Improving Organizational Performance Through Pre Employment Testing

Improving Organiza.onal Performance Through Pre-‐Hire Tes.ng

Interna.onal Floral Distributors Conference 2012

October 24, 2012

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

Agenda



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

Agenda


•  Performance Appraisal & Other Tests

The True Costs

41%

25%

of companies surveyed say that a bad hire in the last year has cost them at least $25,000

of companies surveyed say that a bad hire in the last year has cost them at least $50,000

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%

40%

Lost Worker Productivity

Lost Time Due to Recruiting and Training

Another Worker

37%

Expense Due to Recruiting and Training

Another Worker

36%

Negative Impacton Employee Moral

Negative Impacton Client Solutions

22%

Why Do Companies Hire Bad Employees?

38%

The company needed to !ll the position

quickly

It just didn’t work out The company didn’t test or research the employee’s

skills well enough

The company didn’t perform adequate reference checks

36% 21% 11%

According to the Careerbuilder Survey, companies hired bad employees because:

Agenda



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


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


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



Top Performance Is Only Achieved When All the Pieces “Fit”

High performing teams require complimentary skill sets

Choosing the right combina.on of people does not have to be arbitrary

Agenda



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

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


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

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


Benchmarking: Systema.cally Iden.fy Proven Winners

Success Factor Analysis (SFA) •  50 + Posi.on Profiles

–  C-‐level –  Sales –  Supervisory –  Technical –  Clerical –  Skilled Trade •  Choose Key Mo.va.onal Traits –  Results Orienta.on –  Priori.zing/Planning –  AVen.on to Detail –  Reliability

•  Level of Supervision –  Heavy à None

•  Ideal for Standard C-‐Level and Sales posi.ons

Prevue •  Customized Benchmark

–  JDS Survey Ø  Based on hiring manager input

–  Concurrent Ø  Based on scores of current successful employees at that posi.on

•  Compares 13 Personality Factors + Abili.es, Mo.va.on/Interests

•  Ideal for very specialized posi.ons

Prevue Benchmark

Prevue Benchmark

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


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

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

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

Revealing the Right Candidate

$mall Investment à Huge Payoff

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

Business

Improving Organizational Performance Through Pre Employment Testing