TM - January 2008 - (Page 24)

recruitment & retention assessment & evaluation compensation & benefits performance management learning & development succession planning [assessment & evaluation]by Stuart S. Crandell, Ph.D. Assessment Centers in T alent Management: Strategies, Use and Value A good assessment center should help talent managers figure out which leaders have advancement potential, how far they can advance and how ready they are for the next level. Strategic use of this center should help uncover what experiences, assignments and activities would best help these individuals to develop, what the risks are that could derail them and if they should be hired or promoted for immediate openings. alaries for senior executives today easily run into the six- and seven-figure range. The average cost of replacing any position generally runs at least two times the position’s salary, which means every time an organization needs to fill a senior executive role, the total process can cost more than a million dollars. Further, external hires at the senior executive level have a higher failure rate than internal hires, forcing companies to absorb replacement costs even more frequently. To manage costs and leverage talent potential, companies should cultivate internal successors and make the best talent decisions possible at the senior level. Organizations must invest in sound succession planning to have qualified leaders ready for any unexpected immediate need, such as the sudden departure of a key executive. It’s necessary to have a ready pool of successors available to support the company’s future business needs. If, for example, a company plans to grow in key markets, having the S right leaders in place to support the strategy is essential. Or, if a business is changing strategies, leaders must have, or know how to develop, the new skill sets needed to execute the change. Confident succession decisions are made possible by having solid, valid information on the potential candidates for a given position. To get robust, comprehensive insights and information, many organizations are turning to assessment centers to identify, develop and vet potential candidates. The activities of an assessment center typically include business simulations, a career interview, standardized tests and work style inventories. They blend psychometric evaluations of the participant’s personality, style, goals, experiences and competencies; background and career history; and behavioral observations of what participants actually do and how they do it. To be most effective, these components should match the critical features of the industry and company, address the challenges and responsibilities at the appropriate leadership level, and measure the competencies that matter for these roles. This combination 24 January 2008 talent management magazine www.TalentMgt.com http://www.TalentMgt.com

Table of Contents Feed for the Digital Edition of TM - January 2008

TM - January 2008 Editor's Letter Contents Learning Connections: Working With Those People Leading Edge: Hub Caps for a Buggy Human Performance: Hawthorne Effect Revisited Beyond Affirmative Action: The Changing Face of Recruitment Assessment Centers in Talent Management: Strategies, Use and Value Nontraditional Benefits- How to Hook the Best Talent Intersection of Web 2.0 and Talent Management Cross-Training for Workforce Agility Mapping Talent Among Younger Workers Dashboard: Using Personality Data to Identify and Develop High-Potential Leaders Application: Shaffer Title Uses Myers-Briggs to Develop Common Corporate Language, Jump-Start Growth Insight: Dreier, Stein & Kahan LLP: Using Strategy to Bring Back the Law Profession Advertisers' Index Editorial Resources Full Potential: Stop in the Name of Leadership

TM - January 2008

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