Best Practices in Screening and Assessment: How Today's Leading Companies Are Leveraging These Tools Presented by: Charles A. Handler, PhD, President/Founder: Rocket-Hire.com October 16, 2007

Introduction to Rocket-Hire Vendor selection specialists and experts in the use of technology to add efficiency and effectiveness to the hiring process. Publish only Buyer’s Guide for this market. Focused on helping clients understand the ROI associated with strategic staffing tools. Focused on ensuring legal defensibility of selection processes.

Vendor selection specialists and experts in the use of technology to add efficiency and effectiveness to the hiring process. Publish only Buyer’s Guide for this market.

Focused on helping clients understand the ROI associated with strategic staffing tools.

Focused on ensuring legal defensibility of selection processes.

Objectives for Today Focus on providing useful information about assessment and its value proposition Provide info on best practices for use Cover the following topics Understanding prediction Screening vs. Assessment- A process focus 3 steps to success Questions

Focus on providing useful information about assessment and its value proposition

Provide info on best practices for use

Cover the following topics

Understanding prediction

Screening vs. Assessment- A process focus

3 steps to success

Questions

Qualification questions Knowledge & Skills Tests Behavioral Interviews Resume Evaluations What Assessments Tell Us Future Performance Job Fit: What do they want to do? Environment Fit: Where do they want to work? Personality Measures Ability Measures “ What can they do?” “ What do they want to do?” “ What have they done?”

Informed Decision Making When you have an important decision to make what do you do? Do your homework Consult experts for information Use information to make predictions Evaluate the effectiveness of your decisions and learn from the results

When you have an important decision to make what do you do?

Understanding Prediction Define performance requirements and desired outcomes Measure these requirements in applicants Use results to support decision making “ Close the loop” Evaluate the accuracy of your decisions vs. outcomes

Define performance requirements and desired outcomes

Measure these requirements in applicants

Use results to support decision making

“ Close the loop” Evaluate the accuracy of your decisions vs. outcomes

Understanding Predictive Accuracy Job Performance Predictor Content O Predictive Accuracy Moderate Predictive Accuracy Job Performance Predictor Content High Predictive Accuracy Job Performance Predictor Content

Validity Synonymous with accuracy That is, does the test measure what it is supposed to? Major types include Content and Criterion Choice of type depends on contingencies Is essential for ROI and legal defensibility Validity is taking on new characteristics as new assessment models proliferate.

Synonymous with accuracy

That is, does the test measure what it is supposed to?

Major types include Content and Criterion

Choice of type depends on contingencies

Is essential for ROI and legal defensibility

Validity is taking on new characteristics as new assessment models proliferate.

Sourcing Screening Testing Outcomes Retention Performance Promotion Traditional Test Validation Modern Best Practices

Outcomes

Retention

Performance

Promotion

Best Practice Assessment Methodology Step 1: Build a solid foundation Step 2: Measure and evaluate applicants Step 3: Close the loop- evaluate your decision making

Step 1: Build a Solid Foundation Accuracy and effectiveness is not possible unless you clearly understand the requirements of the position. This requires due diligence to fully understand and document all job requirements and desired outcomes Ideally this should be linked to an organizational competency model or set of key performance drivers This step is the foundation for both legal defensibility and systematic accuracy This step is the one that is most frequently given the least attention

Accuracy and effectiveness is not possible unless you clearly understand the requirements of the position.

This requires due diligence to fully understand and document all job requirements and desired outcomes

Ideally this should be linked to an organizational competency model or set of key performance drivers

This step is the foundation for both legal defensibility and systematic accuracy

This step is the one that is most frequently given the least attention

Practical advice: Conduct a Job Analysis Job analysis is a systematic study of the requirements related to a specific job or position. It can take many forms but all must have the following elements: Input from incumbents and supervisors A performance model that aligns job duties with key outcomes Documentation demonstrating the method used to collect data A plan for translating data collected into Predictor measures This information can be used to link selection to other key HR functions such as performance management and development

Job analysis is a systematic study of the requirements related to a specific job or position. It can take many forms but all must have the following elements:

Input from incumbents and supervisors

A performance model that aligns job duties with key outcomes

Documentation demonstrating the method used to collect data

A plan for translating data collected into Predictor measures

This information can be used to link selection to other key HR functions such as performance management and development

Step 2: Measure and Evaluate Applicants The goal here is to take job analysis information and use it to create a set of predictors that are designed to measure key performance drivers. In order to be effective these predictors must:: Be solidly linked to job analysis output or competency requirements Be used systematically, treating each applicant the same Be used as only 1 part of an overall decision making process Be staged so that they create a process Provide easy to understand output Be applicant friendly

The goal here is to take job analysis information and use it to create a set of predictors that are designed to measure key performance drivers. In order to be effective these predictors must::

Be solidly linked to job analysis output or competency requirements

Be used systematically, treating each applicant the same

Be used as only 1 part of an overall decision making process

Be staged so that they create a process

Provide easy to understand output

Be applicant friendly

Hiring is a PROCESS Effective use of assessments requires multiple measurement tools implemented in correct sequence Effective assessment is a process not a “test” An integrated, process focus represents the BEST PRACTICE

