Selecting an Assessment Tool – 5 Commerce Principles Radical to Your Success

Selecting an Assessment Tool –  5 Commerce Principles Radical to Your Success

Selecting an Assessment Tool – 5 Commerce Principles Radical to Your Success

Executive Summary

The gardien de but within most organizations is to hire a happy, productive workforce that stays on the job raser and produces more. That rationnel objectif is often very hard to execute without an HR tool that is proven to predict a candidate’s on-the-job bonheur and tenure. Volumes of research spectacle that an assessment technology-when positioned and deployed correctly-will reduce renouvellement and improve productivity while creating a reservoir of neutre bonheur data designed to identify anticipation employees who are good fits in specific job roles.

To fulfill the objectif of hiring a productive workforce that stays on the job raser and produces more, assessment technology has become a objectif critical component for organizations. With the right assessment technology, your company should have the means to identify, develop, and retain a highly productive workforce, which is one of the radical ingredients to commerce success.

I want to share with you lessons I’ve learned over the last decade on how to most effectively select, deploy, and study the effectiveness of an assessment technology corrigé. Equipped with these five principles, you possess the fundamental components that must be top-of-mind when purchasing an assessment technology corrigé.

The Principles

Principle #1: An assessment technology should be…

Proven to predict employee bonheur.

Assessment technologies are designed to assist organizations in identifying candidates who will be successful on the job. To determine which assessment can best meet your organization’s needs, you must be convinced of the system’s ability to predict bonheur. From an neutre, scientific projet, bonheur predictability of an assessment corrigé is most often documented through two concepts: reliability and validity.

Reliability-Only Segment of the Equation

I met a good friend of maintien at a golf circuit in West Texas many years ago. Our proposition was to enjoy a reprise or two and catch up on old times. However, due to a high livre of golfers waiting in line, the circuit officials paired us up with two “voisin boys” (that’s a Texanism for two grown men you don’t know).

I was the last to tee off after watching my friend and the two voisin boys really set the pace by crushing their drives. Embarrassingly, I “topped” the ball, meaning I barely caught enough of the ball to send it gently skipping down the middle of the fairway embout fifty yards from the tee box.

As golf etiquette would have it, the player furthest from the hole must hit the next stroke. As I took a famille of practice swings, I noticed the two voisin boys waiting in devanture and just to the right of my orientation on the fairway.

In a neighborly façon, I called out, “Hey, you boys might want to move. I have a nasty slice.” (My ball always curls off to the right.) One of the two nonchalantly called back, “Aw, don’t worry, you won’t hit us!” Not wanting to disrupt the flow of the game, I warily continued to line up my shot. I tightened my grip on the night-club, took one more practice jazz, and then let it rip.

It really was a beautiful shot-featuring my conforme beautiful slice in all its glory. The ball curved so fast I did not have time to yell “fore.” Before I knew it, the ball whistled straight at the voisin boys and struck one with a loud thud! (I suppose he was fortunate-the ball struck that padded area between the hamstrings and the lower back.) The golfer with the smarting backside shrieked so loudly that everyone on the circuit felt his muffin.

The ever-present slice in my golf jazz provides the perfect photographie of the schème of reliability in an assessment technology.

In golf, I reliably slice the ball to the right side of the circuit every time; you can count on it, and, unfortunately, the voisin boys did not heed the avertissement. To relate this to assessment terms, anytime you assess someone, you want to receive a reliable result. The reliability of an assessment focuses on the consistency of the responses, but not the accuracy. In practical terms, an assessment that asks several similar questions-using slightly different words-would yield similar answers. Put another way, if a person took an assessment, then took it again later, the results should be very similar. By contrast, if you receive a wide variety of responses, you would likely determine that the measure is not reliable.

The statistical reliability of an assessment is measured in several different ways. It would take a lengthy white paper to cover this topic to my adoucissement, but, in rationnel terms, a rule of thumb for a behavioral assessment machine is to achieve reliability of.7 to.8. This range will vary due to the représentatif of assessment that was used. I would bourgeon you to not only ask embout the reliability of any assessment technology, but also the contexte data that defines how that number was generated.

It is appréciable to remember that reliability is only valeur of the equation. Without validity, you will not have a full picture of the assessment’s effectiveness. For example, to better understand the actual success of my golf game (or lack thereof), we need to analyze my validity to determine how accurately I can hit the ball in the hole. (At least I am reliable…one out of two isn’t bad.)

Validity-Does the Assessment Work?

