OutMatch https://outmatch.com Hiring, Keeping, and Developing Great Employees Thu, 19 Apr 2018 15:12:24 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.5 3 Reasons to Integrate a Pre-Hire Assessment with your ATS https://outmatch.com/3-reasons-to-integrate-a-pre-hire-assessment-with-your-ats/ Tue, 17 Apr 2018 17:45:15 +0000 https://outmatch.com/?p=21100 Pre-hire assessments deliver predictive analytics on job and culture fit, providing a crucial layer of insight into your applicant pool. When you you integrate an assessment with your applicant tracking system, your talent acquisition teams can access these analytics directly…

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Pre-hire assessments deliver predictive analytics on job and culture fit, providing a crucial layer of insight into your applicant pool. When you you integrate an assessment with your applicant tracking system, your talent acquisition teams can access these analytics directly within your ATS platform.

Speed to useful information is the key gain. An integration allowed our team to move faster. Without it, our tools were not going to be as effective.”

-Clay Stallings, VP of Talent Acquisition and Development at Acceptance Auto Insurance

About 90% of the companies we talk to already have an applicant tracking system in place, and more small and medium sized business are adopting pre-hire assessments after seeing how valuable they have been for enterprise organizations.

Whether you’re using an assessment for the first time, or considering a new vendor, integration is going to be a key concern. Many companies require that all tools and technologies integrate with their core HR systems, but if you’re on the fence, here are the top three reasons to integrate an assessment with your ATS:

1. Seamless candidate experience. Having an integrated assessment keeps candidates engaged, and makes the application and assessment one simple, seamless process. Candidates stay plugged into your ATS, and you reduce the risk of drop-off as you’re not requiring them to jump from one system to another.

2. Greater recruiter efficiency. With an integrated assessment, recruiters will see a shortlist of top candidates for the job, along with job match scores, candidate rankings, and more—right within your ATS. The ease-of-use, plus the tremendous time savings in early screening results in a highly efficient recruiting process.

3. Competitive edge in recruiting. OutMatch Assessment provides recruiters and hiring managers with critical data on culture fit, as well as a candidate’s likelihood of success in the role. By integrating the assessment into your process, you greatly sharpen your team’s decision making capabilities, and give your organization a competitive edge in identifying and selecting top talent.

To learn more about ATS integration, check out our 1-pager: 5 Reasons to Integrate OutMatch with your ATS. Or, to learn more about adding predictive analytics to your selection process, download our eBook: The Essential Guide to Predictive Talent Analytics.

   

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How to Overcome Integration Frustration in HR https://outmatch.com/how-to-overcome-integration-frustration-in-hr/ Mon, 16 Apr 2018 17:18:49 +0000 https://outmatch.com/?p=21076 With the rapid evolution of HR technology, the human resource function has become a high-powered machine. From applicant tracking to employee engagement and culture analytics, the HR space is jam-packed with systems and tools. Managing those systems and tools is…

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With the rapid evolution of HR technology, the human resource function has become a high-powered machine. From applicant tracking to employee engagement and culture analytics, the HR space is jam-packed with systems and tools. Managing those systems and tools is a full time job.

While many of the administrative functions in HR, like payroll processing, have been offloaded to technology, we’ve seen an entirely new administrative function emerge. Human Resources Information Systems (HRIS) Administrators exist because companies need a person, or a team of people, to manage databases, tools, and security across their HR systems.

Needless to say, there are a lot of moving parts within HRIS, and integration is a requirement. Period. The goal of integration is to create a smooth, seamless experience, but often the process of integrating is neither smooth nor seamless.

HR Data Integrations Don’t Have to Be Painful

Almost any HR tech vendor will tell you their tool can integrate with your core HR systems. But not all integrations are created equal. How the vendor handles integration could mean the difference between quick implementation and long, drawn-out development cycles.

Here are a few things to listen for as you consider adding new technologies to your HR stack.