Effective use of assessments requires multiple measurement tools implemented in correct sequence

Effective assessment is a process not a “test”

An integrated, process focus represents the BEST PRACTICE

Think “Process” not “Test” At the end of the day effective selection is not about basing selection decisions on the result of just one test. Instead selection must be looked at using a process focus in which: Multiple data points are collected and used by trained decision makers Each step in the process has been aligned with key job performance drivers and this can be documented A platform can be used to allow decision makers access to full range of candidate information Successive steps in the process create value by focusing more deeply on qualified candidates The effectiveness of the overall process is evaluated using hard data

At the end of the day effective selection is not about basing selection decisions on the result of just one test. Instead selection must be looked at using a process focus in which:

Multiple data points are collected and used by trained decision makers

Each step in the process has been aligned with key job performance drivers and this can be documented

A platform can be used to allow decision makers access to full range of candidate information

Successive steps in the process create value by focusing more deeply on qualified candidates

The effectiveness of the overall process is evaluated using hard data

Recruitment Advertising (Providing) Final Decision Making Qualifications Screening (Processing) Unqualified Predictive Screening (Predicting) Unqualified Structured Interview Screening Out Screening In All Applicants Qualified Applicants

The Players pt. 1 Sourcing Tools -Employment Brand -Career Site Screening Tools -Resume review -Qualifications screens

Sourcing Tools

-Employment Brand

-Career Site

Screening Tools

-Resume review

-Qualifications screens

The Players pt. 2 Testing Skills/Knowledge testing Personality testing Cognitive testing Values matching/Fit Biodata Simulations Interviewing HR interview-competency focused Technical interview Verification Reference checking Background checking

Testing

Skills/Knowledge testing

Personality testing

Cognitive testing

Values matching/Fit

Biodata

Simulations

Interviewing

HR interview-competency focused

Technical interview

Verification

Reference checking

Background checking

Step 3: Evaluating selection decisions I refer to this as “closing the loop”. This is the only way to clearly demonstrate the ROI associated with a selection process. It is a critical part of any selection plan because it: Documents job relatedness and therefore provides legal defensibility Provides a business case for HR to gain credibility Provides clear links between predictors used and key organizational outcomes Can be used to diagnose key problem areas Is part of a broader business intelligence strategy to evaluate the entire recruitment and selection process.

I refer to this as “closing the loop”. This is the only way to clearly demonstrate the ROI associated with a selection process. It is a critical part of any selection plan because it:

Documents job relatedness and therefore provides legal defensibility

Provides a business case for HR to gain credibility

Provides clear links between predictors used and key organizational outcomes

Can be used to diagnose key problem areas

Is part of a broader business intelligence strategy to evaluate the entire recruitment and selection process.

Summary of Evaluation Methods Criterion related validation studies Recruitment process analysis Meeting key business goals Business intelligence At the end of the day you must ask: “What information is meaningful to us” This should be both a strategic and tactical question

Criterion related validation studies

Recruitment process analysis

Meeting key business goals

Business intelligence

At the end of the day you must ask: “What information is meaningful to us”

This should be both a strategic and tactical question

Outcomes of Accurate Prediction Short Term Better hiring decisions Achievement of technical goals Achievement of immediate business objectives ROI Long Term Building an employee brand Keeping valued assets Building organizational knowledge base Leveraging strengths for the long run

Short Term

Better hiring decisions

Achievement of technical goals

Achievement of immediate business objectives

ROI

Long Term

Building an employee brand

Keeping valued assets

Building organizational knowledge base

Leveraging strengths for the long run

Practical Advice: Evaluate Your Process Closing the loop requires a systematic comparison of predictor scores with data on key organizational outcomes. Steps required include: Collecting predictor data for all selection measures of interest Comparing this data to clean, objective measures of employee performance Documenting the relation between predictor scores and job performance Using this information to refine selection criteria and thresholds Investigating this relationship on an ongoing basis Creating documentation for both legal and business case purposes

Closing the loop requires a systematic comparison of predictor scores with data on key organizational outcomes. Steps required include:

Collecting predictor data for all selection measures of interest

Comparing this data to clean, objective measures of employee performance

Documenting the relation between predictor scores and job performance

Using this information to refine selection criteria and thresholds

Investigating this relationship on an ongoing basis

Creating documentation for both legal and business case purposes

Take Aways Assessment is not a “no brainer” It’s worth the effort Best practices demand attention to 3 key steps The outcome of an assessment is only as good as the process in which it is used Process evaluation is essential Choosing a vendor should be the result of a careful evaluative process

Assessment is not a “no brainer”

It’s worth the effort

Best practices demand attention to 3 key steps

The outcome of an assessment is only as good as the process in which it is used

Process evaluation is essential

Choosing a vendor should be the result of a careful evaluative process

Questions and Discussion

Questions and Discussion