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Assessing Talent What are Assessments and how can they be used?
The Advantages and Best Practice of Assessment Processes
January 2017
Assessing Talent
2 Copyright © 2016 Zircon Management Consulting Limited. All rights reserved.
www.zircon-mc.co.uk
Contents
INTRODUCTION 3
WHAT IS ASSESSMENT? 4
WHY WOULD ORGANISATIONS USE ASSESSMENTS? 4
WHEN WOULD ASSESSMENTS BE USED? 7
WHAT METHODS OF ASSESSMENT ARE THERE? 8
WHAT IS THE VALUE OF ASSESSMENTS IN SELECTION? 11
WHAT IS THE VALUE OF ASSESSMENTS IN DEVELOPMENT? 13
HOW CAN ORGANISATIONS SELECT THE MOST APPROPRIATE ASSESSMENTS? 15
HOW CAN ASSESSMENTS HELP ORGANISATIONS IN THE FUTURE? 21
HOW DO OTHER ORGANISATIONS VIEW ASSESSMENTS? 23
WHAT WILL ORGANISATIONS NEED TO CONSIDER WHEN IMPLEMENTING
ASSESSMENTS? 25
MISUSE OF ASSESSMENTS 28
RECOMMENDATIONS 29
CHECKLIST FOR ASSESSMENTS 29
WHAT IS NEXT? 30
APPENDIX: ABOUT THE AUTHORS 32
APPENDIX: REFERENCES 33
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Introduction
Maintaining relevance and competitiveness within the current market
means all businesses need to push their boundaries in order to create and
implement continuous, rapid product innovation.
In order to continue to push the boundaries of innovation and product creation, organisations will
need to ensure their people are working towards the same agenda with the same interests at heart.
This will start with the effective use of assessments for recruitment, to ensure the individuals
brought in are right for the organisation; selection, to make sure individuals are in the most
appropriate roles; and development, to ensure employees have the right skills in order to be
successful.
Purpose and Scope of the Paper
The purpose of this paper is to a) objectively
review how organisations have used
assessments to their advantage and to
understand the experiences businesses have
had, b) review the tangible business benefits
that have emerged as a result of assessment
usage, c) make recommendations for
assessment usage and d) review obligations
that organisations must consider as they
decide how to streamline assessments.
We will present an objective, research-based
view for the use of assessments within
organisations, looking to understand the
benefits, unique selling points and Return on
Investment businesses can gain. This paper
also provides recommendations for
assessment usage and reviews obligations
organisations must consider when deciding
how to streamline assessment.
We take insight from currently used tools and
techniques and have conducted research into
best-in-practice techniques within the external
market, as well as drawing from the 20 years
consulting expertise of Zircon Management
Consulting. In particular, we look at:
- Desk Research into best-in-class uses of
assessments, including the tangible
outcomes organisations have seen from
assessments within a business context.
- External Interviews from a range of
organisations such as KPMG, Thomson
Reuters and GSK.
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What is Assessment?
Assessment is the process of evaluating an element against a predefined criteria. It is the end result
of gathering information intended to advance knowledge in an area and increase the probability of
effective decision-making in applied settings.
Why would organisations use Assessments?
People are at the core of organisational
success. They can bring innovation, customer
focus and commercial mind-set to ensure all of
the offerings are as effective and valuable as
possible. As a result, businesses need to
ensure they are making the right ‘people’
decisions, from bringing in the best talent in
the market to ensuring employees have the
right tools in order to continually develop the
business.
Assessment helps organisations to make
better decisions about hiring and developing
people, aligned to the business objectives and
vision for the future. Some of the benefits
organisations would be able to leverage
through the use of assessments are shown
below.
People Assessments can be used for a
multitude of purposes. For example,
assessments can be used during a recruitment
process in order to screen for reducing large
volumes of candidates and to differentiate
between a few key individuals. They can also
be used for selection, if organisations want to
identify and validate core performers or those
with high potential for a specific purpose,
such as a talent pool. Assessments are also
beneficial during development, as they could
allow businesses to identify the core areas
where an individual has strengths or
development needs, which can subsequently
help to tailor a plan for the future.
Assessment is also a robust way to identify the
difference between Talent and Potential.
Assessing talent involves assessing an
individual’s past performance to understand if
they are working in line with the
organisational outcomes and identifying an
individual’s strengths; i.e. whether they are
achieving their role requirements. Assessing
potential on the other hand, relates to
assessing the individual for their fit for the
future, rather than past performance.
Potential will identify whether the individual
has the right skills and capabilities to achieve
in the future of the organisation.
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When using assessments, one is able to assess a number of different areas in order to capture the
required data. Some of these elements which can be assessed are shown below:
- Competencies/Capabilities
o Definition: Personal attributes or behaviours that individuals must have or acquire to
perform effectively, such as Problem Solving or Teamwork.
o Benefits: Identifying the competencies or behaviours that successful individuals need in an
organisation allows for individuals to be identified who will support business objectives, as
well as providing a transparent language of success for candidates or employees to work
towards (Lexonis Limited, 2011).
- Strengths
o Definition: Elements that an individual enjoys doing and is energised by, such as being
Methodical or Competitive. An individual’s strengths are their unique qualities; what will
they bring to the role and what will they enjoy doing?
o Benefits: Research has found that individuals who are able to work within their Strengths
are six times more engaged, six times more productive and three times more likely to have
a good quality of life (Gallup, 2014). 73% of organisations are moving to a Strengths-based
approach (Zircon Management Consulting, 2012).
