Find the Right Apprentice by Asking the Right Questions

The right apprentice may be right in front of you, but they might slip by without you noticing. How does this happen?

If you’re not asking the right questions, mining for the right skills, or identifying important behavioural indicators, opportunities to snap up top-tier apprentices may be missed.

Apprenticeships are an excellent opportunity for employers to attract, train and retain talented candidates who may not meet standard job-experience requirements.

Trainee roles offer motivated, focussed and proactive candidates the chance to break through the “experience barrier” and build their career from the ground up.

But how do you know which candidates have what it takes to make it and how do you find the right apprentice?

Take the guess work out of the equation.

Identifying the specific skills, aptitude and even personality traits your business requires from a trainee is important. Ensuring you know what you need before hiring your apprentice is vital.

An apprentice who seems a good fit on paper or in an interview may prove to be the wrong choice once in the role.

Don’t rely on guesswork to inform your hiring decisions, make your first choice the right choice.

How to find the right apprentice.

Ask yourself: what does my company need from an apprentice?

A natural communicator with keen business instincts?

Or a candidate with strong leadership potential?

A trainee with a natural understanding of safety issues?

At Testgrid, we specialise in helping organisations identify the right trainees for the right role. We’ll provide you with tailored talent assessment, management and development tools to ensure you find the best-fit for your business needs.

Our assessment products provide critical measurements of candidates’ competencies including:

Verbal reasoning skills

Safety for apprentices

Mechanical and technical skills

Business reasoning skills

Career aptitude testing

Our expertise helps build your company’s future.

At Testgrid we are experts in psychometric testing and talent management. With over 14 years experience in assessment and testing, we help identify the candidates to lead your company today, tomorrow and beyond into the future.

Contact us by clicking on the following link: Contact us

Find the Right Apprentice by Asking the Right Questions

The right apprentice may be right in front of you, but they might slip by without you noticing. How does this happen?

If you’re not asking the right questions, mining for the right skills, or identifying important behavioural indicators, opportunities to snap up top-tier apprentices may be missed.

Apprenticeships are an excellent opportunity for employers to attract, train and retain talented candidates who may not meet standard job-experience requirements.

Trainee roles offer motivated, focussed and proactive candidates the chance to break through the “experience barrier” and build their career from the ground up.

But how do you know which candidates have what it takes to make it and how do you find the right apprentice?

Take the guess work out of the equation.

Identifying the specific skills, aptitude and even personality traits your business requires from a trainee is important. Ensuring you know what you need before hiring your apprentice is vital.

An apprentice who seems a good fit on paper or in an interview may prove to be the wrong choice once in the role.

Don’t rely on guesswork to inform your hiring decisions, make your first choice the right choice.

How to find the right apprentice.

Ask yourself: what does my company need from an apprentice?

A natural communicator with keen business instincts?

Or a candidate with strong leadership potential?

A trainee with a natural understanding of safety issues?

At Testgrid, we specialise in helping organisations identify the right trainees for the right role. We’ll provide you with tailored talent assessment, management and development tools to ensure you find the best-fit for your business needs.

Our assessment products provide critical measurements of candidates’ competencies including:

Verbal reasoning skills

Safety for apprentices

Mechanical and technical skills

Business reasoning skills

Career aptitude testing

Our expertise helps build your company’s future.

At Testgrid we are experts in psychometric testing and talent management. With over 14 years experience in assessment and testing, we help identify the candidates to lead your company today, tomorrow and beyond into the future.

Contact us by clicking on the following link: Contact us

Hiring Your Ex: It's Time To Look At Corporate Alumni

Are you overlooking a key talent pool?

We know the story all too well. The relationship ends, the respective parties move on and the chapter closes for good. But, does it really have to be that way? Let’s look at the benefits of staying friends with your ex and hiring corporate alumni.

So, is taking back an ex a good idea?

It is no secret that today, people change jobs more frequently than ever before. More specifically, Tony Audino, a Founder of Microsoft Alumni Network, stated back in 2018 that “More than 20 percent of workers change roles every year” while further predicting that the amount of disruption in the workforce will only increase in the upcoming years. It turns out that he was absolutely right. The market has never been tighter and more candidate-driven than it is today.

However, The Alumni Enterprise recently reported that an astonishing 72% of past employees would return to the company they used to work for! Additionally, the same source says that 24% of employees who turnover end up regretting their decision to leave.

