Management Articles

Effective executive evaluation tools necessary for your "bottom line"

What is the most important factor to determine the â€œprofit and lossâ€ of any company?

If you review any profit and loss statement from any company, it apparently gives you the breakdown of income and expense.To make more profit of the company, it needs to know how to make more income with the least expense as much as possible.

We know that the right or wrong people we hire for the company should be related with the profit or loss of the company. However, one cannot track down precisely who contribute the income, expense and therefore profit or loss of the company; as the only item related with people directly is â€œsalary expenseâ€.â€œHuman Resources Assetâ€ is not even listed as the asset item of the company from the balance sheet statement. â€œLossâ€ due to hiring the wrong people cannot be tracked it down for the loss of income and the incurred expenses.Such type of â€œlossâ€ cannot be simply written off or adjusted according to any accounting principle as we do not have the accurate tools in booking the right people in our statement in the first place. The estimate of loss is about 2 months pay for a entry level, a year's salary for a professional person and several years salary for senior executive position. The actual amount of loss varies with different type of company.

It may well say thatÂ the source of such loss is due to the fact that we have no exact technologies and methodologies to predict the performance of new recruits or unable to prevent destructive people from working in your company.Â Probably you may have experienced that kind of loss or have heard a lot of stories regarding this.

Is there anything missing when we select our people to work for our company in the first place that cannot insure us against any loss but stable profit? The apparent missing element is that we donâ€™t really know the person sitting in traditional interviews but without enough data and information to make any evaluation and prediction.

If you do not have any proven means of recruitment selection and tools to protect the company from potential loss in hiring errors, it is time to review to make sureÂ you have necessary and workable personnel assessment and evaluation tools to make your "bottom line" growing.

How to protect your company from any adverse effect of â€œFinancial Tsunamiâ€?

What we witness today is no longer simply another financial crisis, but a financial tsunami that is widespread and contagious to almost every country.

Though Mr. Warren Buffet had made some recent investments for his valued investment approach, he mentioned last week like:

"In my adult lifetime, I don't think I've ever seen people as fearful economically as they are now."

"The recession is going to get worse. I don't want to hold out false hopes that â€” by some magic bullet â€” that things will turn around in a couple months."

"This really is an economic Pearl Harbor. That sounds melodramatic, but I've never used that phrase before. And this really is one."

But can we see what had really caused this problem to begin with?

We donâ€™t have the right people especially for the leading political and economic roles but people with greed, lack of ethics and insight to manage and lead us from the turmoil, and in particular, we have some destructive personalities at work that they are specialized in creating confusion, damages and chaos.

To protect your company from any crisis or tsunami to possibly bring the downfall of your business, it is always important to be careful to whom your company is open the door to work with.

What can each company do to protect especially we really donâ€™t know much about the person until he or she actually works for us?

It is always too late to use your company as a â€œpersonality testing fieldâ€ only after the person had worked for your company.

Instead, many companies have started to realize the importance of using reliable testing and evaluation approaches when come to any hiring decision.

Performia Hong Kong offers a number of executive online tests for any company to use in recruitment and staff evaluation, in particular its executive personality test (Exec-U-Test) can give you a lot more information about the personâ€™s true personality to uncover his or her social mask. Another important aspect from our executive personality test result is the ability to identify the destructive, trouble making personality and unstable performance which will not show up during the interviews and these are the type of people we recommend any company rather avoid hiring though they may appear nice and friendly.

Because of our confidence in the reliability and validity of our Exec-U-Test, we now offer you a free online trial up to two person per company for a value of HK$4,320. If you are one of the decision makers in hiring, you can test up to two people you know very well in your company by forwarding their email addresses to us. We will then send them separate email addresses with a code that they can do the Exec-U-Test online. We will get back to you with a free "phone evaluation" including recommendation how to improve their personalities for better productivity and performance. You can also pay HK$400 for each individual written report if you would like but you are not obliged to do so.

For more information of our free Exec-U-Test offer, please visit our site at http://www.performia.com.hk/index.php/HR-Products/Online-Test/free-executive-personality-test.html

What's wrong in requiring minimum number of years of working experience?

Many employers very often list out the minimum number of years of working experience for their job openings. It is true that we need experienced staff so they can right away perform the duty once being hired as the company is not supposed to be a testing or training school. However, it may eliminate many other smart people who can learn and do the trade very well in a much shorter period of time than the average people with some good proven record. You therefore may close the door of getting better people by putting such a limiter. Likewise, many people spending a lot of working years in the same industry but still cannot perform to the standard. In this case, you may be easily misled to hire this personÂ as he or she looks more experienced. Worse, some may know how to make them look real sophisticated and professional during the interview. There is a more important and senior hiring factor than number of years of working experience, which is production or result that the job applicant proves to be able to produce.

Please come to our Performia Training Seminar so you won't miss the important hiring factors and how to evaluate each of them to come to your final hiring decision without turning the good people away.

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