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Sponsored byHudson (http://us.hudson.com)

Assessment Centers: “A better way to identify potential talent gaps and training needs”

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Who We Are?

Hudson is a leading provider of permanent recruitment, contract professionals and talent management solutions worldwide. We help our clients achieve greater organizational performance by assessing, recruiting and developing the best and brightest people for their business.

The company employs approximately 3,600 professionals, speaking multiple languages in 25 countries, operating in four regions (Americas, Europe, Asia, & Australasia).

http://us.hudson.com

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TALENT MANAGEMENT

PERMANENT & CONTRACTRECRUITMENT

CONSULTING &CONTRACT PROFESSIONALS

Our Global Services

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Hudson Talent Management

Assessment & Development

Centres

Assessment & Development

Centres

Competency Modeling

Competency Modeling

Individual Assesment

Individual Assesment

Leadership Development &

Coaching

Leadership Development &

Coaching

Succession Planning

Succession Planning

EVP &Surveys

EVP &Surveys

PerformanceManagement

PerformanceManagement

Hudson Talent Management

Graduate Recruitment

Graduate Recruitment

Hudson’s Talent Management Solutions can be integrated into the recruitment process and HR initiatives to drive performance and align with the companies objectives.

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• Standardized global methodology supports pan-national projects

• One of the worlds largest talent management consultancies

• 400 experienced professionals across the globe

• Dedicated R&D Centers with highly skilled technical experts

• Hudson offers a comprehensive talent management and consulting service in assessment including:

Hudson Assessment Suite

• Job & Competency Profiling• Psychological Assessment• Behavioural Assessment• Assessment and Development Centers• Competency Based Interviewing • Employee Assessment Surveys

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Transforming Business Performance

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Hudson Research Programs• Hudson is committed to the collection and publication of thorough

intelligence on the forces that impact career decisions and business performance. Check out Market Insights at www.us.hudson.com.

• In the past, we surveyed nearly 10,000 workers monthly to provide insight into a variety of workplace trends and issues. Our programs have included:

Trends & Topics Surveys

– Topics include aging workforce, work-life balance, absenteeism and more

In-Depth Research Initiatives & White Papers

– Retention Initiatives, Compensation & Benefits, Pay & Performance, and Independent Professionals

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Labor Market Who’s Got The Power?

Employers?

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Employees?

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Managing The Talent War

The war for talent exists, organizations need to address the workforce gaps and their future potential to remaincompetitive.

Issues that need to be addressed include:• How do I find and grow my knowledge workers and leaders?• How large is the gap between my needs and reality?• Buying talent will not be sufficient as a solution to meet my business

needs.• Growing talent internally is key, but how? • We must retain talent, but how?

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Hudson Global HR InsightIn March/April 2009 Hudson conducted a global survey across30 countries with HR leaders exploring how HR priorities andchallenges have changed during the global economic downturn.

Key Findings:• There has been a clear shift from talent attraction to talent

engagement, organizational development and people development.

• 79% of North American companies reported that their HR strategy incorporates downsizing. Internal talent assessment is a key focus for 52% of these organizations

• Employees with the most potential will take care of the high impact roles and high value specialists to fulfill their complex jobs. A key question is: Do companies know where their high potentials are and what roles they can fit?

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Winning The Battle For Hearts And Minds

In order to achieve increased performance management must fully unlock the potential of their people.

• Organizations need to increase objectivity for internal promotion• They need to minimize poor hiring decisions• Identify high potentials for fast track development• Utilize a consistent and reliable measurement of important

competencies• Create and deliver a powerful learning experience for participants• Provide transparency, equal opportunity & fairness for all

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“If you want 1 year of prosperity, grow grain. If you want 10 years of prosperity, grow trees. If you want 100 years of prosperity,

grow people.”

— Ancient Chinese Proverb

“If you want 1 year of prosperity, grow grain. If you want 10 years of prosperity, grow trees. If you want 100 years of prosperity,

grow people.”