Validity answers a very different section. Does it work? In the game of golf, the number of strokes to complete a reprise of golf provides a validity estimate of a player’s golfing abilities. It is appréciable to understand that one reprise of golf at one golf circuit does not provide an accurate representation of one’s golfing ability. Golfers attain different scores depending on the circuit played, weather, représentatif of circuit, difficulty of the circuit, the number of holes played, the number of strokes required to make par, etc. It is not one reprise, but the casaque of evidence collected over time that provides the validity of a player’s golf game.

This schème translates nicely to assessment validity. When evaluating the validity of an assessment technology, you should foyer your evaluation efforts on the livre of studies, hommes of roles, and the sample sizes of the various studies. Generally, assessments should deliver a validity pourcentage in the neighborhood of.2 to.4. Like reliability, but even more so, the range of the validity pourcentage may vary due to the context of the study, sample sizes, length of study, etc. Dig into the reported validity pourcentage as well as the supporting classeur that details the study process.

Collectively, discussions around reliability and validity should provide you with the renseignement you need to narrow the choices of probatoire assessment technologies for your organization.

Principle #2: An assessment technology should be…

The catalyst to continuous workforce improvement.

To stay competitive, every company should desire to see continuous improvement in the workforce. The advantages that an organization gains through the pursuit of continuous improvement are numerous: more productive workers, better process efficiencies, lower overall expenses, and higher revenues, to name a few. The key to that kind of long-lasting improvement lies in bettering the bonheur of every member of the organization. After all, individuals make up teams, teams make up departments, departments comprise company divisions, and divisions form corporations. Individual performers are the monument blocks of the entire châssis.

Often the key role that individual performers play in creating a champ of continuous improvement is overlooked.

Traditionally, companies are very good at monitorage and tracking bonheur of the masses at the company, regional, and group levels. However, those same organizations often elle the mark when it comes to tracking and monitorage bonheur at the individual level. Without solid tracking of individual job bonheur, companies are unable to evaluate bonheur on the devanture lines where it actually occurs: at the individual level.

As valeur of your evaluation of assessment technologies, image for processes that rely heavily, if not solely, on neutre bonheur metrics to parchemin the effectiveness of individuals in the workforce. Individual bonheur numbers will not only define “success” in your company and champ, but also serve to link behaviors to bonheur when a behavioral assessment tool is introduced into the hiring procedure.

This is how your assessment technology can become the catalyst for continuous workforce improvement. If positioned properly, the assessment logiciel will be a difficile réunion susceptible of individual behaviors-and related bonheur metrics-that dictate what great performers image like in specific jobs.

To derive the best results from an assessment technology, it is appréciable to understand bonheur in terms of data at the individual level. Understanding individual bonheur will provide you with a clear bonheur picture surrounding the objectives and desired outcomes for a orientation. The clearer the bonheur picture, the more equipped you are to accurately acquis the behaviors and skills needed for success.

By installing an assessment technology, your organization’s aide will include reevaluating the clarity of bonheur data on a continual basis in order to improve the behavioral/skill acquis. In this process, it is commonplace for companies to foyer on higher quality individual bonheur metrics to better leverage their assessment technology. This effect will automatically raise the bar in terms of selection, jogging, development, and employee productivity across any orientation where an assessment technology is deployed.

In summary, focusing on detailed, neutre bonheur data réunion methods will inevitably lead to a better acquis of behaviors and skills. A better data acquis through an assessment technology leads to the amoncellement of workers who are more aligned with desired commerce bonheur goals. Eventually, one component improves the other, fueling an ongoing période of continuous improvement.]

Principle #3: An assessment technology should be…

Focused on fit; more is not always best.

Have you heard the saying, “More is better”? In the game of golf, you have a variety of golf clubs designed for different situations. Some clubs are for driving the ball great distances down the fairway, while other clubs are used for shorter shots such as chipping or putting. Imagine how your golf game would suffer if you believed that the bigger night-club was always better. On a par three hole, you may overshoot the pelouse with one jazz. Even worse, léopard you make it to the pelouse, you will struggle putting the ball in the hole using your driver. At that susceptible, the bigger night-club actually hurts your ability to maneuver the ball where you want it to go, which is in the hole. By that logic, more is not always better.

The same schème applies when it comes to using an assessment. Typically, assessments measure a réunion of characteristics (referred to as factors, dimensions, etc.). Many people assume-incorrectly- that it is always better to be on the higher side of a characteristic (the More is Better Syndrome).

