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The Evolution of Reference Checking into a Strategic Hiring
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The Evolution of Reference Checking into a
         Strategic Hiring Solution
    Speaker:     Brian Gilbert
                 Director of Business Development
                 SkillSurvey

    Moderator:   Deanna Hartley
                 Senior Editor
                 Talent Management magazine




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                                                               #TMwebinar
The Evolution of Reference Checking into a
         Strategic Hiring Solution


                     Deanna Hartley
                     Senior Editor
                     Talent Management magazine




                                           #TMwebinar
The Evolution of Reference Checking into a
         Strategic Hiring Solution



                 Brian Gilbert
                 Director of Business Development
                 SkillSurvey




                                        #TMwebinar
The Evolution of Reference Checking to a 
          Strategic Hiring Tool 

     SkillSurvey Pre‐Hire 360™
       Revolutionized Assessments for Business
The History of a Reference Check

• Historically
   – One of the most important steps
   – Hiring managers talked to previous managers
        • How are they day to day?
        • Nuances?
        • What challenges do they have and what can I do to make them A+ players?

• Actionable Information
   –   Will it help make a decision?
   –   Will it screen out or have candidate rise to the top?
   –   Will this information help this person succeed?
   –   Will this information predict behavior?
History of Reference Checking Effectiveness


                                             Can we make it
                                             relevant again?

 Actionable                                  Should it be?
Information




              1970’s        1980’s       1990’s           2000   2010
                       Reference Checking Past 40 Years
The Lawyers Get Involved

• The 1990’s and the new millennium
   –   Legal issues arise
   –   HR cracks down and bans reference checking
   –   Outsource the process – check the box
   –   Or worse – stop doing it
   –   If you do try and reference check:
        • Countless hours of phone mail tag, email tag, phone mail tag
        • Weeks and weeks of time


   – All for no actionable information
What is the Problem?

• Most candidates do a nice job presenting themselves during 
  interviews
   – All are team players
   – All show up for work and don’t text, sit on Facebook all day
   – Most are ethical and always do the right thing
• Most candidates are well rehearsed in the question/response mode
   – Books, job seeker sites
   – Experience interviewing all the time
• Your only view today is from the candidate’s perspective
   – Really need a true 360 review from those who saw the behavior in the past
Impact of a Bad Hire
• Bad Hire has an impact
• Various by organization and by job role
   – Hard dollar cost – base salary, benefits, on board training, exit costs
   – Internal team turmoil
   – Customer satisfaction
   – Compliance (Finance – SOX issues and the Fed’s) 
• For sales roles
   – Cost of lost revenue
   – Asset is time – time is lost forever
• For clinical roles
   – HCAHPS and reimbursements
Can You Guess What This Number Represents?




            $23,160,000
Let’s Look at the Statistics
• 2011 – SkillSurvey Customers had 3,500 + sales candidates
• Evaluate competencies and behaviors 
   • Scientific and predictive
• 11 % or 386 candidates were high risk and potentially avoided




• If you took average cost per sales $60,000 x 386 candidates = 
Stats Speak for Themselves




    $23,160,000
From Candidate Perspective – Today’s Approach

   Phone interview                                   I’m a Team Player



Recruiter        Face to Face                             Candidate
                                  I interview well




                                    I’m terrific
                Resume



    Personality / Behavior                  I work really hard, weekends
    Assessments                             too!
From Reference Perspective – Today’s Approach

  Phone interview
                                                    She’ a Team Player


Recruiter       Face to Face                             Reference
                                  She works hard




               Resume              She’s terrific



   Personality / Behavior
   Assessments                            I would hire her again, yes!
A New Perspective – The New Paradigm

  Phone interview
                                                            Work Ethic



                Face to Face                Dependability                Integrity
Recruiter




               Resume
                                              Teamwork              Personality


                               References
   Personality / Behavior                         Interpersonal Skills
   Assessments
Comparison
                                 Online Solution             Typical Phone Check

More references                5+ business references                2 to 3
                             50% of which are former or 
                                current Supervisors

Faster                               1 to 2 days                  5 to 10 days
Guide Hiring Managers      Previous managers assisting in             No
                                 leading interview

Pauses a hiring decision       5% ‐ 10% of candidates         < 1% of candidates?
Passive sourcing tools      5 references per candidate –        Not Applicable
                                     warm leads 

Compliant/Legal Risk       Supports compliance with EEOC     Uncertain/Inconsistent
                                     and OFCCP
Why You and a Better Process?
• Improve
   –   Quality of Hire
   –   Hiring Manager’s Interview Effectiveness
   –   Efficiency
   –   Passive Sourcing
• Drive 
   – Compliance and Consistency
• Elevate Recruitment’s Role
Improve Quality of Hire

                                SkillSurvey References Perceive That 10-15 % or more of
                                       Candidates Have Great Developmental Need




                                                        5-10 % Avoidable, High Risk Candidates =
                        Great
Developmental Need




                                                         10‐15 % Coachable, Moderate Risk Candidates 
                     Moderate                            = Interview and on‐boarding assistance


                                                                                             80-85 %
                      Minimal


                                0    10     20     30        40         50   60   70    80

                                                                  Percent
Improve Hiring Manager’s Interview Effectiveness

• Lack of consistency for hiring managers
• Managers looking for differences in candidates
• Probing questions driven by previous managers’ comments
Low Scores Guide Targeted Questions
Improve Efficiency – Time and Money
                                  Screen to top 3 candidates 
Recruiters Source Candidates
Exclusive Case Study: Improved Efficiency – Time and Money

• Improve efficiency – time and money
• Six Sigma 
       From 60 work weeks to 4.8

