2012 Global Assessment Trends Report

2012 Global AssessmentTrends ReportSarah S. Fallaw, Ph.D. Tracy M. Kantrowitz, Ph.D. | Craig R. Dawson, Ph.D. |

Table of contentsExecutive summary 3 Tables Table 1: Trends in Human Resources 9 Table 2: HR priorities – 2012 10Introduction 5 Table 3: Formality of process in HR areas 12 Table 4: Assessment use by Human 15About the report: methodology 6 Resources area Table 5: Focus of assessment efforts 16and participating companies by HR area Table 6: General hiring tool usage 19 and plans for use Part I: Human Resources focus 8 Table 7: Pre-hire assessment usage and plans for use 20and landscape in 2012 Table 8: Trends in Human Resources: 22Strategy and opportunity 8 collecting metrics and valuing assessments Competency models 8 Table 9: Business outcomes targeted 23 by using pre-hire tests/assessments Challenges and focus in 2012 8 Table 10: Business outcomes targeted 23Priorities for HR 9 by tests/assessments with employees Overview of process and assessments in HR 11 Table 11: Recruiting and selection 25Engagement strategies and career development 13 via smart phones/mobile devices Table 12: Use and effectiveness of social 27 media for recruiting and hiringPart II: Assessment use in organisations 15 Table 13: Social media used In recruiting 28Ways assessments are used 15 and hiring Business impact of assessments 21 Table 14: Candidate data reviewed 30 from social media sites Part III: Technology in testing: 24 Figuresmobile devices and social media Figure 1: Respondents by HQ location Figure 2: Respondents by organisation size 6 7 Figure 3: Respondents by industry sector 7About SHL 32 Figure 4: HR priorities by region 11Why SHL? 32 Figure 5: Engagement and development 14 strategies Figure 6: Tests/assessments 17Selected references 33 in the hiring process Figure 7: Remote testing in the hiring process 17Appendix A: 2009 survey summary 34 Figure 8: Mobile testing perceptions by region – percentage endorsing “yes” 26 Figure 9: Informal social media searches 29Appendix B: 2010 survey summary 35 as a hiring tool Figure 10: Formal social media searches 29 as a hiring toolAppendix C: 2011 survey summary 37 Figure 11: Percentage of respondents currently reviewing social media 30 information by type and region2 | 2012 Global Assessment Trends Report

Executive summaryThe Global Assessment Trends Report is an annual indicator of assessment practices,giving HR professionals a comprehensive view of how organisations around the world The report focusesmeasure talent across the employee lifecycle. on organisations’ talentThis year’s report presents the results of an online survey conducted in late 2011and completed by 481 human resources (HR) professionals employed in companies assessment practicesheadquartered throughout the world. The report focuses on organisations’ talent with both employeesassessment practices with both employees and job candidates. As in previous reports,pertinent comparisons are drawn to results of the prior years’ Global Assessment and job candidates.Trends Reports to identify trends over time.The report concentrates on three areas: the HR focus and landscape in 2012, thenature of assessment use in organisations, and the use of technology in HR processes.Key findings from the report are listed below:Human Resources focus and landscape in 2012Key finding 1: The relationship between People Intelligence and businessoutcomes has room to grow• More than 80% of respondents said their organisations link talent decisions to broader business objectives and goals.• However, less than half indicated that their organisations use information about their talent to drive overall business decisions.Key finding 2: A focus on engagement and leadership in 2012• A majority of respondents indicated that engagement/retention (56%) and leadership development (55%) were top priorities for 2012, with nearly 70% of respondents indicating their organisations had formal, or both formal and informal processes in place for such initiatives.Key finding 3: Giving up on career development?• Despite the focus on engagement in 2012 and the finding that more than half of companies indicated focusing more on internal talent than hiring externally, just over a third of HR professionals cited career development as a top priority. Likewise, fewer HR professionals than in 2011 are using it as a retention strategy and fewer are offering a formal way for employees to find new careers internally. shl.com | 3

Executive summaryAssessment use in organisationsKey finding 4: Hiring internally and externally continues to be the most prevalentuse of assessments, however there is significant post-hire use• More than 70% of organisations currently use assessments for external hiring, and over 60% use them for internal hiring.• Post-hire use includes training (47%), leadership development (45%) and career development (39%).• Top plan-to-use areas: workforce planning/talent analytics and career development.Key finding 5: Talent measurement focus: current behaviours and potential• Most HR professionals use either current behaviours or future potential as the focus of their assessment efforts versus examining relevant past experiences. Assessing past performance and experiences was cited by less than 30% for each of 14 key HR areas.Key finding 6: Linking assessments to business outcomes• Most respondents indicated using assessments to impact overall productivity of their workforce, but a little more than half indicated collecting metrics to assess impact.Technology in testing: mobile devices and social mediaKey finding 7: Asia leading the way in desire to use smart phones/mobiledevices in recruiting• Mirroring usage data, HR professionals in Asia indicated a higher desire to use smart phones/mobile devices in recruiting and also indicated a greater number of candidates requesting to take assessments via such devices as compared to their counterparts in Europe and the Americas.Key finding 8: Increased allowance and perceptions of effectiveness of social media• More companies are allowing the use of social media in recruiting and hiring as a review tool, but little change in formal policy about the use of it.• Likewise, social media is growing in terms of acceptance, as perceptions of it being an effective tool for recruiting candidates grew 10 percentage points.4 | 2012 Global Assessment Trends Report

IntroductionThe global economy continues to relapse and recover from the chaotic financialconditions of the past several years. With turmoil continuing in key economies and “ ne in four CEOs Oeven protests against some corporations around the world, companies must engagetheir workforces and recruit the best talent in an increasingly competitive market said they were unablewhile maintaining a positive corporate image. Organisations are realising the potential to pursue a marketfor a talent exodus and are seeing the advantages of building talent in-house1.The focus on talent has never been greater and is magnified by: opportunity or have• n aging workforce, with high numbers of retiring “baby boomers” A had to cancel or delay (10,000 per day in US alone) a strategic initiative• A critical shortage of 35-50 year olds to replace them because of talent• A fast pace of change in marketplace, and an uncertain future• A changing business landscape requiring new skills challenges. One in threeHow can organisations simultaneously attract new talent and engage their current is concerned that skillsworkforce? How do organisations know levels of internal talent and use it to theiradvantage? Does this talent truly make a difference? Can practitioners leverage shortages will impacttechnology to take advantage of the unique talent pools outside of their own country? their company’s abilityCompanies that will have continued success despite ever-changing economic to innovate effectively.”conditions have a culture that focuses on employees, as this culture shows throughto customers2. Well-run organisations with a clear understanding of their internal talent PWC, Annual CEO Survey,may adapt and thrive better than their competitors. This depends on their ability to Feb 2012capitalise on the knowledge, skills and abilities of their respective workforces andrecruit to supplement their current talent pool. Effective talent management startswith People Intelligence3 – a deep understanding of the skills, behaviours and potentialwithin an organisation and how they align to current and future business objectives.We also see an increased appetite for talent analytics, which enables organisations tocompare their talent with that of other organisations (by industry, country or globally).This fourth annual Global Assessment Trends Report presents the results of an onlinesurvey conducted in late 2011 with 481 HR professionals employed with companiesheadquartered throughout the world4. This year’s report focuses again on organisations’talent assessment practices with both employees and recruits/candidates. The 2012report follows up on perspectives regarding social media in hiring and testing via smartphones/mobile devices. As in previous reports, pertinent comparisons are drawn toresults of the prior years’ Global Assessment Trends Reports5 to identify trends overtime. In each section, we provide an overview of our findings as well as commentaryrelated to the trends.1. Manpower, 2011b; O’Leonard, 2011.2. Busser, 2011.3. Bersin & Associates, September 2011.4. ote that in previous years, the Global Assessment Trends Reports have reported results based on number N of companies, allowing one respondent to represent each company (note that this typically eliminated only 5-8 respondents total). This year, we report our findings based on number of HR professionals, or number of respondents. Although comparisons are made to previous years’ findings, we believe that the comparisons are appropriate because so few respondents were eliminated previously.5. ey Findings of the 2009, 2010 and 2011 Global Assessment Trends Reports are located in Appendices K A, B and C, respectively. shl.com | 5