- Values
o Definition: A set of principles that an individual finds important to work within, such as
Integrity and Visionary. It is beneficial to identify the level of fit between personal and
organisational values and culture.
o Benefits: Employees who are able to fit in with their organisation and team had greater job
satisfaction, were more likely to remain at the organisation and showed greater job
performance (Kristof-Brown, Zimmerman & Johnson, 2005).
- Cognitive Abilities
o Definition: Overall reasoning ability or a narrow aspect of an individual’s job requirements,
such as Learning Agility and Numerical Reasoning Ability.
o Benefits: Individuals who score highly on verbal/numerical
reasoning tests are six times more likely to become high
performers in the organisation (SHL, 2012). Learning Agility
is a top predictor of high potential; highly agile Executives
“ Strengths-based assessments are long overdue. We build careers and success on strengths so we
should also assess people on that. We need to hire people who love what they do.
Iain McLaughlin, Global Head of Resourcing and Mobility, KPMG
“
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have 25% higher profit margins than others, are five times more likely to be highly engaged
and are promoted twice as fast as individuals with low learning agility (Korn Ferry Institute,
2014).
- Functional Knowledge/Technical Skills
o Definition: The ‘need-to-know’ technical skills, such as Financial Acumen and Sales Ability.
o Benefits: Individuals who do not have the required technical skills may be unable to perform
to the highest standard, negatively affecting organisational performance (Bessen, Harvard
Business Review, 2014).
- Personality Traits
o Definition: Measuring personal characteristics such as Conscientiousness and Extraversion.
o Benefits: Can be used to increase the accuracy of behavioural prediction in a variety of
contexts and settings, structures and informs psychological interventions (Lee & Bruvold,
2003).
“ We assess our Graduates from a number of lenses; we used to focus only on ability but we have
realised it doesn’t reflect whether they can engage others.
Helen Alkin, Head of Recruitment: Future Talent, Marks and Spencer “
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When would Assessments be used?
Organisations could make use of assessments for
understanding Individual, Team and Organisational
requirements at any level within the business, from
Individual Contributor through to the Executive level.
Some examples of how assessments can be used are
shown in the image below.
Please note, this list is not exhaustive.
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What methods of Assessment are there?
Selecting the method by which the element in question is assessed is equally as important as
selecting the element itself. There are a broad range of assessment techniques, tools and products
that can be used for different elements within a role or individual and ensuring the right assessment
for the situation is selected can mean the difference between selecting someone great and missing
the mark on talent.
CV’s, Application Forms, Biodata Provides a summary of relevant biographical information, such as education, qualifications and previous job experience. If unstructured however, these have led to questions about the effect on selection outcomes (Searle, 2003).
o Uses: Initial screening in recruitment. Interviewing A formal meeting used as a basis for questioning, consultation or evaluation. Interviews can be structured or unstructured, with a focus on technical or competency questions.
o Uses: To obtain detailed information about a person’s experience, qualification and opinion. Can also be used as a means of gathering qualitative data and more deeply understanding quantitative information.
Psychometric Testing The process of quantitatively measuring an individual using a questionnaire. These can be based on a number of elements, including aptitude, ability, personality and strengths.
o Uses: Primarily employed to assess employment suitability, including company-candidate fit and candidate-role requirements.
360 Feedback/Peer Ratings A set of evaluations from each member of a work group, using a specific set of rating scales. Co-workers who participate in a 360 review usually include the manager, peers, direct reports and key stakeholders. With the increase of LinkedIn recommendations, this assessment has grown in popularity.
o Uses: Development; performance evaluation purposes.
Case Studies/Role Plays A study of a specific real-life situation or imagined scenario. Individuals are required to analyse the prescribed cases and present their solutions, with supported reasoning and assumptions made. The assessments can be used to assess analysis skills, business acumen and strategic thinking by the line of reasoning employed and assumptions made.
o Uses: A training or recruitment tool. Assessment and Development Centres A set of exercises such as case studies, role plays, e-tray and other assessments to either recruit or develop, often taking place over a period of a day.
o Uses: Often in recruitment as a part of the selection process, on-the-job assessment or development.
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Situational Judgement Tests Bespoke tests that present realistic, hypothetical scenarios and ask the individual to identify the most appropriate response or to rank the responses in the order they feel is most effective.
o Uses: To assess job-related behaviours and competencies related to non-academic practical intelligence such as problem solving, decision making and interpersonal skills.
Group Tasks An assessed exercise that involves a small group of candidates working together towards a goal, often followed by questioning or a presentation.
o Uses: Recruitment or on-the-job assessment purposes.
* Group Tasks are not recommended due to the high level of biases that could occur during group assessments.
Gamification An application of game theory and dynamics to non-gaming contexts. Games can assess a number of different elements, such as industry challenges or behaviours (e.g. Risk taking, speed of response, resilience).
o Uses: To engage, recruit, select and develop individuals.
Employee Surveys Questionnaires to gain feedback from a large group of employees; the tool can measure elements such as employee engagement, morale and performance.
o Uses: Measure and develop based on group feedback to affect direct organisational growth.
Performance Appraisals Method by which the job performance of an employee is documented and evaluated. Performance appraisals consist of regular reviews of employee performance within their organisation.
o Uses: Performance evaluation for development and selection.
