Talent Management - November 2008 - (Page 23)

By using readiness assessments, companies can determine which employee is more competent and suitable for a particular job, Loi said. This information results in a lower turnover rate and a better return on investment. “[Companies] know what skills to train for in the beginning rather than spending time and then realizing seven months later they don’t have the [required] skills,” Loi said. Increasing Probability of a Good Decision It’s not uncommon for employers to look at one source of data to determine whether a person has the potential to assume greater responsibilities within the company, according to Dr. Robert E. Lefton, CEO of Psychological Associates Inc. “Rather than just looking [at] one source of data, today [talent management is] getting data from a wide variety of sources, systematizing that information and then using it to come to conclusions about a person’s growth,” Lefton said. Talent management today has a multiplicity of data and assessment techniques, which Lefton said offers a perspective on a person’s potential to grow: 1. Background information: This is a summation of a candidate’s background, biographical information and previous work experience. For instance, has the candidate been limited to sales for the duration of his or her career, or has he or she branched out into functions such as marketing and operations? 2. Performance data: This data typically is found in an organization’s performance review system. It answers questions such as: Has the person performed well in the workplace? Does he or she have solid processes to set and measure goals? 3. Test data: Test instruments are divided into two types: cognitive and personality. Cognitive tests measure people’s cognitive styles: how they go about solving problems; how they think through problems; their ability to think strategically and conceptually; how they handle verbal vs. quantitative material; what kind of logic they use; and whether they are systematic or intuitive in their thinking. Personality tests indicate whether candidates are able to connect with other people; what type of interpersonal skills they have; what their character is like; if they have good work ethic; whether they are comfortable assuming a leadership role; and whether they make tough decisions vs. easy and popular ones. 4. 360-degree feedback: This generally consists of employee data on how a person interacts with direct reports, peers and managers, as well as views of self. “In each instance, you have separate, independent data,” Lefton said. “If you take all that information, There are two types of readiness assessments available in the marketplace: job-knowledge tests and performancebased assessments. you have a wide range of information you could use to reach a conclusion regarding [a] person’s readiness.” And though this data is designed to be objective, there is still an element of human behavior that is subjective. “You’re dealing with probability theories,” Lefton said. “You’re just increasing the probability that you’re making the best decision.” Impacting the Bottom Line When used appropriately, readiness assessments can signiﬁcantly impact a company’s bottom line. “There are all types of predictive beneﬁts to having [objective information] about candidates before you hire them, and most of them are related to improving company performance and top- and bottom-line measures,” Lahti said. According to Lahti, readiness assessments can prove to be valuable tools when used for the right purpose: • Making hiring decisions. • Looking to ﬁll roles in which prior technical job knowledge is required. • Reorganizing people into new jobs, departments, lines of business or a new infrastructure like that following a merger or acquisition. • Using it as a diagnostic tool to determine training needs. • Gauging whether training worked or if more is required. “The real value is getting scientiﬁc, objective information about talent — whether it’s pre-hire or post-hire — and being able to use that to drive business and talent strategy and other talent management initiatives,” Lahti said. Organizations use readiness assessments to decrease the amount of hiring they need to do by hiring the most suitable candidates in the ﬁrst place, he explained. There are also talent-retention beneﬁts. “If you hire people who are better ﬁt for [certain] jobs based on readiness assessments, they’re more likely to stay in the job — all things being equal — compared to someone who may struggle with the skills and knowledge required,” Lahti said. November 2008 talent management magazine www.talentmgt.com 23 http://www.talentmgt.com

Table of Contents Feed for the Digital Edition of Talent Management - November 2008

Talent Management - November 2008 Editor’s Letter Contents Human Performance Leading Edge Learning Connections Recruitment & Retention Assessment & Evaluation Compensation & Benefits Performance Management Learning & Development Succession Planning Insight Dashboard Application Advertisers’ Index Editorial Resources Full Potential

Talent Management - November 2008

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