— Ancient Chinese Proverb

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The Importance Of CareerSource : Hudson / Vlerick Hipo Research Study

3.6 3.7 3.8 3.9 4 4.1 4.2 4.3

Degree of importance

Salary

Respect from others

Impact / Change

Company culture

Career

Re

wa

rdin

g h

ipo

's

Retention Factors

3,6 3,7 3,8 3,9 4 4,1 4,2 4,3

Degree of importance

Salary

Respect from others

Company Culture

Impact / Change

Career

Rew

ard

ing

hip

o's

Projection within 5 years

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Identifying & Developing Top Talent

100 100 100150 185

225

ProductivityLow Complexity Jobs

Productivity Medium Complexity Jobs

Productivity High Complexity Jobs

AveragePerformer

TopPerformer

AveragePerformer

TopPerformer

AveragePerformer

TopPerformer

Journal of Applied Psychology

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Clusters of HiPo CompetenciesResearch: University of Brussels

Through Principal Factor Analysis a cluster of three competencies was detected explaining 70% of variance between HiPo’s and others

Source: The Journal of Management Development

Performance Strategic Change

Competency Competency Competency

Teamwork .854Performance Motivation .669Delegation .690Leadership .680Impact .596Creativeness .515Company Identification .861Flexibility .743Vision .693Cultural Awareness .803Risk Taking .755Feedback (searching for and using) .689

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Increasing “Fit” To Drive Performance & Retention

Preferences& Values

Knowledge & Skills

Abilities & Aptitudes

Personality & Work Style

““Could Could Do”Do”(With training (With training & experience)& experience)

““CanCan Do” Do”(Or has (Or has alreadyalreadydone )done )

““Want Want To Do”To Do”(Has interest or(Has interest ormotivation to do)motivation to do)

““How How They’ll Do They’ll Do It”It”(How they(How theyapproach work)approach work)

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Talent Assessment• An important part of your overall talent management strategy is the

development of the process organizations will use to evaluate performance and potential, and to identify future leaders, successors, and/or high potential employees.

• An effective talent assessment process should be:– Consistent across your organization’s business units – Aligned to your organization’s business needs and future leadership

needs – A multi-level process that involves several data points – Well-defined and understood across the organization

• Assessment is often equated and confused with evaluation, but the two concepts are different. Assessment is used to determine what a person knows or can do, while evaluation is used to determine the worth or value of a course or program. Assessment data effects employee advancement, success and development (Herman & Knuth, 1991).

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What Types of Assessment?

How can organizations assess existing staff to track high potentialsand ensure new hires meet the future needs of the business?

Assessment:• Online Psychometric Assessments• Leadership/Management Assessment Batteries • Assessment and Development Centers• 360 degree feedback surveys and business assessments • Competency model profiling, behavioral based

interviews, multi-rater assessment tools

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Assessment Benchmarking

Gather performance data for each employee

Each employee completes assessment(s)

Identify appropriate assessments

Define performance

standards

Identify incumbent

sample

Match employees performance data with their assessment data

Statistically analyze data to determine which

assessment(s) scale(s) predict on-the-job performance Develop recommendations

and plans regarding future assessment and selection

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Assessment/Development Centers?

What is an assessment/development center?An assessment/development center is a process designed to identify an individual’s strengths, weaknesses, and potential in a current or future role.

The assessment process is characterized by:– Multiple participants rated by multiple assessors on several varied

exercises– Many of these exercises are designed to assess competencies– Data integration: a structured evaluation of the participant in which

assessors present objective evidence and reach a consensus decision

The outcome of an assessment/development center are: – Written reports detailing a participant’s competencies as they relate to job

requirements– One-to-one sessions examining the reports

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Why Assessment Centers?

• Combine multiple assessment and business simulation methodologies to achieve the best possible predictor of future performance

• Offers comprehensive secondary evaluation of preferred candidate strengths and weaknesses

• Are the most powerful tool to predict the profile you want to hire – save money over time

• Measure performance and potential therefore strengthening the leadership pipeline – allowing organizations to develop training strategies to further develop and grow talent

• Hiring managers can be involved and refresh their own assessment/coaching skills

• Offer broad range of competencies, individually or in group• Provide wealth of information available to feedback to all involved• Offers great opportunity to seal psychological contract

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Assessment Centers Drive Performance

Drivers

Competencies

Tra

inab

leU

ntra

inab

leTechnical Skills

Discipline UnderstandingKnowledge & Experience

CapabilityDemonstrated competencies

AttributesBehaviours that infer potential

Motivational Fit

Career Fit

Do they have the required technical skills?