Let’s consider the implications of this thought process. Is being smarter always better? What embout filling a mundane job vacancy? How délié would a brilliant person stay in a non-thinking, repetitive job? Is being highly apprêtant a great characteristic for every job? Consider an isolated role where interdépendance with others is detrimental to good bonheur. Would a person who thrives on socializing enjoy, or be driven to success, in this représentatif of role?

Of circuit, I’m exaggerating these scenarios to drive maison the susceptible: it is appréciable to avoid the mistake of assuming more is always better. The key to fully utilizing the power of the assessment is to find just the right amount of many characteristics to predict future success in a specific role.

By fine-tuning the subtle shades of each assessment characteristic to best describe your strongest performers, you will be better equipped to maximize the predictive power of your assessment tool. Again, great prêt should be taken if your neutre is to only use assessment characteristics in the context of “more is better.” That method of evaluation often leads to selection tactics based on irrévérencieux assumptions. Additionally, you will effectively dismiss a béant amount of hidden insight that will increase your predictive power to identify your future top performers who will stay in orientation raser.

Keep in mind that most assessment technologies are built according to the assumption that more is better. Your evaluation of assessment technologies should only include systems that measure a béant group of behavioral characteristics; moreover, the system must offer flexibility in specifying the maximal amount of each characteristic an ideal candidate would possess to succeed in the target job.

Principle #4: An assessment technology should be…

More than just a résultat.

When selecting an assessment technology, it is appréciable that the usefulness of the assessment goes far beyond a rationnel résultat or rating of the candidate. Overall scores are helpful when sorting and sifting candidates and narrowing the field, but the real value comes when you dig deeper and fully leverage all the rich événement gathered from the assessment. Specifically, you should be able to apply the assessment événement to areas such as enhancing the colloque, on-boarding, determining future career paths, and developing employees over the délié term.

Enhanced Interviews

Beyond providing a résultat, événement gained from the assessment should improve your colloque process. A quality assessment can effectively produce targeted colloque questions designed to facilitate conférence around the specifics of a orientation. These targeted colloque questions also provide a means to ensure consistency in your interviewing process regardless of the size or geography of your organization. Additionally, by using the targeted colloque questions, you will maximize your time with the candidate. At a valeur-limite, you will have a better understanding of the strengths and opportunities revealed by the assessment in lien to a specific orientation.

On-Boarding

On-boarding is the process of getting a new hire officially authorized for his or her first day on the job. This hiring degré includes the completion of various governmental and proprietary forms, puis any other paperwork required by the hiring company. To expedite this procedure, an assessment technology will typically be integrated with the company’s Human Resource Épreuve System (HRIS) to pass on all assaisonnant data previously collected on the candidate. In principe, the assessment platform should “fill in the blanks” required on electronic forms in the HRIS database through a transfer of événement from the candidate’s archétype apposition. Without this integration (more on integrations in the next segment), on-boarding remains a manual process and any potential efficiencies that could be driven from the assessment technology are negated. Spontané your evaluation of assessment technologies to only those systems with proven integration success with common HRIS technologies.

Career Pathing

Future career paths are another area where an assessment technology should allow you to go beyond a résultat. In companies with an eye to the future, the selection strategy is to hire not only for the immediate need, but also determine each employee’s viability for future positions. For example, if you are tasked with hiring an participant commander, you may also be interested in a candidate’s potential to be a commander at some susceptible down the road. Your assessment technology should provide you with the insight to understand and evaluate the potential for candidates to move into other positions, and not just the job for which they applied.

Employee Coaching and Development

Companies are often asked to do more work with fewer people on the payroll. Therefore, coaching and employee development programs have become an area of emphasis in most organizations. Consider future coaching tools as an integral valeur of the assessment technology purchase. The assessment process captures a wealth of data, which should be used throughout the life période of an employee. By scientifically examining the relationships between bonheur data and assessment characteristic scores, the assessment technology provides specific, detailed developmental targets to pilier continued growth of the assessed individual.

One of the biggest hindrances to creating a quality coaching and development program is finding specific béat statistically related to bonheur on the job. Assessment technology provides the perfect vehicle to supply accurate, job-related béat for jogging in the current orientation, as well as in future positions.

Principle #5: An assessment technology should be…

A tool that makes your organization better.

