How Tapping a Candidate’s Can Do and Will Do Drives the Bottom Line Building the bottom line... one hire at a time © Copyright Growth Ventures, Inc. Can They? And Will They? HR Leaders…. ‘Finding’ Employee Engagement Cuts the Cost of ‘Growing’ It

How Tapping a Candidate’s Can Do and Will Do Drives the Bottom Line Building the bottom line... one hire at a time 2 Candidate screening tools are decades old Based on research and development a half-century old Sound research on “Can Do” competencies at the time But, tied to an aged workplace and workforce Candidate screening tools are decades old Based on research and development a half-century old Sound research on “Can Do” competencies at the time But, tied to an aged workplace and workforce The workplace is different today Technology has altered what jobs demand A stagnant economy emphasizes cost control What “explains performance” has changed The workplace is different today Technology has altered what jobs demand A stagnant economy emphasizes cost control What “explains performance” has changed The workforce is different, too Different generations – evolving wants Shifting “Can Do” and “Will Do” needs What “predicts performance” is evolving The workforce is different, too Different generations – evolving wants Shifting “Can Do” and “Will Do” needs What “predicts performance” is evolving Legal issues in hiring continue Candidate screening creates legal challenges Adverse impact is monitored more and more “Equally valid/less adverse” is a standard Legal issues in hiring continue Candidate screening creates legal challenges Adverse impact is monitored more and more “Equally valid/less adverse” is a standard

How Tapping a Candidate’s Can Do and Will Do Drives the Bottom Line Building the bottom line... one hire at a time 3 But, just what is ‘employee engagement’ – where does it come from? Simply a new version of employee satisfaction surveys? A true influencer of job performance… and things like retention? The result of things the employer does to ‘grow’ people? Something you can ‘find’ in a candidate? The HR world is paying more and more attention to ‘employee engagement’… A driver for organization-wide surveys and action planning A foundation for guiding investments in organization development work A metric for holding management accountable A norm for comparing organizations

How Tapping a Candidate’s Can Do and Will Do Drives the Bottom Line Building the bottom line... one hire at a time 4 EMPLOYEE ENGAGEMENT IS A TWO-WAY STREET “Many view employee engagement as management’s job, but it also resides in an employee. Assessing ‘Will Do’ qualities in candidates helps hire those more likely to engage,” says Dr. Leaetta Hough, Chief Science Officer with HirePayoff™ “We know management-led actions play a role in growing employee engagement, but our research shows a major part of employee engagement resides within the employee. It’s a very simple fact – an organization’s level of employee engagement results from both whom it hires and, then, how it treats them,” concludes Dr. Hough. Visit to see the full story onwww.hirepayoff.com EMPLOYEE ENGAGEMENT IS A TWO-WAY STREET

How Tapping a Candidate’s Can Do and Will Do Drives the Bottom Line Building the bottom line... one hire at a time 5 1 – ‘Employee engagement’ will continue to gain HR’s attention… Low hiring volume puts more attention on the current workforce Research is showing the concept has consequences The marketplace is making it “the in thing”… and employers are spending 2 – But attention will shift a bit… It’s not purely an organization’s responsibility to ‘grow’ employee engagement It’s a two-way street – ‘find’ those eager to engage, then make it ‘grow’ Use both approaches to cut costs and raise the bar more quickly 3 – ‘Employee engagement’ is entering the world of candidate screening… Tools will target the concept of ‘eager to engage’ Studies will show the ‘value added’ by such screening IT analytic platforms will expand to track the payoff in ‘hiring for engagement’

How Tapping a Candidate’s Can Do and Will Do Drives the Bottom Line Building the bottom line... one hire at a time 6 Gaining a view of the “whole candidate,” so we can predict overall outcomes on the job…

How Tapping a Candidate’s Can Do and Will Do Drives the Bottom Line Building the bottom line... one hire at a time 7

How Tapping a Candidate’s Can Do and Will Do Drives the Bottom Line Building the bottom line... one hire at a time 8 ENGAGEMENT IS PREDICTABLE! “Sure, management plays a role in building employee engagement, but the evidence is clear – a large part of the load rests in who gets hired, ” says Dr. David Jones “…This is where the concept of payoff enters the discussion,” says Jones. “We’ve already demonstrated that HirePayoff’s™ 30-minute on-line selection tool predicts bottom-line performance. But now,” adds Jones, “it’s possible to put a third leg under the stool. Dr. Hough was right – HirePayoff™ employment testing for ‘Can Do / Will Do’ competencies forecasts employee engagement.” Visit to see the full story onwww.hirepayoff.com ENGAGEMENT IS PREDICTABLE

