World Class Selection June 2008 North 51 - A team you can rely on The Psychology of Selection

World Class Selection June 2008 Presentation Objectives: To highlight the organisational benefits of world class selection To illustrate how effective selection processes underpin talent management & sales force effectiveness To highlight the practical steps to achieving world class selection

World Class Selection June 2008 Organisational Benefits of World Class Selection Greater productivity (strong evidence base over decades) Higher job satisfaction; better retention of talent Positive organisational image; improves ability to attract talent Fairness & legal compliance

World Class Selection June 2008 Improved Productivity Most important element of talent management & sales force effectiveness models i.e. the ability to predict talent Research indicates difference in performance between highly effective and moderately effective employees is between 40% & 70%. Even greater variability in performance in sales roles. Conduct utility analysis; indicates even relatively moderate shifts in predictive validity (i.e. ability to predict effective in-job performance) makes a significant difference to the bottom line.

World Class Selection June 2008 Predictive Validity of Selection Methods 1.0 Perfect prediction 0.0 Graphology 0.13 References 0.11 – 0.33 Interviews 0.68 Assessment Centres (Potential) 0.41 Assessment Centres (Current Performance) 0.38 Personality test 0.54 Work Sample & Ability tests

World Class Selection June 2008 Challenge 1: Effectiveness of Current Processes What is the predictive validity of your current selection methods? How close are you to world class standards? What action is being taken to reach these levels?

World Class Selection June 2008 Key Steps to Effective Selection Stage 1: Job Analysis Definition of target competencies and behavioural indicators Developed through job analysis e.g. diary, card sort, critical incident technique, repertory grid method Whole process underpinned by quality of this stage. Yes ease of use is important, but not at the expense of having reliable & valid indicators of effective performance.

World Class Selection June 2008 Challenge 2: How robust is your competency framework? How robust were the methods used to develop your competency framework? Correlations between performance appraisal scores & performance? Are there routine processes for updating framework in light of local evidence & the changing nature of the business?

World Class Selection June 2008 Key Steps to Effective Selection Stage 2: Design of Selection Methods Calling something a robust selection method (e.g. assessment centre) doesnt mean its effective Depends on quality of design Clear link between competency indicators, critical incidents (areas where you get biggest difference in performance between job holders) and exercises/methods used

World Class Selection June 2008 Assessment Centres One of the most effective methods of assessing individual potential & one of the most effective tools for selection Key Features: Objective assessment of most critical competencies & job related behaviours Multi-method, multi-rater selection method – therefore each target competency must be assessed at least twice. Standardised assessment; multiple trained assessors Data integration

World Class Selection June 2008 Example Assessment Centre Matrix Note: The above was designed for a sales role

World Class Selection June 2008 Design & Delivery of an Assessment Centre Define Competency Profiles (identify competencies/behavioural indicators) Define Competency Profiles (identify competencies/behavioural indicators) Design AC Process (exercises & competency matrix) Design AC Process (exercises & competency matrix) Pilot Exercises Finalise Exercises Assessor Training Assessment Centre Delivery Step-by-Step Process: Evaluate Centre Pre-Centre Logistics Feedback Job Analysis & Competency Model Profile Validation

World Class Selection June 2008 Psychometric Tests: Supplementary Evidence Add value to selection process; can increase ability to predict effective in-job performance, whats called additive predictive validity. Two main types of psychometric assessment used for selection purposes: 1) Ability / Aptitude Measures - still one of the most reliable & valid methods of predicting in-job performance for any job role 2) Personality Measures e.g. OPQ32, 16PF5, Hogan - if your going to use an instrument make sure it has good reliability & validity data. Check with Psychometric Testing Centre of the British Psychological Society. NOTE: Not to be used in isolation but to complement additional selection methods

World Class Selection June 2008 Giving Feedback Whatever the selection decision, all candidates should be offered feedback on their performance during selection events – best practice and increases the reputation of your company. This needs to be considered for 3 groups: i.Successful candidates ii.Unsuccessful internal candidates iii.Unsuccessful external candidates

World Class Selection June 2008 Why is Evaluation Important? Evaluating assessment centres is of particular importance but is rarely given the attention it deserves. An assessment centre is costly to develop and run, so it is important to assess whether it is fulfilling its purpose and giving value for money A thorough evaluation can determine which activities are most useful, and which should be altered or omitted altogether In selection events, evaluating the process is the best way to check for unfair discrimination Evaluating assessor performance can help ensure standardised assessment

World Class Selection June 2008 Evaluation The evaluation process could potentially involve 5 key components: 1)Content Validity 2)Concurrent Validity 3)Predictive Validity 4)Exercise Validity 5)Assessor Evaluation

World Class Selection June 2008 Challenge 3: Evaluation of Assessment Centres Are your assessment centres routinely evaluated against these criteria? Do you know how close you are to world class standards?

World Class Selection June 2008 Summary Evidence based selection delivers bottom line benefits Effective selection is central to sales force effectiveness & talent management Cost effective to invest in best practice Need to evaluate effectiveness of system to ensure its delivering ROI; even if it means spending less on delivery

World Class Selection June 2008 Any Questions?