pep presentation for linked in 2008

The PEP….The PEP….The Right Choice!The Right Choice!

Presented by:

Chris WicklundChris Wicklund Sales ManagerSales Manager

Why Should You Use The PEP?Why Should You Use The PEP?

Reduce Turnover! Help Identify High Risk Applicants Make Your Manager’s Job EASIER! Reduce Interviewing Time Guide Your Reference Checking Create Uniform Hiring Standards

Throughout the Company!

Personnel Evaluation Profile Personnel Evaluation Profile (PEP)(PEP)

(2) Distortion/Falsification Critical Items Honesty Reporting Dishonesty Socialization/People Skills Customer Service

Features 13 Scales – More Than Other Features 13 Scales – More Than Other Testing Companies OfferTesting Companies Offer

Personnel Evaluation Profile Personnel Evaluation Profile (PEP)(PEP)

Drug Use & Attitudes Employment Background Work Ethic Absenteeism Tardiness Overall Scale

Features 13 Scales – More Than Other Features 13 Scales – More Than Other Testing Companies OfferTesting Companies Offer

Automatic Verbal Automatic Verbal InterpretationInterpretation

We call your hiring officials to discuss every result. It’s like getting a “Free” HR consultant!

These “Verbals” are designed to point out “red flags” or inconsistencies in the applicant’s statements.

A fail-safe for managers that overlook or dismiss testing results.

Other PEP AdvantagesOther PEP Advantages

Distortion ScalesDetailed Report outlines 27

subcategoriesSpanish & Canadian versions

availableElectronic Application Integration Integrates with other HR & Payroll

Packages

Corporate ReportsCorporate Reports

Free Automated Summary Reports – emailed to you, breaking down store by store, applicant by applicant (weekly/ monthly/quarterly)

Free Compliance Reports – help ensure all hiring officials are using the PEP and are meeting company standards. (It will even tell you whether store managers are administering the profile POST-HIRE!)

Free EEOC/Validation Studies

Based on $8/hr. employee

Source Turnover Cost

Society for Human $3,500 Resource Management

American Management Assoc. $4,800

Coca-Cola Retailing Research $3,637 Council – Supermarket Industry

American Hotel & Motels Assoc. $4,100

Experts Agree: Turnover Experts Agree: Turnover Costs Are HighCosts Are High

Pre-Employment Screening Pre-Employment Screening Methods: Comparison of CostsMethods: Comparison of Costs

12

42

30

50

0

5

10

15

20

25

30

35

40

45

50

PEP* CriminalChecks

ReferenceChecks

Drug Testing

PEP*

Criminal Checks

Reference Checks

Drug Testing

( * 6-20 )PEP RATES RANGE FROM $ EACH

Effectiveness in ScreeningEffectiveness in Screening

0

1020

304050

607080

90

PEP CriminalChecks

ReferenceChecks

DrugTesting


Police Department Study

A major metropolitan police department administered the Personnel Evaluation Profile (PEP) to 179 candidates for the positions of: police officer, police aide, parking checker and office administration in order to evaluate the PEP as an effective aid in background investigations.

Investigators established 21 ‘Areas of Concern’ (AOC). These areas covered employment, military, credit and criminal histories as well as honesty and integrity issues.


Police Department Study, cont’d.

Part One: The background officers completed background investigations on a portion of the 179 applicants WITHOUT the results from the PEP. An average of 5.75 AOC’s (areas of concern) per applicant were identified.

Part Two: The same officers were provided with PEP results prior to conducting their background checks on the remaining applicants. An average of 7.58 AOC’s per applicant were identified, reflecting a 32% increase in disqualifying data.


0

10

20

30

40

50

60

70

0 2 5-6 9-10 13-14

% Score On PEP

“OR” Scale


Number of Total Admissions



In particular, the ‘Overall Recommendations’ & ‘Employment Background’ scales were highlighted as being very helpful in identifying ‘high risk’ candidates.

Regarding candidates rated as having poor employment history by the background investigator… 86% of these applicants scored 36% or less on the ‘Employment Background Scale’ of the PEP.

The average ‘Overall Recommendation’ percentage score for accepted applicants was 60%, while the average ‘Overall Recommendation’ percentage for rejected applicants was 42%.

We We WillWill Reduce Reduce TurnoverTurnover

A 120 unit convenience store chain conducted an internal study, looking at both turnover and cost-savings generated when using the PEP program. This company estimated $1000 per person for hiring costs. After the first complete year of PEP usage, they found a 35% improvement in turnover, dropping from 276% to 180%, that equalled a savings of $1,021,000 in hiring costs!

By the end of the next year, turnover had been reduced to only 119% - a 34% improvement over the previous year. This led to another $725,000 savings in turnover costs!


This company’s expenditure on the PEP was $53,339 over a two year period. Their Return On Investment (ROI) was nearly $2.7 Million.

They also saw a direct correlation between their shrink reduction and turnover reduction numbers.


A 44 store grocery and convenience store chain in the Northeast conducted an internal study, looking at both turnover and cost-savings generated when using the PEP program. After the first complete year of PEP usage, turnover was reduced from 54.28% to 45.86%. This company estimated $1500 per person for hiring costs.

In turn, the 15.52% reduction in turnover generated a savings of over $1 Million to the bottom line operating budget!

Turnover StudyTurnover Study

A major wholesale/retail grocery company found an 11.25% decrease in turnover after implementing the PEP program.

In addition, supervisors stated that they were happier with the quality of worker being hired after implementing the PEP program.