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Source: CIPD (2015)
Organisations use a vast array of assessment tools, from interviews to general ability tests and Assessment Centres. In the past 6 years, the use of interviews has increased by 15% whereas the use of analytical algorithms to match people to roles and gamification are only beginning to be used (CIPD, 2015). With such a broad library to draw from, it is therefore imperative that the tool or process selected is appropriate for the purpose and brings about the benefits that we require.
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What is the value of Assessments in selection?
The main reason organisations assess
individuals in a selection process is to increase
the probability of hiring the best candidates for
their organisation, i.e. candidates who have
the skills to perform effectively and who are
likely to fit with the organisational culture.
Ensuring better hiring and placement decisions
can have extremely large financial benefits and
the candidates are more satisfied and have
been found to advance further in careers
where their skills match requirements.
Effective hiring through assessments can:
Reduce Failure Rates of New Hires
Assessments can provide a clear prediction of
the effectiveness of a candidate in the role,
thus reducing the chance that they will fail. On
average, 40% of CEOs fail within the first 18
months (Ciampa, 2005) however when CEO’s
were high-scoring on the Korn Ferry Readiness
Assessment, failure rate reduced to 2% (Korn
Ferry Institute, 2014). As the cost of replacing
a failing CEO after only 18 to 24 months can
range from $6 million to $18 million (Korn Ferry
Hay Group 2010 as cited in Korn Ferry Institute,
2016), assessments could provide
organisations with large financial benefits by
reducing failure rates.
This benefit can also be seen at all levels of the
business, including High Potentials; when
assessed, the turnover of High Potential
individuals reduced by 7% to 11% (Aberdeen
Group, 2010). This means that if an
organisation has 150 High Potentials, they will
keep 17 of their Future Leaders by using
assessments. Further, companies using
assessments are 36% more likely to be satisfied
with new hires (Aberdeen Group, 2015).
Increase Performance
The performance scores for new hires who
have been assessed to have the right fit for the
role and organisation have increased following
a robust assessment for recruitment process
(YSC, 2014). Organisations have also found 56%
of employees exceed expectations on
performance reviews when assessed,
compared to just 45% who have not been
assessed (Aberdeen Group, 2010). As a result,
effective use of assessments at the
recruitment stage can mean a marked increase
in ongoing performance capability into the
future.
Improve Productivity
Alongside improving performance, the use of
assessments for selection could improve
productivity. Effective assessment has been
found to decrease the time to full productivity
for new hires (YSC, 2014). Analysis of 1000’s of
organisations from 92 large scale studies has
also found that implementing objective
recruitment assessment increased company
productivity by 1.7%. This implies that the
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benefit of increased productivity from
objective assessment is responsible for around
1.7% of overall organisational turnover (Combs
et al., 2006). As a result, if an organisation has
an overall turnover of €20billion, the use of
effective assessments could be responsible for
a reduction in €34million.
Increase Objectivity
The use of researched and robust assessment
processes can almost remove biases and
subjective judgement, which can mean better
hiring decisions. If biases are present in a
selection process, the outcome is less likely to
be positive for the organisation. As a result,
assessment tools and procedures which are
founded in evidence and have been validated
to ensure they look for the measures of
success increase the chance of making a good
hiring decision. 82% of executive sponsors in
research undertaken by DDI (2015) found
assessment processes successfully increased
the objectivity of their organisations talent
decisions. The assessment process does
however have to be relevant to the
organisation and environment it is to be
assessing for, as traditional methods of
interviewing accurately predicts success only
14% of the time (The McQuaig Institute, 2010).
Brand and Impact of Organisations
The use of assessments can also have an effect
on brand and impact of Organisations. Not
only do assessments enhance the candidate
experience through providing transparent and
open methods of assessment and clear
markers for success, 98% of individuals from 43
organisations and 400 leaders stated that
using assessment improved their view of the
organisation (DDI, 2015). CEB, whilst working
with Heineken, also found that implementing
an effective, objective and transparent
assessment process resulted in 85% internal
stakeholder satisfaction and 91% applicant
satisfaction (CEB, 2015).
On the contrary, if not used effectively
assessments can also damage the brand of an
organisation (see Misuse of Assessments
section for further details).
Increase Financial Gain
CEB worked with KPMG to implement a new
flexible and streamlined selection process.
They have estimated a saving of around 40%
for selection costs associated with every
applicant, which rises to a 60% saving in the
case of a successful applicant (CEB, 2016a).
Further, they work to ensure the assessment
process is correlated to the needs of the
organisation produces long-term benefits,
with Getinge Group saving 5m SEK on external
recruitment costs annually through a
streamlined but objective assessment process
(CEB, 2016b). In a further case study, a
technology retailer has increased sales by
£100million as customer-focused sales staff
who earned high scores on an assessment
process went on to generate over £3,000 more
sales per month than low-scorers (SHL, 2011).
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What is the value of Assessments in development?
Once the most appropriate individuals have been selected and recruited, there is also a need to retain
the talent. Ongoing development is a key technique for maintaining employees however this needs
to be tailored to the individual to gain the most from the experience. In order to understand how to
tailor development therefore, there is a need to assess where an individual, team or organisation is
currently, to observe strengths and gaps.
Therefore, in addition to continuing the benefits observed during assessments for selection, effective
assessments for development can:
Retain Top Talent
Research has found that 27% of High Potential
employees plan to leave their employer in the
next 12 months (Corporate Leadership Council,
October 2010 as cited in PwC, 2011) and just 18%
of millennials are planning to stay with their
current employer (PwC, 2011). In line with
these trends therefore, organisations need a
method for engaging employees and
demonstrating the value we see in them.