           Solution resulted in a 92% Reduction in Time Spent reference checking
                    60


                    50
  Work weeks to 
 reference check    40

     2,272 job      30

    candidates      20


                    10


                     0

                                     Telephone                              SkillSurvey
Passive Sourcing by the Numbers
                                                                                   Talent Pipeline and Funnel
                                                                                    • Multiplier Effect Based on 
             100                     300                      1,500
                                                                                      Number of Candidates Screened
Job opening               Candidate                 Reference                       • Builds Automatically
                             s                          s
                                                                                   Industry Professionals with Whom 
                                                                                   To Network and Source
                                                                                     • “Great People Know Great 
                                                                                       People”
                                                                                     • “Warm Lead” vs. “Cold Lead”



    An organization        3 candidates             3 candidates                 65% of the 1,500 contacts opt in to learn about future
1                     2                         3                            4
    has 100 job            apply on average         SkillSurveyed and            career opportunities. 1,500 x .35 = 525 + passive
    openings               for each job = 300       provide 5 references         candidates
                           candidates               each = 1,500 potential
                                                    contacts
Risk and Compliance Management




Science   Compliance     Risk
Increase Compliance and Consistency

• It is all about the science ‐ Validity of survey questions 
   – Do the questions validate what you are actually asking?
   – Do the questions help predict future behavior?
   – Are the questions being asked in a way that reduces risk?
      • Sample question – What high school did you go to?
• SkillSurvey reference feedback shows no differences 
  between sub‐groups
   – Helps support your efforts to remain EEOC and OFCCP 
     compliant 
• Standardized process 
Why You and a Better Process?

• Clear ROI for Finance and Budgets
   –   Quality of Hire
   –   Turnover
   –   Efficiency
   –   Passive Sourcing
• Elevate Recruitment’s Role
1 minute




                         5 minutes
2 seconds




            10 minutes
Survey Availability
         Job Level ►   Entry-   Hourly     Clerical   Professional   Supervisor   Manager   Executive
▼Job Family            Level

General

Production

Sales

Marketing

IT

Operations

Customer
Service

R&D

Admin

Finance

Legal

HR

Engineering

Education

Healthcare
Step 1: Enter Candidate Data
Step 1a: Select Survey




Send email
to candidate
Sample Libraries: Finance
Other Libraries: IT
Other Libraries: Customer Service
Other Libraries: Healthcare
Step 1a: Select Survey




Send email
to candidate
Step 2: Candidate Enters References
From: Your Company Name Recruiting                                             Automated Email From 
Sent: Thursday, June 6, 2011
To: Patrick T                                                                  Recruiter to Candidate 
Subject: Your Company Name Selection Process Information                       Explaining the Process
Dear Patrick T,
Thank you for your continued interest in the Major Account Sales position with your co name. As already
explained to you, a critical step in the selection process is reference checking. org name uses web-based
reference checking for this purpose.

Please click on the link below. It will open a web page where you will input your reference. You will also
be able to review a sample of the questions being asked and the email that will be sent to your
references. Your references will be emailed a reference survey and their responses will be submitted
directly back to SkillSurvey. No one will see your references' individual responses because all responses
are electronically aggregated together to produce one summary report.

Note that all references will be responding as individuals, not as representatives of any company or
organization.

Please click on the following link (URL) to begin: http://eref.skillsurvey.com//CandidateUtilities/EOC.aspx?
Step 2c: Candidate Confirms References and Signs Legal Waiver


                                           Proof of Consent
                                         “…I hereby release any such 
                                           person, their company, and any 
                                           affiliated officers, directors, 
                                           agents, and employees from any 
                                           and all claims I may have arising 
                                           out of the disclosure of such 
                                           information…”
The Surveys: Job‐Specific, Behaviorally‐Based Questions
Job‐Specific, Behaviorally‐Based



Would you like to learn more about job openings at Your Co name?
Drive Warm Candidates to Career Page
Step 4: Aggregate Reference Responses into Actionable Intel
Validated Candidate – Good Fit
Validated Candidate – Good Fit
Pause or Avoid this Candidate – Low Scoring
Professionalism
Interpersonal Skills
Patient Satisfaction ‐ HCAHPS
Verbatim Comments
Verbatim Comments
Passive Candidate Database
Why You and a Better Process?

• Clear ROI for Finance and Budgets
   –   Quality of Hire
   –   Turnover
   –   Efficiency
   –   Passive Sourcing
• Quickly Implement and Easy “Win” for HR
• Elevate Recruitment’s Role in the Organization
About Us: SkillSurvey

• 400,000 + Candidates in 2012 – 60% + Increase
   – Candidates in 2011 – 247,000+
   – Almost 1,500,000 people experienced the SkillSurvey process
• 600+ customers
• 290+ surveys in current inventory 
   – Cynthia Hedricks, PhD, Chief Analytics Officer
   – 68 Surveys for Healthcare, 18 Surveys for IT roles, 12 for Sales roles, 9 for 
     Customer Service roles, 19 for Finance roles
• Inventor of web‐based reference checking with a patent pending
Sample Clients
Financial Services &       Healthcare        Gov, Non-Prof & Edu      Services & IT   Pharma & Medical
     Insurance




   Engineering &       Consumer Products &       Energy & Utilities     HR Related      Manufacturing
   Construction              Retail
Contact SkillSurvey



              www.skillsurvey.com
Brian Gilbert, Director of Business Development
           bgilbert@skillsurvey.com
              610‐947‐6300 x 1256
Questions and Answers


       Brian Gilbert
       Director of Business Development
       SkillSurvey




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