Using Behavioral Assessments in Recruitment and Hiring Bradley Smith, Ph.D. International Director, PeopleKeys Sanford Kulkin, Ph.D.

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1 Using Behavioral Assessments in Recruitment and Hiring Bradley Smith, Ph.D. International Director, PeopleKeys Sanford Kulkin, Ph.D. Founder and CEO 1

2 B R O U G H T T O Y O U B Y 2

3 H O U S E K E E P I N G Credit Questions Topic 3

E A R N I N G C R E D I T S Certificates delivered by email no later than 4/2/17 Be watching using YOUR unique URL for

Professional Development Credits (PDCs) for the SHRM-CPSM or SHRM- SCPSM. This program is valid for 1.

4 E A R N I N G C R E D I T S Certificates delivered by no later than 4/2/17 Be watching using YOUR unique URL for login Stay on the webinar, online for the entire duration Ascentis Corporation is recognized by SHRM to offer Professional Development Credits (PDCs) for the SHRM-CPSM or SHRM- SCPSM. This program is valid for 1.0 PDCs for the SHRM-CPSM or SHRM-SCPSM. For more information about certification or recertification, please visit The use of this seal confirms that this activity has met HR Certification Institute's (HRCI ) criteria for recertification credit preapproval. Recertification Credit Hours Awarded: 1 Specified Credit Hours: HR (General) recertification credit hours toward aphr, PHR, PHRca, SPHR, GPHR, PHRi, SPHRi recertification through HR Certification Institute's (HRCI ). For more information about certification or recertification, please visit the HR Certification Institute website at 4

T O D A Y S F E A T U R E D S P E A K E R Dr. Brad Smith has been well recognized as an expert in the development of Human Behavioral Analysis and skills assessments for over 20 years.

5 T O D A Y S F E A T U R E D S P E A K E R Dr. Brad Smith has been well recognized as an expert in the development of Human Behavioral Analysis and skills assessments for over 20 years. He has served as the Director of Development for The Institute for Motivational Living since 1997, and has also served as Managing Director for its sister company, PeopleKeys, which specializes in the development of online technology to deliver behavioral assessment worldwide. Dr. Smith has served as an expert witness in numerous court cases involving copyright, patent and IP rights associated with online assessments. Dr. Smith has also worked extensively on numerous validation and reliability studies of behavioral instruments, and has been well published on the subject. Smith is also the holder of four patents in engineering and technology. 5

6 T O D A Y S F E A T U R E D S P E A K E R In 1983, Dr. Sandy Kulkin founded The Institute for Motivational Living, a training, marketing, and publishing company designed to help people communicate better and work together more effectively. Since founding the Institute, Sandy has trained over 20,000 consultants and trainers in the use of behavioral principles and cutting-edge consulting techniques. With his experience in behavioral and motivational application, Sandy has become a nationally recognized expert in helping corporations successfully expand their marketing capabilities. Sandy s corporate client list includes organizations such as: AT&T, Aramark, IBM, Kodak, MCI, Phillips Petroleum, Santek Environmental, Southdown, Sun Control Systems, Sylvan Learning Systems, U.S. Navy, U.S. Treasury Department, United Airlines, US Airways, and the Wal-Mart Corporation. 6

7 Why are we here today? 7

8 It s all about people Having the right people in the right place is the difference between success and failure. A good hire will stimulate growth, increase productivity, and boost morale. A bad hire can throw the entire organization off track, costing thousands of dollars in lost revenue. 8

9 But sometimes we all face challenges 9

10 Some questions for you: 1. Have you ever faced a situation during a job interview when a candidate s response corresponded with your needs, but then they weren t able to achieve the desired effects? 2. Have you ever faced a situation where a potential employee had the best job references but failed to achieve the desired results for your company? 10

11 The real question remains: Is it possible to predict future successes and hire the right candidate for the job the first time? Or are you in for a very short-lived honeymoon period? 11

12 The key to success is to determine whether a candidate s natural behaviors in a stressful environment/decision-making situation, and the natural role they would play within the team s structure is consistent with the business reality of the organization. 12

13 Every business is different. This is why HR consultants experience, tailor-made solutions, and assessments that target key behavioral values are needed in this area. So, let s talk about assessments 13

14 Why use behavioral assessments in hiring? 14

BENEFITS: Better fit to job environment (verification of qualifications, hidden motivators, preferences) Studies show that in many positions, soft skills are more critical than hard skills or even

15 BENEFITS: Better fit to job environment (verification of qualifications, hidden motivators, preferences) Studies show that in many positions, soft skills are more critical than hard skills or even experience (i.e. sales, customer support, positions that require higher interactions with people) Reduction in turnover, increased retention rates Shorter on-boarding and acclimation time Less chance for future litigation and legal actions Less time in recruitment/ spending on interviewing 15