Assessments can be used during development
to provide insights to accelerate an individual’s
development and can improve engagement
(DDI, 2015). In addition, YSC have found that
conducting regular assessments means
organisations are 24% more likely to have a
ready and willing successor (Aberdeen Group,
2010), resulting in an easy transition.
Provide Financial Gains
As mentioned previously, effective
assessments can be responsible for 1.7% of
overall turnover by increasing productivity
(Combs et al., 2006). Korn Ferry also found
that individuals with a high-score in an
assessment of Strategic Vision had on average
a 64% increase in market cap and those with a
high score on Managing Complexity had on
average 78% increase in earnings per share
(Korn Ferry Institute, 2016). Further research
has found that organisations using
assessments have 2.5 times greater year-on-
year increase in profit per full-time equivalent
(Aberdeen Group, 2010). Talent Q also found
that the organisational impact of a high
performer compared to an average performer
can be around £2049 per hire (Talent Q, 2009).
Promote Continuous Learning and
Development
Implementing assessment for current
employees to aid in their development can
increase engagement and excitement around
ongoing development, with managers more
inclined to support employees with their
development. In particular, DDI (2015) found
that 89% of an organisational cohort said that
assessments that brought insight into their
developments created a positive buzz around
the development process within the
organisation and 87% said development
activities receive strong management support.
They also found that 92% of managers reported
assessments helped them better understand
strengths and development areas of their
team in order to tune developments (DDI,
2015).
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Beat the Skills Gap
ManpowerGroup Talent Shortage Survey
(2014) revealed that as many as 36% of more
than 37,000 employers surveyed worldwide
are experiencing difficulty in filling jobs, due to
a lack of available talent. In order to prevent
this therefore, assessments for development
could be used within organisations in order to
ensure the workforce is both retained and also
have the most appropriate skills to be
successful. Assessments could be used to
identify the most effective focus of
programmes to ensure they are the most
valuable for employees and the financial fee is
valid.
Predict Leadership and Growth
DDI found that across three organisations with
over 1,100 executives, high scorers on an
assessment process improved performance
significantly more than low scorers (DDI, 2015).
Further, across four studies and over 1,200
leaders and executives, results also showed
significant relationships between assessment
scores and potential ratings (DDI, 2015). CEB’s
work with Getinge Group have found they now
have 187 potential leaders preparing
themselves for step-up compared to only 27
individuals before the assessment process
(CEB, 2016b).
Provide Big Data
Conducting assessments in a robust and
objective way results in a library of data for
use. Regularly using assessments for either
selection or development therefore will begin
to provide a valuable source of people data
which organisations have not previously had.
This data can be used to observe themes or
patterns emerging for individuals, teams or the
organisation. This information can also be used
to understand the effectiveness and value of
programmes and whether employees have the
capability or potential to progress. In order for
this to be as successful as possible however,
this data needs to be held in one location and
integrated (SHL, 2011).
We use assessments in order to make better decisions about how we manage talent. We tailor
our approach, giving people development based on their personal requirements. We have
dramatically reduced our recruitment costs by purely growing our own talent.
Robert Nunn, Learning and Development Manager, Grosvenor Estates
“
“
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How can organisations select the most appropriate Assessments?
Line of Sight to the Business The first step in ensuring an assessment tool or process is right for the purpose is to ensure they are
founded in the organisational strategy and context. There needs to be a clear and open line of sight
between the organisational strategy and the talent model to ensure the elements which are defined
as predictors of success are the aspects required in the employee pool which will drive success into
the future, in line with the vision and goals of the organisation. This talent model should then be
integrated into the role profile to ensure the role requirements are based in evidence. Finally,
assessment criteria and subsequent tools and techniques should be selected in line with the role
profile.
Ensuring a clear line of sight from the strategy to assessment tools and techniques allows for an
open and transparent assessment process where everyone involved in the process understands
requirements and expectations. Evidence has shown that a high degree of procedural methodology
and clear processes of measurement and evaluation have high merits (Schmidt & Hunter, 1998). This
is however not common practice, with only 20% of organisations openly communicating their talent
strategy and as a result 80% do not demonstrate transparency within their assessment process from
strategy to tools (Zircon Management Consulting, 2012). Only half of the leaders within the FTSE 100
and Fortune 500 interviewed by Zircon Management Consulting (2012) said talent management
initiatives are consistently applied across their organisation and only one-third believe that their
talent management practices are fully established and implemented. Additionally, less than 30% of
organisations use their talent strategy to show how they are different from their competitors (Zircon
Management Consulting, 2012).
Organisational Strategy
Assessment Criteria
Role Profile
Talent Model
Assessment Tools and Techniques
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Reliability and Validity of Tools
Reliability: The extent to which a measurement procedure is free from random error.
Validity: The extent to which a measurement procedure gives appropriate information about the criteria, such as looking appropriate to candidates and job experts in terms of relevant job requirements and whether it correlates with other relevant measures.
Face validity: The extent to which those involved in the measure accept that it seems to at ‘face value’ assess the qualities in question.
Content Validity: The extent to which the measure or items sample the domain of interest.
Construct Validity: The extent to which the measure gives accurate information about the element it is trying to measure.
Criterion-related Validity: The extent to which the scores on the measure relate to a measure of a related criterion, e.g. Job success.
