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Assessment Centers: A better way to identify potential talent gaps and training needs

Sponsored by Hudson (http://us.hudson.com)

Who We Are?

Hudson is a leading provider of permanent recruitment, contract professionals and talent management solutions worldwide. We help our clients achieve greater organizational performance by assessing, recruiting and developing the best and brightest people for their business. The company employs approximately 3,600 professionals, speaking multiple languages in 25 countries, operating in four regions (Americas, Europe, Asia, & Australasia). http://us.hudson.com

Our Global Services

PERMANENT & CONTRACT RECRUITMENT

TALENT MANAGEMENT

CONSULTING & CONTRACT PROFESSIONALS

Hudson Talent Management

Hudsons Talent Management Solutions can be integrated into the recruitment process and HR initiatives to drive performance and align with the companies objectives.
Succession Planning Individual Assesment Assessment & Development Centres

EVP & Surveys

Hudson Talent Management

Leadership Development & Coaching

Graduate Recruitment

Performance Management

Competency Modeling

Hudson Assessment Suite

Standardized global methodology supports pan-national projects

One of the worlds largest talent management consultancies

400 experienced professionals across the globe Dedicated R&D Centers with highly skilled technical experts Hudson offers a comprehensive talent management and consulting service in assessment including:

Job & Competency Profiling Psychological Assessment Behavioural Assessment Assessment and Development Centers Competency Based Interviewing Employee Assessment Surveys

Transforming Business Performance

Hudson Research Programs

Hudson is committed to the collection and publication of thorough intelligence on the forces that impact career decisions and business performance. Check out Market Insights at www.us.hudson.com. In the past, we surveyed nearly 10,000 workers monthly to provide insight into a variety of workplace trends and issues. Our programs have included: Trends & Topics Surveys

Topics include aging workforce, work-life balance, absenteeism and more

Retention Initiatives, Compensation & Benefits, Pay & Performance, and Independent Professionals

In-Depth Research Initiatives & White Papers

Labor Market Whos Got The Power?

Employers?

Employees?

Managing The Talent War

The war for talent exists, organizations need to address the workforce gaps and their future potential to remaincompetitive. Issues that need to be addressed include: How do I find and grow my knowledge workers and leaders? How large is the gap between my needs and reality? Buying talent will not be sufficient as a solution to meet my business needs. Growing talent internally is key, but how? We must retain talent, but how?

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Hudson Global HR Insight

In March/April 2009 Hudson conducted a global survey across 30 countries with HR leaders exploring how HR priorities and challenges have changed during the global economic downturn. Key Findings: There has been a clear shift from talent attraction to talent engagement, organizational development and people development. 79% of North American companies reported that their HR strategy incorporates downsizing. Internal talent assessment is a key focus for 52% of these organizations Employees with the most potential will take care of the high impact roles and high value specialists to fulfill their complex jobs. A key question is: Do companies know where their high potentials are and what roles they can fit?

Winning The Battle For Hearts And Minds

In order to achieve increased performance management must fully unlock the potential of their people. Organizations need to increase objectivity for internal promotion They need to minimize poor hiring decisions Identify high potentials for fast track development Utilize a consistent and reliable measurement of important competencies Create and deliver a powerful learning experience for participants Provide transparency, equal opportunity & fairness for all

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If you want 1 year of prosperity, grow grain. If you want 10 years of prosperity, grow trees. If you want 100 years of prosperity, grow people. Ancient Chinese Proverb

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The Importance Of Career

Source : Hudson / Vlerick Hipo Research Study
Retention Factors

Rewarding hipo's

Career Company culture Impact / Change Respect from others Salary 3.6 3.7 3.8 3.9 4 4.1 4.2 4.3

Degree of importance

Projection within 5 years

Rewarding hipo's

Career Impact / Change Company Culture Respect from others Salary 3,6 3,7 3,8 3,9 4 4,1 4,2 4,3

Degree of importance

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Identifying & Developing Top Talent

225 100
Top Performer Average Performer Top Performer

150 100
Average Performer Top Performer

185 100
Average Performer

Productivity Low Complexity Jobs

Productivity Medium Complexity Jobs

Productivity High Complexity Jobs

Journal of Applied Psychology

Clusters of HiPo Competencies

Research: University of Brussels

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Performance Strategic

Change

Competency Competency Competency Teamwork .854 Performance Motivation .669 Delegation .690 Leadership .680 Impact .596 Creativeness .515 Company Identification .861 Flexibility .743 Vision .693 Cultural Awareness .803 Risk Taking .755 Feedback (searching for and using) .689
Through Principal Factor Analysis a cluster of three competencies was detected explaining 70% of variance between HiPos and others Source: The Journal of Management Development

Increasing Fit To Drive Performance & Retention

Could Do

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Can Do

(With training & experience) Abilities & Aptitudes Knowledge & Skills

(Or has already done )

Personality & Work Style

Preferences & Values

How Theyll Do It
(How they approach work)

Want To Do

(Has interest or motivation to do)

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Talent Assessment
An important part of your overall talent management strategy is the development of the process organizations will use to evaluate performance and potential, and to identify future leaders, successors, and/or high potential employees. An effective talent assessment process should be: Consistent across your organizations business units Aligned to your organizations business needs and future leadership needs A multi-level process that involves several data points Well-defined and understood across the organization Assessment is often equated and confused with evaluation, but the two concepts are different. Assessment is used to determine what a person knows or can do, while evaluation is used to determine the worth or value of a course or program. Assessment data effects employee advancement, success and development (Herman &
Knuth, 1991).

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What Types of Assessment?

