Candidates: Are you interviewing and need support?
Digital Disruption 2017 just wrapped up. If any session struck your fancy but you just couldn't make it, look no further than this recap.
Polly LaBarre kicked off our second day of Digital Disruption 2017 with a bang. She tackled the changing nature of the workforce: namely, how we make human endeavor more productive, fulfilling, and creative. According to Gallup, only 13% of the workforce is fully engaged - and this number hasn’t budged in years. Bureaucracy, a system designed to organize the non-routine through structure, clearly requires a change. Where in decades past the primary business challenge lay in removing waste and increasing inefficiency, today the challenge for every organization is to become more adaptable, innovative and inspiring. While the pursuit of productivity requires people to emulate machines, the pursuit of innovation requires people to emulate people - embracing the traits that make us uniquely human. Efficiency principles just don’t fit with today’s business challenges. According to LaBarre, we need new principles, principles that preserve efficiency without sacrificing innovation and creativity. These are some of the new principles LaBarre identified:
She then outlined three core strategies for embedding these “human” principles in your organization:
Loren Larsen started his presentation with a brief history of HireVue. Founded in 2005, HireVue envisioned using emerging webcam technology just as phone screens were taking hold in the recruiting space. Now, in 2017, video interviews are in the same position as phone screens in 2005: they’re starting to become the go-to way to evaluate candidates. Video screening has numerous advantages, largely because human intuition is prone to flaws. Larsen provided the example of a study where patients were given two different pills for their pain: a pill costing $2.50 and a pill costing $0.01. Patients across the board rated the more expensive pill as more effective than the cheap one - despite the fact that they were both placebo. We see the same sort of thing when making talent decisions. Does salary history really correlate to job performance? Not really - but we assume that well-paid people are high performing. Now with HireVue’s incorporation of pre-hire assessments with artificial intelligence (AI), those decisions can be augmented with an unbiased approach. Larsen closed with an overview of new features coming for HireVue, namely the incorporation of third party assessments into the platform. Once this feature launches, HireVue customers will be able to view candidates’ assessment performance within a single, central hub.
Nathan Mondragon started the session with a “deep dive” into HireVue Assessments. “Time to hire is only half the solution,” Mondragon explained. “If we got you bad hires quickly, we didn’t do our job.” HireVue Assessments use AI to extract data from a video interview. There are three sources of data it pulls from:
Overall, the HireVue algorithm pulls over one million data points from a video interview, evaluating it frame by frame. Around 25,000 of these data points are found to be relevant to performance metrics - HireVue Assessments are evaluate candidates based on these. Mondragon concluded with a few ROIs experienced by customers who have rolled out Assessments:
David Curry followed with an overview of Commonwealth Bank of Australia’s Project FLARE: an ambitious undertaking that seeks to automate the entirety of the recruiting process. He started with this statistic: 81% of CBA candidates are customers. It is critical for Commonwealth Bank to provide an experience that keeps them that way. He proceeded to outline a few key points regarding CBA’s recruiting:
The above points made CBA the perfect candidate for HireVue Assessments. Now, Commonwealth Bank is looking to create a better experience for candidates with an all-online, mobile experience that shows candidates a realistic preview of the job and provides real-time feedback throughout the process. So far, things are looking good. They’ve cut their 10 day application process, which consisted of multiple rounds of assessments, down to 75 minutes. And recruiters love the insight provided by the HireVue Assessment. When comparing the decisions a recruiter would make to those made by the HireVue Assessment, CBA recruiters say that “the algorithm’s basically right every time.” In other words, the assessment augments the recruiter’s ability to identify the best talent - it does not replace it. Q: Have you had any experience with the recruiting team on how the AI’s working and what their thoughts are? A: The teams that are now operating through this process are seeing the benefit and seeing the value it is creating for the business - while there was some sweating initially, they see the value in terms of the opportunities that are created through the new process. Q: What roadblocks did you hit? A: We’ve never made big grand promises, we set the plan out as a path we’re going to explore. This really helped when selling our vision - we made data-driven decisions to support every choice we made.
Trust-based hiring is trusting that candidates with the skills (not the experience or educational pedigree) will succeed. In this session, IBM presented how this focus on skills streamlined their hiring process for new graduates and landed them the top 4% of their applicant pool. Prior to streamlining their hiring process, if a college student wanted to apply to IBM, they would need to apply to 150 different job requisitions. Now, IBM has only 5 job postings - and candidates that apply are considered for a huge range of openings in the company.