Only by looking at roles, deciding the most appropriate level they are at and mapping back to
the organogram, can we ensure people are in the right places.
Maryanne Trollope, Senior HR Manager, Anglo American
“ “
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It is imperative that a chosen assessment has sufficient reliability and validity required for the
situation; the best practice level for reliability are above .7 and assessments need to have high face,
content, construct and criterion-related validity. Irrelevant of the level of expertise and training of
assessors, if the tools have low validity, the output of the assessment process is going to be low
(Hermelin & Robertson, 2001). On the contrary, even if tools are selected that have exceptional
validity and reliability, if assessors are not trained in how to use the techniques objectively and to
best effect, this will also result in a negative output.
Each style of tool or technique has a different level of validity; shown above is a graphical formation
of validity of various assessment methods from a meta-analysis which indicates that ability tests,
work sample tests and assessment exercises are the most predictive of employee performance
(Torrington et al., 2009). Korn Ferry Institute (2014) found that assessments including only
interviews and tests resulted in an 18% increase in validity than the assessment centre average. When
they incorporated a leadership simulation however, this rose to be 96% more predictive than the
assessment centre average, demonstrating that simulations and immersive assessment processes
are more likely to result in a good hire.
Fundamentally we use relevant work samples which are more predictive as we ensure
assessments we use provide evidence to support a decision. This is to provide a realistic
expectation of the role.
Joanna Harvey, Occupational Psychologist, The British Army
“
“
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An organisation will however need to consider the cost/benefit ratio for all assessment tools in terms
of predicting performance. Based on a combination of meta-analyses and costs of assessment for
UK organisations, it can be seen that ability tests provide the highest prediction of performance
(~30%) and was the second lowest tool in terms of cost. On the other hand, simulation exercises
provided the second highest level of prediction of performance (~18%) but was by far the most
expensive cost (Schmidt & Hunter, 1998; Talent Q, 2009). In order to conduct the cost/benefit ratio,
the purpose of the process will therefore need to be considered, in combination with the required
outputs.
Source: Talent Q (2008)
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Types of Evidence Not all assessments are the same and each tool or technique provides a particular level of evidence
for use in assessing criteria. There are four types of Evidence:
• Observed Evidence
• Directly reflects real-life situations relevant to the candidate's job role. Candidate actually does what they would do, rather than saying what they would do.
• Case Studies, Role Plays
• Tested Evidence
• Objectivity of psychometric tests when administered in a contolled setting. Test condition is removed from the everyday experiences of the job role.
• Psychometric Reasoning Tests, such as Numerical Reasoning
• Reported Evidence
• Requires individuals to report aspects of their behaviour, only saying what they would do, rather than doing it.
• Interviews
• Inferred Evidence
• Does not directly measure potential; assessor needs to infer from the results the individual's level of potential.
• Psychometric Questionnaires (e.g. OPQ)
Highest Validity
Lowest Validity
A blended approach is best with different evidence types, such as a mix of interviews, case
studies and presentations. It is effective at widening the data points to make sure you get the
right people for the right places.
Mani Kumar, Head of Talent Acquisition, EMEA, Thomson Reuters
“
“
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In order to ensure a sufficiently robust and objective outcome during assessments, each criteria
assessed should be measured twice by two different assessment points (example shown below).
Due to the validity and reliability levels of Tested and Observed Evidence, these are the most
beneficial and when assessing for a decision-making process, these should always be used. It is
important to combine methods in order to increase reliability, utility and validity, including face
validity for candidates.
Interview Case Study Presentation Element Assessed
Aspirations
Courageous
Customer Focused
Situational Leadership Example Assessment Matrix showing all elements assessed twice.
Korn Ferry also advocates the use of a combination of assessment tools to form an objective,
informed view of an individual and found a suite of techniques are able to provide a strong prediction
for performance in role; 43% of leaders who scored ‘Strongly Recommend’ in the assessment process
went on to be in the Top 25% of performers in the role, whereas a candidate who scored ‘Do Not
Recommend’ in the assessment process was five times more likely to be a bottom performer on the
job (Korn Ferry Institute, 2014).
By using multiple data points founded in a clear talent model, we use the results to challenge
the preconceived thinking of what good looks like. As a result of this, accuracy and success rates
have gone up significantly.
Brendan Fowler, Head of Senior Talent Acquisition, HS2
“
“
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How can Assessments help organisations in the future?
The following tables show the Micro (internal) and Macro (external) talent challenges many
organisations are facing currently and will face in the future, as identified by a number of visioning
interviews with key stakeholders within large global organisations. The benefits organisations may
gain from implementing assessments for selection or development are demonstrated below.
Micro / Internal Challenges
Changing Business
Functions and
Structures
With the changing nature of functions and structures, organisations
may need to assess to ensure current employees fit with the future
requirements of the organisation.
Using consistent assessments which have a clear line of sight from the
talent strategy will provide transparency with succession planning for
employees to work towards.
Leadership within
Organisations Organisations may need to assess leadership against the current and
future requirements of the organisation to ensure they are the most
appropriate individuals for the roles.
Conducting assessments will help to clarify the leadership criteria and
qualities for the future.
Assessing leaders will highlight key development areas to improve the
efficiency and effectiveness of the leadership team.
Ensuring Employee
Loyalty Assessment for development of employees will demonstrate
investment and value, seeking to increase employee loyalty.