1. Certified standard integration. This simple means, does the connectivity between systems already exist, or will it require a custom build? The answer will help you understand when you can expect to go live with your new piece of software. Without a certified standard integration, you’re looking at weeks, or possibly months, of development time.

2. Self-managed, or point-and-click integration. This tells you if there’s a user-friendly interface that goes along with the integration. Some software vendors make it easy for a user, like your Manager of Talent Acquisition, to set up and manage the integration, while others require changes in the back-end that only a system analyst or a software consultant can do.

As HR continues to evolve, so must HR technology. Look for vendors that are dedicated to making things like integration easy. That’s a sign that the technology itself is built around innovation and a desire to make work-life easier for users from the get-go.

To learn about integrating a pre-employment assessment with your applicant tracking system, watch our webinar: How to Make Your Hiring Process Predictive and Pain-Free:

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OutMatch Implements Machine Learning to Streamline by-the-hour Hiring with the Sector’s Fastest Assessment https://outmatch.com/outmatch-implements-machine-learning-to-streamline-by-the-hour-hiring-with-the-sectors-fastest-assessment/ Wed, 11 Apr 2018 18:18:25 +0000 https://outmatch.com/?p=21051 OutMatch, a workforce predictive analytics solutions provider, has announced the use of machine learning to transform by-the-hour hiring for both candidates as well as companies. The company claims that its pre-hire assessment tool is the fastest in the industry, and…

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OutMatch, a workforce predictive analytics solutions provider, has announced the use of machine learning to transform by-the-hour hiring for both candidates as well as companies.

The company claims that its pre-hire assessment tool is the fastest in the industry, and can help complete the same in half the time – helping firms expand their talent base and place the right people for the right jobs.

Further, the use of machine learning techniques also helps drive better predictability in hiring. By effectively analyzing post-hire data patterns, and integrating the same into the assessment process, general work traits, success patterns, and other personality insights – both in terms of the role as well as a fit for the organization are more sharpened and refined, thereby enhancing hiring quality.

Speaking on the ocassion, Greg Moran, CEO & President, OutMatch, shared his thoughts on the approach:

“We are breaking new ground in the assessment industry by requiring candidates to answer fewer questions but giving companies better results; Using machine learning, we are broadening what we call the OutMatch Impact: arming companies with robust predictive analytics so they can hire and develop the right teams to drive productivity and profitability.”

The streamlined assessments are targeted for the filling of hourly roles, which is critical in a complex hiring landscape.

OutMatch offers nearly 20 million scientifically-proven candidate assessments, every year across over 20,000 locations. It is powered by a robust data set, and helps companies predict candidate success, in a role – thereby aiding hiring and refining the same. Further, the company works with large, decentralized firms that have very high-volume hiring requirements in the hospitality, retail, healthcare, property management, and F&B sectors. Its clients include American Airlines, Adidas, Brinker International, and HCA Healthcare.

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Is Myers Briggs the Right Assessment for Talent Selection? https://outmatch.com/is-myers-briggs-the-right-assessment-for-talent-selection/ Fri, 06 Apr 2018 12:13:48 +0000 https://outmatch.com/?p=21034 The Myers Briggs Type Indicator® (MBTI®) is one of the most widely used and well-respected personality instruments in the world. About two million people in the U.S. take the MBTI each year, and it’s been translated into over 30 languages.…

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The Myers Briggs Type Indicator® (MBTI®) is one of the most widely used and well-respected personality instruments in the world. About two million people in the U.S. take the MBTI each year, and it’s been translated into over 30 languages.

The MBTI provides fascinating insight into what drives an individual, how they interact with others, and how they might react in certain situations. But is it the right tool for talent selection?

Despite its popularity, and the fact that the MBTI provides gratifying narratives that describe what type of person you are, this test doesn’t have much utility beyond self-understanding. People find it interesting to learn about themselves. The MBTI might help someone decide on a general career path (“INTJs make good scientists”), but it’s not meant for employers to evaluate a candidate’s fit for a particular job.