With that being said, rekindling things with you ex and staying in touch with your former employees makes a lot of sense in today’s competitive job market. Not only does this group of talent know your company, but you also know them, their skills, talents, strengths and even weaknesses.

“There’s no recruitment method more cost- or time-efficient than rehiring reliable former employees,” wrote Issie Lapowsky of Inc. Magazine. “Some businesses call them corporate alumni. Some call them boomerangs, but almost all businesses will admit that rehiring top performers can drastically increase their return on investment.”

The benefits or recruiting corporate alumni

  • They already know the company. Ex employees know the company inside and out. They are familiar with your people, culture, systems, and processes. In other words, they know what to expect. This reduces the risk of a (culture) misfit considerably.
  • They reach their OPL faster. Since corporate alumni already know their way around the company, they’ll need less training and time to reach their Optimum Productivity Level (OPL).
  • They bring new perspectives. An employee who has worked for a different company for a while has probably learned new skills and experienced new and different ways of doing things. As a result, they bring fresh perspectives when they come back.
  • It’s cost-effective. Hiring an ex employee can be interesting from a financial point of view too. Not only do they need less training and time to become fully operational, it also takes less effort to recruit them.
  • They boost employee morale. When a former employee returns to their previous employer, they implicitly – and perhaps even explicitly – tell other employees that the grass isn’t always greener elsewhere. Otherwise, why would they’ve come back?

Where do you begin when it comes to rehiring?

We know that making the first move can be awkward, so we look at the things you can do to optimise your rehiring process and minimise drawbacks.

Maintain a talent pool

When employees leave your organisation, stay in touch by adding them to your talent pool. Doing so allows you to send them updates on the latest developments within the company, vacancies and other relevant information.  The candidates in your talent pool aren’t limited to just former employees with a permanent, full-time contract, by the way. A contingent worker – meaning a freelancer, independent contractor, consultant, etc. – who performed satisfactorily and who fit in the company culture should also be added to your talent pool.

Develop an Alumni Program

A Corporate Alumni program will help you build and maintain relationships with your former employees, but you have to ensure your program has a clear goal. What will the framework be and how will you promote it? Will you provide access to discounts or special perks? Will you host events or activities? How will you keep in touch?

An Alumni Program benefits the organisation by:

  • Creating advocates for life and ensuring that an employee exit isn’t necessarily the end of a relationship
  • Building on your talent pipeline for access to qualified boomerangs or potential re-hires.
  • Strengthening your employer brand – it says a lot about your organisation’s values if ex-employees are willing to advocate for you
  • Increasing loyalty amongst current employees when they see the value you add for alumni

Interview before you rehire

While it may be tempting to jump back into the familiar deep-end and skip this part of the hiring process altogether, we don’t recommend it. It is still important to have an interview process in place to:

  • Understand why they left in the first place (if you didn’t have an exit interview) and if you did, you can compare the reasons and see if the same issues might still apply.
  • Ask the former employee the same questions as any other candidate so you’ll be able to assess and score all candidates fairly.
  • Set expectations on both sides

Re-board

Things have undoubtedly changed since your ex former employee left the company, even if they were gone for a relatively short period of time. New people may have joined, old colleagues may have moved on and new ways of working have perhaps replaced old ones. This is why you will need to have a re-boarding process in place for your boomerang employees. Elements you may want to cover include:

  • New systems and technologies the employee will be using + relevant training
  • Remote work and office policies
  • Team collaboration practices and team building activities

You can use your existing employee onboarding process as a basis and adjust it where necessary to create your re-boarding program.

Rehiring a former employee can be highly beneficial for your organisation. Your alumni know the culture of your company and they can bring a fresh perspective to the business.

If you’d like to talk to us about ways to re-engage previous employees, get in touch!

Candidate Ghosting is On The Rise

The dating trend that has made its way to recruitment

Ghosting, the practice of disappearing without a word or a trace, has become a familiar and costly frustration of many human resource managers across industries. You’ve completed the interview process, decided on your top candidate, and sent out the offer letter—sounds like a win, right? Unfortunately for employers, the hiring process isn’t quite as predictable as it once was. The post-pandemic landscape means that the tables have turned and it is increasingly more common for candidates to cut off communications with employers.  In fact, candidates ghosting employers has increased by 10-20% over the past year alone. What’s more, according to a recent LinkedIn report, 95% of recruiters say they’ve experienced ghosting and a full 40% of candidates believe it’s reasonable to ghost an employer.