Do they have the experience and understanding necessary?

Can they demonstrate the behaviours necessary for high performance?

Do they have development potential?

Will aspects of the role motivate them?

Does the role meet their current career objectives?

Questions

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Tra

inab

leU

ntra

inab

leTechnical Skills

Discipline UnderstandingKnowledge & Experience

CapabilityDemonstrated competencies

AttributesBehaviours that infer potential

Motivational Fit

Career Fit

PreferentialInterviewing

Behavioural Interviewing

Psych Assessment

Behavioural Interview

Resume ScreeningTechnical Tests

Preferential Interview

…and Tools To Assess Each Area

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Assessment Centers

Advantage• Most powerful tool to predict

profile you hire – saves money over time

• Hiring managers can be involved and refresh their own assessment/coaching skills

• Performance and potential• Broad range of competences,

individually or in group• Wealth of information

available to feedback to all involved

• Offers great opportunity to seal psychological contract

Disadvantage• Time investment required

from candidate – though they get more in-depth feedback in return and can also make an informed decision

• Relatively expensive in short term – though saves money in the long run

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Case Study A - Assessment Center’s ROI In The Selection Process

Client Issue: Very high personnel turnover• Young graduates selection procedure• Only one interview• Or a full assessment center (interview, BAQ, RAT, simulation

exercises, etc.)

AC Objective: Reduce the turnover of personnel • What is the percentage of ‘young graduates’ who left the company

within the first 3 years?• What is the difference between the young graduates who were

selected versus an interview and the young graduates who were selected versus an AC?

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Case Study A- Assessment Center’s ROI In The Selection Process

25%

43%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

AC

Interview

The turnover of personnel was reduced by 41%.

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Case Study B – Talent Management Assesses Future Leaders

Challenge• The client, one of the world’s largest energy companies, had a

program grooming high-potential employees for career advancement opportunities and broader leadership responsibilities.

• In 2008, the company revamped the process used to select employees for the program, making it more systematic and rigorous.

• As a result, the company needed a service provider with talent assessment expertise to evaluate candidates in the United Kingdom, the United States and Asia.

• Hudson was selected as the company’s partner because of our robust methodology, global reach, the quality of our assessors and the cost-effectiveness of our offerings.

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Case Study B – Talent Management Assesses Future Leaders

Solution• Hudson’s Talent Management team conducted a series of meetings

to learn about the company’s culture, values and leadership framework. Based on that background, we developed assessment materials that were uniquely suited to the client’s leadership development program and trained our assessors to apply their high standards during interactions with candidates.

• In late 2008, we conducted assessments at three sites: London, Houston and Singapore. Some candidates were at a relatively early stage in their career with the client, while others had already attained senior-level positions. The type of assessments administered varied accordingly.

• Overall, about 85 candidates went through a series of ability and personality tests, simulation exercises, business case studies, interviews and group discussions.

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Case Study B - Talent Management Assesses Future Leaders

Results• Hudson provided comprehensive reports about the candidates’

aptitude for performing effectively in future leadership roles. Our guidance for the client throughout the process provided the company with useful information about tailoring their development efforts to ensure their high-potential employees can continue to progress throughout their careers.

• Candidates – many of whom had never been through an assessment program before – came away with a better understanding of their strengths, weaknesses and opportunities for personal development. Even those who did not make it into the leadership program found the experience valuable.

• The client was highly satisfied.

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Summary

• Identifying talent is going to become more vital with the predicted skills shortage and therefore more science must be added to the selection process

• Although it may look like an additional cost, adding science to selection can save thousands in the future

• It is important to identify the right solution for your organization and the types of roles you hire

• Whatever you do, always start with the right competencies for each role and build from there

• Always remember, high potential is developed through a solid understanding of competency and behavior

Questions/Contacts

• Thank You

Simon FenwickGeneral Manager, Talent ManagementSimon.Fenwick@hudson.com212-351-7249

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