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Recruitment & Selection Project

A Review of Psychometric Testing Techniques used in Recruitment and Selections


Submitted to: Prof. Shailendra Singh Human Resource Management Area, IIM Lucknow
Dated: 23rd August, 2011

Group: 8
Anurag Arora PGP26006 Chhering Paljor PGP26011 Kallol Halder PGP26020 Niven Ekka PGP25030

Contents
Acknowledgement......................................................................................................................................................3 Executive Summary ....................................................................................................................................................4 Background .................................................................................................................................................................5 Traits of a psychometric test ......................................................................................................................................5 Traditional psychometric tests ...................................................................................................................................6 16 PF test ................................................................................................................................................................6 MBTI .......................................................................................................................................................................8 Belbin Team Role Inventory ...................................................................................................................................9 DISC...................................................................................................................................................................... 10 Employment Aptitude Tests .................................................................................................................................... 12 Differential Aptitude Tests for Selection (DAT for Selection).............................................................................. 13 Watson-Glaser Critical Thinking Appraisal (W-GCTA UK) .................................................................................... 15 Ravens Progressive Matrices .............................................................................................................................. 17 Core Abilities Assessment ................................................................................................................................... 18 Criteria Cognitive Aptitude Test (CCAT) .............................................................................................................. 19 The MRAB ............................................................................................................................................................ 21 Criteria Attention Skills Test (CAST) .................................................................................................................... 21 SalesMax Test ...................................................................................................................................................... 22 Case Studies............................................................................................................................................................. 24 Prevue Assessment Company Dramatically Reduces Turnover ....................................................................... 24 SalesMax Case Study Technology Co. (Corporate) ........................................................................................... 25 References ............................................................................................................................................................... 28

Acknowledgement
The Team of Anurag, Chhering, Kallol and Niven would like to sincerely extend their thanks to Prof. Shailendra Singh under whose guidance this review was undertaken and completed. Prof. Singhs treatment of the subject and the emphasis on the practical understanding of the concepts of Recruitment and Selection during the course has definitely stirred a great deal of interest in the subject and has paved the way for clear understanding of the basics of selecting the right candidate for the job. The team would also like to thank Prof. Singh and the batch mates from the class for the enriching discussions on the various Recruiting Strategies and Concepts. The team would also like to acknowledge that this report has been completed after a careful review of the available research papers on Psychometric tests. Wherever dearth of such papers was felt the team fell back on the more unorthodox medium of blogs, websites and review of other material accessible over the internet. This has been duly acknowledged

Executive Summary
The group has done a detailed review of various types of psychometric tests that is been used for recruitment and selection. The personality and aptitude tests which comes under the purview of psychometric test is used extensively to find the right candidate with right skills. As the job requirements are becoming more and more diverse and enlarged, the usage of right kind of test is very necessary. There are traditional psychometric tests which are still being used by various companies due to their efficiency in finding the right skills. There are many new researches done to find the right compatibility between personalities and tests. The various new tests and their usage in finding various kind of person for various jobs are mentioned in the report. The analysis of reliability and the validity of the tests are put together to get the better approach in selecting the right test for recruitment and selection.

Background
Psychometric tests have been used since the early part of the 20th century and were originally developed for use in educational psychology. These days, outside of education, you are most likely to encounter psychometric testing as part of the recruitment or selection process. Tests of this sort are devised by occupational psychologists and their aim is to provide employers with a reliable method of selecting the most suitable job applicants or candidates for promotion. Psychometric tests aim to measure attributes like intelligence, aptitude and personality. They provide a potential employer with an insight into how well you work with other people, how well you handle stress, and whether you will be able to cope with the intellectual demands of the job.

These tests are mainly used by employers to select right candidates for the folowing purposes

Traits of a psychometric test


A psychometric test should be Objective: The score must not affected by the testers' beliefs or values Standardized: Must be administered under controlled conditions

Reliable: Must minimize and quantify any intrinsic errors Predictive: Must make an accurate prediction of performance Non Discriminatory: Must not disadvantage any group on the basis of gender, culture, ethnicity, etc.