About the report: methodologyand participating companiesThe 2012 report is based on data from an online survey of 481 Human Resources(HR) professionals representing organisations who work with SHL and/or its affiliates.The survey was conducted in November and December 2011.Most respondents indicated their companies are headquartered in Europe,Africa or the Middle East. Approximately 23% of respondents indicated theircompanies are headquartered in the United States, while the remaining companiesare headquartered in China, the United Kingdom, Australia, the Netherlands, SouthAfrica and other locations (Figure 1). As in previous years’ surveys, respondentsrepresented a variety of company sizes and industries (see Figures 2 and 3). Mostrespondents report into a Human Resources function within their organisations andrepresent a variety of roles including HR or staffing managers, HR leadership andHR generalists.Figure 1: Respondents by HQ location United States Netherlands 24% 23% China South Africa United Kingdom Other Australia 5% 6% 19% 7% 16%6 | 2012 Global Assessment Trends Report

About the report: methodolog y and participating companiesFigure 2: Respondents by organisation size Respondents represented 16% 0-49 1,000-4,999 a wide cross-section of 17% 50-99 5,000-9,999 organisation size, location 2% 5% 100-499 500-999 10,000-12,000 Over 12,000 and industry sector. 9% 21% 19% 11%Figure 3: Respondents by industry sector 4% 6% Educational services 23% 8% Financial 3% Government/public administration 3% Healthcare insurance 3% 4% Information 6% Insurance 6% 16% Manufacturing Professional services 18% Retail Staffing Telecommunications Other shl.com | 7

Part I: Human Resourcesfocus and landscape in 2012Key finding 1: The relationship between People Intelligence and businessoutcomes has room to grow• More than 80% of respondents said their organisations link talent decisions to broader business objectives and goals.• However, less than half indicated that their organisations use information about their talent to drive overall business decisions.Key finding 2: A focus on engagement and leadership in 2012• A majority of respondents indicated that engagement/retention (56%) and leadership development (55%) were top priorities for 2012, with nearly 70% of respondents indicating their organisations had formal, or both formal and informal processes in place for such initiatives.Strategy and opportunityTable 1 shows that nearly three-quarters of respondents believe HR is viewedas strategic within the organisation. However, while more than 80% of respondentssaid their organisations make talent decisions based on the broader organisationobjectives and goals, less than half indicated that their organisations use informationabout talent to drive overall business decisions. This signals an opportunity to connectHR data to overall business decisions.Competency modelsAs an overarching model for performance, competency models are often used asthe basis for job descriptions, hiring and training criteria and leadership developmentprogrammes. About half of respondents indicated that competency models areused effectively and as the basis for HR areas (see Table 1). Specifically, nearly 60%of companies indicated they are used as the foundation for job descriptions andqualifications, while less than 50% indicate that HR decisions are made based onsuch models. A little over 40% of respondents indicated that these models are beingused effectively as part of the overall employee lifecycle.Challenges and focus in 2012As in years past, over 50% of companies reported focusing on internal roles in2012 versus outside hiring, and less than 40% of companies indicated recruiting formore roles in 2012 versus 2011. Nearly 65% of companies indicated that recruitingand hiring top talent will be challenging in 2012. This continued concern over the warfor talent has been echoed in other survey results,6 and highlights the ongoing needto both attract and retain talent, which will be discussed later in the report.6. Jobvite 20118 | 2012 Global Assessment Trends Report

Part I: Human Resources focus and landscape in 2012Table 1: Trends in Human Resources Employees around the Yes My organisation views HR as a strategic function 74% world are less engaged. My organisation considers people decisions (hiring, promotion) in the context 83% Mercer, What’s Working, 2012 of business objectives My organisation uses information about talent to make business decisions 48% Our organisation’s competency model is being used effectively as part 43% of our overall employee lifecycle (from hiring to development to promotion) Our competency model serves as the basis for our job descriptions 57% and required qualifications We base all assessment programmes for selection, promotion and/or development 48% on our competency model In general, my organisation is focusing more on developing talent internally 53% than on hiring externally We are currently recruiting for more open positions organisation-wide 39% as compared to last year We expect it will become increasingly challenging to recruit and hire talented 64% individuals for key positions in the coming yearPriorities for HRWe begin the look at assessment trends by examining the priorities for HR in 2012.Assessment occurs in the broader context of the organisation at large, and other HRinitiatives, specifically. We focused on 14 different areas of interest to determine thebroader context for assessment use in 2012. Respondents were asked to indicatewhether each area was a top, medium or low priority for their organisation in 2012.In 2012, a majority of HR professionals around the world indicated that engagement/retention (56%) and leadership development (55%) were top priorities (see Table 2).These findings were similar across regions (see Figure 4). Clearly, HR professionalsrecognise the need for a focus on keeping talent within their organisations, and for goodreason. According to Mercer’s “What’s Working” research, employees around theworld are less engaged and the reasons for being disengaged appear to vary by country/region,7 a particularly challenging prospect for those who manage global workforces.Workforce planning/talent analytics and performance management tied for thethird spot, both being endorsed as top priorities by more than 40% of respondents.Planning/talent analytics, specifically, has been cited as a key growth/trend areaby analysts who demonstrate that companies have these data on hand, but needa focused area around analysis to harness the capability of available data.8 Indeed,Manpower cited this as “manufacturing” talent – a strategy to examine talent withinthe current workforce in order to leverage talent in a new way: anticipating talentneeds and having an accurate perspective of workforce talent versus reacting totalent shortages with short-term fixes.97. Mercer 2012 8. Bersin 2011 9. Manpower 2011 shl.com | 9

Part I: Human Resources focus and landscape in 2012Table 2: HR priorities – 2012 Top priority HR initiative/area Rank % Engagement/retention 56% 1 Leadership development 55% 2 Workforce planning/talent analytics 43% 3 Performance management 43% 4 Training 40% 5 Succession planning 40% 6 Change management 38% 7 External hiring (including recruitment) 37% 8 Career development 36% 9 Internal hiring (including promotion) 33% 10 Creating/implementing competency model(s) 27% 11 Restructuring 25% 12 Onboarding 19% 13 Outplacement/redeployment of talent 14% 1410 | 2012 Global Assessment Trends Report

