees, you can save more by reducing
sourcing costs, too.
14
Affecting the Performance Outcomes The Deep
Dive
15
Which Enhances Outcomes And Reduces Hiring Needs
SOURCING
Staffing Process
New Biodata
On-boarding Process
On-Boarding
Training
Orientation
Performance Outcomes

1. Stay
2. High Job Performance
3. Low Absenteeism Tardiness
4. Good Customer Service
5. Recommend Company as Place To Work