Hiring Top Associates

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Hiring Top Associates
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Topics

• Building a Case for Hourly Level Assessment
• SELECT Associate Screening System
• SELECT Typical Applications
• SELECT Return on Investment (ROI)

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Building a Case for Hourly Level Testing
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Why Use Pre-Employment Testing?

• Traditional Selection Practices
• Often based on Observation Instinct (firm
  hand shake, eye contact, bright smile, etc.)
• Interviews are inconsistent (an interview
  conducted by an untrained interviewer is about as
  effective as flipping a coin.)
• Training employees on interviewing techniques is
  costly- high turnover at management level
• Resulting in
• Candidates who do not measure up to the job (poor
  performance, unreliable)
• High job turnover
• Testing Provides an Objective Voice in the
  Selection Process
• Measures characteristics about a person that you
  may not see in the interview
• Evaluate potential which may not have yet been
  demonstrated in previous jobs
• Objective comparison between candidates

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Cost of a Bad Hire

• Conservative estimates place the cost of turnover
  at 25 of annual salary plus 25 of benefits
  (Saratoga Institute www.saratogainstitute.com).
• 140 per 1,000 compensation by Human Capital
  Metrics Consortium. 
• ROI Calculator
• Loss of productivity
• Cost to replace hire
• Cost to train
• Loss of opportunity (sales)
• Loss of repeat business
• Morale of existing team

Your hiring process should not only focus on
avoiding bad hires but seeking those true top
performers
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Benefits to Client

• Higher performance/productivity results from
  consistently better hiring decisions
• Helps to focus the interview on those candidates
  with the greatest potential to succeed
• Helps to hire those who will be more productive
  successful
• Lower expenses result from reduction in turnover
• Helps rule out candidates w/poor fit saving
  interviewer time
• Reduces the number of hiring failures to be
  replaced
• Minimizes risk of legal challenges to process

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Legal Defensibility

• Issues
• Everything that is used as part of a selection
  process is a selection device and must be
  job-relevant (application, experience
  requirements, interview, etc.)
• Typically it is easier to prove job-relevancy of
  objective measures, such as written tests, than
  subjective measures, such as the interview
• BHA maintains high standards for our testing
  products
• All of our psychologists are licensed by the
  State of Texas
• We subscribe to the professional practice codes
  of the American Psychological Association, the
  Society for Industrial Organizational
  Psychologists, the Texas State Board of
  Psychologists and the Federal Uniform Guidelines
  on Employee Selection Procedures
• To ensure that our tests are legal and valid, we
  apply the following guidelines
• All survey items are examined for their
  compliance
• Criterion-related validation studies are
  conducted on each of our SELECT tools
• Adverse impact analyses are regularly conducted
  for our assessment tools

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Legal Defensibility

• Typical legal challenges to a hiring process are
  based on allegations of discrimination
• Some tools or methods are more susceptible to
  these types of allegations
• Intellectual ability tests
• Honesty tests
• Tests that do not sound job relevant
• To date, we have not had any formal legal
  challenges regarding any of the BHA tools

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SELECT Associate Screening System
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Typical Selection Process

• Job Posting
• Prescreen interview
• Realistic Job Preview
• SELECT survey
• Behavioral interview with hiring manager
• Reference checks
• Conditional offer
• Drug testing

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What Is SELECT?

• Universal platform for associate level and
  first-line supervisor testing
• Includes a family of surveys which have been
  validated for specific jobs and industries
• Used to aid in the screening and selection of
  primarily associate (hourly) employees
• Tailored for the job, SELECT provides measurement
  of
• Work-related personality characteristics critical
  to job success
• Work ethic/Integrity

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What Surveys are Included?

• Menu of industry specific tests such as
• Health Care
• Hospitality
• Call Center
• Inbound Service
• Inbound Sales
• Outbound Sales
• Help Desk
• Apartment Leasing
• Menu of standard surveys for general job
  positions such as
• Warehouse Driver Roles
• Customer Service Roles
• Administrative Jobs

• Retail
• Sales
• Entry Level Manager
• Clerk/Cashier
• Convenience Stores
• Sales
• Associates
• Store Manager

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Who Is SELECT For?
Execs
Upper Level Mgrs
Managers Supervisors
Professionals Salespeople
Associates
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How SELECT Works?
Candidates are logged into the testing
site Employer logs them in to the appropriate
survey
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How SELECT Works?
Applicants complete a short survey Immediately
upon completion, their results are available from
the SELECT user site
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What Does SELECT Measure?

• Core personality constructs
• Productive Attitude - A positive expectation
  about people, the company and work-related
  outcomes.
• Energy - Activity level and stamina.
• Frustration Tolerance - Emotional resilience.
• Acceptance Of Diversity - Tolerance of others
  different from self.
• Integrity / Work Ethic - A work ethic oriented
  measure of personal integrity.
• Job specific constructs such as
• Influence ? Preference for Structure
• Problem Solving ? Leadership
• Empathy ? Initiative

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SELECT Reports

• Overall Indices
• A validity check for random response
• Integrity/Work Ethic (Avoid, Okay, Good)
• Overall Performance (Avoid, Okay, Better) key
  predictor
• Specific Scale Information (indication of
  flagged areas to probe)
• Structured Interview w/ Specific Interview Probes
  
• Willingness to do Job Tasks/Key Experiences
• Counterproductive Behaviors (optional)
• Ability Tests (optional) (Reading, math,
  checking, coding, graphs, etc.)