Part I: Human Resources focus and landscape in 2012Figure 4: HR priorities by region Asia/Australia/NZ 70 Europe/ME/Africa Americas 60 50 Percentage 40 30 20 10 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1. Competency models 8. Onboarding 2. Workforce planning/talent analytics 9. Training 3. Engagement/retention 10. Performance management 4. Change management 11. Career development 5. Restructuring 12. Leadership development 6. External hiring (including recruitment) 13. Succession planning 7. Internal hiring (including promotion) 14. Outplacement/redeployment of talentOverview of process and assessments in HRWe asked participants to indicate the level of formality associated with variousHR functions within their organisations (Table 3). External hiring and performancemanagement were the most formal of the processes examined, while respondentsindicated that change management, succession planning and outplacement werethe most likely areas to use informal processes, or no processes.Comparing the findings regarding HR priorities to the extent to which processes arein place to support such priorities reveal some interesting findings. For instance, whileengagement/retention was found to be the top HR priority, only 19% of respondentsindicated having a formal process in place to support this initiative, and under halfof all respondents indicated having both formal and informal processes. Similarly,only 22% of respondents indicated having a formal process in place for leadershipdevelopment, the second HR priority. Just under half of all respondents indicatedhaving both formal and informal processes to support leadership development. shl.com | 11

Part I: Human Resources focus and landscape in 2012Table 3: Formality of process in HR areas Formal & Formal Informal HR initiative/area informal No process process processes processes Creating/implementing competency model(s) 33% 36% 17% 15% Workforce planning/talent analytics 21% 42% 23% 14% Engagement/retention 19% 41% 26% 13% Change management 17% 38% 24% 21% Restructuring 30% 32% 18% 20% External hiring (including recruitment) 71% 24% 3% 1% Internal hiring (including promotion) 52% 38% 8% 3% Onboarding 50% 28% 10% 12% Training 47% 43% 8% 2% Performance management 64% 25% 7% 4% Career development 17% 44% 26% 13% Leadership development 22% 47% 18% 12% Succession planning 23% 35% 23% 19% Outplacement/redeployment of talent 29% 31% 13% 27%12 | 2012 Global Assessment Trends Report

Part I: Human Resources focus and landscape in 2012Engagement strategies and career development Three areas that makeKey finding 3: Giving up on career development? the biggest impact on• Despite the focus on engagement in 2012 and the finding that more than half of companies indicated focusing more on internal talent than hiring externally, only business are development 36% of HR professionals cited career development as a top priority. Likewise, planning, talent mobility fewer HR professionals than in 2011 are using it as a retention strategy and fewer are offering a formal way for employees to find new careers internally. and career developmentProviding internal career opportunities can help organisations keep top talent from expertise.seeking those opportunities elsewhere. Contrasting our findings from 2011, fewerorganisations, nearly 60%, indicated using career development as a means of affectingretention. Likewise, formal career development programmes were only used bya little more than one-fourth of respondents (see Figure 5).Are companies giving up on career development? If organisations believe thatengagement is a top priority for their companies (see key finding 2), formal careerdevelopment programmes are crucial to demonstrating to their workforce thatcareer opportunities exist within their organisations. With only 30% of respondentsindicating that career paths exist in their organisations for all jobs, it is not surprisingthat engagement is low. Best-in-class organisations are offering such programmesto their employees, and for good reason, as some experts find that three areas thatmake the biggest impact on business are development planning, talent mobilityand career development expertise.10However, these findings may not indicate a shift away from career developmentper se, but a realisation that the contingent workforce is growing within theirorganisations.11 Likewise, most analysts believe there will be a resurgence in careerdevelopment strategies as companies leverage social media and mobile technologyto stay engaged with their employees and provide more agile technology to accomplishcareer-related goals.12 A little over half of respondents indicated using assessmentsto uncover developmental needs within their workforces – an area that could beimproved in order to “manufacture” talent.1310. Bersin, 2011 11. McIllvane, 2011 12. Bersin, 2011 13. Manpower, 2011b shl.com | 13

Part I: Human Resources focus and landscape in 2012Figure 5: Engagement and development strategies 1. e use career development as W 2011 80 a retention strategy 2012 2. y company has a formal career M 70 development programme for all employees 3. e have a formal career development W 60 programme that employees can choose to participate in (versus an invite-only 50 programme) Percentage 4. e have a formal process in place to help W 40 employees find new careers internally 30 5. e have created career paths for most W or all of our job families 20 6. y organisation uses assessments to M uncover developmental areas for employees 10 0 1 2 3 4 5 614 | 2012 Global Assessment Trends Report

Part II: Assessment usein organisationsWays assessments are used Organisations canKey finding 4: Hiring internally and externally continues to be the mostprevalent use of assessments, however there is significant post-hire use benefit from the use• More than 70% of organisations currently use assessments for external hiring, of assessments when and over 60% use them for internal hiring. undergoing restructuring.• Top plan-to-use areas: workforce planning/talent analytics and career development.When measuring the talent within a company, HR professionals have a wide varietyof choices. However, the best assessments, measurements of talent that can helpguide decision-making and lead to demonstrable results, are those that are bothwell-designed and well-researched to ensure they are valid, useful tools.Not surprisingly, more than 70% of organisations currently use assessments forexternal hiring, and over 60% use them for internal hiring (see Table 4). In terms ofplans to use assessments, the top HR areas include workforce planning/talent analyticsand career development. More than half of respondents indicated that they had noplans to use assessments for change management, restructuring of the organisationor outplacement/redeployment of talent.Despite these findings, organisations can benefit from the use of assessmentswhen they undergo restructuring: examining potential of current employees orproviding interest measures to identify new areas for which current employeesmay be well-suited can be accomplished using assessments.Table 4: Assessment use by Human Resources area No plans for Plan to use in HR initiative/area Currently use assessments near future Creating/implementing competency model(s) 35% 29% 36% Workforce planning/talent analytics 37% 34% 30% Engagement/retention 38% 30% 32% Change management 57% 25% 18% Restructuring 53% 21% 27% External hiring (including recruitment) 11% 19% 71% Internal hiring (including promotion) 16% 22% 62% Onboarding 49% 19% 33% Training 30% 24% 47% Performance management 32% 25% 42% Career development 28% 33% 39% Leadership development 25% 30% 45% Succession planning 37% 32% 31% Outplacement/redeployment of talent 53% 22% 25% shl.com | 15

Part II: Assessment use in organisationsKey finding 5: Talent measurement focus: current behaviours and potential• Most HR professionals use either current behaviours or future potential as the focus of their assessment efforts versus examining relevant past experiences. Assessing past performance and experiences was cited by less than 30% for each of 14 key HR areas.When making decisions about employees – both potential and current – the focusof assessment efforts may be on their current performance, their potential or theirpast performance in other roles. There are benefits from examining all three –a comprehensive talent analytics strategy that includes past experiences, currentperformance and potential.Most organisations focused on current behaviours of their talent in an assessmentcontext, particularly for onboarding of new employees and for performancemanagement (see Table 5). Future potential of employees was the focus of mostleadership-focused areas, including career development, leadership developmentand succession planning.Fewer than 30% of organisations focused assessment areas on past performance.While this makes sense for most areas of HR, including those that are primarilyrelated to current behaviours on the job like performance management, some areascould benefit by examining the past performance of employees in various roles.14Table 5: Focus of assessment efforts by HR area Past Current Future HR initiative/area performance behaviours potential Creating/implementing competency model(s) 20% 49% 31% Workforce planning/talent analytics 13% 39% 47% Engagement/retention 15% 57% 28% Change management 14% 53% 34% Restructuring 20% 42% 38% External hiring (including recruitment) 28% 38% 34% Internal hiring (including promotion) 21% 40% 39% Onboarding 18% 65% 17% Training 10% 56% 35% Performance management 23% 64% 13% Career development 7% 26% 67% Leadership development 7% 26% 67% Succession planning 6% 23% 71% Outplacement/redeployment of talent 20% 56% 24%14. Mael, 199116 | 2012 Global Assessment Trends Report

