Over the past 30-plus years, businesses have spent bil- lions on talent assessments.
Many of these are now being used
to understand job candidates.
Increasingly, businesses are asking how (or if) a predictive talent
acquisition strategy can include
the use of pre-hire assessments. As
costs of failed new hires continue
to rise, recruiters and hiring managers are looking for any kind of
pre-hire information to increase the
probability of making a great hire.
WHAT IS A REAL PREDICTIVE SOLUTION?
For all of the marketing hype, Predictive Analytics boils
down to three very simple steps.
● First, a system reads “input” data—perhaps assessment
scores or CV information.
● Second, the system does some math to apply a
“predictive model” to the input data.
● Finally, the results of the model are shown as
“output” data of the model—perhaps the likelihood
of the candidate achieving a certain level of Sales
Performance or another KPI. At heart, it takes “inputs”
and turns them into “outputs” or predicted business
outcomes. But to build and validate a model, you need
a healthy, logical set of both input and output data for
that role in your company.
If you are using a talent assessment alone this is just
input data. The talent assessment is just one piece of the
system. For most companies, their current pre-hire talent
assessments are wasted data. Results are delivered in an
individual report that cannot be analyzed or aggregated.
For most “legacy” talent assessments, it’s difficult or
impossible to determine what positive (or negative)
business effect the assessments are having. It often comes
down to the question of “how much the HR person
believes the results”. This is a bad measure of success.
If you’d like to begin a predictive talent acquisition
project using talent assessments, it can be daunting to
figure out what solutions are smoke
and mirrors, and what solutions
will actually deliver a predictive
solution. To help, I wanted to share
important factors to sort through
“pretend predictive solutions” and
“real, rigorous predictive solutions”
that can deliver significant bottom
line results. This decision can
dramatically affect your business’s
bottom line. It’s important.
15 RISKS WHILE SELECTING
A PREDICTIVE TALENT
1. The Predictive Company Itself. Are you dealing with
an assessment company, who is trying to learn how to
be predictive? Or is it a predictive company that also
uses assessment data? How long have they been doing
predictive work? Are they invited to speak at predictive
conferences or at basic HR conferences?
2. Their Predictive Team. Ideally the company will have
Data Scientists on staff as well as IO Psychologists.
This is important because Data Scientists tend to utilize
more modern and rigorous methods for prediction and
validation. IO Psychologists tend to be focused on the
instrument, while Data Scientists tend to be concerned
with predictive validity and business results.
3. Are They Predicting For Your Company, or For
Everyone? There are companies that create “Industry
Benchmarks,” that is, general performance predictions
for general industry categories—such as Retail Sales or
Customer Service. These predictions are significantly
less accurate, because they are based on companies
different from your own, with different cultures, goals,
and regions. Not all “Customer Service” is the same.
4. Do They Care About Your Outcome Data? Generally
these solutions predict attrition or performance for a
candidate or employee. Has the assessment company
asked you for the attrition or KPI data for your
Predictive Pre-Hire Talent Assessment? 15 Risks
BY GRETA ROBERTS