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Assessing Talent What are Assessments and how can they be used?

The Advantages and Best Practice of Assessment Processes

January 2017

Assessing Talent

2 Copyright © 2016 Zircon Management Consulting Limited. All rights reserved.

www.zircon-mc.co.uk

Contents

INTRODUCTION 3

WHAT IS ASSESSMENT? 4

WHY WOULD ORGANISATIONS USE ASSESSMENTS? 4

WHEN WOULD ASSESSMENTS BE USED? 7

WHAT METHODS OF ASSESSMENT ARE THERE? 8

WHAT IS THE VALUE OF ASSESSMENTS IN SELECTION? 11

WHAT IS THE VALUE OF ASSESSMENTS IN DEVELOPMENT? 13

HOW CAN ORGANISATIONS SELECT THE MOST APPROPRIATE ASSESSMENTS? 15

HOW CAN ASSESSMENTS HELP ORGANISATIONS IN THE FUTURE? 21

HOW DO OTHER ORGANISATIONS VIEW ASSESSMENTS? 23

WHAT WILL ORGANISATIONS NEED TO CONSIDER WHEN IMPLEMENTING

ASSESSMENTS? 25

MISUSE OF ASSESSMENTS 28

RECOMMENDATIONS 29

CHECKLIST FOR ASSESSMENTS 29

WHAT IS NEXT? 30

APPENDIX: ABOUT THE AUTHORS 32

APPENDIX: REFERENCES 33

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Introduction

Maintaining relevance and competitiveness within the current market

means all businesses need to push their boundaries in order to create and

implement continuous, rapid product innovation.

In order to continue to push the boundaries of innovation and product creation, organisations will

need to ensure their people are working towards the same agenda with the same interests at heart.

This will start with the effective use of assessments for recruitment, to ensure the individuals

brought in are right for the organisation; selection, to make sure individuals are in the most

appropriate roles; and development, to ensure employees have the right skills in order to be

successful.

Purpose and Scope of the Paper

The purpose of this paper is to a) objectively

review how organisations have used

assessments to their advantage and to

understand the experiences businesses have

had, b) review the tangible business benefits

that have emerged as a result of assessment

usage, c) make recommendations for

assessment usage and d) review obligations

that organisations must consider as they

decide how to streamline assessments.

We will present an objective, research-based

view for the use of assessments within

organisations, looking to understand the

benefits, unique selling points and Return on

Investment businesses can gain. This paper

also provides recommendations for

assessment usage and reviews obligations

organisations must consider when deciding

how to streamline assessment.

We take insight from currently used tools and

techniques and have conducted research into

best-in-practice techniques within the external

market, as well as drawing from the 20 years

consulting expertise of Zircon Management

Consulting. In particular, we look at:

- Desk Research into best-in-class uses of

assessments, including the tangible

outcomes organisations have seen from

assessments within a business context.

- External Interviews from a range of

organisations such as KPMG, Thomson

Reuters and GSK.

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What is Assessment?

Assessment is the process of evaluating an element against a predefined criteria. It is the end result

of gathering information intended to advance knowledge in an area and increase the probability of

effective decision-making in applied settings.

Why would organisations use Assessments?

People are at the core of organisational

success. They can bring innovation, customer

focus and commercial mind-set to ensure all of

the offerings are as effective and valuable as

possible. As a result, businesses need to

ensure they are making the right ‘people’

decisions, from bringing in the best talent in

the market to ensuring employees have the

right tools in order to continually develop the

business.

Assessment helps organisations to make

better decisions about hiring and developing

people, aligned to the business objectives and

vision for the future. Some of the benefits

organisations would be able to leverage

through the use of assessments are shown

below.

People Assessments can be used for a

multitude of purposes. For example,

assessments can be used during a recruitment

process in order to screen for reducing large

volumes of candidates and to differentiate

between a few key individuals. They can also

be used for selection, if organisations want to

identify and validate core performers or those

with high potential for a specific purpose,

such as a talent pool. Assessments are also

beneficial during development, as they could

allow businesses to identify the core areas

where an individual has strengths or

development needs, which can subsequently

help to tailor a plan for the future.

Assessment is also a robust way to identify the

difference between Talent and Potential.

Assessing talent involves assessing an

individual’s past performance to understand if

they are working in line with the

organisational outcomes and identifying an

individual’s strengths; i.e. whether they are

achieving their role requirements. Assessing

potential on the other hand, relates to

assessing the individual for their fit for the

future, rather than past performance.

Potential will identify whether the individual

has the right skills and capabilities to achieve

in the future of the organisation.

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When using assessments, one is able to assess a number of different areas in order to capture the

required data. Some of these elements which can be assessed are shown below:

- Competencies/Capabilities

o Definition: Personal attributes or behaviours that individuals must have or acquire to

perform effectively, such as Problem Solving or Teamwork.

o Benefits: Identifying the competencies or behaviours that successful individuals need in an

organisation allows for individuals to be identified who will support business objectives, as

well as providing a transparent language of success for candidates or employees to work

towards (Lexonis Limited, 2011).

- Strengths

o Definition: Elements that an individual enjoys doing and is energised by, such as being

Methodical or Competitive. An individual’s strengths are their unique qualities; what will

they bring to the role and what will they enjoy doing?

o Benefits: Research has found that individuals who are able to work within their Strengths

are six times more engaged, six times more productive and three times more likely to have

a good quality of life (Gallup, 2014). 73% of organisations are moving to a Strengths-based

approach (Zircon Management Consulting, 2012).

