August 2007 Vol. 6 No. 8

We’re Not Hiring….. We Just Promote From Within

Promotion or lateral moves within an organization is still hiring. Just because the person is known doesn’t mean they will fit within the position.

Remember “if the job could talk, who would the job hire?” It applies even when the person is not new to the organization.

A classic example is taking an excellent sales person and making them the sales manager OR taking the employee with the most tenure and giving them a promotion.

HEY. Wait a minute. Do they have the skill base for the new job? Sales success does NOT equal sales management. Supervising and managing people, schedules, budgets and expectations contain a lot of trainable skills. Have they developed them? Is there a plan for them to learn them? What is it? When is it? Do you have the time to see if they can learn them? What if they can’t? Do you loose the 6 months to a year it took to learn that? Do you loose the great salesperson, too? After all, it is hard to go back in the same organization.

Are you SURE they are not already stretched too far? Maybe they are. What happens when you pull the rubber band tighter? Will it break? Or will it just sting really badly when it hits you?

What if they are already the Peter Principal in action? What if we learned more about them and then tweaked what their job duties were according to what the company needed AND were they would naturally thrive? Wait a minute….. you mean you would be listening to them? Creating a place where they wanted to work.

Creating a place where they wanted to come to work. Creating an environment where they naturally had more energy. Remember last month when we talked about Vintage IT Services – ABJ has given it the Number 1 place to work for a small business in Austin.

Their first priority is finding the new people to fit with the company and the current team. There must be something to this….. they haven’t had any turnover in 18 months. They just have to hire new team members because their client base keeps growing, too.

Rather you are finding a person for the position from within or a new hire, it is just smart business to know if they will fit. We recommend more than one assessment. The more you know, the better the fit.

If you want to have a discussion, contact Barbara@maxproductivity.com or call 278-1200.


Employee/Organization Fit Generates Big Gains In Profit And Reductions In Turnover For Small Businesses by Dr. Ira Wolfe

Every organization seems intent on finding skilled employees these days. But focusing only on job skills might leave these companies a few employees short and a bit light on the profits.

For several years, I've been encouraging managers to hire and promote employees based on a three-way fit: job, team and company culture. A study just released by Gevity, an HR outsourcing firm, and conducted in partnership with Dr. Christopher Collins of Cornell University's Center for Advanced Human Resource Studies, confirmed how certain HR management practices were positively related to workforce alignment and resulting firm performance.

The findings should be immediate reading, especially for small businesses. Overall, companies that followed a person-organization fit showed significantly higher firm performance than did companies following a person-job fit strategy.

Results of the 243 small business study suggested that firms have 7.5% higher revenue growth, 6.1% higher profit growth, and 17.1% lower turnover when following a hiring strategy of attracting, finding and selecting employees that are a fit to the culture and values of the organization.

When person-fit/organization fit is integrated with a self-management strategy, - as opposed to a controlling management strategy - as well as implementing a family-like environment/community, the results for retailers are nothing short of remarkable - 74.7% lower turnover! They are not alone. Low-skilled services enjoyed 57.9% lower turnover and manufacturing watched 19.4% fewer employees walk out the door.

A few key take-aways from the study include:

  1. Select employees based on their ability to do the job (or have the potential to learn to do it).
  2. Select employees who can work effectively with other employees.
  3. Select employees based on their overall fit with the organization's values.

In other words, fit employees to the job, on the team and in the culture and watch your profits go up and turnover go down.

Behavioral competency-based interviewing makes good business sense and is a best practice. To learn how to identify competencies and conduct effective behavioral interviews, email Barbara@maxproductivity.com and please include your name, company, and best time to contact you.


Perfect Labor Storm Facts and Trends

Below you will find just a sampling of the trends, stats, and facts that will change the way you do business.
If you took every single job in the U.S. today and shipped it to China . . .China would still have a labor surplus.

  • China's Generation Y accounts for nearly one-sixth of the Chinese population, equivalent to two-thirds of the entire U.S. population.
  • By 2025 more than 75 % of the workforce in India will be from Generation Y and younger generations.
  • In the United States, Gen Y and younger will make up just less than 60%.

Trends and stats like this are just an inkling of the information you'll find in the revised, updated and expanded Perfect Labor Storm 2.0, including several chapters about managing generational clashes.

Perfect Labor Storm 2.0 is now available. Perfect Labor Storm 2.0 is the newly updated and revised 2007 edition of best-selling book first published in 2005. Contact us to get this fact filled book. Barbara@maxproductivity.com

The featured article and labor storm facts are written by Ira S. Wolfe, founder of Success Performance Solutions, and is distributed here by MaxImize with permission. To read more about any of SPS pre-employment assessment systems, go to or call 717.291.4640 or 800.803.4303