FEARS: I might get sued legal ramifications I might miss a superstar by relying too heavily on this information I might not even have the right benchmark or style for this job how do I know this is

16 FEARS: I might get sued legal ramifications I might miss a superstar by relying too heavily on this information I might not even have the right benchmark or style for this job how do I know this is really job specific? There are so many tools available which one do I use? How do I even know if they are valid and reliable? I have had a bad experience with using assessments People may feel labeled or judged 16

17 17

18 Let s face some facts 18

19 According to a 2014 trends report from business advisory company CEB, 62% of human resources professionals are using personality tests to vet candidates in the hiring process. That's compared to less than 50% in 2010 (per research firm Aberdeen Group.) MSN Money reports > 80% of Fortune 500 companies give some form of a personality test as part of employment. Other studies show an even higher %. Behavioral Instruments are Widely Used in Hiring 19

20 Which of the following sources for information about the candidate is the most reliable in your opinion? 65% N = 250, the result in %, respondents could indicate more than one answer, 2015, EFFECTIVENESS, 20 Poland/Europe.

21 What is the most common instrument in use? DISC based on Marston s work Myers Briggs MMPI Other types of instruments utilizing one of these 3 as a basis 21

The American Society of Training & Development reported that U.S. companies spend $110 billion per year on employee development training programs.

22 The American Society of Training & Development reported that U.S. companies spend $110 billion per year on employee development training programs. 60% of these programs include interpersonal skills assessment, which equates to $66 billion. 86% of these assessments were based on either the DISC system or the Myers Briggs Type Indicator. Nearly $57 billion is spent on training programs in the U.S. that include DISC and MBTI. 22

23 How to choose the right one? 23

It s all about people, so Look for tools which don t label; to use the iceberg metaphor, these tools examine not only behavior which can be observed, but also what is below the water

24 It s all about people, so Look for tools which don t label; to use the iceberg metaphor, these tools examine not only behavior which can be observed, but also what is below the water level (what is not seen by the naked eye, but still impacts our behavior, e.g. workplace values, internal motivations.) Focus on the respondent s potential, and positive feedback! 24

25 Look for valid assessments specific to job-related success MBTI - Around 80% of new hires at Fortune 500 companies are given the MBTI, and countless other companies use it as part of the actual employee selection process (source: CPP, the test's exclusive publisher.) The verdict: Fail! HR departments who choose employees based on this test s results could miss out on superstars who might actually excel in a given position. They may also mistakenly bring on workers that don't live up to expectations all because they relied too much on what they thought the MBTI was telling them. In fact, the test's own publisher is so concerned about misuse of the personality test for hiring that it has gone out of its way to warn people that it should not be employed for that purpose (both in the media and on the test website), and warns that companies who do could be held accountable. The nature of the responses in this test may lead to hiring biases against women and other groups. Source: MSN Money CAMILLE CHATTERJEE, LEARNVEST 12/06/

26 Look for valid assessments with no adverse legal ramifications (MMPI-2) can only be given and interpreted by a psychologist. And the only workplace situations in which it might be used effectively is to screen employees at high risk of psychological issues, such as members of the police. Sample question: Answers are true or false. For example: "I wake up with a headache almost every day," and "I certainly feel worthless sometimes. The verdict: Fail! "The information that it asks about is not business-related," Dr. Paul Gorrell (of Prospective Talent) says. "Companies have tried to use it, been taken to court, and lost. Source: MSN Money CAMILLE CHATTERJEE, LEARNVEST 12/06/

27 Why is DISC the most widely accepted instrument in use? 27

28 What is DISC? DISC is a set of 4 styles of behaviour developed based on studies carried out by Dr. William Marston. When Marston analysed human behaviour in a particular environment, and in specific situations, he noticed that people with similar styles usually behave in very similar ways. Interestingly, each of us has all of these four styles of behaviour inside, but in varying degrees of intensity. DISC is an acronym for the names of the individual styles: Dominant, Influencing, Steady, Compliant. 28

29 Factoids 29

30 The DISC market Every year, 10 million people take DISC profiles around the world and that number is increasing by 10% per year million people have taken DISC profiles around the world. 30

31 DISC is validated, EEOC compliant and free of adverse impact. DISC (when properly used) addresses five factors for effectively managing your legal risk. 1. Job-related All employment practices, including assessments, must be job -related. (DISC, when properly benchmarked, does this.) 2. Free of Adverse Impact Documented proof that the assessment tools do not discriminate based on gender, ethnicity, disability status or veteran status. 3. Consistency in Use Assessments must be used in a consistent way. This isn t to say all or nothing, just consistent within each hiring or development situation. 4. Internal, Company Specific Validation An assessment provider should be willing to run an internal predictability and adverse impact study based on the use of their assessments within a specific organization. 5. Constant Review Government agencies require periodic monitoring of assessment and employment practices. Proof of the ongoing concentration on compliance from an assessment provider is required. Source: 31