- Values

o Definition: A set of principles that an individual finds important to work within, such as

Integrity and Visionary. It is beneficial to identify the level of fit between personal and

organisational values and culture.

o Benefits: Employees who are able to fit in with their organisation and team had greater job

satisfaction, were more likely to remain at the organisation and showed greater job

performance (Kristof-Brown, Zimmerman & Johnson, 2005).

- Cognitive Abilities

o Definition: Overall reasoning ability or a narrow aspect of an individual’s job requirements,

such as Learning Agility and Numerical Reasoning Ability.

o Benefits: Individuals who score highly on verbal/numerical

reasoning tests are six times more likely to become high

performers in the organisation (SHL, 2012). Learning Agility

is a top predictor of high potential; highly agile Executives

“ Strengths-based assessments are long overdue. We build careers and success on strengths so we

should also assess people on that. We need to hire people who love what they do.

Iain McLaughlin, Global Head of Resourcing and Mobility, KPMG

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have 25% higher profit margins than others, are five times more likely to be highly engaged

and are promoted twice as fast as individuals with low learning agility (Korn Ferry Institute,

2014).

- Functional Knowledge/Technical Skills

o Definition: The ‘need-to-know’ technical skills, such as Financial Acumen and Sales Ability.

o Benefits: Individuals who do not have the required technical skills may be unable to perform

to the highest standard, negatively affecting organisational performance (Bessen, Harvard

Business Review, 2014).

- Personality Traits

o Definition: Measuring personal characteristics such as Conscientiousness and Extraversion.

o Benefits: Can be used to increase the accuracy of behavioural prediction in a variety of

contexts and settings, structures and informs psychological interventions (Lee & Bruvold,

2003).

“ We assess our Graduates from a number of lenses; we used to focus only on ability but we have

realised it doesn’t reflect whether they can engage others.

Helen Alkin, Head of Recruitment: Future Talent, Marks and Spencer “

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When would Assessments be used?

Organisations could make use of assessments for

understanding Individual, Team and Organisational

requirements at any level within the business, from

Individual Contributor through to the Executive level.

Some examples of how assessments can be used are

shown in the image below.

Please note, this list is not exhaustive.

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What methods of Assessment are there?

Selecting the method by which the element in question is assessed is equally as important as

selecting the element itself. There are a broad range of assessment techniques, tools and products

that can be used for different elements within a role or individual and ensuring the right assessment

for the situation is selected can mean the difference between selecting someone great and missing

the mark on talent.

CV’s, Application Forms, Biodata Provides a summary of relevant biographical information, such as education, qualifications and previous job experience. If unstructured however, these have led to questions about the effect on selection outcomes (Searle, 2003).

o Uses: Initial screening in recruitment. Interviewing A formal meeting used as a basis for questioning, consultation or evaluation. Interviews can be structured or unstructured, with a focus on technical or competency questions.

o Uses: To obtain detailed information about a person’s experience, qualification and opinion. Can also be used as a means of gathering qualitative data and more deeply understanding quantitative information.

Psychometric Testing The process of quantitatively measuring an individual using a questionnaire. These can be based on a number of elements, including aptitude, ability, personality and strengths.

o Uses: Primarily employed to assess employment suitability, including company-candidate fit and candidate-role requirements.

360 Feedback/Peer Ratings A set of evaluations from each member of a work group, using a specific set of rating scales. Co-workers who participate in a 360 review usually include the manager, peers, direct reports and key stakeholders. With the increase of LinkedIn recommendations, this assessment has grown in popularity.

o Uses: Development; performance evaluation purposes.

Case Studies/Role Plays A study of a specific real-life situation or imagined scenario. Individuals are required to analyse the prescribed cases and present their solutions, with supported reasoning and assumptions made. The assessments can be used to assess analysis skills, business acumen and strategic thinking by the line of reasoning employed and assumptions made.

o Uses: A training or recruitment tool. Assessment and Development Centres A set of exercises such as case studies, role plays, e-tray and other assessments to either recruit or develop, often taking place over a period of a day.

o Uses: Often in recruitment as a part of the selection process, on-the-job assessment or development.

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Situational Judgement Tests Bespoke tests that present realistic, hypothetical scenarios and ask the individual to identify the most appropriate response or to rank the responses in the order they feel is most effective.

o Uses: To assess job-related behaviours and competencies related to non-academic practical intelligence such as problem solving, decision making and interpersonal skills.

Group Tasks An assessed exercise that involves a small group of candidates working together towards a goal, often followed by questioning or a presentation.

o Uses: Recruitment or on-the-job assessment purposes.

* Group Tasks are not recommended due to the high level of biases that could occur during group assessments.

Gamification An application of game theory and dynamics to non-gaming contexts. Games can assess a number of different elements, such as industry challenges or behaviours (e.g. Risk taking, speed of response, resilience).

o Uses: To engage, recruit, select and develop individuals.

Employee Surveys Questionnaires to gain feedback from a large group of employees; the tool can measure elements such as employee engagement, morale and performance.

o Uses: Measure and develop based on group feedback to affect direct organisational growth.

