Using Data to Make Better Hiring Decisions

The Death of Guess

By Whitney Martin Founder, ProActive Consulting | March 26, 2017

As new properties explode on the scene and traveler choices abound, hotels know they have to pull out all the stops to make every guest experience a positive one. Are staff friendly are courteous? Are rooms clean? Are meals excellent? Are bills accurate? We rely on our employees to execute their jobs, not just correctly, but with enthusiasm. And, if they don’t, business suffers. We do our best to hire good people ( in a competitive market ), we give them a little training, and then we HOPE they create raving fans.

Ever heard the expression “hope is not a strategy”? This phrase often pops into my mind when talking with HR practitioners about their hiring processes. Lurking beneath administratively burdensome screening systems that create an appearance of rigor, unstructured interviews, “gut feel, ” and other subjective criteria continue to weigh heavily in hiring decisions—we take our best guess and hope things will work out. However, while strong intuition and a good ability to “read” people are attributes that can prove beneficial in many contexts, they should not be the linchpin of employee selection decisions.

A profound change is occurring in the HR profession: business leaders are calling for HR to adopt a more evidence-based approach to decision-making. The frequency with which the terms metrics, analytics, and big data are creeping into HR circles is a testament to this. “We see CEOs and others wanting better data and not just a headcount report, but how is talent driving business results?” says Scott Pollak, a principal at PwC Saratoga in a Harvard Business Review report. With 57% of companies reporting their intention to have integrated, multi-source analytics in place in the next two years ( according to another Harvard Business Review study ), there is a push to incorporate more scientific, evidence-based practices in the people-functions in our businesses.

Based on some informal research, I’ve determined that exactly 98.64% of HR practitioners have, at best, a mild distaste for statistics. Therefore, there’s an excellent chance that you may be experiencing some anxiety because of this demand for a more data-oriented approach to executing HR. Perhaps, too, this is why only 14% of businesses currently have data to show the business impact of their assessment strategy, according to an Aberdeen research study. With payroll and benefits representing one of the largest line items on virtually every company’s operating statement, effective selection is one of the principal areas where HR can have a significant impact on the bottom line. But what kind of assessment instrument should you use in order to systematically select the best employees? The answer is a firm it depends. Follow the steps below to create a highly predictive, evidence-based, and quantifiably valuable selection system that works for your organization.

The 4 V’s of Hiring

1. Vision - If companies had an unlimited budget ( and candidates had endless time and patience ) we could assess virtually anything—skills, knowledge, personality, values, attitudes, and the list goes on. But what are you really trying to accomplish? “We want to hire better people” is not nearly a clear enough goal. It is imperative to take the time, perhaps doing some research with internal stakeholders, to hone in on the ultimate goal for the organization.

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Coming up in January 2018...

Mobile Technology: Relentless Innovation

Technology has become a crucial component in attracting and retaining hotel guests, and the need to enhance a guest’s technology experience is driving a relentless pace of innovation. To meet and exceed guest expectations, 54% of hotels will spend more on technology in 2018, and mobile solutions in particular will top the list of capital investments. Many hotels are integrating mobile booking, mobile keys, mobile payments and mobile check-in into their operations. Other hotels are emphasizing the in-room experience, boosting bandwidth and upgrading flat screen TVs to more easily interface with guest mobile devices. And though not yet mainstream, there are many exciting technology developments on the near horizon. The Internet of Things (loT) is taking form in some places, and can be found in guest room control systems, voice activation systems, and in wearable sensors that can be used for access and payment options. Virtual reality headsets are available at some hotels so guests can enjoy virtual trips to exotic locations or if off-property, preview conference facilities and guest rooms. How long will it be before a hotel employs a fleet of robots for room service, or utilizes a hologram as a concierge, or installs gesture-controlled walls that feature interactive digital displays? Some hotels are already using augmented reality for translation services, or interactive wall maps, or even virtual décor. This pace of innovation is challenging property owners and brands to stay on top of the latest technology trends while still addressing current projects. The January Hotel Business Review will explore what some hotels are doing to maximize their opportunities in the mobile technology space.