Part II: Assessment use in organisationsThe Talent Pool: using assessments for hiringOrganisations have a wide variety of choices to make when it comes to the wayin which candidates are selected. However, not all assessments are created equalnor are they all appropriate for each human resource decision. The best assessments,those that provide demonstrable benefits to organisations, are those that arewell-designed, valid measures of characteristics important to job performance.In addition to time and cost, companies must carefully consider the performanceof their hiring tools (i.e. links to metrics that are important to the company) whendesigning their hiring process. Cognitive ability, personality, work samples and othertests have been shown to consistently predict job performance,15 while others, suchas handwriting analysis, have little scientific support. Best in class organisations usetests that have been proven to predict key metrics within their companies, such asturnover, performance and sales revenue.As in years past, we found that the majority of companies use some sort of test aspart of their hiring practices (75%; see Figure 6). More than 60% of HR professionalsindicated their companies allow remote testing – testing from a non-company location,without direct supervision from a test administrator, such as the candidate’s homeor a library (see Figure 7).Figure 6: Tests/assessments in the hiring process 9% Yes Unsure 16% No 75%Figure 7: Remote testing in the hiring process Yes 22% Unsure No 14% 64%15. Schmidt & Hunter, 1998 shl.com | 17

Part II: Assessment use in organisationsAs in years past, most companies use résumé screens, structured interviewguides, reference checks, pre-screening questions and application forms as part Situational judgementof their hiring practices (see Tables 6 and 7). These traditional hiring tools are usedor will be used by more than 82% of respondents, and indeed, the first three (résumé tests are becoming morescreens, structured interview guides, reference checks) are used or will be used popular with 70% ofby 90% or more of companies. However, as noted by Bersin & Associates,16 HR istypically inundated with applications and résumés: 144 résumés per job for hourly respondents either usingroles, and 90 per job for white-collar roles. With this barrage of personal information or planning to use them.on candidates, companies are increasingly interested in, and using, assessmentsas part of their hiring process.As in 2011, the top five used or soon to be used assessments include skills/knowledgetests, cognitive ability tests and personality tests, as well as job fit tests (see Table15). More than 90% of companies indicated they use or plan to use tests that measureskills and knowledge. Similarly, around 85% of respondents indicated using or planningto use broad tests in their hiring processes, including personality tests and/or cognitiveability tests. Unlike last year, situational judgement tests rose into the top five, beingused or having plans to be used by 70% of respondents.Frequently used hiring tools – top 5 lists General hiring tools Assessments • Résumé review/screen • Skills/knowledge tests • Structured interview guides • Personality tests • Reference checks • Cognitive ability/general problem solving tests • Pre-screening questions (minimum • Job fit tests qualifications questions) • Situational judgement tests • Application forms16. O’Leonard, 201118 | 2012 Global Assessment Trends Report

Part II: Assessment use in organisationsTable 6: General hiring tool usage and plans for use 2009 2010 2011 2012 Hiring tool Total Rank Total Rank Total Rank Totals Rank Plan Use Total to use Résumé review/screen 95% 2 96% 1 94% 1 5% 90% 95% 1 Structured interview guides 85% 5 84% 7 94% 1 11% 80% 91% 2 Reference checks – – 93% 2 90% 3 12% 78% 90% 3 Pre-screening questions 93% 3 92% 3 84% 4 12% 71% 83% 4 (minimum qualifications questions) Application forms – – 89% 5 84% 4 5% 77% 82% 5 Background checks17 98% 1 92% 4 83% 6 10% 71% 81% 6 Phone screens (person to person or IVR) 88% 4 86% 6 77% 7 9% 69% 78% 7 Work samples/Assessment centres 59% 6 67% 9 71% 8 21% 50% 71% 8 Social media searches – Informal – – 69% 8 67% 9 24% 47% 71% 8 Social media searches – Formal – – 54% 12 51% 10 24% 34% 58% 10 Unstructured interviews 44% 7 61% 11 50% 11 9% 42% 51% 11 Credit checks – – 53% 13 43% 12 13% 28% 41% 12 Drug screens – – 62% 10 41% 13 7% 27% 34% 1317. Note: In 2009, this was combined to read “Background checks, drug screens.” shl.com | 19

Part II: Assessment use in organisationsTable 7: Pre-hire assessment usage and plans for use 2009 2010 2011 2012 Assessment types Total Rank Total Rank Total Rank Totals Rank Plan to Use Total use Skills/knowledge tests 85% 2 84% 1 84% 1 11% 80% 91% 1 Personality tests 66% 8 68% 4 78% 3 17% 69% 86% 2 Cognitive ability/general problem solving tests 85% 1 74% 2 79% 2 15% 70% 85% 3 Job fit tests 76% 7 62% 6 68% 4 20% 56% 76% 4 Situational judgement 68% 7 67% 5 63% 5 24% 46% 70% 5 Specific ability tests 84% 3 73% 3 58% 8 14% 55% 69% 6 Culture fit tests 59% 9 52% 9 55% 9 27% 42% 69% 6 Job simulations 70% 6 56% 8 60% 7 26% 42% 68% 8 Job-specific solutions 82% 4 62% 7 63% 5 23% 42% 65% 9 Biodata (life history information) 43% 11 36% 11 52% 10 7% 48% 55% 10 Interest assessments 50% 10 42% 10 45% 11 17% 28% 45% 1120 | 2012 Global Assessment Trends Report

Part II: Assessment use in organisationsBusiness impact of assessmentsKey finding 6: Linking assessments to business outcomes• Most respondents indicated using assessments to impact overall productivity of their workforce, but a little more than half indicated collecting metrics to assess impact.As a cost centre, HR professionals know they must demonstrate the value of theirinitiatives. Effective use of assessments can provide practitioners with data thatdemonstrate the value of their processes, but the data are only as good as the measuresused to gather them. In many cases, professionals have demonstrated that the use ofassessments for hiring and/or promotion has led to increases in revenue, performanceand retention. This is highlighted in SHL’s Business Outcomes Study Report.18We asked respondents to respond to a variety of statements related to examiningthe value of their workforce initiatives. The results were similar to those of last year:slightly less than 50% of respondents indicated they collect metrics to demonstratethe value of their initiatives, and slightly more than half of respondents indicatedcollecting metrics to examine the value of tests to the hiring process and using thoseresults to change and/or improve hiring (see Table 8). Slightly fewer respondentsindicated collecting metrics (42%) and/or linking those metrics to developmentalprogrammes within their organisations (45%) as compared to those that collect andexamine metrics for hiring. Most HR professionals believe that testing candidatesis valuable in the hiring process (89%; see Table 8).18. SHL, 2011 shl.com | 21