Performance Appraisals Method by which the job performance of an employee is documented and evaluated. Performance appraisals consist of regular reviews of employee performance within their organisation.

o Uses: Performance evaluation for development and selection.

https://en.wikipedia.org/wiki/Job_performance

https://en.wikipedia.org/wiki/Employee

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Source: CIPD (2015)

Organisations use a vast array of assessment tools, from interviews to general ability tests and Assessment Centres. In the past 6 years, the use of interviews has increased by 15% whereas the use of analytical algorithms to match people to roles and gamification are only beginning to be used (CIPD, 2015). With such a broad library to draw from, it is therefore imperative that the tool or process selected is appropriate for the purpose and brings about the benefits that we require.

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What is the value of Assessments in selection?

The main reason organisations assess

individuals in a selection process is to increase

the probability of hiring the best candidates for

their organisation, i.e. candidates who have

the skills to perform effectively and who are

likely to fit with the organisational culture.

Ensuring better hiring and placement decisions

can have extremely large financial benefits and

the candidates are more satisfied and have

been found to advance further in careers

where their skills match requirements.

Effective hiring through assessments can:

Reduce Failure Rates of New Hires

Assessments can provide a clear prediction of

the effectiveness of a candidate in the role,

thus reducing the chance that they will fail. On

average, 40% of CEOs fail within the first 18

months (Ciampa, 2005) however when CEO’s

were high-scoring on the Korn Ferry Readiness

Assessment, failure rate reduced to 2% (Korn

Ferry Institute, 2014). As the cost of replacing

a failing CEO after only 18 to 24 months can

range from $6 million to $18 million (Korn Ferry

Hay Group 2010 as cited in Korn Ferry Institute,

2016), assessments could provide

organisations with large financial benefits by

reducing failure rates.

This benefit can also be seen at all levels of the

business, including High Potentials; when

assessed, the turnover of High Potential

individuals reduced by 7% to 11% (Aberdeen

Group, 2010). This means that if an

organisation has 150 High Potentials, they will

keep 17 of their Future Leaders by using

assessments. Further, companies using

assessments are 36% more likely to be satisfied

with new hires (Aberdeen Group, 2015).

Increase Performance

The performance scores for new hires who

have been assessed to have the right fit for the

role and organisation have increased following

a robust assessment for recruitment process

(YSC, 2014). Organisations have also found 56%

of employees exceed expectations on

performance reviews when assessed,

compared to just 45% who have not been

assessed (Aberdeen Group, 2010). As a result,

effective use of assessments at the

recruitment stage can mean a marked increase

in ongoing performance capability into the

future.

Improve Productivity

Alongside improving performance, the use of

assessments for selection could improve

productivity. Effective assessment has been

found to decrease the time to full productivity

for new hires (YSC, 2014). Analysis of 1000’s of

organisations from 92 large scale studies has

also found that implementing objective

recruitment assessment increased company

productivity by 1.7%. This implies that the

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benefit of increased productivity from

objective assessment is responsible for around

1.7% of overall organisational turnover (Combs

et al., 2006). As a result, if an organisation has

an overall turnover of €20billion, the use of

effective assessments could be responsible for

a reduction in €34million.

Increase Objectivity

The use of researched and robust assessment

processes can almost remove biases and

subjective judgement, which can mean better

hiring decisions. If biases are present in a

selection process, the outcome is less likely to

be positive for the organisation. As a result,

assessment tools and procedures which are

founded in evidence and have been validated

to ensure they look for the measures of

success increase the chance of making a good

hiring decision. 82% of executive sponsors in

research undertaken by DDI (2015) found

assessment processes successfully increased

the objectivity of their organisations talent

decisions. The assessment process does

however have to be relevant to the

organisation and environment it is to be

assessing for, as traditional methods of

interviewing accurately predicts success only

14% of the time (The McQuaig Institute, 2010).

Brand and Impact of Organisations

The use of assessments can also have an effect

on brand and impact of Organisations. Not

only do assessments enhance the candidate

experience through providing transparent and

open methods of assessment and clear

markers for success, 98% of individuals from 43

organisations and 400 leaders stated that

using assessment improved their view of the

organisation (DDI, 2015). CEB, whilst working

with Heineken, also found that implementing

an effective, objective and transparent

assessment process resulted in 85% internal

stakeholder satisfaction and 91% applicant

satisfaction (CEB, 2015).

On the contrary, if not used effectively

assessments can also damage the brand of an

organisation (see Misuse of Assessments

section for further details).

Increase Financial Gain

CEB worked with KPMG to implement a new

flexible and streamlined selection process.

They have estimated a saving of around 40%

for selection costs associated with every

applicant, which rises to a 60% saving in the

case of a successful applicant (CEB, 2016a).

Further, they work to ensure the assessment

process is correlated to the needs of the

organisation produces long-term benefits,

with Getinge Group saving 5m SEK on external

recruitment costs annually through a

streamlined but objective assessment process

(CEB, 2016b). In a further case study, a

technology retailer has increased sales by

£100million as customer-focused sales staff

who earned high scores on an assessment

process went on to generate over £3,000 more

sales per month than low-scorers (SHL, 2011).

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What is the value of Assessments in development?

Once the most appropriate individuals have been selected and recruited, there is also a need to retain

the talent. Ongoing development is a key technique for maintaining employees however this needs

to be tailored to the individual to gain the most from the experience. In order to understand how to

tailor development therefore, there is a need to assess where an individual, team or organisation is

currently, to observe strengths and gaps.