Turnover StudyTurnover Study

A study conducted by a 70+ location specialty retailer found a 70% reduction in “For Cause” firings after having the PEP in place for 2 years.

NEW YORK WIRE SERVICENEW YORK WIRE SERVICE

Has test been validated? Is the test fair? If faced with legal

challenge, will publisher help?

Three basic questions should be asked of a “good” test publisher:

PEP Response:

– Yes– Yes– Yes

LEGALITIES / EEOCLEGALITIES / EEOC

In accordance with EEOC/ADA guidelines Age, race, and gender studies have shown

no adverse impact Submitted to EEOC; no negative findings or

determinations Favorably reviewed by

attorneys specializing in employment law

Ease of AdministrationEase of Administration

Average of 20-25 minutes for applicant to complete

Fax, internet, phone scoring, or hand-held kiosks available

Results returned automatically via fax, email, kiosk, or phone

1-3 minute turnaround

Typical Examples of Bad Typical Examples of Bad Applicants Applicants

(Are Your Managers Hiring (Are Your Managers Hiring These Applicants??)These Applicants??)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

DIS 13/15 66

BL 7/7 100

CI 14/14 100

E 21/36 8

R 9/13 17

S 8/16 14

D 10/11 41

EB 17/19 69

WE 15/22 13

M 10/10 100

T 9/11 26

OR 45/60 20

PERSONNEL EVALUATION PROFILE (PEP)Management Printout

Copyright (C) 1988, 1992, 1993, 1995

by Personnel Evaluation, Inc

Applicant : MR. $150 THEFTDate Processed: July 30th, 1997

Control Number: 299038 XYZ Company

APPLICANT’S PROFILE

DIS = Distortion E = Ethics D = Drugs M = Absenteeism

BL = Blatant Distortion R = Reporting Theft EB = Employment Background T = Tardiness

CI = Criminal Items S = Socialization WE = Work Ethic OR = Overall Recommendation

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

DIS 14/15 84

BL 6/7 59

CI 13/14 25

E 26/36 33

R 11/13 43

S 10/16 43

D 8/11 12

EB 15/19 39

WE 11/22 1

M 8/10 42

T 9/11 29

OR 46/60 31


Copyright (C) 1988, 1992, 1993, 1995


Applicant : MISS $500 DISCOUNTDate Processed: July 29th, 1997






0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

DIS 14/15 84

BL 6/7 59

CI 13/14 25

E 14/36 2

R 0/13 0

S 5/16 4

D 7/11 6

EB 19/19 100

WE 13/22 4

M 7/10 24

T 9/11 29

OR 36/60 7


Copyright (C) 1988, 1992, 1993, 1995


Applicant : MISS $275 PRODUCT THEFTDate Processed: July 29th, 1997






0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

DIS 14/15 84

BL 7/7 100

CI 14/14 100

E 18/36 7

R 5/13 5

S 10/16 43

D 6/11 4

EB 19/19 100

WE 14/22 8

M 7/10 24

T 9/11 29

OR 40/60 13


Copyright (C) 1988, 1992, 1993, 1995


Applicant : MISS $700 THEFTDate Processed: July 29th, 1997






0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

DIS 14/15 84

BL 7/7 100

CI 11/14 3

E 20/36 10

R 10/13 31

S 5/16 4

D 7/11 6

EB 16/19 54

WE 7/22 0

M 6/10 13

T 8/11 14

OR 39/60 11


Copyright (C) 1988, 1992, 1993, 1995


Applicant : MISS $1800 DISCOUNTDate Processed: July 28th, 1997






Validation Validation StudyStudy

91.4 %88.6 %35Receiving Stolen Property

84.1 %65.9 %170Falsified Employment Application

90.2 %78.0 %41Current Drug Admission

% of Applicants Who “Failed” PEP* or Who

Falsified the PEP

% of Applicants

Who “Failed” PEP*

# of Admissions Received in Interviews

Rejection Criteria

Based on 245 applicants interviewed at a job fair.

* A “Fail” constitutes a score of 36% or lower on the Overall Recommendation Scale. (Note how important a good distortion scale is in identifying high-risk applicants.)

Validation Validation StudyStudy

93.5 %87.1 %62Theft Admission

86.2 %82.8 %29Substantially Related Undetected Crime

83.3 %69.7 %66Substantially Related Criminal Record

% of Applicants Who “Failed” PEP* or Who

Falsified the PEP

% of Applicants

Who “Failed” PEP*

# of Admissions Received in Interview

Rejection Criteria

•A “Fail” constitutes a score of 36% or lower on the Overall Recommendation Scale. (Note how important a good distortion scale is in identifying high-risk applicants.)

Based on 245 applicants interviewed at a job fair.

What is “Personnel What is “Personnel Evaluation, Inc.” Evaluation, Inc.” ??

In business for over 30 years

In business for nearly 40 yearsWe provide:

– Written Pre-Employment Assessments, featuring the PEP, since 1988

– Background Checks– Polygraphs– Secret Shopping– Staffing Services– Honesty At Work Hotline

Our Guarantee To YouOur Guarantee To You

o We will work hand-in-hand with your hiring officials to make better hiring decisions.

o We will reduce turnover.

o We will help identify most high-risk applicants before they are hired.

o Ask about our 100% money back guarantee during our trial periods.

Hire Smart!Hire Smart!

For more information regarding

Personnel Evaluation’s services,call 1-888-734-3988

pep presentation for linked in 2008

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