Hogan Practitioners and Client Conference

Introductions

Shayne Nealon and Peter Berry

Dr Kevin Meyer

Dr Jarrett Shalhoop

Kim Pluess

Today’s Agenda

Hogan Select Hogan Safety: Select, Induct,

Develop and Identify a Safety Culture Using Hogan with Teams Hogan Develop & Lead, including

High Potentials Coaching with Hogan and Coaching

Forum

Hogan Assessment Systems at a Glance

A leading provider of assessments used for employee selection & development

Assessed over 3.5 million working adults performing over 450 different jobs across 40 countries

Over 25 years of research and implementation experience

Continuous system testing, research, and support improvement

Legally defensible: Never been successfully challenged

Predictive, with demonstrable bottom-line results ranging from improved employee performance to reduced turnover and recruiting expense

Mission

We provide state-of-the-art

assessment solutions capable of enhancing the effectiveness of individuals and organizations

History

A 28-year history of producing measurable

results supports our mission

Hogan Assessment Overview

Hogan Personality Inventory (HPI) How does this person typically approach work and

interaction with others? What strengths can this person rely on to facilitate his/her

performance?

Hogan Development Survey (HDS) What tendencies could derail this individual’s career or

performance? How is this person inclined to respond when stressed,

under pressure, or not self monitoring?

Motives, Values, Preferences Inventory (MVPI)

What motivates and “drives” this individual? What type of work environment will he/she consider most

motivating? What is he/she likely striving to attain?Hogan Business Reasoning Inventory

(HBRI) How does this individual identify and solve problems? How will this individual approach problem solving in the

real world?

• Manufacturing– Alcoa– BMW– DuPont– General Electric– Pepsi

• Pharmaceutical– Bristol-Myers Squibb– Johnson & Johnson– Schering-Plough

• Retail– ALDI– Adidas– Home Depot– Wendy’s– YUM! Brands

• Technology– Sony Corporation– Spherion Technology

Group– Solectron– DELL– Cisco

• Transportation– Qantas– TOLL – American Airlines– CSX Transportation

• Communications– Cox

Communications– Sprint– Qwest

• Construction– Brookfield Multiplex– St Hilliers– McConnell Dowell– The Haskell

Company– Manhattan

Construction• Consulting

– Hay Group– Hewitt Associates– MDA Consulting– DDI– Right Management

Consultants– Russell Reynolds– Towers Perrin

• Energy– BHP– Duke Power– Ferrellgas– Halliburton– Downer

Engineering– BP

• Education– University of Sydney– Adelaide University– University of Maryland– Melbourne Business

School• Financial Services

– ANZ– NAB– Capital One– Wachovia– JPMorganChase– Bank of America

• Government– State, Federal and

Local Government Depts

– NASA– U.S. Postal Service

• Healthcare– Blue Cross / Blue Shield– Humana– Mayo Clinic– Novo Nordisk

• Hospitality– Bass Hotels & Resorts– Starwood Hotels &

Resorts– Trump Casino & Hotel

Representative Clients

Peter Berry Consultancy Pty Ltd

Formed in 1990

Change Management Consultants

Distributor of Hogan Assessment Systems

Distributor of Employee and Organisational Profiles

Core Competencies:– Leadership– Business Planning– People & Culture

Hogan Select

Session Agenda

• Why Use Personality Assessments?• Research-based Profiling for Performance• Reporting Results• Case Studies

Goals of Employee Selection

• Why is Employee Selection Important?– Positive Job Fit

• Promotes performance and productivity• Competitive advantage• Organizational citizenship

– Negative Job Fit• Reduced performance and productivity• Increased turnover• Failure to support organization

– Culture Fit• Embrace and promote organizational culture• Increase fit with other employees and team members

Personality in Selection

• Common types of selection assessments:– Biodata– Job Knowledge– Skills and Abilities– Cognitive– Interviews– Simulations– Personality– Culture/Values

Traditionally focus heavily on these areas…

…and overlook these areas.

But consider the following…11

“When you think about the biggest hiring mistakes you have made, what describes the source of the mistake?”

