August 2007 Vol. 6 No. 8
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
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.
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
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
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:
- Select employees based on their ability to do the job (or have
the potential to learn to do it).
- Select employees who can work effectively with other employees.
- Select employees based on their overall fit with the organization's
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
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
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