So, why are candidates ghosting employers?

In a candidate-driven job market, this new trend is leaving employers frustrated and confused. So what is behind this behavioral shift? Research by Robert Half found that 33% of candidates who cut off communications did because of a poor interview process – encompassing everything from unconducive interview scheduling to lack of transparency about the company, or even too many rounds of interviews. Another 23% ghosted because the job was not what they expected, and 16% disappeared without a word because the prospective employer implemented a mandatory return-to-office policy.

These findings underscore that even as employers evaluate candidates, the candidates are evaluating the company and the job in return – and they are expressing their opinions with their actions. They can afford to do so too, as the research shows that 29% of candidates who ghosted did so because they had received another job offer.

The underlying reason runs deeper than candidates simply having a choice. The Robert Half findings imply that employers are often not being sufficiently flexible about meeting candidates’ needs. Even the hiring managers surveyed recognise that, with 40% saying they lost out on a potential hire because the company could not or would not match the candidate’s desired schedule flexibility. A further 35% admitted the company had taken too long to make an offer – and the candidate moved on. And 24% said the company could not or would not meet the candidate’s salary expectations, whether these were reasonable or not.

What can employers do?

While this trend may be on the rise, there is a lot you can do to improve the talent journey at your company and ensure that you’re keeping candidates engaged—and communicative—throughout the process. Developing and implementing a proactive strategy to ensure a high-touch candidate experience can help you significantly minimise the risk of being ghosted. Here’s how to put one in place.

Develop a clear and concise talent acquisition strategy

Attracting the candidates you want starts with a recruitment strategy built on transparency and communication. The best way to do that is to work with your team to clarify your business needs for each hire and be sure that you’re keeping candidates in the loop from the beginning.  Have you made it clear from the outset what your processes and timelines are?  Do the candidates understand the stages and the gaps between each stage?  In addition to increasing the success of your recruitment efforts, this type of strategy can also help you tell your employer brand story in an authentic way. The best part? It could help to turn your candidates into your advocates or even clients. In fact, 64% of candidates who have a great talent journey say they intend to grow their relationship with the employer—even if they don’t get the job.

Communicate, communicate, communicate.

Far too many employers have ghosted candidates in the past, and it is a practice they’ve become used to, but when it comes to the interview process, the majority of candidates agree: there is nothing worse than being left in the dark. In fact,  48% of candidates feel frustrated by employers who don’t keep them updated on where they stand. The solution? You can manage each stage of the process with automated messaging so that candidates know where they are.  You know your process inside out, but candidates do not and often think the worst.  Those 48 hours that you are waiting for feedback from the hiring manager can feel like 48 days to the candidate, and you are allowing time for other organisations to poach your talent.

Above all, don’t hesitate to send a follow-up note if you don’t hear back right away. This is a great way to let candidates know that you’re not planning to ghost them and makes it significantly less likely that they’ll ghost you.

Speed up your decision-making process

According to an SHRM study, the average vacancy is taking 42 – 63 days to fill at the moment, but yet top talent is only on the market for 10 days.  So if we cannot go through our process more efficiently we are highly likely to lose the best talent to our competitors, are we then really surprised that candidates are ghosting? Employers should be aiming for a frictionless process that decreases time-to-hire without compromising the quality of hire.  During the early days of the pandemic, Testgrid worked closely with Coles when they had to suddenly hire 13,000 roles in 2 weeks, to keep the toilet paper on the shelves. We helped them streamline their hiring process, without compromising the quality of candidates that were being hired.  So within just a couple of days, the candidates were applying, being assessed for job fit using a 2-minute personality assessment, completing a recorded video interview that was screened within 24 hours by the store managers, and then an expedited onboarding process. You can read more about that here.  Streamlining the process is possible, so the question is what would that look like in your organisation? Are you utilising technology and assessments to expedite the process?

Although candidate ghosting is certainly a concerning trend, it doesn’t have to negatively impact your organisation. By being transparent, communicative, and putting your candidates first, you can establish a strong relationship and minimise the risk of being ghosted.

Ready to optimise your candidate experience? Learn how in our latest guide, where you will discover how to keep candidates happy and engaged. Want to talk to us about a personalised approach, get in touch!

The Impact of Poor CX

CX Tactics, Obstacles and who is Doing it Well

When we talk about the obstacles to providing a positive Candidate Experience (CX), we could simplify down to 3 factors.

