rocket hire assessment 101 4 steps to success
TRANSCRIPT
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
FuturePerformance
Job Fit: What do they want to do?Environment Fit: Where do they want to work?
Personality MeasuresAbility Measures
“What canthey do?”
“What do they want to do?”
“What havethey done?”
Experience Measures
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
Matching tools
Qualifications screening
Biographical history data
Personality tests
Work values/ “fit”
Cognitive tests
Situational judgment tests
Simulations
Integrity tests
Structured interviews
Knowledge and skills testing
Assessment centers
Executive assessment
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 yields better 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!
What or whom do you trust?
When you have an important decision to make what do you do?
Job PerformancePredictor Content
Zero Predictive Accuracy
Moderate Predictive
Accuracy (.3)
Job Performance Predictor Content
High Predictive Accuracy (.6)
Job Performance Predictor Content
0 value
useful value
strong value
Tangible outcomeso Reduced turnovero Reduced absenceo More saleso Increased customer sat
Less tangible outcomeso Bench strengtho Developmental planningo Brand buildingo 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
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 Test
Simulation Personality test
Biodata SJT Interview
Communication 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 Performance Ratings
$55 MillionRetained Revenue
46% Reduction in Turnover
$78 Million in Reduced Shrinkage
$120 Million in Additional Overall Sales
Increased Successful Graduate Hires by 73%
Reduced Time to Hire by 3 Weeks
18 Additional Days of Productivity
Employees 4 Times More Reliable
$170 Million in Additional Collections Revenue
57% More Likely to be Promoted
Employees 3 Times More Client-focused
“ 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?”
Assessment can help provide the answers to more macro level strategic questions such as:
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
Roster Output Average
Sally 421
Bill 402
Erin 389
Nichole 374 Top 80%
Jose' 370 347
Aundra 293
Cyndi 276
Emil 254
Yuliya 237 Bottom 20 %
George 229 233
Test scores can differentiate between high and low performers.
The higher the validity, the better job the test does at identifying top and bottom performers.
Test Validation is the most common method
Don’t stress- Validation just means the test is measuring 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
CandidateAssessment
Data
Supervisor Ratings and Job Performance Data
v
High
HighLow
Predictor
Criteria
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!