Psych Testing Seminar: Can you afford not to do psych testing? Prue Laurence & Nicole Russom Consulting Psychologists September 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Objectives of Today’s Session To increase your understanding of psych testing and its use in the workplace, including: The benefits of using psych testing How psych tests can be most effectively used in the selection and development process The types of tests available The limitations of psych tests What else would you like to get out of the session? Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Who we are and who we work with… Psylutions is a boutique organisational psychology consultancy that specialises in providing behavioural and psychometric assessments for selection and development purposes. All Psylutions employees are registered psychologists. We are not recruiters – we don’t have fees for placement, allowing us to be completely objective. We gather objective data to assist our clients in making selection and development decisions. We work with both large and small organisations across a range of industries, including finance and banking, FMCG, professional services, logistics, hospitality and tourism. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

What is an Organisational Psychologist? Psychologists that specialise in applying psychology to the workplace to improve organisational effectiveness, productivity, job satisfaction, and matching candidates to roles, amongst other areas. Organisational psychologists have been trained in evidence based approaches, to ensure that the tools and methods they use are effective. Psychologists are bound by the Australian Psychological Society (APS) Code of Ethics. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Mythbusters Quiz on myths about psychologists and psych testing… can you separate fact from fiction? Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Question 1 True or false: psychologists can read your mind. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Answer 1 False! While psychologists are good at reading behaviour, we are not psychics! Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Question 2 True or False: Psych tests that are used for selection and development purposes determine how “crazy” a candidate is. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Answer 2 False! Psych tests used for selection and development purposes are workplace specific, and examine the candidate’s capacity to perform a particular role only. We leave the “crazy” people to the clinical psychologists. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Question 3 True or false: Psych tests are perfect Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Answer 3 False! Although psych tests are a valuable addition to the selection process, they are not perfect and we will discuss some of the limitations during this session. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Question 4 True or false: There is such a thing as a perfect profile resulting from a personality assessment Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Answer 4 False! There is no such thing as a perfect profile. Different profiles are more effective in different roles, and as we all know, no one is perfect. Psych assessments simply identify the candidate’s strengths and opportunities for development in relation to the role they are being assessed for. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Question 5 True or false: Good quality psychometric tools must be expensive. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Answer 5 False! The cost of psychometric tools is actually quite small when compared to the other costs involved in the recruitment and selection process. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Question 6 True or false: Candidates who undertake unsupervised testing will cheat. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Answer 6 True/False Some candidates may cheat, but they are usually found out either by scales built into the questionnaire, or at further stages of the selection process. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Answer 7 True or false: Psychometric assessments allow us to discriminate between candidates. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Answer 7 True! By discriminate, we mean that they allow us to distinguish between candidates based on objective, job relevant data. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Your Experiences Has anyone done a psych test before? Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

What value does psych testing add to the selection process? http://www.youtube.com/watch?v=NtfUn6b4NBY © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

What is the cost of a bad hire? Scenario – You have interviewed your preferred candidate. He/she looks good on paper, interviews well and seems to fit the role requirements. You have been looking to fill the role for a while and are keen to make a placement. BUT This role has high exposure in the organisation, managing a large customer focused project. You have been unsuccessful in finding the right candidate until now, the project is experiencing delays which is ultimately costing you money. The candidate looks good and you choose not to invest additional cost and time into psych testing. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

So, what is the cost of a bad hire? Possible Outcomes Best case scenario – Candidate comes on board, fits in well with the team, project is a roaring success and you get promoted. Worst case scenario – Candidate comes on board, has a number of behavioural issues that emerge in relation to their management of others, management of clients, management of the project which were not obvious in the interview. Candidate leaves abruptly. Company loses money. Project gets shelved, you get fired. So, what is the cost of a bad hire? Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

What is the cost of a bad hire? Direct costs – advertising, engaging recruitment agency Indirect costs – time spent assessing resumes, interviewing, training new employee Loss of IP payouts? Performance lag time. What if you could minimise these costs overall by using psych testing? Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Client Testimonials Case 1: Client was taking on a new employee who looked fantastic on paper and interviewed well, and decided not to put them through a psych test. Candidate lasted 6 weeks. Case 2: Client was made aware of a candidate’s vulnerabilities for a particular role through psych testing, but decided to proceed with offering the candidate the role regardless. Candidate’s vulnerabilities emerged on the job, and they were managed out of the organisation within three months. Case 3: Client reported that the strengths and development opportunities identified by the psych test were true of the individual in the role 6 months later. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

