Staffing Presentation

The Need for Formalized Approaches and Specialized Executive Recruitment and Assessment

Assessment Methods

Executive Positions

Non- Executive Positions

Stress the Evaluative Methods

Screening assessment methods

• Resumes and cover letters
• Weighted application blanks
• Job applications
• Biographical information
• Telephone screens

Internal Assessment Methods

Executive Positions

•Leo Apotheker hired as CEO based on connections to Board search committee after no interviews or assessments

•In 11 month tenure, HP wrote off $18 Billion in failed acquisitions

•Stock plummeted from $45 to $22 per share despite market rallies

•After being forced to resign, Apotheker received $13 Million in severance benefits.

•HP hired former CEO of eBay and HP Board Member Meg Whitman

•The stock price had yet to exceed $24 since Apotheker’s resignation.

• Values Assessment
• Personality Tests
• Integrity Tests
• Job Knowledge Tests
• Interviews (Behavioral)
• Job Simulations
• Assessment Centers
• Reference Checks

Skills Inventories

Evaluative assessment methods

• Cognitive ability tests
• Values assessments
• Integrity tests
• Polygraph tests
• Interviews
• Situational judgment tests
• Graphology
• Work samples

360-Degree Feedback

Performance Reviews

Assessment Centers

Job Knowledge Tests

Important Issues

• Time and costs
• Use/Build in-house assessments
• Use a third party

• Reaching a consensus
• Multiple methods

“The first order of business when you decide to hire an executive search firm is to get in writing a report that shows your consultant understands the level and type of experience you need in a job candidate, the background and technical skills necessary, responsibilities of the job, and any interpersonal skills you seek” (Wasserman, 2010).

Contingent assessment methods

• Medical and drug tests
• Background checks

Approaches to Executive Recruitment: Internal v. External

• 25% of Fortune 500 companies handle executive recruitment internally, compared to 10% from a decade ago.

• Search firms are estimated to be losing nearly $500 Million yearly to internal recruiters.

• Internal departments often consist of past external recruiters well versed in social media.

Why the shift? The Success of Internal Recruiting

• Time Warner has filled thousands of senior positions with a 30 person team
• Has saved $100 Million by using internal recruiters since 2003.
• Internal recruiters have handled twice the workload (10-15 placemats) that external recruiters would on average (6-8 placemats).
• The average position has taken 100 days to fill as opposed to 170 days.

What is Executive Search?

Why the Shift? The Success of Internal Recruiting

An industry engaged in the identifying, assessing and recruiting of corporate officers, executives and other senior level management positions.

• Lockheed Martin conducted a study finding that internal recruits scored higher on “quality of hire” statistics such as attrition rates than externally recruited executives.

• Internal recruiters are more equipped to assess cultural fit than external recruiters and maintain a pipeline of qualified candidates for the organization.

The Future of Executive Recruiting

What is an Executive Search Firm?

Process

An executive search firm is a type of company that specializes in recruiting executive personnel for their client companies in various industries.

Deeper Client Analysis

Initial Client Meeting

Market Analysis and Creation of a Candidate Specification

• According to the Association of Executive Consultants, internal recruiters can handle 80-90% of demand.

• Executive search firms will likely continue to be used for top executive positions such as CEO.

Search Strategy

Name Generation and Candidate Identification

Qualify, Interview, and Reference to Create a Short List

Offer

& Onboarding

Conclusion

Goals of Senior Executive Assessment & Selection

• Maximize fit
• Maximizing return on its investment
• Generating positive stakeholder reactions
• Supporting the firms talent philosophy and HR strategy
• Establishing and reinforcing the firms employer image
• Assessing ethically & accurately
• Enhancing the firm's strategic capabilities

• Senior Executive selection is a long process

• All decisions must be made fairly and with full transparency to the candidates

• Potential issues can arise from moving too slowly and disagreeing about candidates

• To solve issues, most companies use a "position owner" who has final say

• A good choice is someone with proven experience and desire to perform better

Bibliography

• Business Dictionary. "Executive Search." What Is ? Definition and Meaning. 08 April 2013.
• Hamlin, Donna. “Selecting the Best Executive Candidate: Does Use of Assessments Make a Difference?” Donley Townsend Associates, LLC. 2007.
• Lublin, Joanna. “Employers Put Executive Job Candidates to the Test.” Your Executive Career. Wall Street Journal. 12 May 2011.
• Lublin, Joanna. “More Executive Recruiting Shifts In-House.” Wall Street Journal. 09 October 2012.
• McClanahan, Deb. “Best Practices in Recruiting Senior Executives”. BroadBand HR Consulting. Web. 07 April 2013.
• Philips, J.M., & Gully, S.M. (2012). Strategic Staffing (2nd edition). Upper Saddle River, NJ:Prentice Hall. ISBN: 978-0-13-610974-7.
• Pielow, Christian. "The 10 Steps of the Executive Search Process." The 10 Steps of the Executive Search Process. April 2013.
• PSP Metrics. “Selecting Senior Executives”. PSP Metrics. Web. 08 April 2013.
• Stewart, James B. “Bad Directors and Why They Aren’t Thrown Out.” New York Times. 29 March 2013.
• Wasserman, Elizabeth. “How to Work with an Executive Search Firm.” INC. 29 March 2010.

Approaches & Issues for Senior Executive Assessment and Selection

Steven DelVecchio, Alex Gonzales,

Tyler Marrero, Lucas Pitman