1. Cost – “it costs too much for X system to improve our CX”
2. Time – “it takes time to provide quality feedback to candidates”
3. Resources – “we don’t have the people to communicate to candidates”

Notice anything? The above applies to every aspect of your business. These excuses are no more valid for not achieving your CX goals than they are for missing hiring or sales targets.

So, what is getting in the way of providing a good CX? In this article we will look at some key components that make a good CX process, we will address the impact of poor CX and some examples of good candidate experience.

Some tactics to offer a great candidate experience from LiveHire:

  • Make researching your company easy for candidates – be sure to fill your personalised careers page with company related videos or testimonials, and encourage past and present employees to review your organisation on websites such as Glassdoor.
  • Rely on candidate referrals and employee ambassadors – implement a recruitment process that allows you to create a personalised talent community so candidates can express interest in your organisation. Having the ability to express interest in an organisation removes application barriers for diverse candidates.
  • Let candidates know where they stand – empower candidates by giving them power to track their application.
  • Give candidates a mobile apply option and ensure your career page is simple to navigate – giving candidates the option of applying from anywhere, combined with the option of easy apply makes the application more accessible and improves their overall experience.
  • Help candidates prep for the interview – by using a technology platform that allows for recruiters to easily connect with candidates through on-platform messaging and SMS, they’ll feel like they can ask you anything.
  • Provide next steps and follow up with candidates – keep your candidates up to date with any changes in their hiring status. As per the above, cost, time and resources don’t cut it as excuses.
  • Invest in creating engagement with new hires before their start date – use a platform that allows you to interact with candidates via SMS or on platform messaging.
  • Increase communication with candidates and provide feedback – this one is such a given that we aren’t even going to explain further. Just do it.
  • Focus on the business impact of candidate experience – 60% of your candidates are dropping out of the recruitment funnel due to lengthy applications and 64% state they will take their business elsewhere due to bad CX.

In our upcoming webinar, we look at the above and other ways to improve your CX.

The Statistics

Examples of Good CX

Rachel O’Connell, VP, Human Resources at Great Wolf Resorts, was featured in a recent episode of the Recruiting Futures podcast, where she shared how the chain of indoor water parks view CX. She stated they view candidates the same as they do their guests, which is evident in the Jobs section of their website, from where candidates can search for their new role with the same system as if looking at one of their lodges, to texting “Greatwolf” to a phone number to schedule an interview.

Some other examples of great CX moves made by organisations are:

  • Bond University when they implemented Testgrid along with our proctoring service and achieved a 99% completion rate.
  • Coles, thanks to Testgrid, created a short assessment process integrated into their application process that reduced drop off, is WCAG compliant, and provides an option for candidates to give feedback.
  • Curtin University when they changed their candidate interview video review time to 30 seconds using Vieple, allowing candidates to re-record and ease candidate anxiety.
  • Deloitte surveying 3,000 candidates to understand their career goals as part of their continuous improvement plan for their career website.
  • Spectrum Health System setting up and preparing candidates for interviews, where they meet with hiring managers and are promised a decision that same day.
  • Capital One launched a comprehensive metrics campaign, benchmarked on asking every single person who applies a series of questions about their treatment, with a 50 to 80% response rate.

Upcoming webinar

We will be discussing the above and much more in our next webinar, we have teamed up with LiveHire to discuss the Obstacles Impacting your Candidate Experience.

#Election2022: Do Your Values Influence How You Vote?

For those of us fascinated by politics, it is certainly shaping up to be an interesting month!

While not affiliated with the ABC in any way, we have been intrigued by their Vote Compass tool: an application built by data scientists to help you identify how your personal views or values align with the positions of various political parties. All included parties were consulted throughout the construction of the tool.

Almost a million people have completed the questionnaire so far, to learn how their values “fit in the political landscape”. Topics covered include tax, climate change and immigration.

What else can our values tell us?

Political insights aside, our core values can also tell us a lot about the professions or work environments we are likely to thrive in. Values can influence our behaviour in ways we might be unaware of: for instance, they are associated with our current lifestyles, beliefs, people we like spending time with, and aversions (attitudes or behaviours that we dislike, or that really drive us up the wall!).