Internal View of
Talent
There is a need to ensure that, when talking internally about talent, the
concept of High Potentials and succession pipelines are discussed.
Implementing assessments will provide a common language for talent
and what success looks like.
Assessments offer an opportunity to develop succession plans to
objectively assess who is the most appropriate individual for key roles.
An Assessment Policy will provide a framework for how to look at talent
throughout all levels and divisions within Organisations.
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Macro / External Challenges
Increased
Competition
A robust assessment process which is known as engaging but effective may positively affect an organisation’s brand and image for customers and employees.
Increased Speed of
the Market and
Society
With a requirement for the market to be working at a faster pace, assessments could be tailored towards identifying individuals with the flexibility, innovation and creativity to work in such an environment.
Ambitions of
Applicants
Assessments can provide a robust way of assessing an individual’s aspirations and ambitions to observe if the role, culture and opportunities that are able to be offered will be appropriate. This will prevent hires being made which do not fit.
Acquisitions A consistent assessment framework to work from will ensure all
employees are assessed in a similar way for a similar purpose, creating a streamlined and reliable methodology across businesses.
We need our assessment strategy to be unique to us, something aligned to our strategy 5 years
down the line. It needs to be future proofed.
Sarah Cockburn, Global Head of Graduate Recruitment, Allen & Overy
“ “
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How do organisations view Assessments?
In order to observe the market experience and approach to assessments, a number of key
stakeholders within global organisations in a multitude of sectors were interviewed. All interviewees
are regular users of assessments within their organisation and are core decision-makers on their
chosen assessment and development approaches.
“We use assessments at all levels of the business, from entry level through to Senior Leaders. We
assess multiple data points, which creates a qualification of the decision made that can be shared
and is robust enough to withstand challenge.”
David Balls, HR Director, Grosvenor Casinos
“Assessments are great for both self-awareness and also organisational awareness of individual
strengths and development areas, which can be really effectively used for development planning.”
Lisa Shephard, Global Head of Recruitment, TMF
“We use our talent assessment as a consistent way of bringing talent into the business globally. We
have seen an increase in the acceptance of quality and the perception of what we are doing from our
assessment process.”
Alison Heron, Global University Relations Director, GSK
“By using multiple data points founded in a clear talent model, we use the results to challenge the
preconceived thinking of what good looks like. As a result, recruitment accuracy and success rates
have gone up significantly.”
Brendan Fowler, Head of Senior Talent Acquisition, HS2
“Employers like assessments; they reduce time and cost and they are the belt and braces to prevent
interviewers from rejecting or accepting wrong candidates. They remove unconscious bias.”
Iain McLaughlin, Global Head of Resourcing and Mobility, KPMG
“I don’t believe that past performance is a good indicator of future performance. You need to assess
potential in an objective way in order to see the value for the future of the business.”
Craig Smith, Group Talent Development Manager, Babcock International Group
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“The appetite for assessments came from the bottom – up within Thomson Reuters. Graduates
almost expect to be assessed so we need to meet this expectation in the most robust and effective
way.”
Mani Kumar, Head of Talent Acquisition, EMEA, Thomson Reuters
“We absolutely get better outcomes from assessments. We can track our ex-Graduates back over 20
years and our end model can then show us whether they have had the potential to progress or not.”
Paul Roberts, Graduate & Early Careers Assessment Manager, AXA
“Lots of people here like metrics to check we are working as effectively as possible. Using
assessments gives us a common language and structure to analyse from; we can make better
decisions about how we manage talent and we have reduced our recruitment costs by purely
growing our own talent.”
Robert Nunn, Learning and Development Manager, Grosvenor Estates
“We as Talent Practitioners are not as objective as we think, so we rely on the science behind
assessment tools to be that for us. It allows us to also consider the non-traditional candidates.”
Ilona Jurkiewicz, Head of Early Careers, Thomson Reuters
“The speed of decisions is fundamental to us and is only possible through assessments. By using a
realistic job preview, we can offer real-time feedback and around 10 to 15% of our candidates
voluntarily opt out of the process.”
Helen Alkin, Future Talent Manager, Marks and Spencer
“Using assessments for development helps people see themselves in a different light and have a
greater sense of who they are.”
Jessica Bellwood, Global Talent Manager, Tate and Lyle
“When implementing assessments, an organisation first needs to define an end-to-end approach and
understand what type of assessments are going to help achieve their end goal, whilst also
maintaining the authenticity of the business culture.”
Steve Apps, Chair, The Association for Business Psychology
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What needs to be considered when implementing Assessments?
Legal Defensibility of Assessments To follow best practice, organisations must adhere to relevant legislation and assessment standards,
such as the standard for Psychological Test Use in Work and Organisational Settings as published by
the European Federation of Psychologists’ Associations (EFPA). Relevant industry standards will
ensure that internal and external assessment specialists operate with the required knowledge, skills,
competence and ethical conduct. An Assessment Policy needs to consider countries where national
rules restrict the use of some or all categories of psychological test to specific specialists, such as
registered or licensed psychologists.
Good practice dictates that organisations consider a scenario that could occur when a certified
assessment specialist leaves the organisation and as a result, the organisations no longer employ an
authorised assessment license holder. Assessment licenses are in general assigned to individual
persons based upon certification, rather than organisation wide.
Organisations will need to comply with the Directive 95/46/EC of the European Parliament and of the
Council of 24 October 1995, as well as those of other jurisdictions on the protection of individuals
with regard to the processing of personal data and on the free movement of such data.
