selecting top talent at procter & gamble
TRANSCRIPT
Selecting Top Talent at Procter & Gamble
Scott Read
Global Talent Supply
Robert E. Gibby, PhD HR Research and Analytics
Agenda
• Today’s Recruiting Landscape
• P&G’s Recruiting and Assessment Processes
• Why is technology so important to P&G’s Hiring Process?
• Why use adaptive testing?
• What does it look like?
• How do we know our assessments work?
Today’s Recruiting Landscape
Talent Acquisition Pressures
60 %
40 %
20 %
52%
49% 49%
Increasing
competition in the
marketplace for top
talent
Shortages of required
skills available in the
labor pool
Pressure to meet
the company’s
growth objectives
Pe
rce
nta
ge
of re
sp
on
de
nts
(n
= 5
06
)
Source: Aberdeen Group Aug 2011
Top Strategic Actions
Perc
enta
ge o
f re
spondents
(n =
506)
Strengthen ability
to identify talent
most likely to
succeed
Proactively build
candidate pipeline
Create a better
candidate
experience
Building a talent
acquisition culture
25 %
50 %
Best – in – Class
Industry Average
Laggard
43%
41% 41% 35% 35%
33%
31% 34%
22%
31%
22% 18%
Source: Aberdeen Group Aug 2011
Assessment Drives Better
Hiring Decisions
Prediction
Selection System
Integration
Global Reach
Customized Branding
Test Security
Process Efficiency &
Usability
Sustainability & Innovation
Risk Mitigation
Assessment Drives Better
Hiring Decisions
P&G’s Recruiting and Assessment Processes
P&G’s assessments are completed by 1,000,000+ candidates a year in more than 80 countries
P&G’s Recruiting Landscape
Philosophy
Scope
U.S. Sourcing
U.S. Degrees
Diversity
Build-from-Within: Primarily entry level hiring -- All degrees / Jobs
Line Partnered: 30+ Multi-functional School Teams in U.S.
30+ Single-function Schools
Global Hiring 2,500 – 4,500 Managers --- 84 countries
1,500 – 2,500 Administrative and Technical
6,000 -- Plant technicians
Extensive Intern/Co-op programs globally
64% School Team / 36% Internet + Other Sources
BA
MBA
BS Eng.
MS Eng.
Ph.D.
30%
20%
30%
7%
13%
U.S. Female: 50% / Global Female: 45%
U.S. Minorities: 36 – 44% in total
Meet or exceed availability for each under represented groups
‘Build-from-Within’ Means…
• Next Generation of P&G business leaders already within our ranks
• Heavy investment in Leadership Development and Assignment Planning
• Heavy investment in Assessment up front to ‘get it right’
• Can’t afford high attrition – especially in the early career years – or talent pipeline is disrupted
• Can’t afford the variability that comes hiring decisions based on interview data alone
P&G’s Recruiting Landscape
Your chances at NASA? 0.4%
Are you really more likely to be an astronaut than a P&G employee?
Which means you have a 1% opportunity of working for PG
Your chances at Harvard? 9%
Globally we hire 10,000 Full time and Interns per year from the 1,000,000 applications that are submitted
Focus on factors that count and predict job performance
Our tests have been designed to measure performance dimensions that are clearly important and job-related, as determined by thorough research and analysis of P&G work
Are objective and fair
Irrelevant data (appearance, contacts) is disregarded and every candidate is asked the same questions, given the same amount of time, and compared on exactly the same metrics
Are comprehensive
Our tests have been designed to measure skills and accomplishments which generally cannot or do not emerge from interviews. In addition, the tests allow candidates to be asked many more questions than would be possible in an interview
Are efficient
With large candidate volumes, tests allow us to focus our limited and valuable recruiting resources on those candidates with the highest likelihood of success at P&G
….netting in better hiring decisions + competitive advantage for talent
Put simply, we get our best quality employees when we use a Total Assessment process consisting of sound resume screening, multiple interviews, and multiple tests that…
Objectives Guiding Development and Use of P&G’s Assessments
Prediction
• Measure quality in a more holistic way
Selection System Integration
• Drive scale by eliminating regional and country assessments in favor of a single set of tools that deliver calibrated global talent
Test Security
• Move to a fully online assessment environment where security is provided by creating a unique test for each candidate and a calibrated verification process at Day Visit
Fairness (Risk Mitigation)
• Seek to minimize cultural and racial adverse impact
In line with these objectives, we designed the “blueprint” model of the new system:
Unsupervised, Online/Telephone Delivery Supervised Delivery
Personalized Candidate Web Portal
English Language
Assessment (as needed)
Noncognitive Test
Supervised Cognitive
Ability Test
Pre-Screening Assessment
Adaptive Reasoning
Test
Structured, Behavioral Interviews
Business Unit Assessment (as needed)
Technical Interviews
(as needed)
15 minutes
25 minutes
30 minutes
15 minutes
60 minutes
65 minutes
- - - - - All tests are hurdled with minimum scores defined through global validation efforts
Why is Technology So Important to P&G’s Hiring Process
Technology drives P&G’s hiring process….
