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#2 Hiring# 1 Firing

a. $30,000 b. $76,000 c. $90,000 d. $176,000 e. $250,000

The likely turnover cost of losing a sales representative earning $150,000 per year is ____

Pop Quiz

a. $30,000 b. $76,000 c. $90,000

d. $176,000 e. $250,000

The likely turnover cost of losing a sales representative earning $150,000 per year is ____

Pop Quiz

• Entry Level – Hourly, Non Skilled (e.g. Fast Food Worker) 30 – 50%• Service/ Production Workers – Hourly (e.g. Courier) 40 – 70%• Skilled Hourly (e.g. Machinist) 75 – 100%• Clerical/ Administrative (e.g. Scheduler) 50 - 80%• Professional ( e.g. Sales Representative, Nurse, Accountant) 75 – 125%• Technical (e.g. Computer Technician) 100 – 150%• Engineers (e.g. Chemical Engineer) 200 – 300%• Specialists (e.g. Computer Software Designer) 200 – 400%• Supervisors / Team Leaders (e.g. Section Supervisor) 100 – 150%• Middle Managers (e.g. Department Managers) 125 – 200%

JOB TYPE/ CATEGORY

TURNOVER COST as a % of

TURNOVER COST as a % of

annual salary

Cost of a bad hire

Non-tangible cost of bad hires

Consequences of

Hiring errors

Company

High Turnover

Individual

Consequences of

Hiring errors

Individual

Poor Morale

LowEngagement

LowMotivation

LowJob

Satisfaction

Lowinitiative

Absenteeism

Social Loafing

PresenteismNegativity

Poor Work Ethics

HighLikelihood of

Leaving

Consequences of

Hiring errors

Company

High Turnover

Poor Morale

LowerProductivity

Lower Overall

Efficiency

Lower Quality of

Work

PoorCustomer

Service

OpportunityCost

LowEngagement

“Us vs. Them”Attitude

Conflicts,disagreements,

complaints

Stress, burnout

How to hire right?

Hire the right person the first time around

• Hire those who match the job, team and company• Manage the gap between personality and “job persona”

Solution

Facilitate onboarding

• Facilitate integration into new team and work environment• Train to improve areas that need to be developed• Tailor job functions/tasks to new hire’s strengths and preferences• Prevent future performance issues – address potential

problems before they start

Increase retention of top talent• Career development• Personal development• Keep them challenged & interested• Identify leadership potential

How to get a great fit?

Personality

Values

Beliefs

Attitudes

Motives

• Is this person a good fit into a company’s atmosphere and image?• Which specific traits are a must for a position• What makes him/her unique? Some quirks are adorable, some not

What is important to this person?

What views of the world, others, and self does this person hold?

What kind of a work ethic can you expect? Is s/he assertive, proactive, risk-taker, procrastinator?

What drives the person?

EmotionsWhat makes the person tick? What stresses this person out?

If put in a specific situation, how will this person respond? What makes this person behave this way?Behaviour

What if they all

look like a

The Selection Process

Basics:• Screening of résumés• Phone interviews• Interviews

Standard:• Reference checks• Background checks

Advanced:• Assessments & tests• Work sampling• Interview with an

Organizational Psychologist

Candidate’s side

Similaritybias

Primacy&

Recencyeffects

Firstimpressions

Self-fulfilling prophecy

Rationalisation

Haloeffect

Culturaldifferences

Interviewing skills

Spinned résumés

References

Hiring pitfalls

Interviewer’s side

JOB TYPE/ CATEGORY TURNOVER COST as a % of

annual salary

How to FIND DIAMONDS in the

ROUGH?