In agreeing on test/scenario usage, any Assessment Policy will also need to ensure that all
assessment participants are well informed and have an opportunity to prepare for the assessment.
Some assessment publishers suggest that participants have had access to practice material in order
to familiarise themselves before the assessment day.
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Best Practice
There are a number of Best Practice Guidelines available from Governing Bodies which highlight the most appropriate way to use assessments in organisations. For example, some of these Governing Bodies include APA (American Psychological Association) and The BPS (British Psychological Society).
Report and Feedback/Interpretation and Communication of results Assessment results must be provided to participants in 1:1 feedback conversations with a certified
assessor. In addition, assessment participants must be given a written report that explains the
results clearly. Reports must be self-explanatory and allow participants to review their results in
more detail. Participants must be provided with the opportunity to re-connect following the de-
briefing meeting to ask follow-up questions. Organisations will need to have skilled/certified staff
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available to answer follow-up queries that might surface, either from participants or their line
manager/HR business partner.
Assessment results must only be forwarded to third parties if this had been stated and/or agreed at the outset of the assessment project and/or was discussed with respective workers councils and employee representatives. There should also be a confidential space for test-takers where practitioners refrain from referring to a candidate’s results outside of the appropriate context (Hogan, 2007).
Inclusion, Disability and Diversity In order to adhere to best-practice, legislation and to allow for true inclusion, assessments need to
consider factors such as gender, ethnicity, age, educational background, level of ability and those
who might have disabilities or special needs. Impairments might include, but are not limited to, those
related to: Mobility, Manual dexterity, Physical co-ordination, Continence, Ability to lift objects,
Memory, Ability to learn and concentrate, as well as Mental-health issues/illnesses such as Depression
or Obsessive Compulsive Disorder. Therefore, from an ethical and legal perspective, assessments
need to be available in alternative formats. This is to provide participants with various needs with an
equal opportunity to demonstrate their competence/way of thinking or behaviour in those
competencies previously identified as critical for job or role fit.
In many countries, legislation dictates that employers must make reasonable adjustments to
accommodate participants with special needs. Test publishers, external vendors and in-house
assessment experts must therefore provide solutions to accommodate, for example, participants
with hearing difficulties. Assessments that include an audio/video component will therefore have to
be available as transcripts or in braille language translations if required. In many European countries,
legislation also exists that requires employers to make the necessary adjustments to ensure
participants with impairments are not disadvantaged. In selecting test publishers and designing
assessments, organisations must pro-actively seek to accommodate staff with special needs.
Procedures and guidelines must exist at the time of rolling-out assessments, rather than at the time
when those needs surface.
Moreover, assessments, in particular for entry to mid-level positions, must be available to test-takers
in their mother tongue in order to consider language/translation nuances. Assessment items must
be culturally relevant. Furthermore, assessment results need to be compared with relevant
organisational levels and respective cultural comparison groups.
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Misuse of Assessments
Although the benefits of using robust
assessment processes are evident, there are
also a number of risks associated with not
using these processes or tools effectively.
There have been a number of examples of
misuse of assessments documented:
DIY retailer B&Q off-boarded an individual 5
days after they were hired as a Supervisor. The
individual had completed a personality test as
part of the assessment process and when the
results were made available 5 days after they
started in the role, their profile did not fit with
the required profile for the role (The Guardian,
2001) and as a result, they were removed from
the business, despite being recognised as
being effective in the role. Following a formal
investigation, B&Q were required to make a
public apology and paid compensation to the
individual.
In the 2013 case of Mental Health Care UK Ltd
v Biluan, claimants brought forward to a
tribunal that the company had unfairly put
forward employees for redundancy after they
had been assessed based on their disciplinary
record, sickness absence records and a
competency assessment. The competency
assessment was conducted by a HR team who
had no prior experience working with the
interviewees. The Employment Appeal
Tribunal (EAT) upheld the tribunal’s decision,
finding that the Mental Health Care UK Ltd had
unfairly assessed these employees without any
reference to past appraisals or views from
managers they had worked with (Croner-I,
2013).
Currys PC World asked interviewees to dance
during an interview. Speaking with BBC News
(2013), one of the interviewee’s said he spent
the past week preparing for the interview and
researching the company, only to be faced
with an inappropriate, humiliating situation.
As a result, the reputation and brand of Currys
PC World was negatively affected.
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Recommendations
As organisations continue to develop and grow into the future, the environment becomes more
competitive and people will be the unique selling points for businesses, who will continue to drive
innovation. Therefore, it is more important than ever to ensure organisations have the right people
in the right roles, with the right skills in order to succeed. Only through rigorous assessment for
selecting, retaining and developing people will they be able to achieve this.
Through effective assessment, organisations will be able to decrease costs from bad hires, increase
productivity and revenue potential and improve brand and impact. Businesses are also able to
streamline employee development to target key areas of weakness within the organisation. At an
individual level, assessment can increase job fit and highlight development areas, particularly for
advancement.
From the evidence, it is clear that any business needs to have a clear talent and assessment tool
strategy. The research suggests that organisations need to use more robust assessment tools, for
recruitment, development and selection. An assessment process which is evidence-based,
systematic and strategic in its initiatives is the most optimum process.