Why not? Unlike assessments that are designed for talent selection, the MBTI doesn’t measure work-related aspects of an individual’s personality, and it doesn’t compare the results to specific job requirements, or a job success model.

Ipsative vs. Normative: What’s the Difference?

Myers Briggs and other ipsative tests like DISC (which measures Dominance, Influence, Conscientiousness, and Steadiness) are type-based tools. In the MBTI, test takers fall into one of sixteen personality types, indicated by four letters, such as INTJ, ESFJ, ENFP, etc.

An ipsative test compares traits within an individual and identifies which traits are stronger than others. For example, someone might be more assertive than they are energetic. But this type of test won’t tell you how that person compares to other candidates in your applicant pool.

When you break down the scoring on a personality test used for talent selection, you need to know two things:

  1. Where does a candidate fall on a particular trait (like assertiveness) compared to others? For this, you need to use a normative test, which measures an individual’s traits against a norm of standard performance. On an ipsative test, candidate A may show high assertiveness, but on normative test, you might see that candidate A is actually 2X less assertive than candidate B.
  2. How will a trait like assertiveness effect job performance? For customer service jobs, assertiveness isn’t as important as a trait like energy or accommodation or sociability. Measuring assertiveness for a store associate position might be interesting, but it won’t help you choose the candidate who will perform best on the job.

When to Use an Ipsative Assessment, and When Not To

As you can see, it’s essential to choose an assessment that fits your purpose. Myers Briggs and other ipsative tests work well for personal development, coaching, and vocational counseling. These tests can also be used for team building, as learning about coworkers’ personalities and work styles can help manage interactions within a team or department.

But when it comes to making hiring or promotion decisions, where you must compare and rank people against each other, an ipsative test is not the way to go.

For talent selection, you need a normative test, like OutMatch Assessment, which identifies candidates as a strong, good, fair, or poor match for the job, and provides a ranking that compares candidates to others applying for the same job. OutMatch Assessment also identifies areas where candidates are likely to struggle, and provides a development guide to help them become more effective in the role.

Want to learn more about using assessments for talent selection and employee development? Tour the OutMatch Platform today.

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Top 5 Emerging Priorities for HR https://outmatch.com/top-5-emerging-priorities-for-hr/ Wed, 04 Apr 2018 01:24:47 +0000 https://outmatch.com/?p=20998 A recent people management survey asked over 600 HR executives, “What are your top people management initiatives for 2018?” The answer revealed common themes, as well as emerging trends in HR. The 2018 survey, which was also conducted in 2017…

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A recent people management survey asked over 600 HR executives, “What are your top people management initiatives for 2018?” The answer revealed common themes, as well as emerging trends in HR.

The 2018 survey, which was also conducted in 2017 and 2016, added a third year of consecutive data to the study. In 2018, employee engagement took the top spot as priority #1 for companies of all sizes (over 1,000 employees and under 1,000 employees). Company culture came in second for companies over 1,000 employees, and third for companies under 1,000 employees.

These results are consistent with the culture and engagement initiatives we’re currently seeing across HR. Both company culture and employee engagement made it in the top three people management initiatives in the survey for three years running—which isn’t a huge surprise. What’s interesting, though, is the emerging priorities we’re beginning to see for the future, such as:

1. Recruiting and Talent Acquisition: How to source and select talent in a cost efficient and effective manner.

2. Change Management: How to manage HR priorities through mergers and acquisitions and/or strategic change.

3. Inclusion and Diversity: How to recruit, develop, and retain a diverse workforce. One survey respondent said,

Everyone in our industry is talking about diversity, but the numbers aren’t moving. We’re going back to the drawing board to change this.”

4. Remote Workforces: How to manage workforces that are increasingly full- or part-time remote. Another survey respondent said,

80% of our workforce work remotely or from small satellite offices. We’re struggling to maintain consistency in our strategy and culture.”