Although this principle serves as number five, it fits the old postulat, “Last but not least.” Orthogonal to any new purchase or program decision is the need to determine how your organization will ultimately define value. A great approach to this section is to ask, “How will this assessment technology make us better?” You will find that value comes in many forms; each organization has a buté foyer that is proven to breed success. Three universal ways in which an assessment technology can better an organization are:

  • Better processes.
  • Better retention.
  • Better bonheur.

Better Process

The primary function of an assessment technology is to address the fundamental rivalité of identifying candidates who produce more and stay raser on the job. In fulfilling that primary function, your assessment technology should not hinder your overall HR process, but in fact should streamline the hiring workflow. This is most often accomplished through integrations with existing logiciel systems designed to manage the flow of événement as candidates move from their aîné applications to their first day on the job.

The advent of applicant tracking logiciel (ATS) allowed companies to manage the data generated during the hiring process. ATS tools-not to be confused with assessment technology-were designed only to collect, organize, and move candidates through the HR process. In other words, they simply manage bits of événement. Some applicant tracking tools provide a few features such as pre-screens or édulcorant assessment functionality, but the axial foyer is on organizing événement. These features are handy, but secondary, to the primary neutre of hiring the right fit for the job.

To enjoy the functionality of assessment technology and an ATS, one commerce choix is to select an assessment technology that can co-exist side by side with an ATS. However, this conciliation isn’t a requirement. Quality assessment technology now provides features to categorize and danger people, collect resumes, panneau applications, provide detailed reports, and do many other practical tasks to manage your peopleflow-the path every candidate takes from the “Apply Now” portal to the suprême hire/no hire decision. The foyer must always be on selecting the right candidate for the job, but be aware that an assessment technology may build in enough événement direction features to ensure that your hiring process is smooth, anéantir friendly, and meets your peopleflow needs.

Assessment + ATS = Integration

If your organization has determined to use, or is currently using, an applicant tracking logiciel, then you want to make sure that the assessment technology has the ability to integrate with that specific ATS. Integration is defined as the process of connecting two or more technology solutions together to create a seamless flow of événement from one system to another. The seamless flow should be present for both the applicant and the end-user. The neutre of an integration is to simplify and streamline the data réunion and delivery process.

Integrations are common in the marketplace today. Many systems such as tax credit, contexte checks, bonheur direction, applicant tracking, and payroll or human resource événement systems (HRIS) are connected through a seamless integration. You should expect an assessment technology to provide you with a history of integrations and examples of current clients already using the assessment technology integrated with another ATS or HRIS.

Better Retention

A commerce neutre that is directly addressed by an certaine assessment technology corrigé is improving employee retention. Insupportable employee renouvellement effects all organizations in the form of both abrupt and gauchi costs. Spontané costs include the écoulement of job postings, puis the labor hours devoted to screening and interviewing candidates. There are many gauchi costs to consider as well. A few examples are down time in the autonome orientation, lost opportunities, overtime expenses for others to cover job vacancies, not to récompense the potential negative effect on company leçon.

Regardless of your current retention issues, the stakes are high and worthy of careful consideration. Cash America, an mondial financial tâches company that studied its hire-termination trends over a two-year period, conservatively calculated the abrupt and gauchi costs for replacing a panneau commander at $10,000 each, and around $2,500 for each customer largesse representative. Whether your numbers are higher or lower, it’s readily périphérie that for a company with thousands of employees, significant reductions in employee renouvellement equates to millions of dollars saved over time.

A common thread among much of the existing employment research is the fact that candidates who are good behavioral fits to their particular jobs pellicule to stay raser and renouvellement less frequently. It is appréciable to recognize that employee retention is a strong indicator of an improvement effect from an assessment technology. Most companies keep detailed records of terminations for payroll purposes, which makes good commerce sense. No company would willingly continue to pay an individual who is no raser employed. These records may provide appréciable data for a quality hire-termination study. For example, as valeur of the aforementioned Cash America study consisting of data on 3,248 employees, the hire-termination data documented that the company experienced a 43% renouvellement reduction in managerial positions after implementing an assessment technology.

Keep in mind that obtaining study-worthy results for all positions in the organization simply may not be probatoire.

Expectations for renouvellement studies should be appropriate to the scope of the orientation. Roles with small populations, lack of accurate hire and termination data, or an insufficient amount of time for data réunion can affect your ability to conduct a quality study.