Values-based assessments such as the Hogan Motives, Values, Preferences Inventory (MVPI) can:

  • Shed light on areas of compatibility (or disharmony) among team members, as ‘clashing’ values can lead to conflict
  • Help ensure that a new hire’s values are consistent with the organisation’s values
  • Assess whether a candidate is likely to be productive within a specific role or environment
  • Equip managers with insights on how to motivate specific employees to succeed

The MVPI examines core values and goals that determine what we desire and strive to attain in the workplace. Generally speaking: we prefer to work with people who share their values, dislike working with those who do not, and are happiest in work environments that are compatible with our values.

 

From a leadership perspective: values can also shape the kind of culture a leader is likely to create, as well as the kinds of behaviour they may encourage or discourage. A culture characterised by recognition is likely to celebrate staff achievements in a very prompt and public manner, whereas a culture dominated by power may be competitive and results-oriented. An altruistic culture is likely to prioritise staff wellbeing and development, and community initiatives, and a culture characterised by hedonism might espouse a “work hard, play hard” mantra.

What’s important to you at work? Is it having status and a sense of control, or receiving the acknowledgment and praise you deserve? Maybe it’s being able to have a laugh with your colleagues, or helping others and giving back to society? Financial security, or financial success? A combination of these? Perhaps some of these things are essential for you to feel happy at work, whereas others are just ‘nice to haves’ or even inconsequential?

To talk to us about values assessments, please get in touch here!

Top 3 Ways To Assess Communication Skills

So, you want to assess communication skills? Start by deciding what communication means for you. Communication is a broad concept and has many levels, for example, just to name a few:

Written communication (emails, reports, proposals)

Communicating with impact (public speaking, articulating information, explaining a point: confidence and persuasiveness)

Informal communication (relating to others, building rapport, cracking a joke)

Forming connections (networking strategically and forming deep connections with others, showing understanding and empathy)

As we’re dealing with such a broad topic, if you truly want to get a thorough understanding of your candidates’ communication skills, you may want to consider the following.

Behavioural Assessment

Ever hated your job? That’s probably because it didn’t suit your behaviour. Take me for example: I. Hate. Public. Speaking. It riddles me with anxiety, my heart pounds, my hands shake and then I’m exhausted for hours afterwards from all the energy expended from my stress. Imagine if I had to do public speaking every day! I would hate my job. It wouldn’t inspire me and I’d feel unmotivated to go to work. Then I’d quit and my boss would need to find someone else. So, if you’re interviewing me for a role where I’d be presenting to large groups daily, wouldn’t you like to know this beforehand?

This is where behavioural assessments come into play. These reports show the candidate’s workplace preferences. For example, on the Saville Wave Professional Styles Assessment, there is a Competency called “Communicating Information”. This Competency refers to someone’s preference for Convincing People, Articulating Information in contexts such as public speaking and Challenging Others’ Ideas. Guess what my score was for this!

It’s important to note that this is a prediction of potential and what I prefer to do at work. I am certainly able to give a decent presentation – because I have to sometimes! I do a reasonable job, but would I like to do this every day? Hell no!

Verbal Reasoning Assessment

This same research found that although a combination of assessments and structured interviews is the leading predictor of on-the-job performance, the leading standalone predictor is cognitive ability. For jobs where communication skills are highly valued, verbal reasoning assessments are an excellent predictor of how someone may reason with, comprehend and work through problems expressed in words on the job. Skills like these are predictors of good written communication.

Structured Interviews

Comprehensive research suggests that a leading predictor of on the job performance (with a predictive validity of 0.65) is a combination of structured interviews and highly validated personality assessments. This is because personality assessments allow us to identify predicted strengths and development areas for candidates at work, and interviews help us to confirm or further investigate the results of these reports. Using multiple methods of assessment ultimately provides greater, compounded validity. This way, you get the validity and fairness of structure, alongside the human touch of a candidate face-to-face.

So what’s the perfect way to assess communication skills? Use all 3! The more information you gather, the less likely you are to make a poor hiring decision.

If you’d like more information on our range of assessments, get in touchContact Us!

Can Skills Assessments Mean Death to the Resume?

Assessing for Skills and Growth Potential.

We recently attended Talent Table’s Talentpalooza, where  Bas van de Haterd gave a compelling talk that mentioned the irradiation of the resume in the pursuit of removing bias from the recruitment process and how utilising screening tools is crucial to achieving this. In addition to removing bias, removing the need for a resume allows hiring managers to focus on candidates’ ability to perform well in a role (with the right tools of course).

In Bas van de Haterd’s words: “A resume tells me what you have done, for who and for how long. Not how well“.