How can organizations assess existing staff to track high potentials and ensure new hires meet the future needs of the business? Assessment: Online Psychometric Assessments Leadership/Management Assessment Batteries Assessment and Development Centers 360 degree feedback surveys and business assessments Competency model profiling, behavioral based interviews, multi-rater assessment tools

Assessment Benchmarking
Define performance standards Identify appropriate assessments

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Identify incumbent sample

Gather performance data for each employee

Each employee completes assessment(s)

Match employees performance data with their assessment data

Statistically analyze data to determine which assessment(s) scale(s) predict on-the-job performance

Develop recommendations and plans regarding future assessment and selection

Assessment/Development Centers?

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What is an assessment/development center? An assessment/development center is a process designed to identify an individuals strengths, weaknesses, and potential in a current or future role. The assessment process is characterized by: Multiple participants rated by multiple assessors on several varied exercises Many of these exercises are designed to assess competencies Data integration: a structured evaluation of the participant in which assessors present objective evidence and reach a consensus decision The outcome of an assessment/development center are: Written reports detailing a participants competencies as they relate to job requirements One-to-one sessions examining the reports

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Why Assessment Centers?

Combine multiple assessment and business simulation methodologies to achieve the best possible predictor of future performance Offers comprehensive secondary evaluation of preferred candidate strengths and weaknesses Are the most powerful tool to predict the profile you want to hire save money over time Measure performance and potential therefore strengthening the leadership pipeline allowing organizations to develop training strategies to further develop and grow talent Hiring managers can be involved and refresh their own assessment/coaching skills Offer broad range of competencies, individually or in group Provide wealth of information available to feedback to all involved Offers great opportunity to seal psychological contract

Assessment Centers Drive Performance

Competencies Questions
Do they have the required technical skills?

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Technical Skills

Trainable

Discipline Understanding Knowledge & Experience Capability Demonstrated competencies Attributes Behaviours that infer potential

Do they have the experience and understanding necessary?

Can they demonstrate the behaviours necessary for high performance?

Do they have development potential?

Untrainable

Drivers

Motivational Fit

Will aspects of the role motivate them?

Career Fit

Does the role meet their current career objectives?

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and Tools To Assess Each Area

Technical Skills Discipline Understanding Knowledge & Experience Capability Demonstrated competencies Attributes Behaviours that infer potential
Resume Screening Technical Tests Preferential Interviewing Behavioural Interviewing

Trainable

Psych Assessment

Untrainable

Motivational Fit

Behavioural Interview

Career Fit

Preferential Interview

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Assessment Centers
Advantage Most powerful tool to predict profile you hire saves money over time Hiring managers can be involved and refresh their own assessment/coaching skills Performance and potential Broad range of competences, individually or in group Wealth of information available to feedback to all involved Offers great opportunity to seal psychological contract Disadvantage Time investment required from candidate though they get more in-depth feedback in return and can also make an informed decision Relatively expensive in short term though saves money in the long run

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Case Study A Assessment Centers ROI In The Selection Process

Client Issue: Very high personnel turnover Young graduates selection procedure Only one interview Or a full assessment center (interview, BAQ, RAT, simulation exercises, etc.)
AC Objective: Reduce the turnover of personnel What is the percentage of young graduates who left the company within the first 3 years? What is the difference between the young graduates who were selected versus an interview and the young graduates who were selected versus an AC?

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Case Study AAssessment Centers ROI In The Selection Process

45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 25%

43%

AC Interview

The turnover of personnel was reduced by 41%.

Case Study B
Talent Management Assesses Future Leaders Challenge

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The client, one of the worlds largest energy companies, had a program grooming high-potential employees for career advancement opportunities and broader leadership responsibilities. In 2008, the company revamped the process used to select employees for the program, making it more systematic and rigorous. As a result, the company needed a service provider with talent assessment expertise to evaluate candidates in the United Kingdom, the United States and Asia. Hudson was selected as the companys partner because of our robust methodology, global reach, the quality of our assessors and the cost-effectiveness of our offerings.

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Case Study B
Talent Management Assesses Future Leaders

Solution
Hudsons Talent Management team conducted a series of meetings to learn about the companys culture, values and leadership framework. Based on that background, we developed assessment materials that were uniquely suited to the clients leadership development program and trained our assessors to apply their high standards during interactions with candidates. In late 2008, we conducted assessments at three sites: London, Houston and Singapore. Some candidates were at a relatively early stage in their career with the client, while others had already attained senior-level positions. The type of assessments administered varied accordingly. Overall, about 85 candidates went through a series of ability and personality tests, simulation exercises, business case studies, interviews and group discussions.

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Case Study B Talent Management Assesses Future Leaders

Results
Hudson provided comprehensive reports about the candidates aptitude for performing effectively in future leadership roles. Our guidance for the client throughout the process provided the company with useful information about tailoring their development efforts to ensure their high-potential employees can continue to progress throughout their careers. Candidates many of whom had never been through an assessment program before came away with a better understanding of their strengths, weaknesses and opportunities for personal development. Even those who did not make it into the leadership program found the experience valuable. The client was highly satisfied.

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Summary
Identifying talent is going to become more vital with the predicted skills shortage and therefore more science must be added to the selection process Although it may look like an additional cost, adding science to selection can save thousands in the future It is important to identify the right solution for your organization and the types of roles you hire Whatever you do, always start with the right competencies for each role and build from there Always remember, high potential is developed through a solid understanding of competency and behavior

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Questions/Contacts
Thank You
Simon Fenwick General Manager, Talent Management Simon.Fenwick@hudson.com 212-351-7249