Traditional psychometric tests


In this section we discuss about some of the traditional psychometric tests 16 PF MBTI DISC Belbin Team Role

16 PF test
Type: Personality Description This test was developed in the 1940s and refined in the 60s. It attempts to define the basic underlying personality. It is a questionnaire based test and analysis is done using 16 personality factors The 16 factors and their corresponding descriptors are described in below table Factor A B C E F Warmth Reasoning Emotional Stability Dominance Liveliness Descriptors Reserved Less Intelligent Affected by feelings Humble Sober Outgoing More Intelligent Emotionally stable Assertive Happy-go-lucky

G H I L M N O Q1 Q2 Q3 Q4

Rule Consciousness Social Boldness Sensitivity Vigilance Abstractedness Privateness Apprehension Openness to Change Self-Reliance Perfectionism Tension

Expedient Shy Tough-minded Trusting Practical Straightforward Self-Assured Conservative Groupdependent Self-conflict Relaxed

Conscientious Venturesome Tender-minded Suspicious Imaginative Shrewd Apprehensive Experimenting Self-sufficient Self-control Tense

Application areas Selection Development Executive coaching Teambuilding Usage Using all 16 Factors, and a set of descriptions, we can create a pretty accurate picture of someone's personality. Combinations of factors also give a more detailed picture. However, absorbing the data from all 16 factors can get complicated, and in recent years a variation of 16PF called 16PF5 has become more commonplace.

THE 16PF5 MODEL 16PF5 takes the 16 Factors of 16PF and groups them together into 5 overall themes (hence the name). Clearly there is some overlap between the 16 Factors, but narrowing them down to 5

Factors give a much sharper picture of the underlying personality. If we want to know what's behind any one of the 5 Factors we can "zoom in" on the relevant 16 Factors to see what the drivers are. Some of the 16 appear in more than one of the 5 themes, by the way. The Five Factors are: Factor Descriptors Extroverted, socially participative Easily worried and generally tense Resolute and determined Independent and persuasive Structured and inhibited

EXTRAVERSION Introverted, socially inhibited ANXIETY WILL Low anxiety, unperturbed Open minded, receptive to ideas

INDEPENDENCE Accommodating and selfless SELF CONTROL Free-thinking and impulsive

MBTI
Type : Personality Description Jung's typological model regards psychological type as similar to left or right handedness: individuals are either born with, or develop, certain preferred ways of thinking and acting. The MBTI sorts some of these psychological differences into four opposite pairs, or dichotomies, with a resulting 16 possible psychological types. None of these types are better or worse; however, Briggs and Myers theorized that individuals naturally prefer one overall combination of type differences. In the same way that writing with the left hand is hard work for a right-hander, so people tend to find using their opposite psychological preferences more difficult, even if they can become more proficient (and therefore behaviorally flexible) with practice and development. Application areas Individual development Management and leadership development Team building and development Organizational change Improving communication Education and career counseling Relationship counseling

It should not be used for selections there is no absolute right or wrong in the 16 traits. Usage The 16 types are typically referred to by an abbreviation of four lettersthe initial letters of each of their four type preferences (except in the case of intuition, which uses the abbreviation N to distinguish it from Introversion). For instance: ESTJ: extraversion (E), sensing (S), thinking (T), judgment (J) INFP: introversion (I), intuition (N), feeling (F), perception (P)

Belbin Team Role Inventory


Type: Personality Description It is used to place individuals in their most effective team roles. Categories team under 3 roles: Action-oriented roles People-oriented roles Cerebral roles

Nine team positions are formed using these roles Co-coordinator Shaper Plant The Action Group The Completer Finisher this is the detail person within the team. They have a good eye for spotting flaws and knowing where the team is in regards to the schedule. The Implementer this is the practical thinker who can create the systems and processes that will produce what the team needs. The Shaper this is the dynamic team member who loves a challenge and thrives under pressure. This team member possesses the drive to overcome obstacles. Resource Investigator Company Worker/ Implementer Monitor/Evaluator Team Worker Completer/ finisher Specialist

The Social Group The Coordinator this team member ensures all members of the team are able to contribute to the discussions and decisions of the team. Typically mature and confident this member is a good chairperson that clarifies goals, promotes decision making and delegates well. The Resource Investigator this team member is the one who networks for the team. Whatever the team needs this person is the one who is most likely able to get it. The Team Worker this team member is the glue that holds the team together. They are concerned about the relationships within the team. This person is a good listener, co-operative and delegates well. The Cerebral Group The Monitor Evaluator this team member is the strategic planner who tries to see all options and judge them accurately. They use measured analysis and objectivity to keep the team on course. The Plant this team member is the creative and imaginative member who solves the difficult problems. The Specialist this team member brings special knowledge and skills to the team. They are often single-minded, self-starting and dedicated. Application Create balanced working teams: One Co-coordinator or Shaper (not both) for leader A Plant to stimulate ideas A Monitor/Evaluator to maintain honesty and clarity One or more Implementer, Team worker, Resource investigator or Completer/finisher to make things happen

DISC
Type: Personality Description Disc stands for Direct, Influencing, Steady and Compliant behaviors. It was developed in 1920s to understand why people do what they do. It is a simple questionnaire based evaluation.