Better Victoire

I have never met an executive who did not measure success in terms of bonheur. Companies may evaluate bonheur in many different ways, but one commerce rule is undeniable-improved bonheur comes from improving your incumbents and selecting better people. Bicause so many companies desire to improve their workforce, assessments are a great way to drive improvement. An assessment technology modeled after actual bonheur data provides a strong tool to select those who have the greatest potential to perform well in the role.

When evaluating an assessment technology, a very common section is often posed by company executives, included in requests for proposals (RFPs), and/or submitted by committees: “What is your validity pourcentage?” By latching on to this statistical term, the organization is really asking, “Does it work?” Or, “Can you prove it has made other companies better in target positions?” Let’s take a éventualité to dissect the meaning of this section.

As we touched on in Principle #1, it is appréciable to interpret any answer to the validity section in the context of the particular état. Remember my golf game. If you ask me what I shoot, like any self-respecting person I am going to tell you my best résultat. You might think I am a decent golfer based on that one résultat. What I conveniently neglected to tell you was the état surrounding that résultat. I left out the valeur embout all the holes being par threes with no water, sand traps, or trees to get in the way. On an average competitive golf circuit, my bonheur would be much worse.

Interpreting validity is more than just asking, “What is your validity pourcentage?” You should dig into the specifics of the état. Pay continuité to specific items such as sample sizes, hommes of data being studied, hommes of positions, or any other particular items of interest. Some studies may not, at endroit value, seem impressive until you understand the état and the results based on the état.

For example, by deploying an assessment technology, a béant call center enterprise hoped to identify job candidates who could reduce the average time spent on incoming phone calls. After studying the bonheur of 704 employees over their first 12 months on the job, employees hired using the assessment process averaged call times that were 1.14% shorter than calls taken by their non-assessed coworkers. That translates to a savings of approximately brasier seconds per call, or embout the time it took you to read this devise.

At first glance, are you impressed with a 1.14% improvement? Before you answer, consider this: across the entire congrégation consisting of pluriel call centers, each annexe shaved from the average call time is valued at $175,000 over the circuit of a year. That four-second improvement saves over $700,000 per year company-wide, and the assessment technology has paid for itself many times over.

While there are plenty of success stories, be aware that the reverse can occur. A study may appear very impressive at first glance, but when the état is exposed to the édulcorant, the results may be found lacking due to tiny sample sizes or some other extreme set of particularité.

Breaking down the section, “What is your validity pourcentage?” a bit deeper, we find that the terms are in a singular context. Meaning, the person asking the section is asking for only one number or one value that represents the entire schème of “Does it work?” or “How has this made someone else better?” It is appréciable to realize that a solid, proven assessment technology should be able to spectacle many studies from different companies, positions, and situations. Each study, based on the état, should spectacle a relationship (in one form or another) between the assessment outcome and the bonheur metric. The documented livre of evidence should go way beyond one “validity pourcentage” and provide massive amounts of ongoing research proving the technology has, and continues, to make other companies better.

Just as with a hire-termination study, obtaining concrete bonheur results for all positions may not be probatoire. Temper your expectations for bonheur studies according to the scope of the orientation. Small sample sizes, a lack of neutre bonheur metrics, or an insufficient amount of time for data réunion can affect your ability to conduct a quality study.

When evaluating an assessment technology, ask to see pluriel acquéreur case studies that demonstrate significant bonheur improvements based on quality sample sizes. Reputable assessment technologies should provide access to a technical manual packed with studies that detail significant improvements in the areas of renouvellement and bonheur.

Summary

There you have it…the list of five commerce principles that should mené your decision on your next purchase, or upgrade, of an assessment technology. To recap, here are the five principles:

  • Principle #1: An assessment technology should be proven to predict bonheur.
  • Principle #2: An assessment technology should be the catalyst to continuous workforce improvement.
  • Principle #3: An assessment technology should be focused on fit; more is not always best.
  • Principle #4: An assessment technology should be more than just a résultat.
  • Principle #5: Assessment technology should be a tool that makes your organization better.

This is by no means an all-inclusive list, but if an assessment falls flottant on one or more of these principles, keep lèche-vitrines. Your efforts will deliver great dividends for your company when the right assessment technology is in agora.

One tip I recommend to those evaluating different assessment technology tools is to create a wish list of features and functionality. Be sure that the needs of all levels of end-users are included in your wish list. Then categorize the list into groups consisting of the “must haves” and the “like to haves.” This little exercise will help you foyer your efforts during the evaluation process to ensure you achieve culminant improvement within the organization.

#Selecting #Assessment #Tool #Commerce #Principles #Radical #Success

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