32 Case study 1 32

They have a large geographical coverage with hundreds of remote

33 Celtic HealthCare Celtic is part of Graham Holdings and provides in-home healthcare. They have a large geographical coverage with hundreds of remote health care providers. They must manage and communicate with al of these providers for specific outcomes. 33

34 Question: Are employees who are properly matched with an environment that matches their primary workplace style more positive about their workplace experiences? Answer: YES! Because someone who is miscast in a job puts more energy into adapting to that environment than someone whose personal preferences already match the job requirements. 34

35 Survey Item Response Scale: The survey instrument used in the Celtic Healthcare study consists of twelve content areas where respondents were asked to respond to according to the scale response format in Figure. 1. The twelve content areas and number of survey items/statements included: (1) Planning for the future (8 items), (2) Individual ownership (8 items), (3) Communication (8 items), (4) Structure and job clarity (8 items), (5) Appreciation and support (8 items), (6) Organizational mission focus (8 items), (7) Career opportunity and advancement (8 items), (8) Quality control/corrective actions (8 items), (9) Culture and environment (8 items), (10) Quality of care and services (10 items), Quality of support services in the organization (12 items), and Quality of care for each service provided (5 items) 35

36 An Increase in Positive Responses Percent Positive Results No behavioral Assessment (N=81) With behavioral Assessment (N=81) Z-statistic p 1. Job Fulfillment 72.15% 74.91% Goal and Mission Clarity 62.46% 75.17% Recognition and Support 50.15% 65.54% * 4. Two Way Communication 57.08% 67.49% An Increase in Positive Responses 5. Structure and Job Clarity 65.69% 76.59% Culture and Environment 51.69% 66.59% Individual Ownership 45.08% 62.06% * 8. Planning for Growth (Vision) 45.38% 66.37% ** 9. Quality Control 60.31% 72.43% Note. *denotes statistical significance at p<.05; **denotes statistical significance at p<

37 An Decrease in Negative Responses Percent Negative Results No Assessment With Assessment 1. Job Fulfillment 18.00% 10.75% Goal and Mission Clarity 25.08% 10.71% * 3. Recognition and Support 36.31% 15.81% ** An Increase in Positive Responses 4. Two Way Communication 32.15% 13.37% ** 5. Structure and Job Clarity 19.23% 8.35% * 6. Culture and Environment 33.23% 15.66% ** 7. Individual Ownership 42.46% 18.69% ** 8. Planning for Growth (Vision) 32.46% 13.37% ** 9. Quality Control 27.38% 11.46% ** 37

38 Case study 2 38

They experience high turnover (the industry averages

39 The Bair Foundation Bair is one of the largest private foster care and adoption agencies in the country. They experience high turnover (the industry averages 40%+) due to the inherent nature of the social service industry. 39

40 Question: Will properly used behavioral instruments affect retention and turnover? Answer: Yes. In the course of one year, unfavorable turnover has been reduced by 50%, saving The Bair Foundation $1,143,563* * Based on one-hundred new hires. 50% decrease in turnover while using the PeopleKeys system to reduce the interview to hire ratio. 40

41 Open/Vacant Positions New Hires

42 The following data was collected beginning in 2010 and proceeded for 2 years and demonstrates the reduced turnover beginning with an average of 50 vacated or open positions. New hires were approx. 7-8 per month and this remained fairly constant during the first 15 months data was collected, thereafter dropping to approx. 3 hires per month. The chart shows the drastic reduction in turnover as the vacant positions dropped from an average of 50 (at any given time) to a low of 15 after 21 months of study. Ongoing results show a similar pattern. This can only be attributed to retention of staff since the organization stayed stable in overall size (approx. 500). The organization was losing 7-9 employees per month or about 100 per year. This would equate to a 20% turnover rate. As training and awareness became engrained as part of the overall talent management strategies retention improved (dramatically after 1 year). The 14 th month showed no loss of existing staff so the hiring efforts greatly reduced the skill gap. The effects of the training and relationship building continued to impact retention during the concluding months of the study. 42

43 The data on cost per hire was also included for the 500 member organization. The following graph shows data from a staffing agency working in conjunction with one the study facility. During this period the staffing agency used assessments which incorporate the soft skills measured as part of the training and benchmarking of positions. The staffing agency used online technologies provided that was implemented in the training and retention of employees. The data shows a decrease from average cost of hire from $3,178 to $1,878. This was representative of approx. 100 new hires during this time frame. Online resources to provide a funnel for more qualified candidates coming into the interview pool greatly aided in the cost reduction. It is not a new idea or concept to maximize the use of technology and online databases and job boards to increase recruitment and reduce costs associated with more traditional efforts. 43