To gain buy-in, IBM engaged with technical leaders at all levels of the organization. Dubbed “Cognitos”, these technical leaders helped put together the new hiring process. “Cognitos” consisted of:
Q: Have you seen a difference in retention rate and performance? A: Yes. This is a fairly new process, so we’re just starting to collect that data. So far, hires that took HireVue Coding Assessments were 20% more likely to get the highest performance rating in our internal performance assessment than those that did not. Q: Any recommendations for scaling hiring from new grads to more experienced hires? A: This trust-based hiring process is really well suited to early professional hires. These candidates don’t have a whole lot of specialized skills at this point - we’re screening for that basic expertise and potential. Experienced professional hiring is a little different - generally hiring teams are looking for a specific, narrow skill-set. Q: Any candidate feedback that was positive or constructive? A: We’re not going to lie - it’s a rigorous assessment. Some of these folks will be building breakthrough technology, and some people do think it is hard. But if you look at the percentages, 42% of those taking the first coding challenge moved on to the next step automatically.
The average time to fill is 63 days, and the best candidates are off the market in 10. In other words, your hiring process might take longer than your top candidates are on the market. This means we need to get quicker at hiring, without sacrificing quality of hire. Unfortunately, increasing quality of hire normally means adding steps to the hiring process: asking candidates more questions and putting them through more hurdles. Allie Wehling then presented the Trifecta of HireVue Assessment metrics:
Candidates are most excited to work for you at the time they apply. Assessing them within that “application window” is critical to quickly bringing the best candidates on board. HireVue Assessments are completely bespoke: they are built for each specific role’s specific KPIs. With deep learning, HireVue looks at three things:
All in all, there are 4000x more features (data points) available than a 300 question assessment.
With machine learning, HireVue looks for the stable characteristics that differentiate high performers from lower - ignoring irrelevant characteristics like twitches or attractiveness.
Q: How important are the assessment questions to the output provided by the algorithm? A: It’s kind of a continuum. We’ve found that even with general past behavior questions there’s still some predictive value - it’s really case-by-case, it all depends on what you want to get from the job. Even little tweaks to questions can have positive effects on the predictive value. Q: What about if an acquisition happens? Do you need a new validation study? A: We’d definitely do a bit of exploring. We might perform a mini-validation study to see if the KPIs and other indicators are still the same. If the job significantly changes, you’ll probably need a new study.
Sonic Automotive operates over 100 dealerships nationwide. As one of the largest automotive dealers in America, they deal with challenges endemic to many car dealerships. In this session, John Perez covered the challenges Sonic faced, how they confronted those challenges, and the results they’ve seen so far.
Implementing a new process required training and driving engagement with new technology.
You can’t reach your people with one channel, you need multiple channels. These are the learning channels Sonic utilized when implementing HireVue:
You can’t get anywhere without senior leaders believing in what you’re doing - so Perez first showed HireVue to his operations executives and the CFO. The EVP of Operations was so excited, he recorded an intro video which is now presented before every HireVue interview. Store managers are also empowered to record themselves asking interview questions for manager candidates while store personnel do the same for entry level candidates.
Q: How did this impact your NPS? A: We sit at an 80 NPS, despite being a car company. Q: What do you feel excited about with piloting HireVue Assessments? A: We have a lot of money tied up in our assessments. If we have both our old assessment and HireVue, we give our hiring managers the opportunity to choose the one they like - ideally this will help them look at the video interview. The more I can give hiring managers to speed up the process, the better.
If it’s true that people have a natural resistance to change, we certainly don’t show it. We embrace new tech, new fashion, and other new trends with ease. But for things like diets, making a change is incredibly difficult. It’s pretty clear that there are some changes that are easy - and others that are hard. Dan Heath presented on how we can make the “difficult” change we all hear about like the “easy” change we embrace without thinking. According to psychologists, there are two different systems in the brain responsible for this difference: the rational system and the emotional system. Some change is difficult because we can’t even agree in our own brains on what we should be doing - and it’s not a fair fight. The emotional system is far more powerful when it comes to decision-making, but the rational part of the brain believes it is still in charge. But the emotional system isn’t all bad. The curiosity and desire the emotional system creates is responsible for innovation. With this in mind, Heath provided a three part framework for reconciling these two parts of the brain and direct change:
Change may not come quickly or easily. But when it happens, it tends to follow a similar path. Reconciling the rational and emotional systems is key to building a path for long-term change. “To really implement change, we need to give ourselves permission to fail,” Heath concluded. "But the evidence is clear that great change happens all the time. By following the same path as those with success, you put yourself in the position to be the author of change, rather than the recipient of it."