5. Retention of High Potential Employees: How to retain and develop high potential and high-performing employees.

Do these HR priorities align with yours? Get ready to pay close attention to these areas in the near future. For a full recap of the results from the 2018 People Management Survey, watch our webinar on-demand.

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OutMatch Uses Machine Learning to Transform Hourly Hiring With the Industry’s Fastest Assessment https://outmatch.com/outmatch-uses-machine-learning-to-transform-hourly-hiring-with-the-industrys-fastest-assessment/ Tue, 03 Apr 2018 12:44:54 +0000 https://outmatch.com/?p=20926 Candidates can complete assessments in half the time, giving companies a wider talent pool and better predictability Dallas, TX – OutMatch, a leader in delivering actionable predictive analytics to build world-class workforces, is using machine learning to transform hourly hiring…

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Candidates can complete assessments in half the time, giving companies a wider talent pool and better predictability

Dallas, TX – OutMatch, a leader in delivering actionable predictive analytics to build world-class workforces, is using machine learning to transform hourly hiring for both candidates and companies. With the launch of the industry’s fastest pre-hire assessment, candidates can complete assessments in half the time, enabling companies to expand the talent pool and better predict the right people for the right jobs.

Candidates for hourly roles can now complete assessments in less time than it takes to brew a pot of coffee – a sea change in the assessment industry that greatly improves the candidate experience. It gives candidates a positive first impression of a potential employer, which enables companies to enhance their recruitment brand and attract more potential employees.

Just as importantly, the use of machine learning techniques improves predictability in hiring. By analyzing post-hire data and integrating it into the assessment process, the work traits and competencies most predictive of success, both on the job and within a corporate culture, are refined and sharpened even as the number of assessment questions is reduced.

“We are breaking new ground in the assessment industry by requiring candidates to answer fewer questions but giving companies better results,” said Greg Moran, President and CEO of OutMatch. “Using machine learning, we are broadening what we call the OutMatch Impact: arming companies with robust predictive analytics so they can hire and develop the right teams to drive productivity and profitability.”

The streamlined assessments are initially targeted to fill hourly roles, which is particularly timely amid a tight employment market. Since the shorter assessment will not discourage candidates from applying, companies are still able to gather pre-hire data and ensure they are hiring the best person for the job.

OutMatch delivers nearly 20 million scientifically proven candidate assessments annually at over 200,000 locations. Powered by an unequalled data set, companies can predict candidate success on the job, measure the impact of hiring, and continually refine their hiring process. OutMatch works with large, decentralized organizations with high-volume hiring needs in the hospitality, restaurant, retail, healthcare, and property management industries, including recognized names such as American Airlines, Adidas, Brinker International, and HCA Healthcare, among others.

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About OutMatch

OutMatch is transforming the world of work by helping companies hire, retain, and develop great talent. We deliver actionable workforce analytics that predict employee success on the job and measure fit with a company’s unique CultureDNA™, so companies hire the right people—the absolute best match—and develop them into premier employees who drive improved customer satisfaction and increased revenue. For more information, visit www.outmatch.com or @OutMatchHCM.

Contacts

Jason Ferrara
Chief Marketing and Strategy Officer, OutMatch
(972) 764-0077 | jferrara@outmatch.com

Steve Janack
Principal, The Janack Group
(518) 810-8050 | steve@thejanackgroup.com

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Exclusive Retailer of Fitness and Athletic Apparel https://outmatch.com/exclusive-retailer-of-fitness-and-athletic-apparel/ Fri, 30 Mar 2018 16:54:47 +0000 https://outmatch.com/?p=20921 Background: This retailer operates close to 200 corporate and franchise stores across the U.S. Their mission is to bring local fitness and running communities together through passionate and expertly-trained staff, and they’re dedicated to providing a top-notch customer experiences. Challenge:…

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Background: This retailer operates close to 200 corporate and franchise stores across the U.S. Their mission is to bring local fitness and running communities together through passionate and expertly-trained staff, and they’re dedicated to providing a top-notch customer experiences.