Therefore, in addition to continuing the benefits observed during assessments for selection, effective

assessments for development can:

Retain Top Talent

Research has found that 27% of High Potential

employees plan to leave their employer in the

next 12 months (Corporate Leadership Council,

October 2010 as cited in PwC, 2011) and just 18%

of millennials are planning to stay with their

current employer (PwC, 2011). In line with

these trends therefore, organisations need a

method for engaging employees and

demonstrating the value we see in them.

Assessments can be used during development

to provide insights to accelerate an individual’s

development and can improve engagement

(DDI, 2015). In addition, YSC have found that

conducting regular assessments means

organisations are 24% more likely to have a

ready and willing successor (Aberdeen Group,

2010), resulting in an easy transition.

Provide Financial Gains

As mentioned previously, effective

assessments can be responsible for 1.7% of

overall turnover by increasing productivity

(Combs et al., 2006). Korn Ferry also found

that individuals with a high-score in an

assessment of Strategic Vision had on average

a 64% increase in market cap and those with a

high score on Managing Complexity had on

average 78% increase in earnings per share

(Korn Ferry Institute, 2016). Further research

has found that organisations using

assessments have 2.5 times greater year-on-

year increase in profit per full-time equivalent

(Aberdeen Group, 2010). Talent Q also found

that the organisational impact of a high

performer compared to an average performer

can be around £2049 per hire (Talent Q, 2009).

Promote Continuous Learning and

Development

Implementing assessment for current

employees to aid in their development can

increase engagement and excitement around

ongoing development, with managers more

inclined to support employees with their

development. In particular, DDI (2015) found

that 89% of an organisational cohort said that

assessments that brought insight into their

developments created a positive buzz around

the development process within the

organisation and 87% said development

activities receive strong management support.

They also found that 92% of managers reported

assessments helped them better understand

strengths and development areas of their

team in order to tune developments (DDI,

2015).

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Beat the Skills Gap

ManpowerGroup Talent Shortage Survey

(2014) revealed that as many as 36% of more

than 37,000 employers surveyed worldwide

are experiencing difficulty in filling jobs, due to

a lack of available talent. In order to prevent

this therefore, assessments for development

could be used within organisations in order to

ensure the workforce is both retained and also

have the most appropriate skills to be

successful. Assessments could be used to

identify the most effective focus of

programmes to ensure they are the most

valuable for employees and the financial fee is

valid.

Predict Leadership and Growth

DDI found that across three organisations with

over 1,100 executives, high scorers on an

assessment process improved performance

significantly more than low scorers (DDI, 2015).

Further, across four studies and over 1,200

leaders and executives, results also showed

significant relationships between assessment

scores and potential ratings (DDI, 2015). CEB’s

work with Getinge Group have found they now

have 187 potential leaders preparing

themselves for step-up compared to only 27

individuals before the assessment process

(CEB, 2016b).

Provide Big Data

Conducting assessments in a robust and

objective way results in a library of data for

use. Regularly using assessments for either

selection or development therefore will begin

to provide a valuable source of people data

which organisations have not previously had.

This data can be used to observe themes or

patterns emerging for individuals, teams or the

organisation. This information can also be used

to understand the effectiveness and value of

programmes and whether employees have the

capability or potential to progress. In order for

this to be as successful as possible however,

this data needs to be held in one location and

integrated (SHL, 2011).

We use assessments in order to make better decisions about how we manage talent. We tailor

our approach, giving people development based on their personal requirements. We have

dramatically reduced our recruitment costs by purely growing our own talent.

Robert Nunn, Learning and Development Manager, Grosvenor Estates

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How can organisations select the most appropriate Assessments?

Line of Sight to the Business The first step in ensuring an assessment tool or process is right for the purpose is to ensure they are

founded in the organisational strategy and context. There needs to be a clear and open line of sight

between the organisational strategy and the talent model to ensure the elements which are defined

as predictors of success are the aspects required in the employee pool which will drive success into

the future, in line with the vision and goals of the organisation. This talent model should then be

integrated into the role profile to ensure the role requirements are based in evidence. Finally,

assessment criteria and subsequent tools and techniques should be selected in line with the role

profile.

Ensuring a clear line of sight from the strategy to assessment tools and techniques allows for an

open and transparent assessment process where everyone involved in the process understands

requirements and expectations. Evidence has shown that a high degree of procedural methodology

and clear processes of measurement and evaluation have high merits (Schmidt & Hunter, 1998). This

is however not common practice, with only 20% of organisations openly communicating their talent

strategy and as a result 80% do not demonstrate transparency within their assessment process from

strategy to tools (Zircon Management Consulting, 2012). Only half of the leaders within the FTSE 100

and Fortune 500 interviewed by Zircon Management Consulting (2012) said talent management

initiatives are consistently applied across their organisation and only one-third believe that their

talent management practices are fully established and implemented. Additionally, less than 30% of

organisations use their talent strategy to show how they are different from their competitors (Zircon

Management Consulting, 2012).

Organisational Strategy

Assessment Criteria

Role Profile

Talent Model

Assessment Tools and Techniques

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Reliability and Validity of Tools

Reliability: The extent to which a measurement procedure is free from random error.

Validity: The extent to which a measurement procedure gives appropriate information about the criteria, such as looking appropriate to candidates and job experts in terms of relevant job requirements and whether it correlates with other relevant measures.

Face validity: The extent to which those involved in the measure accept that it seems to at ‘face value’ assess the qualities in question.

Content Validity: The extent to which the measure or items sample the domain of interest.

Construct Validity: The extent to which the measure gives accurate information about the element it is trying to measure.