3. Retain2. Assess1. Define

Assess and Conquer

The job✓Task analysis ✓Job analysis ✓Job description

The ideal candidate ✓Personality profile✓Key characteristics and attitudes ✓Behavioral benchmarks for the position

The team✓Team roles✓Team dynamics✓Leadership style

1. Define

•Assess the incumbent•Assess the candidate

•Assess match ✓Job fit✓Team fit✓Culture fit✓Management style fit

•Perform gap analysis•Assess performance•Assess promotion readiness

2. Assess

• Retain talent• Train for skills• Manage gaps• Manage performance• Provide timely feedback,

good or bad• Motivate according to

what really matters• Promote from within• Develop career• Allow personal growth• Build high-functioning

teams

3. Retain

ROI from training

ACTUAL BUSINESS RESULTS FROM TRAINING & DEVELOPMENT

SETTING TARGET GROUP DESCRIPTION METHOD RESULTS

Coca Cola First level supervisors 8 ½ day workshops Action planning 1,447% ROIcovering supervisor roles, Follow-up session Benefit/costgoal setting and team building Performance monitoring Ratio 15:1

HMO All Managers and employees Organizational Development Performance Monitoring 20,700 New members

(team building Management 1,270% ROIbuilding, group meetings Estimation BCR 13.7:1Customer service training

Direct Sales All employees in the 20 hr. program spread over Action planning Payback of programFinancial Services Division 60 days focusing on investment in 1 yr

total quality mgmt

Yellow Managers Redesigned interviews Follow-up interviews 1,115% ROIFreight Performance appraisal BCR 12:1Systems appraisal with training Performance monitoring

interpersonal skills

Federal Government New Supervisors 5-day intro to Follow-up questionnaire 150% ROIsupv. course BCR 12:1covering eightkey competencies

Bakery Multi-Marques, Inc Supv./ Admin 15 hrs of supervisory Action Planning 215% ROIskills training (Work processIncluding the analysis), role of training Performance

Monitoring

But then again, you can’t assess everything … so focus on the essential!

Personalitytraits

Values

Beliefs

Emotions

Attitudes

Motivators

BehavioursSkills

Knowledge

Technical competencies

• Theoretical knowledge• Practical skills• Level of expertise in particular

domain

Skills and Knowledge

• Leadership skills• Management skills• Emotional intelligence• Coping skills• Communication ability• Soft skills• Conflict skills

Types of tests used in HR

Aptitude, IQ and

Achievement Tests

Psychological

• Objective✓ Big 5✓ DISC✓ MBTI

• Projective (big “No No” in HR)• Ipsative vs. non-ipsative

• Mechanical reasoning• Analytical reasoning• Intelligence• Intelligence types or

learning styles

• Work ethics• Assertiveness• Self-confidence• Integrity• Customer service

orientation

Types of tests used in HR

When to use assessments?