Challenge: The company is focused on growth, especially through new franchise openings and store conversions. During this growth period, they want to make sure they maintain quality staff that fits their culture and brand.

Solution: Workpop, the company’s ATS provider, referred them to OutMatch because of our seamless ATS integration. Using OutMatch Assessment, the company will quickly identify and shortlist top candidates as they hire and grow their business. OutMatch will also provide success modeling to identify the key behaviors and success factors that are critical for all employees across this company. The company plans to roll out to corporate locations and expand to franchises in the near future.

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Nationwide Retail Chain Saves $10.5M Annually by Promoting Internal Talent https://outmatch.com/nationwide-retail-chain-saves-10-5m-annually-by-promoting-internal-talent/ Fri, 30 Mar 2018 14:16:35 +0000 https://outmatch.com/?p=20904 Improved promotability of hourly staff by 114%

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Value Retailer Boosts Promotability of Hourly Employees by more than 100% after Implementing OutMatch Assessment

Download Case Study PDF

For this nationwide retailer, low promotability at the hourly level led to higher recruiting costs at the management level. They needed to improve their ability to grow talent internally. To do so, they first had to build a strong hourly staff.

Company Quick Facts

  • Industry: Retail
  • Number of locations: 8,000+
  • Number of employees: 60,000
  • Solution: OutMatch Assessment

Internal vs. External Hires

Assistant store manager role:
  • Before OutMatch: 24% of hires were internal
  • After OutMatch: 50% of hires were internal
The company boosted internal promotions by 108%.

Challenge: Low Promotability of Hourly Employees

As a value store with a lean payroll, this retailer’s top concern was store coverage. For store operators, that meant hiring anyone who walked in the door, regardless of quality or growth potential. This resulted in a shortage of qualified talent for internal promotions, and forced the company to spend more money recruiting external talent for management positions. They needed a more proactive strategy for hiring.

Solution: Assessment Predicts Employee Success

The company partnered with OutMatch for a pre-hire assessment that quickly identifies candidates with the highest potential for success. Using data from current employees, OutMatch analyzed the characteristics that predict performance in this retail work environment. OutMatch then built a predictive, candidate-friendly assessment to identify candidates as “strong match” or “poor match” for the job.

Hourly Hires Promoted in 2 Years

Percent promoted from store associate to assistant manager:

  • Not Assessed (n=2,801): 7%
  • Poor Match (n=731): 6%
  • Strong Match (n= 133,362): 15%

Strong matches are 2X more likely to be promoted.

Result: $10.5M in Annual Savings

After implementing the assessment, the company found that out of nearly 137,000 hires, those who were identified as a strong match for the job were more likely to be promoted than others. Fifteen percent of strong matches hired into the store associate role were promoted to assistant store manager within two years. In the same time frame, only 6% of poor matches were promoted, and only 7% were promoted from the group of employees who were hired without taking the assessment.

Higher promotability among hourly employees greatly reduces the number of external hires required for the assistant store manager role. Before OutMatch, the company was only promoting a quarter of its hourly staff into this role. After implementing OutMatch, the company boosted internal promotions to 50%, which is an additional 5,263 promotions per year. Because an external hire costs $2,000 more than an internal promotion, this improvement saves the company $10.5 million in annual recruiting costs.*

  • Improved promotability by 114%
  • Additional 5,263 promotions per year
  • Annual savings of $10.5M

These results clearly show that using the OutMatch Assessment to identify and hire strong matches greatly improves the pipeline for internal promotions, and delivers significant cost savings to the business.

*Using a conservative cost of $3,000 for internal hires and $5,000 for external hires.