Part II: Assessment use in organisationsTable 8: Trends in Human Resources: collecting metrics and valuing assessments Per cent endorsing Respondents named performance ratings Survey statement 2011 2012 as the key metric to be We collect metrics to show the value of our HR investments 51% 46% linked to assessments. Testing candidates is a valuable part of the hiring process 94% 89% We collect metrics to determine how assessments add value 52% 51% to the hiring process19 We have/will change(d) or enhance(d) our hiring process(es) based 60% 54% on examining the success of the programme via business metrics We link assessment results from employee development efforts – 45% to business outcomes to evaluate their effectiveness We collect metrics to determine how assessments add value – 42% to our development programme(s) Assessments are an effective way to pinpoint employee – 54% engagement issues My organisation views assessments as a critical component – 62% of any promotion and/or development programmeWhat metrics are organisations focusing on when using assessments? For pre-hireassessments, we saw a shift this year in rank of various business outcomes: in 2012,respondents indicated productivity was the main metric targeted, followed by retentionand performance ratings (see Table 9). For employee-focused initiatives, respondentsnamed performance ratings as the key metric to be linked to assessments, followedby retention and productivity (see Table 10). While performance ratings are importantto help provide information on the relative performance of employees, they are moredifficult to link to monetary value for the organisation. In order to ensure continuedsupport and success of an assessment programme, linking assessment scores toperformance areas such as sales revenue or production can be beneficial.19. In 2011, this statement read “how tests” instead of “how assessments.”22 | 2012 Global Assessment Trends Report

Part II: Assessment use in organisationsTable 9: Business outcomes targeted by using pre-hire tests/assessments 2010* 2011 2012 Per cent Per cent Per cent Business outcome Rank Rank Rank endorsing endorsing endorsing Productivity 47% 2 56% 2 60% 1 Retention (or turnover) 52% 1 57% 1 58% 2 Performance ratings 38% 4 47% 4 53% 3 Process efficiency 44% 3 52% 3 50% 4 (e.g. cost per hire, time to hire) Training effectiveness/cost 24% 5 31% 5 34% 5 Financial metrics 16% 7 28% 6 34% 6 (e.g. sales revenue, shrink/loss) Legal compliance 19% 6 17% 7 21% 7 We do not target any specific metrics or business outcomes 9% 8 14% 8 17% 8 with our pre-hire tests* ote: In 2010, Quality of Hire was included and was ranked #1. QOH is typically thought of as a combination N of business outcomes and was not included in the 2011 or 2012 surveys.Table 10: Business outcomes targeted by tests/assessments with employees 2012 Per cent Business outcome Rank endorsing Performance ratings 62% 1 Retention (or turnover) 57% 2 Productivity 57% 2 Training effectiveness/cost 45% 4 Financial metrics (e.g. sales revenue, shrink/loss) 36% 5 Process efficiency (e.g. cost per hire, time to hire) 33% 6 We do not target any specific metrics or business outcomes 18% 7 with our assessments shl.com | 23

Part III: Technology in testing:mobile devices and social mediaKey finding 7: Asia leading the way in desire to use smart phones/mobiledevices in recruiting• Mirroring usage data, HR professionals in Asia indicated a higher desire to use smart phones/mobile devices in recruiting and also indicated a greater number of candidates requesting to take assessments via such devices as compared to their counterparts in Europe and the Americas.Smart phone technology is increasingly changing the way organisations interactwith potential candidates. Initial interactions between organisations and candidatesare occurring over mobile-enabled career sites and applicant tracking systems (ATSs).Whether it is considered a competitive advantage to test candidates via such devicesdue to expediency or if it is simply a convenience in the hiring process, testing viasmart phones/mobile devices is of growing interest to HR professionals.The 2012 survey again focused on the use of smart phones/mobile devices totest candidates. While the use of these devices is growing dramatically,20 their useas a means to complete hiring tests (versus completing pre-screening questionsor application forms) is relatively unknown. Compared to 7% in 2011, 14% of HRprofessionals indicated that their human resources information systems (HRIS) canbe accessed through such devices (see Table 11). Likewise, we saw a small increasein the number of HR professionals indicating that recruiter access to candidate data onthese devices would make their processes more efficient. In terms of requests to havesuch technology available, we also saw an increase from both recruiters and candidates.We also asked participants to comment on the appropriateness of using smartphones/mobile devices in hiring: around half of HR professionals were unsure iftesting via mobile devices was unfair, would encourage cheating or is inappropriate.These findings highlight the caution associated with the use of this new technologyfor decision-making purposes in hiring. There was a slight increase in the percentageof respondents who would allow candidates to take tests via smart phones/mobiledevices. This year, we asked if additional research (e.g. research regarding fairnessand/or validity of using such devices) would increase this number, and found a verysmall increase in companies who would allow the use of such devices if researchsupports it (38% of respondents would allow it versus 42% who would allow it ifresearch existed to support it).The potential challenges with testing via smart phones/mobile devices may prohibitand/or dissuade the use of such technology by some organisations. Such challengesmay include fairness in access to tests via mobile devices, uncertainty over theequivalence between online and mobile versions of a given test, concerns aboutthe increased potential for cheating, and the potential technological challenges relatedto the administration of such a test.21Regardless of hesitancy about new technology, we anticipate that as smart phone/mobile device use increases and the technology becomes more sophisticated,companies will need to use this technology to compete effectively in the war ontalent – engaging recruits and candidates early in the hiring process and providingreal-time information to recruiters and hiring managers. The best use of suchtechnology must be tempered with using assessments that are most appropriatefor the medium.20. Deloitte, 2011 21. Fallaw & Mattocks, 201124 | 2012 Global Assessment Trends Report

Part III: Technolog y in testing: mobile devices and social mediaTable 11: Recruiting and selection via smart phones/mobile devices 2011 2012 No Unsure Yes No Unsure Yes Our human resources information systems (HRIS) systems are accessible via smart 70% 23% 7% 65% 21% 14% phones/mobile devices Recruiter access to candidate information (e.g. application forms, assessment scores) 35% 40% 25% 38% 29% 32% via smart phone/mobile devices would make our hiring process more efficient Recruiters and hiring managers are requesting 69% 23% 9% 54% 24% 22% to have mobile access to candidate information Candidates are requesting to complete application forms and/or assessments on 67% 24% 9% 53% 28% 19% their mobile devices We would allow candidates to complete assessments via smart phones/mobile 33% 34% 33% 32% 30% 38% devices today if such an option existed We would allow our candidates to complete assessments on smart phones if there was – – – 22% 36% 42% research showing how assessment scores compare to taking assessments on computers It may be unfair to allow candidates to – – – 27% 50% 23% complete assessments via smart phones Allowing candidates to use mobile devices to complete assessments would – – – 25% 56% 20% encourage cheating Allowing candidates to use mobile devices – – – 30% 47% 23% to carry out assessments is inappropriateGlobal comparison: mobile testing by regionGiven the variations in smart phone usage and ownership around the world, wepresent data by geographic region. Indeed, China leads the world in mobile phonesin use, followed by India, the United States, Indonesia, Brazil and Russia. 22We examined regional differences in perceptions and use of mobile testing byexamining how respondents felt about access and appropriateness by region (seeFigure 8). Recruiters are requesting more access to candidate information via theirmobile devices in Asia as compared to the other regions. This mirrors the findingsrelated to mobile access in this region, as noted above. Likewise, candidates arerequesting the ability to complete application forms and/or take assessments onmobile devices more in Asia as compared to Europe/Africa and the Americas.22. Wikipedia, 2012 shl.com | 25