Criterion-related Validity: The extent to which the scores on the measure relate to a measure of a related criterion, e.g. Job success.

Only by looking at roles, deciding the most appropriate level they are at and mapping back to

the organogram, can we ensure people are in the right places.

Maryanne Trollope, Senior HR Manager, Anglo American

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It is imperative that a chosen assessment has sufficient reliability and validity required for the

situation; the best practice level for reliability are above .7 and assessments need to have high face,

content, construct and criterion-related validity. Irrelevant of the level of expertise and training of

assessors, if the tools have low validity, the output of the assessment process is going to be low

(Hermelin & Robertson, 2001). On the contrary, even if tools are selected that have exceptional

validity and reliability, if assessors are not trained in how to use the techniques objectively and to

best effect, this will also result in a negative output.

Each style of tool or technique has a different level of validity; shown above is a graphical formation

of validity of various assessment methods from a meta-analysis which indicates that ability tests,

work sample tests and assessment exercises are the most predictive of employee performance

(Torrington et al., 2009). Korn Ferry Institute (2014) found that assessments including only

interviews and tests resulted in an 18% increase in validity than the assessment centre average. When

they incorporated a leadership simulation however, this rose to be 96% more predictive than the

assessment centre average, demonstrating that simulations and immersive assessment processes

are more likely to result in a good hire.

Fundamentally we use relevant work samples which are more predictive as we ensure

assessments we use provide evidence to support a decision. This is to provide a realistic

expectation of the role.

Joanna Harvey, Occupational Psychologist, The British Army

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An organisation will however need to consider the cost/benefit ratio for all assessment tools in terms

of predicting performance. Based on a combination of meta-analyses and costs of assessment for

UK organisations, it can be seen that ability tests provide the highest prediction of performance

(~30%) and was the second lowest tool in terms of cost. On the other hand, simulation exercises

provided the second highest level of prediction of performance (~18%) but was by far the most

expensive cost (Schmidt & Hunter, 1998; Talent Q, 2009). In order to conduct the cost/benefit ratio,

the purpose of the process will therefore need to be considered, in combination with the required

outputs.

Source: Talent Q (2008)

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Types of Evidence Not all assessments are the same and each tool or technique provides a particular level of evidence

for use in assessing criteria. There are four types of Evidence:

• Observed Evidence

• Directly reflects real-life situations relevant to the candidate's job role. Candidate actually does what they would do, rather than saying what they would do.

• Case Studies, Role Plays

• Tested Evidence

• Objectivity of psychometric tests when administered in a contolled setting. Test condition is removed from the everyday experiences of the job role.

• Psychometric Reasoning Tests, such as Numerical Reasoning

• Reported Evidence

• Requires individuals to report aspects of their behaviour, only saying what they would do, rather than doing it.

• Interviews

• Inferred Evidence

• Does not directly measure potential; assessor needs to infer from the results the individual's level of potential.

• Psychometric Questionnaires (e.g. OPQ)

Highest Validity

Lowest Validity

A blended approach is best with different evidence types, such as a mix of interviews, case

studies and presentations. It is effective at widening the data points to make sure you get the

right people for the right places.

Mani Kumar, Head of Talent Acquisition, EMEA, Thomson Reuters

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In order to ensure a sufficiently robust and objective outcome during assessments, each criteria

assessed should be measured twice by two different assessment points (example shown below).

Due to the validity and reliability levels of Tested and Observed Evidence, these are the most

beneficial and when assessing for a decision-making process, these should always be used. It is

important to combine methods in order to increase reliability, utility and validity, including face

validity for candidates.

Interview Case Study Presentation Element Assessed

Aspirations

Courageous

Customer Focused

Situational Leadership Example Assessment Matrix showing all elements assessed twice.

Korn Ferry also advocates the use of a combination of assessment tools to form an objective,

informed view of an individual and found a suite of techniques are able to provide a strong prediction

for performance in role; 43% of leaders who scored ‘Strongly Recommend’ in the assessment process

went on to be in the Top 25% of performers in the role, whereas a candidate who scored ‘Do Not

Recommend’ in the assessment process was five times more likely to be a bottom performer on the

job (Korn Ferry Institute, 2014).

By using multiple data points founded in a clear talent model, we use the results to challenge

the preconceived thinking of what good looks like. As a result of this, accuracy and success rates

have gone up significantly.

Brendan Fowler, Head of Senior Talent Acquisition, HS2

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How can Assessments help organisations in the future?

The following tables show the Micro (internal) and Macro (external) talent challenges many

organisations are facing currently and will face in the future, as identified by a number of visioning

interviews with key stakeholders within large global organisations. The benefits organisations may

gain from implementing assessments for selection or development are demonstrated below.

Micro / Internal Challenges

Changing Business

Functions and

Structures

With the changing nature of functions and structures, organisations

may need to assess to ensure current employees fit with the future

requirements of the organisation.

Using consistent assessments which have a clear line of sight from the

talent strategy will provide transparency with succession planning for

employees to work towards.

Leadership within

Organisations Organisations may need to assess leadership against the current and

future requirements of the organisation to ensure they are the most

appropriate individuals for the roles.

Conducting assessments will help to clarify the leadership criteria and

qualities for the future.

Assessing leaders will highlight key development areas to improve the

efficiency and effectiveness of the leadership team.

Ensuring Employee

Loyalty Assessment for development of employees will demonstrate

investment and value, seeking to increase employee loyalty.