Process Efficiency & Usability + Global Reach
• Isolate the best of the best candidates among more than 1 million applications
• Improve efficiency and productivity throughout the assessment and hiring process
Customized Branding
• Create a candidate experience that attracts and maintains interest through the assessment process
• Provides candidates with understanding of why they are being assessed and how assessment results give them assurance of post-hire success
Sustainability & Innovation
• Pioneer the use of web enabled, artificially intelligent test delivery to increase precision, allow for shorter tests, and ongoing question research and input
• Investigate use of cultural scoring algorithms to increase prediction and fairness in the global process
SHRM Recognition: Employment Branding Awards
1st Place – Best Attraction Microsite -
Experience P&G
1st Place –Best Global Collateral Materials -
P&G Global Attraction Templates
2nd Place – Best Local Attraction Website – P&G
Cincinnati
2nd Place – Best Social Media Pages – P&G Global Facebook/Youtube pages
2nd Place – Best Internal Campaign – P&G Social
Media Strategy Video
3rd Place – Best Recruiting Brochure – P&G
Engineering Campus Brochure
Why Use Adaptive Testing?
Ensures P&G Hires Smart People
• Provides the strongest prediction of performance available from a single test
• More than 1,000 test questions calibrated with the help of 180,000+ candidates
Balanced Assessment of Cognitive Ability
• Measures diversity in thinking styles, balancing left and right brain styles
• Drives creation of an innovative workforce
Predicts performance in a non-discriminatory way across all demographic groups
• Questions eliminated that displayed differences by gender, race/ethnicity, culture or age
• Validation with 2,000+ employees displayed equal prediction across groups
Complies with legal/regulatory requirements
• Verification Reasoning Test used to ensure results of online, unsupervised Adaptive Reasoning Test with 90%+ convergence
Conceptual &
Strategic Thinking
Raw
Processing
Power
Learning
Innovative
Capability
Decision-
Making
The Adaptive Reasoning Test and other Next Generation Assessments provide positive ROI through…
Increased efficiency in reaching a broader set of candidates
• Nearly 70,000 more candidates assessed on cognitive ability this year
Reduced resources – money and people – for global testing
• More than 25,000 fewer paper-and-pencil tests delivered last year
• Allows for HR and line resources to focus on other value-add work
• Reduces costs associated with test printing, delivery and scoring
• If we assume that each paper and pencil Reasoning Test costs $15 US to deliver, the savings each year is over $375,000 US
Global calibration of talent at entry
• Creation of a fluid and diverse global workforce able to operate in a VUCA world
• Critical for driving our promote from within talent systems
Management of increasing candidate volumes
• 1,000,000 applications per year and growing
Online assessments also create positive benefits for candidates
Conducted extensive candidate reactions research with thousands of candidates from across the globe to ensure our assessment process:
• Allows 24/7 flexibility to complete online assessments – especially important to Gen Y and Gen Cloud candidates
• Provides an application and assessment experience consistent with their expectations and desire to showcase their abilities
• Delivers quicker turnaround of our hiring decision
• Increases prediction, working to ensure their success with P&G post-hire
• Provides fair and unbiased assessment of the full range of their skills and capabilities – eliminating human judgment/desire of managers to hire people like themselves
• Delivers real time status and communication through our Candidate Web Portal
• Provides the ability to deliver branding, links to social networking and realistic job preview information to help candidates assess whether they are fit with P&G
What Does it Look Like?
Question #3 :10
How Do We Know Our Assessments Work?
Adaptive Testing: Increased precision with fewer questions – delivers quality of hire Low likelihood that two candidates get the same test
Research Item
Final Ability Estimate/Range
Incorrect Response
Incorrect Response
Incorrect Response
Initial Ability Estimate/Range
-1 -0.5 0.5 0 1 1.5 2.5 2
0.0000000000
0.3881931938
0.3881931938
0.7420871028
1.0562633763
1.3629186656
1.419023159
1.5764051338
1.11742
1.6518438240
1.22502
1.22696
1.28667
1.34550
1.38549 15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
Ensures we are spending interviewer time on the best of the best candidates
0
500
1000
1500
2000
2500
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40
RT scores with passing RS score RT scores with or without RS scoreVRT scores with passing ART VRT scores with or without passing ART
Based on reaction from industry, universities and external partners, P&G’s Assessment System is seen as a best practice approach…
Cognitive Assessments selected as one HR Executive Magazine March 2009
of the “Best HR Ideas for 2009”
Assessments named as “Best in Class Recruiting Roundtable November 2008
Recruiting Process”
P&G is the only company allowed to Harvard University 2008 – ongoing
conduct assessments prior to Interviews
20+ professional publications, book Society for Industrial 2004 – ongoing
chapters, and presentations that Organizational Psychology,
showcase NGA as a best practice among others
in industry
….and Most Importantly, candidates continue to seek jobs at P&G
Hiring this year at P&G included…
• The fewest positions available in our recent history
• A 4+ month hiring freeze
• Another record year for the # of applications/job posting
• More than 600,000 online applications