Survival requires adaptation. Lets look at today’s hiring process and see where assessment fits in
How do you make decisions? Use the car shopping analogy.
Work with group to show examples of each one on whiteboard
This slide is all I need to discuss the concept of coarse matching above the funnel
Rocket Hire Assessment 101 4 Steps To Success
Prepared by:Charles A. Handler, Ph.D.May 2, 2012
To provide information to support an understanding of what assessment is To provide an understanding of the value prop for assessment’s impact on quality of hire To boil success down to 4 simple steps To discuss key trends To be practical!!
Background on assessment- what is it?, what does it do?, how does it add value? Implementing assessment- 4 steps to success Trends in assessment Q and A
A: Any method used to provide data/information about a candidate’s qualifications and potential for performing a job or his/her potential to perform the requirements of the job. So, it’s a predictive tool to support informed decision making! Believe it or not!- interviews, resume reviews, screening, and background checks all are considered to be assessments
Personality Measures Experience MeasuresAbility Measures “What can “What have they do?” they done?” Future Performance “What do they want to do?” Job Fit: What do they want to do? Environment Fit: Where do they want to work?
Information overload Low quality information No standardization Not always job related
Process efficiency Candidate quality Own the employee lifecycle Predict the “stuff” needed to fulfill business drivers Invest in human capital Provide legal defensibility
Provide extra data points about an applicant to help support the decision making process Provide a standardized way to gain insight into applicant qualities that aren’t always apparent Provide a way to support quality of hire Provide supporting evidence for trends in an applicant’s data Help identify developmental needs from Day 1 Weed out the worst applicants while focusing on the best Provide real ROI
Tell you all you need to know about an applicant Solve all your problems Make decisions for you Guarantee applicants will be successful Be 100% effective Take the place of an expert who can see the big picture
Jobs are complex and require many different traits coming together A single test can rarely provide the whole picture A single test is useful to ID on a key requirement (i.e., customer service) The bigger picture requires the use of several data collection opportunities using different methods (a.k.a. the whole person method) Determining how many, what type, and where are strategic decisions
Creating a process using complimentary assessments yieldsbetter predictive power than any one assessment alone The right combination depends entirely upon the situation A weak link can mean disaster!!!
Science is your friend Helps screen out the bad, screen in the good The more applicants the more assessment adds value Closes the loop- allows track back to key outcomes
Information is power! When you have an important decision to make what do you do? What or whom do you trust?
0 valueZero Predictive Job Performance Predictor Content Accuracy useful value Moderate Job Performance Predictor Predictive Content Accuracy (.3) strong value High Predictive Job Performance Predictor Accuracy (.6) Content
Tangible outcomes o Reduced turnover o Reduced absence o More sales o Increased customer sat Less tangible outcomes o Bench strength o Developmental planning o Brand building o Org culture
1. Define- Know what it takes, first!2. Measure- Use relevant assessments3. Decide- Choose the best applicants4. Evaluate-Close the loop
We must define job performance domain- first! You cant measure what you don’t understand This definition serves as a blueprint for measurement What does it take?