Internal View of

Talent

There is a need to ensure that, when talking internally about talent, the

concept of High Potentials and succession pipelines are discussed.

Implementing assessments will provide a common language for talent

and what success looks like.

Assessments offer an opportunity to develop succession plans to

objectively assess who is the most appropriate individual for key roles.

An Assessment Policy will provide a framework for how to look at talent

throughout all levels and divisions within Organisations.

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Macro / External Challenges

Increased

Competition

A robust assessment process which is known as engaging but effective may positively affect an organisation’s brand and image for customers and employees.

Increased Speed of

the Market and

Society

With a requirement for the market to be working at a faster pace, assessments could be tailored towards identifying individuals with the flexibility, innovation and creativity to work in such an environment.

Ambitions of

Applicants

Assessments can provide a robust way of assessing an individual’s aspirations and ambitions to observe if the role, culture and opportunities that are able to be offered will be appropriate. This will prevent hires being made which do not fit.

Acquisitions A consistent assessment framework to work from will ensure all

employees are assessed in a similar way for a similar purpose, creating a streamlined and reliable methodology across businesses.

We need our assessment strategy to be unique to us, something aligned to our strategy 5 years

down the line. It needs to be future proofed.

Sarah Cockburn, Global Head of Graduate Recruitment, Allen & Overy

“ “

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How do organisations view Assessments?

In order to observe the market experience and approach to assessments, a number of key

stakeholders within global organisations in a multitude of sectors were interviewed. All interviewees

are regular users of assessments within their organisation and are core decision-makers on their

chosen assessment and development approaches.

“We use assessments at all levels of the business, from entry level through to Senior Leaders. We

assess multiple data points, which creates a qualification of the decision made that can be shared

and is robust enough to withstand challenge.”

David Balls, HR Director, Grosvenor Casinos

“Assessments are great for both self-awareness and also organisational awareness of individual

strengths and development areas, which can be really effectively used for development planning.”

Lisa Shephard, Global Head of Recruitment, TMF

“We use our talent assessment as a consistent way of bringing talent into the business globally. We

have seen an increase in the acceptance of quality and the perception of what we are doing from our

assessment process.”

Alison Heron, Global University Relations Director, GSK

“By using multiple data points founded in a clear talent model, we use the results to challenge the

preconceived thinking of what good looks like. As a result, recruitment accuracy and success rates

have gone up significantly.”

Brendan Fowler, Head of Senior Talent Acquisition, HS2

“Employers like assessments; they reduce time and cost and they are the belt and braces to prevent

interviewers from rejecting or accepting wrong candidates. They remove unconscious bias.”

Iain McLaughlin, Global Head of Resourcing and Mobility, KPMG

“I don’t believe that past performance is a good indicator of future performance. You need to assess

potential in an objective way in order to see the value for the future of the business.”

Craig Smith, Group Talent Development Manager, Babcock International Group

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“The appetite for assessments came from the bottom – up within Thomson Reuters. Graduates

almost expect to be assessed so we need to meet this expectation in the most robust and effective

way.”

Mani Kumar, Head of Talent Acquisition, EMEA, Thomson Reuters

“We absolutely get better outcomes from assessments. We can track our ex-Graduates back over 20

years and our end model can then show us whether they have had the potential to progress or not.”

Paul Roberts, Graduate & Early Careers Assessment Manager, AXA

“Lots of people here like metrics to check we are working as effectively as possible. Using

assessments gives us a common language and structure to analyse from; we can make better

decisions about how we manage talent and we have reduced our recruitment costs by purely

growing our own talent.”

Robert Nunn, Learning and Development Manager, Grosvenor Estates

“We as Talent Practitioners are not as objective as we think, so we rely on the science behind

assessment tools to be that for us. It allows us to also consider the non-traditional candidates.”

Ilona Jurkiewicz, Head of Early Careers, Thomson Reuters

“The speed of decisions is fundamental to us and is only possible through assessments. By using a

realistic job preview, we can offer real-time feedback and around 10 to 15% of our candidates

voluntarily opt out of the process.”

Helen Alkin, Future Talent Manager, Marks and Spencer

“Using assessments for development helps people see themselves in a different light and have a

greater sense of who they are.”

Jessica Bellwood, Global Talent Manager, Tate and Lyle

“When implementing assessments, an organisation first needs to define an end-to-end approach and

understand what type of assessments are going to help achieve their end goal, whilst also

maintaining the authenticity of the business culture.”

Steve Apps, Chair, The Association for Business Psychology

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What needs to be considered when implementing Assessments?

Legal Defensibility of Assessments To follow best practice, organisations must adhere to relevant legislation and assessment standards,

such as the standard for Psychological Test Use in Work and Organisational Settings as published by

the European Federation of Psychologists’ Associations (EFPA). Relevant industry standards will

ensure that internal and external assessment specialists operate with the required knowledge, skills,

competence and ethical conduct. An Assessment Policy needs to consider countries where national

rules restrict the use of some or all categories of psychological test to specific specialists, such as

registered or licensed psychologists.

Good practice dictates that organisations consider a scenario that could occur when a certified

assessment specialist leaves the organisation and as a result, the organisations no longer employ an

authorised assessment license holder. Assessment licenses are in general assigned to individual

persons based upon certification, rather than organisation wide.

Organisations will need to comply with the Directive 95/46/EC of the European Parliament and of the

Council of 24 October 1995, as well as those of other jurisdictions on the protection of individuals

with regard to the processing of personal data and on the free movement of such data.