Part III: Technolog y in testing: mobile devices and social mediaFigure 8: Mobile testing perceptions by region – percentage endorsing “yes” 1. Recruiters requesting mobile access Asia/Australia/NZ 45 Europe/ME/Africa 2. Candidates requesting mobile access Americas 3. ould allow candidates to take W 40 assessments on smart phones 35 4. Unfair to access via mobile 30 Percentage 25 20 15 10 5 0 1 2 3 4Key finding 8: Increased allowance and perceptions of effectiveness of social media• More companies are allowing the use of social media in recruiting and hiring as a review tool, but little change in formal policy about the use of it.Likewise, social media is growing in terms of acceptance, as perceptions of it beingan effective tool for recruiting candidates grew 10 percentage points.Companies are increasingly spending their recruiting budgets on social media (SM) 23– in the United States, for example, 10% of the $124 billion (US) recruiting marketis spent on SM and around 89% of US companies reported that they will use socialmedia in recruiting.24 The UK has been slower to adopt with just 8% of open positionsin 2011 being filled using professional networking sites. As in last year’s report, the2012 SHL Global Assessment Trends survey includes a focus on social media as asource for candidates and candidate information. This technology is increasingly reliedupon by recruiters and HR professionals.More HR professionals reported that SM was having a large impact on how they recruitand more were using the sites to advertise jobs (see Table 12). More HR professionalsindicated that their companies allow them to recruit from SM sites (up from the 2011report), and slightly more companies were allowing their HR teams to use social mediainformation about candidates to make decisions (from 17% in 2011 to 22% in 2012).Additionally, since 2011, more companies are allowing their recruiters and hiringmanagers to review SM information and make decisions with this data. However,formal policies regarding how this information should be used have stayed relativelythe same since 2011.23. O’Leonard, 2011 24. Jobvite, 201126 | 2012 Global Assessment Trends Report

Part III: Technolog y in testing: mobile devices and social mediaTable 12: Use and effectiveness of social media for recruiting and hiring Survey statement 2011 2012 We continue to see Social media websites (e.g. Facebook, Twitter) are having the trend towards using a large impact on how we recruit, manage and measure talent 28% 37% social media search Social media sites are effective tools for recruiting and reaching quality candidates 36% 46% information as part We use social media (e.g. Facebook, Twitter, LinkedIn) of the hiring process. 38% 47% to advertise job openings Candidate information on social media sites is useful 25% 29% in determining candidate fit with an organisation We allow our recruiters/hiring managers to review social media 31% 45% information about potential candidates We allow our recruiters/hiring managers to use social media 17% 22% information to make decisions about candidates We have a formal policy in place regarding social media 15% 17% information and our hiring practicesSocial media continues to grow as a means by which candidates are attracted toan organisation via social media sites created by organisations, and how candidatesare contacted through these sites. Recruiters are increasingly using these sites tosource candidates and advertise job openings. Likewise, we see an increase in theuse of social media sites as a way to communicate with job seekers (see Table 13),findings that mirror Jobvite’s large survey of social media usage in the US. 25 Bersin& Associates refer to this as the “employment tunnel” – the pool of individuals whoare engaged with your brand on social media but have not yet applied for jobs. 26Concerns remain related to using social media information in hiring: validity(does this information predict job performance?) and legality (is it legal to use suchinformation?) Employee selection, in most countries, involves making critical decisionsabout individuals, typically governed by corporate, local and national laws related tohiring. Following the trend in individual use of social media as a form of communicationand entertainment, we continue to see the trend towards using social media searchinformation, both formal and informal searches, as part of the hiring process (seeFigures 9 and 10). These figures have increased since 2010. As companies continueto want to interact and build brand loyalty via these sites, so too will the desire toengage candidates using SM and review the information they provide therein.25. Ibid 26. Bersin, 2011 shl.com | 27

Part III: Technolog y in testing: mobile devices and social mediaTable 13: Social media used in recruiting and hiring 2011 per cent SHL’s approach Social media and recruiting area 2012 endorsing to mobile assessment Our recruiters use social media sites to source candidates 30% 42% To support our customers’ evolving Our recruiters email potential candidates via LinkedIn 36% 39% needs in online recruitment, we and/or other sites are committed to extending our We advertise to potential job seekers to become followers/friends of our career sites 23% 30% assessment capabilities to enable candidate assessment on mobile We monitor comments and emails from job seekers devices in 2012. 16% 24% and respond to them actively on social media sites Our approach will offer device- We have a career site on Facebook 18% 19% independent assessments for small We have a career site on Twitter 12% 11% form factor devices. We will also consider developing device-specificWhat are recruiters and hiring managers viewing when they conduct social media applications with individual customersearches? As we found last year, most respondents indicated examining previous partners where it makes sense.work history, education, recommendations from others and other types of candidate SHL will work directly withinformation when examining candidate data on social media sites. More concerning, customers and research partnershowever, was the increase this year in the use of candidate pictures as part of the on product trials throughout 2012 tosearch process (see Table 14), rising from 15% in 2011 to 26% this year. Pictures of ensure our approach addresses bothcandidates on social media sites can be somewhat out of the control of the candidate the capabilities and limitations ofand could be potentially cited as a source for discrimination against protected groups. mobile assessment.In examining regional differences in the current review of various types of social mediainformation, we saw that respondents were relatively similar across geographic regions,with the greatest differences, perhaps, in respondents from the Australasia region,who reviewed more information than their counterparts for pictures, group affiliations,and links/comments posted by candidates’ friends (see Figure 11). Without guidelinesin place, social media searches on candidates are potentially perilous for organisationsand cannot be recommended without further research and legal scrutiny.28 | 2012 Global Assessment Trends Report

Part III: Technolog y in testing: mobile devices and social mediaFigure 9: Informal social media searches as a hiring tool 50 2010 2011 45 2012 40 35 30 Percentage 25 20 15 10 5 0 Currently use Plan to use Do not use/ No plans to useFigure 10: Formal social media searches as a hiring tool 50 2010 2011 2012 40 30 Percentage 20 10 0 Currently use Plan to use Do not use/ No plans to use shl.com | 29

Part III: Technolog y in testing: mobile devices and social mediaTable 14: Candidate data reviewed from social media sites 2011 2012 Currently Currently Survey statement Rank Rank review review Previous work history 46% 1 51% 1 Education 46% 1 49% 2 Recommendations from others (e.g. on LinkedIn) 33% 3 39% 3 Other candidate information (e.g. hobbies, 24% 4 33% 4 interests) Pictures 15% 8 26% 5 Candidate’s stated interests, “likes,” 21% 5 24% 6 current activities Comments/links posted by candidate 21% 5 23% 7 Group affiliations (e.g. community or religious 21% 5 22% 8 groups) Comments/links posted by candidates’ friends 10% 9 14% 9Figure 11: Percentage of respondents currently reviewing social media informationby type and region 1. andidates’ stated interests, C Asia/Australia/NZ “likes”, activities 60 Europe/ME/Africa 2. Comments/links posted by candidates Americas 3. omments/links posted C 50 by candidates’ friends 4. Education 40 5. Group affiliations Percentage 6. Pictures 30 20 10 0 1 2 3 4 5 630 | 2012 Global Assessment Trends Report