44 44

45 Next steps and best practices for using Behavioral Assessments 45

46 1. The Assessment Provider works with the company to identify key positions to be filled. Job descriptions are developed or reviewed for the positions. It is important that every position a new hire will fill has a complete and updated job description so that job skills and competencies can now be matched for each of the key tasks the employee will be expected to perform. 2. Since hiring assessments must be designed to measure traits specific to job performance, the next step is to correlate the soft skills and behavioral traits necessary for optimal job performance. For instance, an Outside Sales Representative developing a new territory may need to be very comfortable thinking outside the box, be self motivated, driven, flexible, outgoing, solution oriented vs. process oriented, etc. However, a new hire for a telemarketing position may need to feel comfortable following scripts, using predetermined processes and procedures, be consistent, and stay within certain parameters for providing answers and solutions. Both positions fall under the broad heading of sales, but the behavioral and soft skills traits that will make each person effective and successful are diametrically opposite one another. 46

47 3. A test group is assessed to validate the job skills defined and to establish a benchmark for the behavioral traits and soft skill requirements that were defined for the positions needing filled. Soft skills consist of items such as teamwork, interpersonal skills (behavioral attitudes and motivators), work ethic/attitude (valuesbased motivators), time management and conflict management. 4. Once benchmarks are determined and actual job specific behavioral traits and soft skills are confirmed, highly validated assessments are used to determine the applicant s responses to questions. These questions are formulated to allow the employer to pinpoint the candidate s strengths and limitations in these key areas of job performance. 47

48 5. Potential candidates that meet all other job requirements may now be interviewed with highly targeted questions that address the ability or willingness of the candidate to complete certain key components of their job duties. The employer essentially goes into the interview process having information that would otherwise be difficult or even impossible to ascertain without the use of the hiring assessments specific to the workplace behavior and soft skills. These two areas of hiring cause the highest turnover ratio, but are the areas that are least identified during normal screening and interviewing processes. 6. The employer may wish to review the final hiring decision with the consultant, analyst, or firm that they purchased the hiring reports/system from. This will assure the proper selection process and target areas of training the new candidate might need to receive to ensure their potential is reached. 48

49 Always make sure behavioral assessments are not used as a pass/fail in the hiring process 49

50 Incorporate Behavioral Based Interviewing as Part of the Process 50

51 W H A T S N E X T? 51

52 QUESTIONS Enter all questions into the Questions section of the GoToWebinar panel on your computer screen 52

53 E A R N I N G C R E D I T S Certificates delivered by no later than 4/2/17 Be watching using YOUR unique URL for login Stay on the webinar, online for the entire duration Ascentis Corporation is recognized by SHRM to offer Professional Development Credits (PDCs) for the SHRM-CPSM or SHRM- SCPSM. This program is valid for 1.0 PDCs for the SHRM-CPSM or SHRM-SCPSM. For more information about certification or recertification, please visit The use of this seal confirms that this activity has met HR Certification Institute's (HRCI ) criteria for recertification credit preapproval. Recertification Credit Hours Awarded: 1 Specified Credit Hours: HR (General) recertification credit hours toward aphr, PHR, PHRca, SPHR, GPHR, PHRi, SPHRi recertification through HR Certification Institute's (HRCI ). For more information about certification or recertification, please visit the HR Certification Institute website at 53

54 PEOPLEKEYS Specializes in developing online technology to deliver behavioral assessment worldwide. Has had success in behavioral analysis for over 35 years. Prides itself on delivering excellent customer service, an international platform, and the most customizable and tailored solutions around. Learn more about PeopleKeys Validation Study and receive a free sample assessment C O N T A C T U S Brad.Smith@PeopleKeys.com 54

55 Ascentis Recruiting Ascentis Recruiting helps you: Recruit, Qualify, Hire, and On-board Recruiting process becomes completely automated Candidate portal that matches your corporate brand Supports paperless onboarding through electronic signatures on documents such as I9s, W4s, and EEO

56 Free live webinars monthly Free HRCI, SHRM, and APA credits All webinars recorded and posted to website for free. UPCOMING WEBINARS Mar. 7, The Advantages of Hiring U.S. Veterans Mar. 16, The Hidden Cost of Turnover and Strategies to Increase Retention Mar. 21, HR 101: Are Your Leaders Equipped With the Knowledge They Need? Mar. 28, Six Mistakes Companies Make While Trying to Be Innovative

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