But how can you determine how well a candidate will perform in a role ahead of time? This article will look at some of the pressure the current low unemployment rate is putting on Australian organisations and share some tactics you can use to look beyond the resume.

The Skills Shortage isn’t Going Away Any Time Soon.

The Australian Financial Review recently broke the news that although 159,500 international students, skilled workers, and tourists arrived in Australia in February, the skills shortage in Australia is not being resolved any time soon. Hiring managers are having to cut down job ads and let previously key criteria slide down the priority list. In fact, a recent survey of 300 hiring managers at the end of last year, found that 84% were willing to compromise on key criteria.

The most popular criteria among these criteria were:

– Education qualifications
– Technical certifications
– Years of experience

So with these criteria out of the running, how are businesses recruiting? Firstly, these criteria slipping is not the worst thing in the world. Why? Because they are not indicators of on-the-job performance. To quote Organisational Psychologist and Member of our Advisory Board, Dina Ward:

“This is the biggest challenge I put to organisations: ‘your job ad says five years experience in industry X. Why?’ That five years’ experience may not have led to their developing more skills or insights. Yet someone with two years experience may have grown and developed in meaningful ways.”

Evaluating on-the-job performance takes more than looking at qualifications or years of experience. It’s a mixture of elements that can be identified ahead of the interview with some simple steps.

Let’s take a look at a live example.  

We currently have a Sales Operations role live. We know that as you read this article, the unemployment rate is 4% in Australia (expected to be 3.35% later in the year). We know that we may get fewer candidates applying for this role than normal and that the candidate pool will be more varied than usual. The applications will be mixed in previous experience and industry while boasting transferable skills that may allow them to thrive in the role.

So how will we be approaching filling this role? Let’s split this into 2 simplified methods (we will go into more detail during our upcoming webinar).

1. Hiring for culture add with behavioural assessments
2. Hiring for on-the-job performance with cognitive and skills assessments

In the first process, we can determine whether candidates may add to Testgrid’s culture by ensuring they have the appropriate behavioral traits to succeed in the role.

In the second, we can predict on-the-job performance by assessing applicants’ skills and cognitive ability to perform the role. Take Excel for instance; the role is data-heavy, so this is a crucial hard skill that candidates must bring to the role. As a result, we won’t be knocking back anyone because they don’t have 5 years of sales experience if they show the ability to perform such a crucial part of the role and have the cognitive ability to learn as they go..

So where does that leave resumes? 

We aren’t the first to say it but relying, particularly solely, on resumes should be a big no-no in your organisation. A quote from ERE Media’s blog WAY back in 2012 summarises the challenges with resumes perfectly:  “Resumes are, at best, self-reported descriptions of historical events.” and that “Resumes frequently contain untruths and half-truths…as many as 80% of resumes contain misleading statements. And on average, 53% contain actual lies.”

10 years later the “upload your resume” button is all too prominent on job ads, so for now, the old-fashioned way seems to be the preferred method for some. But in an increasingly competitive job market, where the cost of staff turnover continues to rise, can you really afford to take the chance by not focussing on the requirements of your role and assessing your candidates’ on-the-job performance.

If you would like to learn more about how you can implement skills-based hiring into your process, check out our recent guide on Skills-Based Hiring here.

Register for our Upcoming Webinar on Validating on-the-Job Performance

You can learn more about skills-based hiring and assessing on-the-job performance in our upcoming webinar with our Assessment Lead, Josie Miller who will be joined by Testgrid’s Talent Assessment Consultant, Amber Deague-Hall, where they will be discussing how organisations are using skills assessments to predict on-the-job performance and just why the method is critical in today’s market.

upcoming webinar banner

How Committed to Diversity are Australian Organisations, really?

A look at how many Australian businesses are tracking the success of their D&I goals.

Promoting a diversity and inclusion culture is one of the key goals set for HR departments and business leaders. Many organisations state they strive towards this goal, and many do, but how important is diversity and inclusion to organisations overall objectives really?

How do organisations hold themselves accountable and put their money where their mouth is when it comes to championing diversity and inclusion? How many say they strive towards inclusivity but have no tools or processes in place to back up such a claim? How many just don’t bother at all?  In this article, we will look at the data surrounding these factors to understand how investment in diversity and inclusion is progressing.

