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State of the Workforce Report

Oct. 8, 2008
Incentive-based employee referral programs are highly effective.

The American Productivity & Quality Center (APQC) surveyed more than 200 firms for a human resources study that examines a number of employment metrics across a wide range of industries, including aerospace, agriculture, automotive, consumer packaged goods and financial services with revenue ranging from $100 million to $10 billion or more.

Among the findings discussed in the report:

  • High-performing human resource process groups that recruit, source and select employees use multiple sources and applicant tracking systems to drive their performance.
  • Incentive-based employee referral programs are highly effective.
  • Successful hiring managers use behavior-based interviewing to describe the core requirements for each role, including critical job elements and necessary leadership competencies.
  • A documented company strategy enables better processes for internal hiring and promoting.
  • Top-performing organizations utilize programs and tools to actively prepare and support employees for transition

Other findings include performance reviews as the preferred method to determine the quality of new hires and employee referrals as the top source for identifying talented workers.

Evaluation Methods in Determining Quality of New Hires

Percentage of employers who use various metrics to determine performance of new workers

Performance Reviews 33%
  • Turnover 20%
  • Hiring Manager Surveys 10%
  • Time to Contribution 10%
  • Employee Surveys 9%
  • Workload Per Employee 9%
  • Number of Training Hours Per Employee 6%
  • Other 3%
  • Do Not Evaluate the Quality of New Hires 1%
  • Source: American Productivity & Quality Center

    Sourcing Channels Utilized When Quality is a Requirement

    Percentages represent employers' preferred methods of locating quality workers

    Employee Referrals 16%
  • Job Boards 13%
  • Search Firms/Recruitment Outsourcers 12%
  • Internet Recruiting 12%
  • Internal Recruiters 10%
  • Trade and Professional Associations 10%
  • College/University Recruiting 10%
  • Private Employment Agencies 7%
  • Technical Schools/Technical Colleges 5%
  • Contract Recruiters 5%
  • Source: American Productivity & Quality Center

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