Improving Organizational Performance Through Pre Employment Testing
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The document discusses using pre-hire testing to improve organizational performance by reducing the costs of bad hires. It outlines the true costs of a bad hire, which can include lost productivity, expenses associated with recruiting and training replacement workers, and impacts on employee morale. The presentation then argues that pre-hire testing can help lower the risks of a bad hire by providing a more accurate assessment of a candidate's suitability for a position based on comparing their behavioral profile to that of successful employees in similar roles. Customizable pre-hire tests are positioned as helping hiring managers choose candidates that are the best fit for both the job and organizational culture.
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Improving Organizational Performance Through Pre Employment Testing
- 1. Improving Organiza.onal Performance Through Pre-‐Hire Tes.ng Interna.onal Floral Distributors Conference 2012 October 24, 2012
- 2. Agenda • About Ap.tude Analy.cs • Understanding the True Cost of a Bad Hire • A Solu.on – Pre-‐Hire Tes.ng • The Difference-‐ Customizability & Benchmarking Explained • Performance Appraisal & Other Tests • Overview
- 3. Agenda • About Ap.tude Analy.cs • Understanding the True Cost of a Bad Hire • A Solu.on – Pre-‐Hire Tes.ng • The Difference-‐ Customizability & Benchmarking Explained • Performance Appraisal & Other Tests • Overview
- 4. About Ap.tude Analy.cs • Founded in 2003 • Division of MAC Venture Group – Full-‐service Management Consul.ng Company • Mission: Provide hiring managers with the tools to systema.cally and cost effec.vely improve their odds of hiring beVer people, lower turnover, and coach exis.ng staff to improved performances • Psychometric Assessments • Ap.tude Assessments www.ap.tudeanaly.cs.com
- 5. Agenda • About Ap.tude Analy.cs • Understanding the True Cost of a Bad Hire • A Solu.on – Pre-‐Hire Tes.ng • The Difference-‐ Customizability & Benchmarking Explained • Performance Appraisal & Other Tests
- 6. The True Costs of companies surveyed say that a bad hire in the last year has cost them at 41% least $25,000 of companies surveyed say that a bad hire in the last year has cost them at 25% least $50,000
- 7. But the costs go beyond just cash. The following are the direct and indirect ways companies say they’ve paid for hiring the wrong employee 41% 37% 22% Lost Worker Expense Due to Negative Impact Productivity Recruiting and Training on Client Solutions Another Worker 40% 36% Lost Time Due to Negative Impact Recruiting and Training on Employee Moral Another Worker
- 8. Why Do Companies Hire Bad Employees? According to the Careerbuilder Survey, companies hired bad employees because: 38% 36% 21% 11% The company needed It just didn’t work out The company didn’t test or The company didn’t to fill the position research the employee’s perform adequate quickly skills well enough reference checks
- 9. Agenda • About Ap.tude Analy.cs • Understanding the True Cost of a Bad Hire • A Solu.on – Pre-‐Hire Tes.ng • The Difference-‐ Customizability & Benchmarking Explained • Performance Appraisal & Other Tests • Overview
- 10. Tes.ng Job Candidates – an Essen.al Part of Responsible Hiring • A lot more people are looking for work, but there is a major skills shortage -‐ qualified people are hard to find • Companies cannot afford or don’t want to pay expensive recrui.ng fees • Massive responsibility for Hiring Manager www.ap.tudeanaly.cs.com
- 11. How do you know what you’re ge]ng? • Interview the real person – not a projec.on of what they want you to see • Someone may look great on paper, ace the interview, but not be well-‐suited for the job www.ap.tudeanaly.cs.com
- 12. Pre-‐Hire Tes.ng Lowers Risk of Making a Bad Hire • Reduces overall cost by preven.ng bad hires • Reduce turnover rates • Benefits of consistently making good hires – Decreased Expenses – Increase Morale – Stronger Team – BeVer Internal & Client Solu.ons www.ap.tudeanaly.cs.com
- 13. Top Performance Is Only Achieved When All the Pieces “Fit” High performing teams require complimentary skill sets www.ap.tudeanaly.cs.com