Talent management

&

Retention

Pre-selection of candidates

Evaluation of short-list

Job matching

& Onboarding

Training needs

assessment

Team building

Career development

&

Succession Planning

CAREER DEVELOPMENT

1. Use assessments as a learning and personal development tool

2. Optimize training process

3. Identify training needs (individual and groups)

4. Offer custom-tailored learning opportunities

5. Determine the effectiveness of your training process

6. Monitor individual progress

7. Assess who is ready for a promotion, more responsibility or learning opportunities

8. Groom young employees for future leadership positions

ONBOARDING

1. Focus on-the-job training and coaching on areas that need development

2. Use insight from tests to manage employees effectively

3. Tailor job functions to the new hire's strengths and preferences

4. Facilitate integration into existing teams

5. Prevent future performance issues by addressing potential problems before they start

When to use assessments

PRE-HIRE

1. Prescreen for bad fit

2. Narrow down candidate pool to those who meet minimum requirements (lenient cut-off points)

3. Assess candidates who make the first cut for job fit

4. Narrow down candidate pool to those with best potential

5. Interview top candidates with test results in mind

6. Probe deeper to validate test results

7. Evaluate trade-offs and culture fit

ENGAGEMENT & RETENTION

1. Optimize motivation

2. Understand what motivates individual employees and manage accordingly

3. Ensure right job fit

4. Help them grow

5. Keep them challenged and interested

6. Develop leadership and management skills of those in charge

7. Monitor trends company-wide

8. Identify budding problems before they escalate (e.g. stress levels)

CAREER DEVELOPMENT

1. Use assessments as a learning and personal development tool

2. Identify training needs, optimize training process, and determine its effectiveness

3. Offer custom-tailored learning opportunities

4. Monitor individual progress

5. Assess readiness for promotion

6. Groom young employees for future leadership positions

When to use assessments

What Assessments CAN do

1. Save time & money

- Improving the size and quality of candidate pool

- Narrowing down the candidate pool to focus on good-fit candidates

2. Assess job-relevant skills

and traits

- Competency model

- Job analysis

- Task analysis

- Incumbent

-Top vs. bottom performers

3. Identify strengths and areas for development

- Consider trade-offs

- Plan of action if hired

- Compare candidates

Strengths

4. Improve objectivity of the selection process

- Paint a more complete picture of a person’s skills and

personality

- Provide objective, standardized assessment, free

of individual interviewer biases

- Give a chance to real diamonds in the rough … great candidates who are humble or untrained in

interviewing skills

1. Replace human judgment

2. Make the hiring decisions instead of you

3. Predict performance with 100% accuracy

4. Guarantee candidate’s future success

5. Assess all factors that might possibly play a role in an individual’s performance

6. Guarantee accuracy for everyone (some particular circumstances in one’s life might skew results)

7. Prevent test-taker from “gaming” the test

BUT

What Assessments CANNOT do

there are ways to minimize cheating and social desirability biasa) Validity scales (Impression management, Acquiescence,

Social desirability index)b) Situational/behavioral questions rather than adjectives or

short phrasesc) Well-designed questionnaire (avoiding leading questions,

ambiguity, double-barreled questions)

To combine deep insight into the human mind with artificial intelligence methods in order to advance understanding of the complexity of human behavior.

Our MissionOur Values

• Innovation• Integrity and fairness• Objectivity• Critical thinking• Scientific method

• Flexibility• Open-mindedness• Openness to feedback• Practicality• Service mindset

Considered to be pioneer and leader in online psychological testing

• More than 200 scientifically validated tests

• More than 200 fun tests

• More than 400 trivia and IQ quizzes

• More than 100 million tests completed since 1996

• Traffic on PsychTests’ websites exceeds 1.5 M unique visits a month

• Featured in many TV and radio shows, textbooks, self-help books, online articles, newspaper articles and glossy magazines

• Artificial intelligence research conducted by PsychTests is supported by R&D grants from Industry Canada

Accomplishments

Corporate clients

Competitive advantage

• Use of artificial intelligence algorithms

• Large selection of assessments

• Tests developed in-house

• Customization• High flexibility and optimized

development using a pool of more than 15,000 items/questions

• Custom versions of existing tests

• Custom-developed tests & systems

• Rebranding changes

• Ongoing validation studies and revisions

• Outstanding customer service

Why Artificial Intelligence?

• Subject-matter-expert knowledge coded into scoring system and report generator

• Reports generated in real time; no need to wait for a human to analyze and interpret the results

• Approximation of human reasoning in non-linear systems

• Increased precision

• Learning ability of the system

Scientific validity

Scientific research• Pilot studies

• Preliminary analysis of data to establish psychometric properties

• Revisions based on empirical data

• Large-scale validation studies with tens of thousands of subjects

• Continuous validation studies, revisions every 2-3 years

• Benchmarking studies

Scientific approach to test development• In-house research

• Scientific literature search

• Interviews with subject matter experts

• Use of intuition and common sense

• Brainstorms and debates

ARCH Profile testing center

• Delivery system for professional users

• Used by:• HR professionals (recruiters, head hunters, HR managers)

• Coaches, consultants

• Sports coaches

• Therapists and counselors

• Researchers• Professors

• Students

• Bariatric clinics

ARCH Profile test battery

✓ Emotional Intelligence

✓ Analytical skills

✓ Non-verbal IQ

✓ Learning style

✓ Verbal IQ

✓ Logic IQ

Personality

✓ DISC (Non-ipsative)