How can you afford to not use psych testing as part of your selection and development process? Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Benefits of using psych testing in the recruitment process Adds rigour to the entire recruitment process Psych tests will return the same results if a candidate takes the test now and in 6 months time. They are reliable. Psych tests have been demonstrated to predict on the job performance. Psych tests are a valid measure of behaviour, they measure what they purport to measure - on the job performance. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Benefits of using psych testing in the recruitment process Provides a methodology for predicting performance against key competencies Competencies refer to a set of behaviours required to successfully perform job tasks. Psych tests are designed to objectively measure candidate’s behaviour in relation to the key competencies of the role. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Benefits of using psych testing in the recruitment process Provides a measure of performance and potential Performance refers to past behaviours as measured by interviews, references checks and resumes. Potential refers to a candidate’s capacity to perform on the job and develop skills. Although they can be measured separately, we recommend the combination of performance and potential which allows you to take a more holistic assessment approach to understanding the candidate’s fit for the role. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Below the Line Assesses Knowledge, Skills, Abilities and Other (KSAOs) People are hard to read: Using psych testing is about getting to the “below the line” assets such as motives, attitudes, drivers Psych testing can also be used in support of “gut feel,” to inform decisions. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Benefits of using psych testing in the recruitment process Assesses a wide range of job relevant skills and behaviours – learning & cognitive style preferences emotional intelligence personal & leadership style team skills sales skills customer service skills motivation Microsoft Office skills IT programming values derailers Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Benefits of using psych testing in the recruitment process Is resource effective –for volume recruitment eg. Graduates Eg. Online abilities can save time and money in screening a large amount of candidates in an objective manner. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

What psych tests are available? Abilities (verbal, numerical, abstract) Personality or work style preferences Sales behaviours/preferences Customer service Motivation Computer software skills Or any other assessments you can think of! Psylutions acts as a “one stop shop” partnering with many test publishers to access the most relevant assessment for your purposes. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Our Partners We partner with test publishers including SHL, TestGrid, Previsor and Kenexa amongst others. Psylutions see ourselves as mortgage brokers for psych tests – we don’t make our own tests but use our expertise to find the test that best meets your needs. This allows us to remain objective when recommending the most appropriate tests. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Video http://www.youtube.com/watch?v=XL-x19ne-Cc © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

What are the limitations of psych testing? Poor quality tests and interpretation of tests. Eg. Google IQ tests Psylutions ensures that all assessments we use are reliable and well validated. Importance of accredited interpretation of tests. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

What are the limitations of psych testing? Candidates can fake a good profile. Many tests have consistency and impression management scales. Candidates do not necessarily know what a “good” profile looks like. Are usually found out at subsequent stages of the selection process. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

What are the limitations of psych testing? Candidates can cheat when they do unsupervised testing. Cheating is difficult to do, and we usually find out. Less than 5% of candidates cheat. Speaking to the candidate beforehand adds that personal trust/psychological contract and increases their tendency to complete the assessment themselves. If they cheat, they are only cheating themselves. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

What are the limitations of psych testing? Self report – based on candidate’s perception of themselves and may not be how others perceive them. Depends on their insight into their own behaviour. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

What are the limitations of psych testing? One bad experience can put candidates off psych testing. We ensure that we are clear with candidates about what the tests involve, who has access to the information, and that we can talk them through their results once the selection process has been completed. One bad experience can put hiring managers off psych testing. We make sure that all the data we collect is job relevant, and that we don’t collect any information that isn’t reported on. We ensure that the data is interpreted in relation to the role and the “so what” factor. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Frequently Asked Questions about Psych Testing © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

FAQs: How do I know which psych test to use? This depends on the competencies that are important for the role, there is no “one size fits all” when it comes to psych testing. Cognitive abilities assessments are useful to assess verbal and numerical reasoning skills, as well as the candidate’s ability to learn new information. Personality assessments can assess a number of competencies, including team work, relationship building, customer focus, planning and organising, and resilience. Ask us! We are always happy to discuss what assessments will best assess the competencies you are seeking in a particular role. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

FAQs – Where should I use psych testing in the selection process? Psych testing can be used at different stages depending on your needs. Volume recruitment – standard practice is to use abilities testing in the initial screening process. Other recruitment – we recommend using testing between first and second interviews. This will help explore areas of concern raised in the first interview From a candidate care perspective, psych test as a last ‘hurdle’ can give the impression that they have ‘failed’ the psych test Data from the psych profile can guide questions in the second interview to specific behaviours Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

FAQs – How do I sell psych testing into my organisation? Explain the benefits in terms of costs for managers who are focused on the bottom line. Introduce psych testing slowly. Make the introduction of psych testing a consultative process – what do hiring managers find is missing from the current selection process? Can psych testing meet that need? What are their concerns about psych testing? One of the best ways to get sceptics to believe in psych testing is for them to do an assessment and see that it works! Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Why our clients choose to work with Psylutions Our Focus on the Relationship : Psylutions are easy to do business with! We focus on providing an efficient and responsive service, and are flexible and innovative in our approach, tailoring our services to your organisational needs. Competitive Pricing : As a small business, Psylutions has the power to adapt our pricing structures to fit in with your budget, as we are not bound to set pricing models and therefore have the opportunity to react in a flexible manner, in line with your needs. Access to a wide range of Tools : Psylutions does not develop our own tests, and we are not restricted by exclusive relationships with any test publishers. This means we have access to a world-wide library of best practice tools and can access appropriate products in line with your needs. We are Psychologists: Psylutions has a large team of consultants around Australia all of whom are registered psychologists. This means we bring expertise in psychometric and behavioural assessment and everyone who works with us is bound by the Australian Psychological Society Professional Code of Ethics. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Your Assessment Abstract/conceptual reasoning assessment: measures preferred learning style and tendency to think ‘outside the square’ Norm group: Australian Managers Range you scored in – what does it mean? Happy to talk through your results individually if you have questions once the session has concluded. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.

Questions? © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.