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Report Details

• Overall Indices (ranges vary by test)

 
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Report Details

• Detailed Results (will vary by test)
• Work Personality sub-scale flags

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Report Details

• Willingness to do Job Tasks (will vary by test)

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Report Details

• Counter Productive Behavior Responses (optional
  module)

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Structured Interview
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Making the Hiring Decision
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How Does it Differ with ASSESS

• ASSESS
• Professionals and Managers
• Development and Selection
• Longer survey and report, more comprehensive
  measure of work personality
• Reports targeted to job competencies
• Qualitative report- unless there is a validation
  study
• More expensive, provide extensive descriptive data

• SELECT
• Hourly level employees
• Selection only
• Shorter survey and report, measures only those
  characteristics critical to the job
• Reports targeted by job type
• Quantitative index-validity by job type and
  industry
• Less expensive, purpose is for screening high
  volume positions

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SELECT Typical Applications
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SELECT Client Base Includes
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Types of Engagements

• 60 off-the-shelf purchase of SELECT
• Little or no customization
• User site training
• 20 minor customizations (may involve BHA)
• Job analysis to determine which SELECT test is
  appropriate
• Modify Job Tasks or Interview questions
• Interviewer training
• 20 major customization (involve BHA)
• Job analysis and validation of custom SELECT
  survey
• Integrated Selection Process consulting
• Website for implementation
• Interviewer training

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Off-the-Shelf Purchase

• Client interested in assessment for their two
  call center positions
• Selling new products and services
• Servicing existing clients
• Consultant meets with client to discuss scope of
  job and determines if the SELECT test is
  appropriate
• Recommends SELECT for Call Center Inbound Sales
  and Inbound Service
• Recommends modifying interview or job tasks-
  client likes existing SELECT job tasks and
  interview
• Consultant sets up the account and users and
  trains on administration of the survey and
  reading reports
• Client begins to use SELECT (client managed)

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Project with Minor Customization

• Client interested in assessment for their
  warehouse position
• Picker position- having to pick merchandise and
  send it to shipping. Openings are for the night
  shift and having to handle some hazardous
  material.
• Consultant meets with client to discuss scope of
  job and determines if the SELECT test is
  appropriate
• Recommends using SELECT Production and
  Distribution Survey
• Recommends modifying interview or job tasks to
  better explain unique work environment (working
  with hazardous materials, late hours, etc).
• Recommends the checking abilities survey to test
  for the applicants ability to pay attention to
  details in numbers
• Consultant determines what the new job task and
  interview questions are and works with BHA to
  customize assessment
• Consultant sets up the account and users and
  trains on administration of the survey and
  reading reports
• Client begins to use SELECT (client managed)

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Project with Major Customization

• Created custom Competency Models for all three
  positions
• Designed a Realistic Job Preview
• Validated assessment tools and designed
  behavioral Interviews appropriate for each role
• SELECT for Retail Sales Associate and Entry-level
  Store Manager, ASSESS for District Sales Manager
  (with a Success Profile)
• Concurrent, Criterion-related validation using
  sales results, supervisor ratings, etc
• Implemented a Web-based Integrated Selection
  Process
• Consultant set up the account and users and
  trained on administration of the survey and
  reading reports
• Client begins to use SELECT (client managed)

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• SELECT Return on Investment

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Case 1 Retail Client

• High turnover
• Desired better sales results
• Wanted to redesign their selection process for
• Sales associates
• Store managers
• District sales managers

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Case 1 Sales Performance by Survey Results
Percentage Gain in Sales vs. Previous Years
(Store Managers)
25
20
15
Avoid
Okay
Good
10
Better
5
0
1st Qtr
2nd Qtr
Avg.
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Case 1 Sales Performance by Survey Results
Average 6-10 difference
110
105
100
95
Avoid/Caution
90
85
Okay/Good/Better
80
75
70
November
December
January
Note Average Sales 100
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Case 2 Production Facility

• Primary purpose for implementing a selection
  process was to reduce turnover
• BHA conducted a study to determine the effects of
  testing on turnover
• Pilot Results
• Pilot site 13 turnover
• Non-Pilot comparable sites46 turnover
• Total Distribution Center sites (non-pilots) 47
  turnover
• ROI for this client
• Estimated 671 employees or 61 of new hires
  terminated within a year
• Using a conservative 10 reduction of turnover
  estimate
• Reduction of 10 67 bad hires prevented
• 67 x 7813 (est. cost of bad hire) 523,471
  savings

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Additional ROI (various SELECT Surveys)

• Airline Reservation Agents
• Sales revenue increase of 7-9 resulting in
  210-230 million per year
• Convenience Store Sales Associates
• Turnover reduced by 6 saving 1.5 million per
  year
• Retail Store Manager
• 5 increase in system-wide store sales
  performance resulting in 25 million per year
• Retail Sales Associate
• Using an Avoid the Avoids strategy, the gain in
  dollar sales per year per associate is 10,000
  (or a 7 improvement in dollar sales)