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What’s Your Organization’s CultureDNA™? https://outmatch.com/whats-your-organizations-culturedna/ Mon, 26 Mar 2018 15:16:50 +0000 https://outmatch.com/?p=20892 Much like human DNA, your organization’s CultureDNA™ is unique to you. When you understand the genetic makeup of your organization, you can turn it into your competitive advantage by hiring people who match your culture, and then reinforcing that culture…

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Much like human DNA, your organization’s CultureDNA™ is unique to you. When you understand the genetic makeup of your organization, you can turn it into your competitive advantage by hiring people who match your culture, and then reinforcing that culture through employee engagement and continuous development.

Whether you’re a young, growing company or a well-established organization, culture is the key to your success. Your job as an HR leader is to define that culture, and align it with business strategy and goals by understanding:

  • What’s our current culture?
  • What’s our aspiration culture?
  • Where are our culture gaps?

Building Blocks of CultureDNA™

As you look at CultureDNA™, you’ll see that every organization has the same component building blocks that make up its DNA structure:

  1. Values, or beliefs about what is important of worthwhile.
  2. Norms, or expectations around appropriates behaviors.
  3. Behaviors, or the specific attitudes and actions that are needed to successfully accomplish important goals.

But, just as every DNA sequence is unique, every culture is unique.

Define Your CultureDNA™

Culture is a system that operates within your organization, whether you manage it or not. To actively manage your culture, you first have to define it. Here are a few ways to do that:

  • Focus groups: This approach involves gathering small groups of employees and leading them through guided discussions to understand their perception of the current culture. This works best for smaller companies because it takes a lot of time and resources to gather and analyze data in this way.
  • Organizational culture profile: This approach uses a web-based tool to capture survey data or analyze existing data for a large, corporate-level culture diagnosis.
  • Third party/consulting firms: This approach involves a combination of surveys and interviews that are deployed, analyzed, and delivered by a consulting firm. Because consulting firms are expensive, most companies leverage these services only when there’s an urgent need for intervention, like during a merger or acquisition, for example.

Design HR Programs around Your CultureDNA™

After you define and diagnose your culture, then the real work begins! HR plays a huge role in maintaining and/or shifting an organization’s CultureDNA™, through programs such as:

  • Recruiting and selection to ensure that new hires match your company’s culture.
  • Training and development to create programs that align with your culture.
  • Rewards and recognition, which shows people what is valued in a company, and what you’d like to see more of.
  • Role modeling from the leadership team to intentionally and visibly demonstrate desired behaviors.

Ready to get started? Watch this webinar to learn more about managing your culture: Culture DNA: How to Measure, Endorse and Turn it into Your Competitive Advantage.

 

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Technology in Talent Selection https://outmatch.com/technology-in-talent-selection/ Tue, 20 Mar 2018 18:18:38 +0000 https://outmatch.com/?p=20854 It’s an exciting time in HR. Our traditionally soft-skills industry is becoming tech-savvy. Finally! HR technology and predictive analytics are bringing precision and accuracy to talent strategy, and giving HR leaders the power to impact bottom-line business results like never…

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It’s an exciting time in HR. Our traditionally soft-skills industry is becoming tech-savvy. Finally! HR technology and predictive analytics are bringing precision and accuracy to talent strategy, and giving HR leaders the power to impact bottom-line business results like never before.

By embracing technology, HR continues to sharpen it’s decision-making capabilities. We’ve seen huge improvements in Talent Acquisition’s ability to predict a candidate’s job performance and turnover risk before making the hiring decision. Talent Acquisition is also equipped to predict and prepare for staffing shortages, and to quantify the financial impact of hiring decisions on the bottom line. All thanks to technology.

In light of such successes, employers are taking an all-in approach to technology. At the same time, they’re beginning to devalue to the human side of talent selection.

Before the rise of modern HR technology, employers had no choice but to trust the instincts of their recruiters and managers to make the right hiring decision. Employers now have the option to eliminate gut instinct and human intuition from the hiring process entirely. But should they?

What we’ve found is that HR technology and human intuition don’t have to be at odds with one another. Technology has transformed HR into a an efficient, high-powered machine. But in talent selection (and in life), balance is key.