Checklist for Assessments:
Does a proposed assessment process/tool:
Adhere to the organisational Assessment
Policy
Have a clear and consistent purpose
Incorporate a combination of tools,
focusing on Observed and Tested
Evidence for decision-making
Assess every data point at least twice
Assess more than three success criteria
Remove group exercises
Have a clear line of sight to the
organisational strategy
Offer sufficient levels of reliability and
validity
Give equal opportunities for disabilities
and diversity
Offer appropriate feedback as best
practice
Work within legal and ethical
requirements
Have approval from the Workers Council
and Employee Representatives
Utilise only administrators and assessors
who are trained in the tools and protocol
Incorporate the most up-to-date science
and information
Centrally store all data
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What is next?
Following the objective evidence demonstrated in this White Paper, organisations have a number of
options going forwards in terms of assessments:
1. Do nothing and continue to use assessments, potentially inconsistently and to least effect.
2. Systematically audit the current assessment tools globally in terms of how they are used, why
they are used consequential risks and recommendations for a more streamlined approach.
3. Create an Assessment Policy.
As a panel of experts within Zircon Management Consulting, we would recommend following
Option 2 and 3.
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Performance and potential are not
the same
Useful assessments measure both performance (how an individual currently performs and track record) and potential (how they rate against future indicators of ambition and stretch).
Be clear on the purpose and
quality
To build trust in assessment exercises it needs to be robust, secure and transparent. Communications need to provide a clear rationale as to WHY an assessment is being made, WHAT it will produce and WHAT it will inform.
P ≠ P
Look at the big picture
Assessments do not only need to be for selection or recruitment, they can also be used for development and career planning for the future.
Draw from the best
To be relevant, the criteria applied in the assessment needs to be tailored to meet the specific context within which an organization operates and the tools used should be drawn from the best available.
Focus on development plans
Development planning should be rooted in the business context and tailored to the individual. Development plans will need to provide an achievable set of critical actions not an unrealistic shopping list!
Assessment is not a standalone process or solution. To have impact for the individual and the organisation, it needs to be clear how it links to other frameworks and processes.
Make the connections
Assessment is a tool to help people and their leaders have better conversations about performance. The approach to feedback discussions should help candidates reflect on their capability, developmental priorities and what support they need in the future.
It’s all about the conversations
Use multiple points of data
Assessments should incorporate multiple evaluations of a person in order to get a reliable and valid view. This includes integrating internal performance data with external assessments.
Build on strengths Individuals have more to gain by leveraging their natural skills than by trying to repair weaknesses. Organisations should use this approach to deliver a positive experience for all.
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Thank you to Our Contributors
Alison Heron Global University Relations Director GSK
Brendan Fowler Head of Senior Talent Acquisition HS2
Craig Smith Group Talent Development Manager Babcock International
Group
David Balls HR Director Grosvenor Casinos
Helen Alkin Head of Recruitment: Future Talent Marks and Spencer
Iain McLaughlin Global Head of Resourcing and Mobility KPMG
Ilona Jurkiewicz Head of Early Careers Thomson Reuters
Jessica Bellwood Global Talent Manager Tate and Lyle
Joanna Harvey Occupational Psychologist The British Army
Lisa Shephard Global Head of Recruitment TMF
Mani Kumar Head of Talent Acquisition, EMEA Thomson Reuters
Maryanne Trollope Senior HR Manager Anglo American
Paul Roberts Graduate & Early Careers Assessment Manager AXA
Robert Nunn Learning and Development Manager Grosvenor Estates
Sarah Cockburn Global Head of Graduate Recruitment Allen & Overy
Steve Apps Chair of the Association The Association for
Business Psychology
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About the Authors
Dr Amanda Potter BSc (Hons) MSc (Dist.) CSci CPsychol Amanda founded Zircon in 2000 and BeTalent Ltd in 2016. Amanda has worked in
the Psychology and talent arena since 1995 and has significant experience in the
areas of leadership assessment, development, executive coaching, change
management, high performing teams, organisational culture, Strengths and
learning. Amanda is a Chartered Occupational Psychologist, has an
Undergraduate and Postgraduate Degree in Psychology and a PhD in
Occupational Psychology from the University of London. She is an Associate
Fellow of the division of Occupational Psychology and a founder member of the
Association of Business Psychologists. Amanda’s interests are talent
management, talent assessment, high performing teams, inspiring leaders,
Winning Attitudes, talent and potential.
Lauren Albrecht BSc (Hons) MSc (Dist.) MBPsS
Lauren is a Senior Consultant Business Psychologist at Zircon Management
Consulting and Be Talent Ltd. She has extensive experience in leading the design
and delivery of projects around Talent Management, Employee Engagement and
Executive Recruitment within a range of sectors internationally. She has a strong
interest in the identification and development of High Potential across all levels
of an organisation and the impact that aspirations, engagement and motivation
can play in an individual’s success. Lauren conducted the analysis for this research
and has previously been a Research Associate within academia and a research-
led Selection and Assessment Consultancy.
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Sarah Linton BA (Hons)
Sarah has been a Director of Zircon since 2006 and co-founded Be Talent Ltd in
2016. Sarah has worked in the psychology and talent arena since 2002 and has
significant experience in the areas of leadership assessment, development,
executive coaching, change management, high performing teams, organisational
culture, Strengths and learning. Her expertise is talent assessment and
development and she has 10 years’ experience in FTSE 100 companies. Sarah’s
interests are talent management, succession, high performing teams, inspiring
leaders, Winning Attitudes, talent and potential. Sarah has supported Amanda
and the team to research and deliver four white papers looking at talent and
potential.
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