✓ AMPM (Big 5 model)

✓ Extroversion/introversion

✓ Locus of control

✓ Career personality

✓ Management & leadership✓ Sales✓ Customer service rep✓ Call center rep✓ IT ✓ Warehouse/Blue collar worker

Aptitude and IQ Tests

✓ Caregiver✓ Nursing✓ Security guard✓ Professional driver✓ Teacher✓ Hairdresser

✓ Creative problem-solving✓ Entrepreneurship aptitudes

✓ Entrepreneurial personality✓ Team roles✓ Perfectionism

✓ Clerical worker✓ Retail sales associate✓ Store manager✓ Franchisee✓ Telemarketer

✓ Social skills

✓ Communication

✓ Listening

✓ Leadership

✓ Coping skills

Work ethics,Valuesand

Attitudes

✓ Career motivators✓ Accident proneness✓ Integrity✓ Work style✓ Assertiveness✓ Ambition✓ Career change readiness

ARCH Profile test battery

✓ Coachability✓ Goal-setting skills✓ Sensitivity to criticism✓ Success likelihood✓ Team player✓ Turnover probability✓ Self-control & self-monitoring

✓ Creative problem-solving

✓Negotiation skills

✓ Time management

✓Organization

✓Goal-setting

ARCH Profile – Basic features

Administrator interface

• Add users

• Insert additional information about users (gender, preferred language, internal tracking number)

• Assign tests to users

• Select whether they can view their own results or not

• Send invitations, reminders and other notifications to users with their login information

• Gain instant access to assessment reports

• Store and retrieve past assessment reports

• Print the report

• Download the report as a PDF and email the results to anyone

Test-taker interface

• Invitation via email

• Simple login and navigation

• List of assigned tests with time estimates

• Clear, easy-to-use test procedures

• Save progress and exit

• View test report if enabled by administrator

2.

Time

saving

benefits

• Shortcuts and work flows• Groups• Data export• Email invites and

reminders• Custom email templates• Send results by email

1.

Decision

support

tools

• Instant reports (web or PDF)

• Benchmarks (general, industry, custom)

• Interview questions• Comparison tools• Job analysis• 360 & multi-rater

assessments

ARCH Profile benefits

Benchmarks

Performance

Match

Compare

Job analysis

Set standards

Criteria

Customized industry benchmarks that you can be modify to your preference (e.g. taking scores in the top range)

Obtain a clear idea of how job candidates stack up

against industry standards.

Discover budding leaders by benchmarking them against existing leaders.

✓General population✓Professionals in various industries✓A specific education level✓Custom benchmarks

Obtain match scores based on selected criteria

Benchmarks

The problem:

Asking generic interview questions will result in generic, rehearsed answers (e.g. perfectionism or workaholism as a response to “What is your biggest fault?”)

Ask questions that• Are tailored to the position

• Are based on a person’s results on a test

• Validate a person’s strengths

• Bring their limitations to the forefront

• Assess a person’s reaction to real work situations

Interview questions

To get to the root of a candidate’s personality, you need to ask questions that don’t just scratch the surface, but dig beneath it.

Practical, relevant, direct, and no-nonsense interview questions allow for deeper insight and as a result, better-informed hiring decisions.

The solution:

• Put the onus on the candidate to prove that they are as good as they say they are on paper; to provide examples that show their strengths and their desire to learn and improve.