Part III: Technolog y in testing: mobile devices and social mediaSummary: assessment trends in 2012In summary, the 2012 Global Assessment Trends survey pinpointed key areas Having a comprehensiveof consideration for HR professionals when considering their overall talentmeasurement programmes. talent analytics strategy allows HR to demonstrateLinking business results and assessmentsHR professionals around the world indicated relative confidence in their use their value to the broaderof assessments, but fewer were actually linking their assessment data to business organisation.outcomes that mattered. Having a comprehensive talent analytics strategy allowsHR ability to demonstrate their value to the broader organisation.Engagement and career developmentCareer development programmes can be dually successful: they can provide talentwith clear opportunities in the company, and can simultaneously showcase how thecurrent workforce could be used to fill gaps in skills and competencies. Indeed, oneHR professional noted that one of the unique ways of using assessments was in“identifying employees’ hidden and under-utilised capabilities to stimulate productivityand contribute to retention.” To be successful, career development efforts need tobe formalised (e.g. creating and articulating career paths and development tracksfor employees) and measured on an ongoing basis.Assessing the past, present and futureThe talent pool, both outside and within an organisation, brings with it a varietyof competencies and experiences that, if measured and examined, could serveboth the employee and organisation well. When new openings exist or jobschange, understanding the potential and current performance are important, buta comprehensive programme should also include an examination of employees’relevant experience in other roles.To that end, we anticipate seeing an increase in the use of a comprehensivetalent analytics programme in organisations wishing to capitalise on their currentinternal talent.Meshing old methods with technologyThe use of technology in hiring helps organisations quickly reach their potentialcandidate pool and candidates, and is increasingly becoming the most critical partof a recruiting strategy. There is still some caution in using social media informationto make decisions about candidates: a) such measures have been shown to berelated to bottom-line results for organisations, and b) the use of social media datain hiring has potential legal concerns for organisations. However, despite theseconcerns, we anticipate a continued increase in the use of social media data.Likewise, we believe practitioners will increasingly need to leverage mobile technologyto reach quality candidates earlier in the recruiting and hiring process and providegreater flexibility to recruiters. Using mobile technology in hiring, including usingsmart phones/mobile devices in the testing process is the next generation of testing. shl.com | 31

About SHLSHL is the global leader in talent measurement driving better business results forclients through superior People Intelligence and decisions – from recruiting to employee For more informationdevelopment and succession planning. visit www.shl.comWhy SHL?Verifiable business resultsThe insights provided by SHL People Intelligence result in client benefits such asincreased revenues, lower costs, greater efficiencies and more effective leadership.The world’s largest source of data on people at workDelivering over 25 million assessments every year gives us an unrivalled databaseof People Intelligence, enabling us to provide key analytics and benchmark talentacross all industries and all roles.Global presence, local flexibilityWe maintain a local presence in over 50 countries, deliver assessments inmore than 30 languages and deploy solutions in more than 150 countries worldwide.Together, that gives us a unique insight into people’s behaviour, ability and potentialwherever they work.Over 30 years’ global assessment innovation and expertiseOur offerings are robust, accurate and fair, based on over 30 years of researchand development. We pioneered online testing and launched the first randomisedand verifiable cognitive ability test.Leading global organisations choose SHL solutionsWe work with some of the largest organisations around the world, including over50 per cent of the Global Fortune 500, over 80 per cent of the Financial Times StockExchange (FTSE), and over 50 per cent of the Australian Stock Exchange.32 | 2012 Global Assessment Trends Report

Selected referencesBersin, J. (2011). Strategic Human Resources and Talent Management: Predictions for 2012. Bersin & Associates.Retrieved January 11, 2012 http://marketing.bersin.com/2012Predictions.html.Deloitte. (2011). Addicted to connectivity: perspectives on the global mobile consumer. Deloitte. Retrieved January14, 2012 from http://www.deloitte.com/assets/Dcom-Global/Local%20Assets/Documents/TMT/9314A_Mobile_Reports_sm5.pdf.Fallaw, S. S., Muñoz, C. S. & Dawson, C. R. (2005, April). Administering online testing: a benchmarking study.Poster presented at the 20th annual conference of the Society for Industrial and Organisational Psychology,Los Angeles, CA.Fallaw, S. S., & Kantrowtiz, T. M. (2011). 2011 Global Assessment Trends Report. SHL.Fallaw, S. S., & Solomonson, A.L. (2009). 2009 Global Assessment Trends Report. SHL.Fallaw, S. S., & Solomonson, A.L. (2010). 2010 Global Assessment Trends Report. SHL.Fallaw, S. S., Solomonson, A. L., & McClelland, L. (2009, April). Current trends in assessment use:A multi-organisational survey. Poster presented the 24th annual conference of the Society for Industrialand Organisational Psychology, New Orleans, LA.Fallaw, S. S., Solomonson, A. L., Montagliani, A. J., Wise, P. G., Gerber, E., & Facteau J. D. (2004, April).Selecting hourly, entry-level employees: A benchmarking study. Poster presented at the 19th annual meetingof the Society for Industrial and Organisational Psychology, Chicago, IL.Gatewood, R. D., Feild, H. S., & Barrick, M. (2007). Human Resource Selection (6th ed.). Fort Worth, TX:South Western College Publications.Jobvite. (2011). 2011 Social Recruiting Survey Results. Jobvite. Retrieved January 14, 2012 from http://recruiting.jobvite.com/resources/social-recruiting-survey.php.Jolly, D. (2010, August 25). Germany plans limits on Facebook use in hiring. The New York Times. Retrieved January25, 2011 from http://www.nytimes.com/2010/08/26/business/global/26fbook.html.Manpower. (2011a). Manpower Employment Outlook Survey – Global. Q1/2012. Manpower. Retrieved January 14,2012 from http://us.manpower.com/us/en/multimedia/MEOS_Report_Q1_2012_Final.pdf.Manpower. (2011b). “Manufacturing” Talent for the Human Age. Manpower. Retrieved January 14, 2012 fromhttp://us.manpower.com/us/en/multimedia//ManufacturingTalent.pdf.O’Leonard, K. (2011). The Talent Acquisition Factbook 2011. Bersin & Associates. Retrieved January 14, 2012 fromhttp://www.bersin.com/Lib/Rs/ShowDocument.aspx/111611_FB_TAFB2011_KOL_Final.pdf?docid=15006&ref=ml.Rainie, L., & Anderson, J. (2008). The Future of the Internet III. Pew Internet & American Life Project. RetrievedNovember 1, 2010 from http://www.pewinternet.org/Reports/2008/The-Future-of-the-Internet-III.aspx.Schmidt, F. L., & Hunter, J. E. (1998). The validity and utility of selection methods in personnel psychology:Practical and theoretical implications of 85 years of research findings. Psychological Bulletin, 124 (2), 262-274.SHL (2011). 2011 Business Outcomes Study Report. Retrieved January 9, 2012 from http://www.shl.com/us/forms/content/business-outcomes .Smith, A. (2010). Mobile Access 2010. Pew Internet & American Life Project. Retrieved November 1, 2010 fromhttp://www.pewinternet.org/~/media//Files/Reports/2010/PIP_Mobile_Access_2010.pdf.Solomonson, A. L. & Fallaw, S. S. (2010). Current trends in assessment use: Global survey results. In S. Fallaw(Chair), Assessment trends in organisations: How companies measure talent. Paper presented at the annual meetingof the Society for Industrial and Organisational Psychology, Atlanta, GA.Wikipedia. (2012). List of countries by number of mobile phones in use. Retrieved January 16, 2012 fromhttp://en.wikipedia.org/wiki/List_of_countries_by_number_of_mobile_phones_in_use. shl.com | 33