Setting and Achieving Diversity and Inclusion Goals

When we want to achieve a goal in our organisation, we take a strategic planning or project management approach by creating a strategy with actions that edge us ever closer towards achieving that goal. Your Diversity and Inclusion goals are no different and should be treated the same as any other commercial objective if they are to be achieved. Many organisations start out well with their Diversity and Inclusion initiatives, but a vast number of these initiatives prove ineffective or fail within a year or two. Why? The details and depth of strategic thinking behind them is as thin as the paper they are printed on.

This is unsurprising when you consider that most diversity and inclusion initiatives are developed to comply with corporate governance and self-regulation.  For example, in many workplaces, these initiatives are usually poorly funded tactical inclusion initiatives disconnected from broader, more substantial, and well-funded general training programs. They may be well-meaning, but they are misguided in their approaches.

In ELMOS’s 2022 HR Industry Benchmark Survey, when respondents were asked, what metrics are used to measure success? Over 35% of HR professionals stated that engagement and retention were the top metrics, whereas only 14% stated diversity and inclusion targets as success metrics. If only they knew that diverse and inclusive organisations work 12% harder, are 19% more likely to stay longer with the organization, and collaborate 57% more effectively with peers.

 

Source: ELMOS Benchmarking Report

That leaves 86% of organisations not using diversity and inclusion as a success metric, so how can organisations truly promote a D&I culture if such a large majority don’t measure it at all? diversity and inclusion is far more than an “HR issue.” It should be a core ingredient in the design and execution of business strategy and embedded in the activities of the organisation day in, day out.

The key to driving results in workplace diversity lies in uncovering your employees’ passion points, channeling initial efforts toward those, and setting attainable diversity goals to match.

Take inspiration from the circumstances unique to your organisations. What is most relevant to your team may vary depending on your company size and industry, and factors that inflect diversity – like specific departments, seniority, and type of diversity (gender, ethnicity, background, disabilities, and more).

How To Track Diversity and Inclusion Success

“What gets measured, gets done” is particularly relevant for diversity and inclusion, because the biases that perpetuate workplace inequality are largely unconscious and automatic. Metrics help employers committed to diversity and inclusion stay on track by encouraging the identification and management of bias blindspots—mindsets and practices that promote homogeneity but which are largely hidden.

There is no standard or universal set of metrics to measure diversity and inclusion. Each company should take a personalised approach to decide which metrics they want to measure.  The best, most effective diversity and inclusion metrics will be a blended approach that starts with representation measures — who have you hired, retained, and promoted — and adds data that provides insights into how inclusive the company culture is.

For example you might track:

  • The diversity of employees v the diversity of your talent pool
  • The diversity across organisation levels
  • Job satisfaction and Job retention

Consider softer, non-obvious measures such as:

  • Who is and isn’t talking in group meetings
  • Who is and isn’t taking part in non-compulsory activities (team lunches, games)
  • Males taking parental leave

Top Challenges for HR in 2022

When ELMOS’s survey asked what the top challenges for organisations will be in the next 12 months, only 8% of them stated that diversity and inclusion will be a challenge in 2022. We must ask what this means? Are organisations doing D&I so well that they don’t foresee any challenges or are they just blind to the challenge? The abovementioned 86% of organisations not using diversity and inclusion as a success metric would suggest the latter.

2022 Challenges:

diversity and inclusion HR objectives

When the survey asked about where diversity and inclusion sits in their list of priorities, 34% of respondents stated high (up from 31% in 2021) and 39% stated medium priority (up from 37% from 2021). When the survey asked about where diversity and inclusion sits in their list of priorities in terms of budget allocation, 34% stated high with 39% stating D&I as a medium priority.

Diversity and inclusion KPIs

In total that makes 64% of organisations dedicating budget to diversity and inclusion initiatives or technology in 2022. This is a positive sign, as although 86% are not setting KPIs for their D&I activity, the report shows that these 64% are investing in diversity and inclusion, either to continue or start their journey towards an inclusive and equal workplace.

Costs of Poor D&I

We must, however, call upon the remaining 26% (the 19% that stated low and the 7% that stated D&I as not a priority) that are trailing behind to review the benefits of diverse and inclusive workplace for their business (view guide here). We have provided a few below:

  • 67% of job seekers say diverse workforce is important when considering job offers (Glassdoor).
  • Organizations that prioritize diversity and inclusion are 35% more likely to have better financial returns than companies that don’t (McKinsey & Co.)
  • Additionally, a study by Deloitte found that diversity and inclusion in the workplace can boost innovation by as much as 20%.
  • Diversifying your team can help boost productivity by 35% (McKinsey & Co.)