Comparisons

• Compare two or more individuals on different skills and traits to help you determine• Which job candidate best fits a

position

• Which employee is best-suited for a promotion with more responsibility

• Who has the best communication, leadership, or risk-taking skills – or whichever characteristic you would like to isolate

• Set filters and cut-off points

• Sort according to the most important criteria

• Compare against benchmarks

• Obtain match scores based on your criteria

• Save your comparison reports for future reference

2010EIQ 360

TEAM 360

Team 360

34 areas of team performance

MANSSA 360

Management Skills and Styles

30 traits and skills

EES 360

Flavors of 360 Orbit

Reports include Advice, Tips and Practice exercises

Employee Engagement

Survey

Emotional IQ

14 competencies

Performance Review

31 aspects of performance

PERR 360

JAM- Job Analysis Matrix

1. KSAO

Knowledge required for the position

Skills required to complete the relevant tasks

Abilities needed to perform successfully and consistently

Other traits/skills that can be an asset in the position

2. Multi-rater functionality

Multiple raters :

1. Choose the KSAOs required for the position

2. Rate the importance of each KSAO

3. Weighted opinions

The opinion weights of different raters, based on their familiarity with the job, are used to improve the precision of results

4. Improved precision

A JAM report that provides a list of the most relevant KSAOs

A weighted score for each of the KSAOs based on the input of the raters

A breakdown of the importance and

expertise level needed for each KSAO

ROI – Case study

• A medium sized resort, which has earned a reputation as a leader in its market for 15 years, was experiencing extremely high turnover rates.

• The management turned to ARCH Profile for their HR needs.

• After 9 months, they have increased new hire success rate to 72% (nearly double the industry average).

• They have saved 38% of their entire HR budget, and that figure continues to climb!

ROI – Case study

Average turnover rates

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

Hospitality industry

Resort's baseline

Resort's rate with ARCHProfile

Example - MANSSA

Observable behaviors:

• High ambition and drive

• Relatively easily stressed out

• Insufficient time management skills

• Rather inflexible

• Limited coping skills

• Perfectionist tendencies

• Decent decision-making

• Low self-confidence

• Doesn’t delegate effectively

• Uncomfortable with providing feedback

• Some problems with self-monitoring

0 20 40 60 80 100

Self-monitoring

Giving feedback

Delegating

Communication skills

Self-confidence

Decision-making

Perfectionism

Coping skills

Flexibility

Time management

Stress management

Drive

Selected results from MANSSA for Joe Schmoe

Name: Joe SchmoeAge: 34Occupation: Team leaderIndustry: ITEducation: Bachelor degreeEmployer: Large telecom corporation

Coaching example using MANSSA

• Joe is very ambitious and driven, likes to be in charge and enjoys being in a position of power. However, he is not quite ready to take a mid-level management position because he still lacks many skills.

• He has trouble managing stress, and this is happening because of a few inter-twined reasons:• He doesn’t manage well his time, is scattered and wastes time trying to

multi-task

• He doesn’t have much self-confidence, and possibly suffers from imposter syndrome; this makes him inflexible and defensive

• His perfectionism makes it difficult to make decisions, causes delays and possibly results in procrastination.

• Because he doesn’t have confidence in his direct reports + requires perfection, he doesn’t delegate, hoarding tasks and switching between tasks => vicious circle

Coaching example using MANSSA

• He lacks effective communication skills, which • makes it difficult to resolve conflict

• results in discomfort when providing negative feedback, and awkwardness with praise and positive feedback

• He has difficulty with self-monitoring, especially in highly stressful situations, and when it comes to conflict• Avoids confrontations when possible (would rather complete a task

himself, so that he doesn’t need to delegate and deal with problems)

• When conflict or disagreement are unavoidable, he may occasionally blow-up in conflict situations, especially when his fragile ego is threatened

• Likely has difficult accepting and implementing feedback (may get defensive, irritated, hurt, deflect blame and responsibility)

Important PsychTests links

• ARCHProfile.com: http://www.archprofile.com

• Test catalogue: http://www.archprofile.com/corporate/g/v/i/PP1_cat

• White papers: http://archprofile.com/corporate/tools/resourcesb

• Request FREE Trial:

http://archprofile.com/corporate/demo

• Bad Hire Calculator:http://archprofile.com/corporate/tools/calculator