- 14. Choosing the right combina.on of people does not have to be arbitrary
- 15. Agenda • About Ap.tude Analy.cs • Understanding the True Cost of a Bad Hire • A Solu.on – Pre-‐Hire Tes.ng • The Difference-‐ Customizability & Benchmarking Explained • Performance Appraisal & Other Tests • Overview
- 16. What Makes Us Different? • Developed by Consultants, for Consultants • Profiled posi.ons over 20+ years • Compara.ve Analysis to generate Job Suitability Score • Hiring/Appraisal process is interac.ve
- 17. Complete Customizability • Every posi.on is as different as the company itself • Our reports are not “one-‐size-‐fits-‐all” • Work directly with the employer to determine compara.ve standards • Relevant quali.es are differen.ally weighted during the analysis – score represents YOUR needs as an employer • Report price levels represent level of job-‐specifica.on/ customiza.on www.ap.tudeanaly.cs.com
- 18. Reports Contain: • Quan.ta.ve Analysis “How did they score?” – Job Suitability “Score” + accompanying graph(s) – Numeric breakdown of behavioral traits as compared to chosen standard • Qualita.ve Analysis “What type of person are they?” – Descrip.on of Personality as it relates to job – Guide to Communica.on – Type of compensa.on – Ideal Environment/Areas for Improvement
- 19. Understand the Necessary Variables that Underlie Job Suitability • Candidate’s behavioral profile -‐ good match between person and posi.on? • Candidate compared to profile of successful people at that posi.on • Compara.ve Behavioral Factors include: – Reliability – Drive/Achievement Orienta.on – Task/Detail Orienta.on – Mo.va.onal Orienta.on – Sales Ap.tude • Other Factors: – Level of Educa.on – # Jobs in past 10 years – # Years total experience www.ap.tudeanaly.cs.com
- 20. Benchmarking: Systema.cally Iden.fy Proven Winners Success Factor Analysis (SFA) Prevue • 50 + Posi.on Profiles • Customized Benchmark – C-‐level – JDS Survey – Sales – Supervisory Ø Based on hiring manager – Technical input – Clerical – Skilled Trade – Concurrent • Choose Key Mo.va.onal Traits Ø Based on scores of current – Results Orienta.on successful employees at that – Priori.zing/Planning – AVen.on to Detail posi.on – Reliability • Compares 13 Personality Factors • Level of Supervision + Abili.es, Mo.va.on/Interests – Heavy à None • Ideal for very specialized posi.ons • Ideal for Standard C-‐Level and Sales posi.ons
- 22. Prevue Benchmark
- 23. Prevue Benchmark
- 24. Selling Skills Index • Sales ap.tude test designed for single use or in conjunc.on with other reports • Test: 64 Sales situa.ons – Candidate must choose most, least effec.ve strategy • Report includes: – Training Guide, Graph – Competency Overview – Breakdown of Basic and Advanced Sales Strategies – Ac.on/Training Plan – Interview Guide www.ap.tudeanaly.cs.com
- 26. Agenda • About Ap.tude Analy.cs • Understanding the True Cost of a bad hire • A Solu.on – Pre-‐Hire Tes.ng • Customizability & Benchmarking • Performance Appraisal & Other Tests • Overview
- 27. Performance Development Coach Your Staff To Be Their Best • All reports can be modified for use as a Performance Development report for exis.ng employees • Allow managers to have in-‐depth understanding of their employees – Enable more efficient communica.on – Set reasonable and reliable expecta.ons • Facilitate Performance Reviews
- 28. Other Reports Leaning & Reasoning Report • Measures Cogni.ve Ability -‐ General Intelligence: -‐ Working with Numbers -‐ Working with Shapes -‐ Working with Words • Engineers, Designers, Technical posi.ons Reliability Register • Measures reliability, work ethic, and response to supervision • Recommended for jobs with high turnover, ethical considera.ons www.ap.tudeanaly.cs.com
- 29. Revealing the Right Candidate
- 32. Overview • Bad hires are costly • Harder to find the right people • Pre-‐Hire tes.ng makes the process easier by educa.ng the employer about the candidate • Psychometric profiling allows for systema.c selec.on of work force • Custom tes.ng parameters allow company-‐specific needs to be filled • Use of Performance Appraisals improves rela.onship with exis.ng employees