That’s why best-in-class companies use a blended approach, valuing their teams’ ability to make good judgments about talent, and also leveraging technology to provide guidance and create an efficient, reliable, and pain-free talent selection process.

To learn more, download our white paper: Hydrangeas, Narcissists, and Intuitive Thinking: The Science Behind Intuition, and Its Role in Talent Selection.

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What Drives a Culture of Excellence? https://outmatch.com/what-drives-a-culture-of-excellence/ Mon, 19 Mar 2018 19:35:56 +0000 https://outmatch.com/?p=20870 Posted on LinkedIn by Warren Irwin, Senior Account Executive at OutMatch. This past Tuesday, I had the privilege of hosting a group of People and Talent leaders in San Francisco to discuss the timely topic of “What drives a culture of…

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Posted on LinkedIn by Warren Irwin, Senior Account Executive at OutMatch.

This past Tuesday, I had the privilege of hosting a group of People and Talent leaders in San Francisco to discuss the timely topic of “What drives a culture of excellence?”

At a high-level, our guest, Dr. Charles O’Reilly, defines culture as “a pattern of behavior that is rewarded by people and systems.”

The consensus across the thought-leaders in attendance was that achieving a strong culture requires more than just the right people, in the right roles, at the right time.

Key Takeaways:

Research confirms that organizations with leading cultural norms and higher adaptability perform better than their peers in terms of net income growth, market value, and employer ratings.

I welcome the opportunity to discuss with my network how OutMatch and Pomello, an OutMatch Company can support your efforts in attracting top talent, measuring cultural strength, and developing your leaders of tomorrow.

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What To Do about Hourly Turnover? https://outmatch.com/what-to-do-about-hourly-turnover/ Wed, 14 Mar 2018 15:32:09 +0000 https://outmatch.com/?p=20817 Hourly turnover, especially in a candidate-driven market, can feel much like a revolving door. In an hourly work environment, the pay is low and the job isn’t all that “sticky.” (Unless you’re pulling gum off the bottom of dining room…

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Hourly turnover, especially in a candidate-driven market, can feel much like a revolving door. In an hourly work environment, the pay is low and the job isn’t all that “sticky.” (Unless you’re pulling gum off the bottom of dining room tables, or cleaning buttered popcorn from a movie theater floor.)

What we’re talking about here is the challenge of retaining employees in not-so-desirable jobs, or jobs that are easy to walk away from. That’s the reality for companies with large hourly workforces, like restaurant, retail, property management, manufacturing, call centers, and countless others. You can’t change the job, and often you can’t bump the pay. HR leaders in these industries have come to accept high turnover as a fact of life.

Maybe you can’t stop turnover at the hourly level. But what if you could slow it down? Stretching an hourly employee’s tenure from 30 days to 90 days can have a surprisingly big impact.

Think of it like this:

  • You hire A, who stays for 30 days.
  • You replace A with B, who stays for 30 days.
  • You replace B with C, who stays for 30 days.

In 90 days, you’ve made three different hires. Now compare that scenario to this one:

  • You hire Z, who stays for 90 days.

Here, you’ve only made one hire. Let’s say the cost of each hire is $2,000, conservatively. In scenario 1, you spent $6,000 in 90 days. In scenario 2, you spent $2,000 in 90 days. When you multiply that out across your entire hourly population, it adds up to big savings.

Here’s an example: A retail client of ours hires over 60,000 hourly employees per year. That’s 15,000 hires per quarter on average (not accounting for seasonality). Hiring people who turn over early (within 30 days, for example) could potentially triple this client’s number of vacancies from 15,000 to 45,000 per quarter. On the flip side, hiring people who are more likely to stay for 90+ days could reduce their number of vacancies from 15,000 to 5,000 per quarter. What a difference!

To learn more about hiring’s effect on turnover, as well as internal promotions and customer experience, check out our white paper: The Business Case for Hourly Assessments.

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