Talent Assessment creates significant ROI
In an effort to avoid more expensive mistakes in hiring, a Fortune 500 CEO recently analyzed the way he and his HR team judged talent:
‘Our judgement of others is often not as accurate as we think. Why? Because we make snap judgements and take mental short-cuts and it’s affected by perceptual biases, which can be very useful, but also very costly.’
At job interviews and appraisals he found that managers often assessed the following criteria to judge talent, using too much bias:
1. Past Performance – which he feels is a decent predictor
2. Similarity with the Interviewee – or we like the person – which is unreliable and one of the most common mistakes in selection
3. Height – statistically tall men still do better in senior positions!
4. Looks – are potential distracters and we often make an instant decision on the person within 3 – 15 seconds!
At Natural Talent we often receive phone calls from companies who feel they have made the wrong decision at an interview, engaged with the candidate ‘whom we got on really well with’, and then struggled to let them go when they realized there wasn’t the ‘right fit’.
After a very expensive mistake in hiring a VP of Sales, who turned out to be ‘the wrong fit’, another CEO in the US asked Natural Talent how he could improve the diagnostics of the hiring and appraisal process and achieve significant ROI when making the right choices regarding talent in the future. We identified relevant Talent Assessment Solutions for the role, measured against proven Leadership and Management Competencies. Processes he implemented included:
1. Using Competency, Situation and Behaviour based open questions at interviews and appraisals, such as: ‘How would you implement a new Strategy in the Sales function to ensure the company grows by another 30% this year?’
2. Using Cognitive tests before interviews, where the scores tell us how quickly a person can learn. However, these tests are unable to predict creativity and interpersonal style, therefore, in addition:
3. Ahead of interviews investing in Personality Questionnaires such as the NEO and Strength Deployment Inventory to predict how a person will work, such as with creativity
4. By utilizing the Leadership Judgement Indicator to assess the level of wisdom used in Decision Making and predict how the leader would be likely to perform in 16 challenging business scenarios
6. By assessing the Leadership Team with a Face to Face 360 Feedback Process and delivering Executive Coaching with specific objectives around increasing individual, team and business results and performance, as well as improving productivity, Sales figures, overall engagement and morale.
As a result of investing in robust Talent Assessment Tools and Executive Coaching for the existing senior Sales Managers, the CEO was able to recuperate over $75,000 which the previous hire had cost in recruitment, relocation and training, as well as the loss of one of his team members and the drop in productivity he had caused due to his unpopularity. One year on, employee turnover had dropped significantly, productivity had risen noticeably, and Sales had exceeded target and increased by 35%.