In agreeing on test/scenario usage, any Assessment Policy will also need to ensure that all

assessment participants are well informed and have an opportunity to prepare for the assessment.

Some assessment publishers suggest that participants have had access to practice material in order

to familiarise themselves before the assessment day.

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Best Practice

There are a number of Best Practice Guidelines available from Governing Bodies which highlight the most appropriate way to use assessments in organisations. For example, some of these Governing Bodies include APA (American Psychological Association) and The BPS (British Psychological Society).

Report and Feedback/Interpretation and Communication of results Assessment results must be provided to participants in 1:1 feedback conversations with a certified

assessor. In addition, assessment participants must be given a written report that explains the

results clearly. Reports must be self-explanatory and allow participants to review their results in

more detail. Participants must be provided with the opportunity to re-connect following the de-

briefing meeting to ask follow-up questions. Organisations will need to have skilled/certified staff

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available to answer follow-up queries that might surface, either from participants or their line

manager/HR business partner.

Assessment results must only be forwarded to third parties if this had been stated and/or agreed at the outset of the assessment project and/or was discussed with respective workers councils and employee representatives. There should also be a confidential space for test-takers where practitioners refrain from referring to a candidate’s results outside of the appropriate context (Hogan, 2007).

Inclusion, Disability and Diversity In order to adhere to best-practice, legislation and to allow for true inclusion, assessments need to

consider factors such as gender, ethnicity, age, educational background, level of ability and those

who might have disabilities or special needs. Impairments might include, but are not limited to, those

related to: Mobility, Manual dexterity, Physical co-ordination, Continence, Ability to lift objects,

Memory, Ability to learn and concentrate, as well as Mental-health issues/illnesses such as Depression

or Obsessive Compulsive Disorder. Therefore, from an ethical and legal perspective, assessments

need to be available in alternative formats. This is to provide participants with various needs with an

equal opportunity to demonstrate their competence/way of thinking or behaviour in those

competencies previously identified as critical for job or role fit.

In many countries, legislation dictates that employers must make reasonable adjustments to

accommodate participants with special needs. Test publishers, external vendors and in-house

assessment experts must therefore provide solutions to accommodate, for example, participants

with hearing difficulties. Assessments that include an audio/video component will therefore have to

be available as transcripts or in braille language translations if required. In many European countries,

legislation also exists that requires employers to make the necessary adjustments to ensure

participants with impairments are not disadvantaged. In selecting test publishers and designing

assessments, organisations must pro-actively seek to accommodate staff with special needs.

Procedures and guidelines must exist at the time of rolling-out assessments, rather than at the time

when those needs surface.

Moreover, assessments, in particular for entry to mid-level positions, must be available to test-takers

in their mother tongue in order to consider language/translation nuances. Assessment items must

be culturally relevant. Furthermore, assessment results need to be compared with relevant

organisational levels and respective cultural comparison groups.

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Misuse of Assessments

Although the benefits of using robust

assessment processes are evident, there are

also a number of risks associated with not

using these processes or tools effectively.

There have been a number of examples of

misuse of assessments documented:

DIY retailer B&Q off-boarded an individual 5

days after they were hired as a Supervisor. The

individual had completed a personality test as

part of the assessment process and when the

results were made available 5 days after they

started in the role, their profile did not fit with

the required profile for the role (The Guardian,

2001) and as a result, they were removed from

the business, despite being recognised as

being effective in the role. Following a formal

investigation, B&Q were required to make a

public apology and paid compensation to the

individual.

In the 2013 case of Mental Health Care UK Ltd

v Biluan, claimants brought forward to a

tribunal that the company had unfairly put

forward employees for redundancy after they

had been assessed based on their disciplinary

record, sickness absence records and a

competency assessment. The competency

assessment was conducted by a HR team who

had no prior experience working with the

interviewees. The Employment Appeal

Tribunal (EAT) upheld the tribunal’s decision,

finding that the Mental Health Care UK Ltd had

unfairly assessed these employees without any

reference to past appraisals or views from

managers they had worked with (Croner-I,

2013).

Currys PC World asked interviewees to dance

during an interview. Speaking with BBC News

(2013), one of the interviewee’s said he spent

the past week preparing for the interview and

researching the company, only to be faced

with an inappropriate, humiliating situation.

As a result, the reputation and brand of Currys

PC World was negatively affected.

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Recommendations

As organisations continue to develop and grow into the future, the environment becomes more

competitive and people will be the unique selling points for businesses, who will continue to drive

innovation. Therefore, it is more important than ever to ensure organisations have the right people

in the right roles, with the right skills in order to succeed. Only through rigorous assessment for

selecting, retaining and developing people will they be able to achieve this.

Through effective assessment, organisations will be able to decrease costs from bad hires, increase

productivity and revenue potential and improve brand and impact. Businesses are also able to

streamline employee development to target key areas of weakness within the organisation. At an

individual level, assessment can increase job fit and highlight development areas, particularly for

advancement.

From the evidence, it is clear that any business needs to have a clear talent and assessment tool

strategy. The research suggests that organisations need to use more robust assessment tools, for

recruitment, development and selection. An assessment process which is evidence-based,

systematic and strategic in its initiatives is the most optimum process.