12(2006) Hiredesk Pulse Report: Personality and Job Fit Assessment in Candidate Screening

Why Use Personality Assessments?Traditional Assessment Approaches

Approach Advantages Drawbacks

Personality

•Predictive•Easy to Administer•Difficult to Fake•Rich Interpretive Information•No Training Requirements

•Low Job Fidelity•Doesn’t Capture Training or Experience

Résumé/Vita•Relevant Experience•Minimum Requirements

•Often Exaggerated•Little Interpretive Value•Labor Intensive

Biodata•Predictive•Easily Administered

•Little Interpretive Value

Job Knowledge Testing•Predictive•Easily Administered

•May Require Customization•May not be Required

Skills Testing•Predictive•Some easily administered

•May not be Required

Interviews•Flexible, allowing to explore areas of interest

•Lower Validity•Often Faked•High Training Requirements

Simulations•Predictive•High Job Fidelity

•High-volume Recruitment•Development can be Difficult

Assessment Centers •Multiple Assessments Methods•Expensive to Administer•High Training Needs

Using Personality Assessments

– Online Personality Assessments Early In Process– Manage High-volume With Little Burden– Higher Efficiency Than More Expensive Methods

Pre-Screen Personality Interview

Not Selected New Hire

Assessment Center

Profiling for Performance

• Putting data behind the intuition• Example: What does it take to be a good salesperson?– Positive Characteristics

• Motivated• Goal-oriented• Confident• Outgoing• Handles Rejection• Friendly• Perceptive• Persistent

AmbitionAmbition

AdjustmentSociability

AdjustmentInterpersonal SensitivityInterpersonal Sensitivity

Ambition

Profiling for Performance

Dimension Low Fit Moderate Fit Strong Fit

Adjustment - >25% >45%

Ambition - >35% >50%

Sociability - >25% >45%

Interpersonal Sensitivity - >25% >45%

- Create a research-based profile to:- Maximize validity and utility- Manage the flow of applicants

Profile for Successful Sales at Company X

Profiling for Performance

• Off-the-Shelf– Success profiles already developed– Based on existing research in Hogan archives• Over 500 research studies

– No Research Required– Ready to implement

immediately

Profiling for Performance

• Validity Generalization– Custom profile tailored to your specific job– Compares job analysis data to other, similar jobs in

Hogan research archive– Focus groups with job experts– Completed in ~1 month– Report tailored to your

specific profile

Profiling for Performance

• Criterion-related Validation– Highest Level Of Customization– Job Analysis Data Collected– Incumbents Assessed Using HOGAN– Performance Data Collected– Custom Profile Developed to

Maximize Performance– Report tailored to your

specific profile

Reporting Results

ADVANTAGE Report• Evaluates general

employability• 3 Competencies important

for entry-level positions• Ideal for very high volume

screening• Overall score for ease of

interpretation• Can be implemented

instantly

Reporting Results

FIT Report• Compares results to a

customized target profile• Provides easy-to-interpret

results• Ideal for customized, high-

volume screening

Reporting Results

EXPRESS Report• Compares results to an

existing, research-based target profile

• Provides candidate strengths and weaknesses

• Overall score for ease of interpretation

• Can be implemented instantly

Reporting Results

Custom Reports• Can be completely tailored

to your needs• May include custom

competency models• Results reported using

company language• Ability to integrate multiple

assessments

Financial Services Case Study

Overview of SituationOverview of Situation• Financial Services Sales• Annual Turnover (TO) = 48%• Implemented MVPI• Reduced TO by 62.5%• Voluntary TO Dropped by 66%

Financial Services Case Study

1 YearPre-Implementation

1 YearPost-Implementation

Did NOT Complete MVPI (Total Sample = 1104)

Completed MVPI (Total Sample = 657)

Did NOT Complete MVPI (Total Sample = 113)

N % N % N %

Voluntary Turnover 386 35% 79 12% 35 31%

Involuntary Turnover 145 13% 39 6% 8 7%

Total Turnover 531 48% 118 18% 43 38%

Pre and Post Implementation Turnover Data

Financial Services Case Study

Bank estimated turnover cost at US$15,000/person

Turnover Est. Cost of TO

Year 1 531 >$7.9M

Year 2 (w/ Hogan) 161 >$2.4M

TOTAL Reduction 370 Hires >$5.5M

Year 1 implementation costs <$35,000

ROI of $5.5M on $35K investment = >%15,000

Estimating ROI

Transport Drivers

Overview of SituationOverview of Situation• Collaborative Research Using Australian

Transportation Drivers• Developed Custom Profile• Predicts:– Overall Work Performance– Safety Outcomes– Absences

Airline Flight Attendants

QantasLinkQantasLink• Looking to Improve Customer Service• Fit with Organizational Culture Important• Validity Generalization

Research• HPI Scales relevant for the role• MVPI Altruism Scale key for

customer service • Customer Service Metrics

Subsequently Improved

Construction Supervisors

BHP BillitonBHP Billiton• Business Needs• Research• Applying Hogan• Results• Application selection and

development