Ad hoc (job description, hiring manager interview) Job analysis Competency modeling Profiling (benchmarking using incumbents)
Performance is described in several ways •Business drivers •Valued outcomes •Knowledge, Skills, & Abilities •Competencies •Behaviors
Collecting input from experts Interviews Observations Focus groups Surveys
Clear understanding of what it takes as described by: ▪ Knowledges ▪ Skills ▪ Abilities ▪ Experience ▪ Competencies
Use results of definition process to select measurement tools This is where one can build a strategic process Selecting quality tools is critical
Supports informed decision making Provides clear data on relevant performance dimensions Is staged so information of most value is available at the right time
Cognitive Ability Simulation Personality Biodata SJT Interview Test testCommunication X XCustomer Service Skills X X XDependability X X XDrive and Initiative XInterpersonal Skills X X XLearning and Memory XProblem Solving and Decision Making X XProfessionalism X XSales Skills X X X XTeamwork X X X X
Look at all the data, provide systems to track and organize Rely on the expertise of decision makers Ensure buy in to assessment tools but discourage over- reliance on them Be consistent Example decision support tools
This step is where skill and experience of the recruiter and hiring manager shine! Assessment is all about supporting decision makers with information that is reliable and accurate It’s not about blindly looking at the results The entire hiring process yields data that can be used to see the big picture when it comes to an applicant Assessment reporting should be easy to understand, with only relevant info presented
This is a critical step that is often ignored Think six sigma This is the way to show ROI The value proposition for assessment lives here
Let’s look at how understanding the relationship between predictors and job performance can show us the value of assessment
300% Higher $55 Million 46% $78 MillionPerformance Retained Reduction in in ReducedRatings Revenue Turnover Shrinkage Increased$120 Million Reduced 18 Additional Successfulin Additional Time to Hire Days of GraduateOverall Sales by 3 Weeks Productivity Hires by 73% $170 Million EmployeesEmployees 57% More in Additional 3 Times More4 Times More Likely to be Collections Client-Reliable Promoted Revenue focused
Assessment can help provide the answers to moremacro level strategic questions such as: “ Is my employment brand competitive and attracting the right candidates? ” “Which recruiting sources are delivering the best talent” “When do I lose the best quality candidates – offer or before?” “Are my college hires the future leaders of my business?” “Are any of my teams likely to put my business at risk?” “Do I have the right talent on board to strategically change the direction of our business?”
This where the power of assessment lies We want to simultaneously screen out low performers while screening in high performers We don’t have to be perfect to add value
Test scores can differentiatebetween high and lowperformers. Roster Output Average The higher the validity, the better job the test does at Sally 421 identifying top and bottom Bill 402 performers. Erin 389 Nichole 374 Top 80% Jose 370 347 Aundra 293 Cyndi 276 Emil 254 Yuliya 237 Bottom 20 % George 229 233
Test Validation is the most common methodDon’t stress- Validation just means the test ismeasuring what it takes to do the job Validation takes many forms but the only one that shows us ROI relies on statistics
Validation = Study of Relationships & ROI High v CandidateAssessment Predictor Data Criteria Low High Supervisor Ratings and Job Performance Data
Quantitative Tracking back performance to source of hire Evaluation based on identification of hi-pos Organization level metrics Qualitative Candidate feedback regarding process Hiring manager feedback regarding process Benchmarking vs. industry and competition
The world of assessment is rapidly changing We are at the beginning of the next stage of evolution Key drivers include Big data and analytics Demand for quality Demand for more engaging candidate experience Streamlining via knowledge of what works
Part of Talent Management – technology backbone yields data from pre-hire to retire Data shows key relationships across the entire cycle Pinpoints the value of assessments Vendors starting to build analytics platforms
Quality of hire does not seem to be something that is measured by organizations Quality of hire lacks a standard definition and is not operationalized by most firms Without some agreement and sync, quality of hire will remain a vague term that will not drive any specific value propositions In reality, the specific metrics demonstrating quality of hire are something that is unique to each organization.
What is measurable (hard)?: demographic data, test results, certifications, degrees, in-role performance (i.e., productivity, sales, tenure, etc.) What is subjective (soft)?: person-job fit, person- organization fit, competencies (i.e., communication, flexibility, decision making, leadership), supervisory ratings of performance
The way that people find jobs (and vice versa) is currently broken Communication between job seekers and employers is not easy We experience a lot of noise as part of the hiring process Assessment and analytics are now focusing on this issue Matching is a new hot area Combining assessment with sourcing to “direct traffic” and increase the odds for success
Candidates are customers Employer brand is key for differentiation We are moving from “test” to “experience” Traditional test items will be around for a long time Currently limited by technology and resource requirements
Vendors have collected enough data to know what works Off the shelf assessments are more accurate then ever Off the shelf assessments available for most every major job or job family Making assessment better, faster, cheaper
Assessment does not have to be a mystery It is not perfect but it still has tremendous potential It adds value as a decision support tool Better more informed hiring decisions lead to higher rate of quality hires Make sure any vendor you use supports all 4 steps Quality of hire means ROI and more Start small, pilot or POC Fortune favors the bold!