How Tapping a Candidate’s Can Do and Will Do Drives the Bottom Line Building the bottom line... one hire at a time Collect HirePayoff™ assessment scores and job performance data Measure employee engagement, as well See how the concepts link with retail sales employees… 9 The Four-Question Employee Engagement Summary Metric 1.I am proud to tell people I work for my organization. 2.I am willing to give extra effort to my organization to get the job done. 3.Overall, I am extremely satisfied with my organization as a place to work. 4.I would gladly refer a good friend or family member to my organization for employment. Note: Each item is answered with a 1-Strongly Disagree, 2-Disagree, 3-Agree, or 4-Strongly Agree response. The overall engagement score is computed by summing the four responses and converting the sum to a ‘percent of maximum’ score.

How Tapping a Candidate’s Can Do and Will Do Drives the Bottom Line Building the bottom line... one hire at a time Use the four employee engagement items to assign current employees to four categories in the study. Results… 10 Disengaged (6%) Never likely to become engaged with the job or organization; management practices have little effect Disenchanted (28%) Possibly open to becoming engaged; management practices will have some influence Enrolled (30%) Joins the organization with a positive level of employee engagement on Day 1; management practices guide its retention Highly Engaged (34%) Joins the organization with a positive level of engagement; retains it, even if workplace events are a challenge

How Tapping a Candidate’s Can Do and Will Do Drives the Bottom Line Building the bottom line... one hire at a time 11 24%Increase 32%Reduction

How Tapping a Candidate’s Can Do and Will Do Drives the Bottom Line Building the bottom line... one hire at a time 12 ENGAGEMENT PREDICTS! “HR analytics show screening for competencies and the likelihood of growing employee engagement produces a clear bottom line return,” says Dr. David Jones. “…When held to both the HirePayoff™ performance screening standard and the HirePayoff™ Eager to Engage standard, results showed clear bottom line payoff…the most distinguishing feature of Highly Engaged employees was how effectively they “Meet and Greet” customers… Highly Engaged employees perform higher overall, but customer interaction showed them most different from those who reported being Disengaged,” says Jones. Visit to see the full story onwww.hirepayoff.com ENGAGEMENT PREDICTS!

How Tapping a Candidate’s Can Do and Will Do Drives the Bottom Line Building the bottom line... one hire at a time Those who ‘passed’ HirePayoff™ screening standards… Those who ‘failed’ HirePayoff™ screening standards… 13 12% Higher ‘End the Sale’ Results 14% Higher ‘Overall’ Ratings 58% Higher ‘Likely To Advance’ Ratings Less Than 1 Chance in 20 of Being a ‘Top 20% of Performer’ Over 10 Times More Likely to be a ‘Bottom 20%’ Performer

How Tapping a Candidate’s Can Do and Will Do Drives the Bottom Line Building the bottom line... one hire at a time 14 Those who ‘passed’ Eager to Engage screening standards… Select among the Top 50% of Eager to Engage scores and raise the odds of finding “Highly Engaged vs. Disengaged” employees…. 14 to 1 Select among the top 15% of Eager to Engage scores and raise the odds of finding ‘Highly Engaged” employees…. 63% Select among the Top 50% of Eager to Engage scores and lower the likelihood of finding ‘Disengaged” employees…. Select among the Top 50% of Eager to Engage scores and lower the likelihood of finding ‘Disengaged or Disenchanted” employees…. 51% 55%

How Tapping a Candidate’s Can Do and Will Do Drives the Bottom Line Building the bottom line... one hire at a time Average scores on the ‘Eager to Engage’ assessment scale… White82White82 Hispanic82Hispanic82 Black80Black80 Male82Male82 Female81Female81 15 Overall Standard Deviation No Adverse Impact

How Tapping a Candidate’s Can Do and Will Do Drives the Bottom Line Building the bottom line... one hire at a time 16 ‘FINDING’ ENGAGEMENT PAYS! “ Why would an employer not focus as much on ‘finding’ as on ‘growing’ employee engagement?” asks Dr. David Jones. “Bottom line, why wouldn’t an HR or operations leader add the concept of finding engaged employees to the hiring process?” asks Jones. “Too, what if the employers’ turnover is in the 20%+ range; typical of lower-level positions, where engagement is so important and receives so much employer investment? Look at how quickly the organization’s overall workforce engagement could be increased via finding higher levels of engagement. Why spend resources only on growing employee engagement in such a setting?” Jones asks. Visit to see the full story onwww.hirepayoff.com ‘FINDING’ ENGAGEMENT PAYS!