Appendix A: 2009 survey summaryExecutive summary of 2009 Global AssessmentTrends SurveyOne hundred and seventy companies from around the world responded to PreVisor’sGlobal Assessment Trends Survey to provide their perspectives on talent measurementpractices and trends. Key findings from the report are listed below:Key finding 1: Top talent management priorities for 2009• External Recruiting/Hiring and Performance Management are top priorities for companies around the world in 2009. Internal Promotion/Placement is third in priority for US companies, and Career Development is third in priority for Non-US companies.Key finding 2: Top talent management increases in priorities from 2008 to 2009• Areas with the highest projected increase in priority for US companies include Competency Modeling, Career Development, and Bench Strength Analysis; whereas outside the US, Succession Planning and External Recruiting/Hiring showed the greatest increase in priority.Key finding 3: Confidence in the value of assessments• More than 90% of all companies believe testing is a valuable part of their hiring process. Approximately 50% of clients reported that they collect metrics to show the value of HR investments.Key finding 4: Preference for simulated, real-world assessments• Most organisations indicated their preference to use realistic assessments. While many are not using job simulations yet today, more clients plan to expand usage of simulations in the next year as compared to other assessment types.Key finding 5: Plans to expand use of “fit” assessments• In addition to simulations, organisations plan to expand the use of “fit” measures (culture fit, job fit, and interest assessments) in their hiring processes in the near future.Key finding 6: Talent measurement post-hire• Promotion, career development, and training needs analysis/skills gap analysis were the most frequently cited areas where assessments are used to measure talent of a current workforce.Key finding 7: Leader selection – important, but not structured• Nearly half of all companies agreed that assessments are a critical part of their succession planning programmes, but only one out of three clients agreed that their company uses a structured promotion process for all leader roles within their organisations.Note: The 2009 Global Assessment Trends Report compared results from US companies and companies outside the US34 | 2012 Global Assessment Trends Report

Appendix B: 2010 survey summaryExecutive summary of 2010 Global AssessmentTrends Survey Over 230 companies from around the world responded to PreVisor’s and ADP’sGlobal Assessment Trends Survey in late 2009 to provide their perspectives on currentand anticipated talent measurement practices and trends. Key findings from the reportare listed below:Key finding 1: Top talent priorities for 2010 – the emergence of performancemanagement and career development• Managing the performance of the current workforce is the highest priority for HR in 2010 with career development and external recruiting/hiring following as the next highest priorities. External recruiting/hiring, which was projected as a top priority prior to the economic downturn, had the largest decrease in priority from 2009-2010 of any HR initiative included in the survey.Key finding 2: Talent impact of economic recovery – retention,recruitment, retirement• Most companies (68%) indicated concern about retaining employees during the economic recovery. Likewise, 54% believe it will be challenging to recruit talented employees in 2010. However, less than 19% of companies reported being concerned about the talent gap to be left by retiring employees and leaders.Key finding 3: Focus on quality of hire – whether it is measured or not• Most companies (70%) are feeling pressure to demonstrate return on investment for assessment products. Quality of Hire is the most common business outcome that companies (84%) are trying to improve with pre-hire assessments. However, only 56% of companies reported that they collect metrics to show the value of HR investments, and only 42% are required by internal stakeholders to demonstrate a link between assessments and business outcomes.Key finding 4: “Wait and see” perspective on plans to use new tools, processes• Compared to the previous year’s survey, the proportion of respondents who plan to use processes (which they are not currently using) within the next year has decreased, indicating a more cautious approach toward purchasing and using new tools, technologies, and processes. A few exceptions to this finding include the use of informal social media searches, formal social media searches, and situational judgement tests as hiring tools. shl.com | 35

Appendix B: 2010 survey summaryKey finding 5: Social media as a hiring tool: the jury is still out• Over 68% of organisations use or plan to use informal Web 2.0 searches as a hiring tool. However, only 20% of the organisations surveyed indicated that social media sites are effective tools for determining candidate fit, while nearly 50% are uncertain. Accordingly, only 24% of companies are currently in agreement that social media websites such as Twitter and Facebook are having a large impact on how talent is recruited, measured, and managed.Key finding 6: Treating candidates as customers is emphasised but not evaluated• Most organisations (84%) agreed that applicant reactions to the recruitment and hiring process are important. For example, convenience to applicants was the most frequently cited reason (86%) that companies use remote testing. However, only 41% of companies obtain feedback from their candidates, who are likely to be their customers and/or future employees.Key finding 7: Opportunity exists to formalise talent programmes• While career development is a top priority and more than 60% of companies use it as a retention strategy, only 29% have established a formal career development process for their employees.• Only 28% of companies have a structured promotion process for leaders. This is a consistent finding from the previous year’s survey.• Only 50% of organisations indicated they use assessments/talent measurement tools with their current workforce. Of those who do, most use or plan to use such tools for career development, training needs analysis, and promotion programmes within their companies36 | 2012 Global Assessment Trends Report

Appendix C: 2011 survey summaryExecutive summary of 2011 Global AssessmentTrends Survey Over 460 human resources professionals from around the world responded toSHL’s Global Assessment Trends Survey to provide their perspectives on talentmeasurement practices and trends, and the effect these practices and trends arehaving on organisation’s People Intelligence programmes. Key findings from thereport are listed below:Key finding 1: Succession planning becomes increasingly important• Succession planning rose from 6th in priority in 2010 to 2nd in priority in 2011, indicating an increased focus on key leadership roles within organisations versus other HR initiatives.Key finding 2: In rebounding economic environment, performance managementremains top priority• As in 2010, companies from around the world indicate that performance management is a top priority for 2011. Succession planning, external recruiting and hiring, career development and internal promotion/placement round out the top five priorities.Key finding 3: Companies allowing testing from “anywhere” increases• The use of remote testing (e.g. from a candidate’s home) has increased year on year since 2009.• Likewise, over a third of responding HR professionals indicated they would allow candidates to complete tests on smart phones/mobile devices.Key finding 4: On the leading edge… hiring via smart phones/mobile devices• While the use of smart phones/mobile devices is increasing, recruiters and candidates are not clamouring to use this technology for completing assessments. Only 33% of companies stated they would allow candidates to test via these devices, and less than one out of ten recruiters and candidates are requesting to have testing available via mobile devices.Key finding 5: Pre-hire testing includes the general and the specific• HR professionals stated they use both general types of tests (e.g. cognitive ability, personality) as well as job-specific tests (including knowledge, job fit tests and job-specific solutions) in their hiring processes, indicating a desire to both assess competencies that broadly predict successful performance as well as those that are required for specific job roles. shl.com | 37

Appendix C: 2011 survey summaryKey finding 6: Structured interviewing gaining in use• Nearly 95% of companies use or plan to use structured interviews in their hiring processes, up from approximately 85% in the previous two years.• In-person, single interviewer interviews and phone interviews are used by most companies (80% and 76%, respectively), while in-person panel interviews are used by 73% of companies. Remote, web-cam interviews are used by over 25% of companies.Key finding 7: Somewhat “safe” use of social media information about candidates• More than 50% of HR professionals review or plan to review previous work experience, education and recommendations from others on social media sites as part of their applicant review/hiring process.• A smaller proportion of professionals examine comments and links posted by candidates’ friends, as well as pictures of candidates – types of information that may prove to be less legally defensible.• Only 16% have a formal policy in place regarding the use of social media information in the hiring process.38 | 2012 Global Assessment Trends Report

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