Checklist for Assessments:

Does a proposed assessment process/tool:

Adhere to the organisational Assessment

Policy

Have a clear and consistent purpose

Incorporate a combination of tools,

focusing on Observed and Tested

Evidence for decision-making

Assess every data point at least twice

Assess more than three success criteria

Remove group exercises

Have a clear line of sight to the

organisational strategy

Offer sufficient levels of reliability and

validity

Give equal opportunities for disabilities

and diversity

Offer appropriate feedback as best

practice

Work within legal and ethical

requirements

Have approval from the Workers Council

and Employee Representatives

Utilise only administrators and assessors

who are trained in the tools and protocol

Incorporate the most up-to-date science

and information

Centrally store all data

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What is next?

Following the objective evidence demonstrated in this White Paper, organisations have a number of

options going forwards in terms of assessments:

1. Do nothing and continue to use assessments, potentially inconsistently and to least effect.

2. Systematically audit the current assessment tools globally in terms of how they are used, why

they are used consequential risks and recommendations for a more streamlined approach.

3. Create an Assessment Policy.

As a panel of experts within Zircon Management Consulting, we would recommend following

Option 2 and 3.

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Performance and potential are not

the same

Useful assessments measure both performance (how an individual currently performs and track record) and potential (how they rate against future indicators of ambition and stretch).

Be clear on the purpose and

quality

To build trust in assessment exercises it needs to be robust, secure and transparent. Communications need to provide a clear rationale as to WHY an assessment is being made, WHAT it will produce and WHAT it will inform.

P ≠ P

Look at the big picture

Assessments do not only need to be for selection or recruitment, they can also be used for development and career planning for the future.

Draw from the best

To be relevant, the criteria applied in the assessment needs to be tailored to meet the specific context within which an organization operates and the tools used should be drawn from the best available.

Focus on development plans

Development planning should be rooted in the business context and tailored to the individual. Development plans will need to provide an achievable set of critical actions not an unrealistic shopping list!

Assessment is not a standalone process or solution. To have impact for the individual and the organisation, it needs to be clear how it links to other frameworks and processes.

Make the connections

Assessment is a tool to help people and their leaders have better conversations about performance. The approach to feedback discussions should help candidates reflect on their capability, developmental priorities and what support they need in the future.

It’s all about the conversations

Use multiple points of data

Assessments should incorporate multiple evaluations of a person in order to get a reliable and valid view. This includes integrating internal performance data with external assessments.

Build on strengths Individuals have more to gain by leveraging their natural skills than by trying to repair weaknesses. Organisations should use this approach to deliver a positive experience for all.

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Thank you to Our Contributors

Alison Heron Global University Relations Director GSK

Brendan Fowler Head of Senior Talent Acquisition HS2

Craig Smith Group Talent Development Manager Babcock International

Group

David Balls HR Director Grosvenor Casinos

Helen Alkin Head of Recruitment: Future Talent Marks and Spencer

Iain McLaughlin Global Head of Resourcing and Mobility KPMG

Ilona Jurkiewicz Head of Early Careers Thomson Reuters

Jessica Bellwood Global Talent Manager Tate and Lyle

Joanna Harvey Occupational Psychologist The British Army

Lisa Shephard Global Head of Recruitment TMF

Mani Kumar Head of Talent Acquisition, EMEA Thomson Reuters

Maryanne Trollope Senior HR Manager Anglo American

Paul Roberts Graduate & Early Careers Assessment Manager AXA

Robert Nunn Learning and Development Manager Grosvenor Estates

Sarah Cockburn Global Head of Graduate Recruitment Allen & Overy

Steve Apps Chair of the Association The Association for

Business Psychology

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About the Authors

Dr Amanda Potter BSc (Hons) MSc (Dist.) CSci CPsychol Amanda founded Zircon in 2000 and BeTalent Ltd in 2016. Amanda has worked in

the Psychology and talent arena since 1995 and has significant experience in the

areas of leadership assessment, development, executive coaching, change

management, high performing teams, organisational culture, Strengths and

learning. Amanda is a Chartered Occupational Psychologist, has an

Undergraduate and Postgraduate Degree in Psychology and a PhD in

Occupational Psychology from the University of London. She is an Associate

Fellow of the division of Occupational Psychology and a founder member of the

Association of Business Psychologists. Amanda’s interests are talent

management, talent assessment, high performing teams, inspiring leaders,

Winning Attitudes, talent and potential.

Lauren Albrecht BSc (Hons) MSc (Dist.) MBPsS

Lauren is a Senior Consultant Business Psychologist at Zircon Management

Consulting and Be Talent Ltd. She has extensive experience in leading the design

and delivery of projects around Talent Management, Employee Engagement and

Executive Recruitment within a range of sectors internationally. She has a strong

interest in the identification and development of High Potential across all levels

of an organisation and the impact that aspirations, engagement and motivation

can play in an individual’s success. Lauren conducted the analysis for this research

and has previously been a Research Associate within academia and a research-

led Selection and Assessment Consultancy.

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Sarah Linton BA (Hons)

Sarah has been a Director of Zircon since 2006 and co-founded Be Talent Ltd in

2016. Sarah has worked in the psychology and talent arena since 2002 and has

significant experience in the areas of leadership assessment, development,

executive coaching, change management, high performing teams, organisational

culture, Strengths and learning. Her expertise is talent assessment and

development and she has 10 years’ experience in FTSE 100 companies. Sarah’s

interests are talent management, succession, high performing teams, inspiring

leaders, Winning Attitudes, talent and potential. Sarah has supported Amanda

and the team to research and deliver four white papers looking at talent and

potential.

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