D&I is an important factor for many of today’s job seekers, 70% of whom say. You can learn more about the benefits of improving your organisation’s D&I and how to roll out a strategy in our Guide to Diversity and Inclusion: Starting Out On The Journey eBook.

Now is not the time to be losing employees or candidates to lack of diversity

We are approaching a quarter of the way through 2022 (I know right?), Australian unemployment is currently sitting at 4% (the lowest it has been since the financial crisis in 2008), which means the job market is more competitive than it has been in the last decade.

The current cost to fill a vacant position is up 127% on the previous year and the number of days to fill a position has increased by 21% to 40 days.

diversity and inclusion cost to fill a position

2021 data shows that it can cost up to 33% of an employee’s salary to replace them and based on current average salary data that equates to an average cost of $19,000.

You can learn more about the cost of low engagement and replacing staff by downloading our Finding and Keeping Engaged Employees eBook.

Get in Touch

If you want to talk to one of our experts about how we can help drive your success with the right people, we are offering a gap analysis with on of our expert team. Simply sign up and book a time or contact hello@testgrid.com.

You can learn more about the importance of Diversity and Inclusion in Part 1 of our D+I Ebook series.

3 Leadership Challenges to Act on Now

Strong, empathetic and effective leadership has never been more important.

This year has brought with it a whole plethora of leadership challenges for businesses. I mean, where to begin at this point but let’s have a look.

First, we have the great resignation, with employees coming out of lockdown(s) now fleeing their employers in droves to move to organisations that are more in line with their needs/beliefs or due to how they were treated during multiple lockdowns or to pursue a whole new career or even go freelance.

Then we have the skills gap, as a result of border closures and other pandemic-related mayhem. PWC recently reported that 75% of Australia’s CEOs (and 79% globally) are concerned about the availability of key skills and many other sources cite the skills shortage as a key problem.

Then there is the increasing competition for talent, as a result of the above. Many organisations are bending over backwards to provide candidates with attractive packages that include sign-on bonuses, flexible working and development programs.

We know that employee engagement is now more crucial than ever before and our customers tell us that now is not the time organisations want to be losing top talent as a result of lack of engagement or sub-par leadership.

Key Leadership Challenges

We have spoken to our customers and surveyed the feedback from organisations across multiple sectors to uncover the top challenges they are facing when it comes to leadership and navigating these issues. Below are the top 3 challenges facing leaders.

1. Talent acquisition, retention, and re/upskilling Leadership Challenges

KPMG’s recent “Keeping us up at Night” survey cited that 69% of HR professionals stated that this is a major concern for them this year and given the competitive nature of the job market, we understand why.

Our recent “Finding and Keeping Engaged” employees series shows that it costs on average 33% of employee’s salary to replace them should they leave and according to the Australian Bureau of Statistics, 31% of workers are planning on moving on from their organisation this year.

2. Managing Remote Working & Return to Work Leadership Challenges

This is a crucial challenge many businesses are now navigating. With varying rules/guidelines across Australia regarding where employees should be working now that we are through the brunt of the pandemic, many organisations are trying to implement the best strategy for their business, while managing the needs of their employees.

Many employees have simply adjusted to working from home and the benefits that come with this. From work style preferences to being closer to family to no longer having to plan for the long work commute, it’s difficult to get staff back in the office, particularly when the competition offers flexible working.

Check out our recent blog on managing virtual teams, where we looked at how leaders can utilise not only digital platforms but leadership tactics that allow managers to get the most out of their staff while ensuring employee engagement.

We also have highlighted a range of Return to Work tools you can use to introduce employees back into the office.

3. Developing Leaders

The CEO Leadership Report surveyed over 360 CEOs and more than 2,000 HR professionals found that just 38% of them deemed their mid-management leaders to be “very good” or “excellent”. This suggests that organisations are failing to develop middle-management to eventually take on C-Suite positions.

This year it is crucial that organisations train their leadership team to better manage their direct reports and to provide the skills they need to lead and therefore be considered for roles within the C-Suite.

This training must focus on training leaders to adapt to an ever-changing landscape in real-time, as well as develop empathy and an emotional connection with their teams to reduce flight risks.

You can view our leadership development packages here to find out how Testgrid can help you tackle these challenges.