Disc uses four categories of human behavioral styles "D" for Dominance-Decisive, "I" for Influence "S" for Steadiness or Stability "C" for Compliant, Conscientious, or Cautious

Usage In the DISC model, the full range of normal human behavior is defined by a circle divided into quadrants as described below. Divide a circle in half horizontally. The upper half represents outgoing or fast-paced people. The lower half represents reserved or slower-paced people. Outgoing people tend to move fast, talk fast, and decide fast. Reserved people tend to speak more slowly and softer than outgoing people and they generally prefer to consider things thoroughly before making a decision.

The circle can also be divided vertically. The left half represents task-oriented people. The right half represents people-oriented people. Task-oriented people tend to focus on logic, data, results and projects. People-oriented people tend to focus on experiences, feelings, relationships, and interactions with other people.

Combining these two circles completes the model description...

D: type individuals are outgoing and task-oriented. They tend to be Dominant and Decisive. They usually focus on results and the bottom-line. I: type individuals are outgoing and people-oriented. They tend to be inspiring and influencing. They usually focus on talking and having fun. S: type individuals are reserved and people-oriented. They tend to be Supportive and Steady. They usually focus on peace and harmony. C: type individuals are reserved and task-oriented. They tend to be Cautious and Conscientious. They usually focus on facts and rules. Application areas It is used As a learning tool For career development Training, coaching and mentoring Organizational development and performance

Employment Aptitude Tests


Cognitive aptitude, sometimes called general intelligence, is the single most accurate predictor of employee success. Criteria's employment aptitude tests provide you with a rapid and precise way of measuring the abilities required to succeed in nearly every occupation.

Research shows that cognitive aptitude tests are the best predictor of job success: twice as predictive as job interviews, three times as predictive as experience, and four times as predictive as education level.

Source: Heneman and Judge, Staffing Organizations, 4th ed

Differential Aptitude Tests for Selection (DAT for Selection)


Measure an individual's capacity to succeed in a number of careers Authors: George K Bennett, Harold G Seashore and Alexander G Wesman, 1996 Administration: Individual or Group - 60 to 90 minutes per battery, Paper & Pencil Scoring: Hand Scored, Software Scored Description: The DAT has a history stretching back to 1947 with its original authors being amongst the most prestigious names in the history of psychometric test development. The unrivalled development history of the DAT and the accumulated validity data over more than four decades gives this publication unassailable authority. DAT for Selection builds on previous work carried out by The Psychological Corporation into reliable and valid measures of individual aptitudes and the results have seen the development of a shorter battery of tests with new items and UK norms. DAT for Selection assesses different types of ability, or aptitude, which can be related to success in different areas of employment. Two separate components are available, the General Abilities

Battery and the Technical Abilities Battery, reflecting the different aptitudes required for different areas of employment. The Technical Abilities Battery assesses an individuals relative strengths and weaknesses across aspects of ability considered key to occupational success. The General Abilities Battery combines the following tests together: Verbal Reasoning

How well can you understand ideas expressed in words? How clearly can you think and reason with words?

Numerical Reasoning

How well can you understand ideas expressed in numbers? How clearly can you think and reason with numbers?

Abstract Reasoning

How well can you understand ideas that are not expressed in words or numbers? How well do you think out problems even when there are no words to guide you?

The Technical Abilities Battery combines the following tests together: Numerical Reasoning

How well can you understand ideas expressed in numbers? How clearly can you think and reason with numbers?

Abstract Reasoning

How well can you understand ideas that are not expressed in words or numbers? How well do you think out problems even when there are no words to guide you?

Mechanical Reasoning

How easily do you grasp the common principles of physics as you see them in everyday life? How well do you understand the laws governing simple machinery, tools and bodies in motion?

Space Relations

How well can you visualise, or form mental pictures of solid objects from looking at flat paper plans?

How well can you think in three dimensions?

DAT for Selection has been specifically designed for convenience and simplicity of use. Its high quality format provides for easy administration and enables results to be interpreted quickly and with confidence. In addition, machine-scorable record forms are available to make scoring even quicker and more reliable. You can choose to operate this system or through our Bureau Service.

Validity Studies

Strongly correlated with other well-known aptitude tests such as the GATB (r= .62 to .81 for tests intended to tap similar aptitudes) and ASVAB (r =.73 to .79 for tests intended to tap similar aptitudes) Shown to predict training success (e.g., r = .46 to .48 for computer programmers) and job performance (e.g., r = .24 to .31 for administrative, technical, and engineering employees) for a wide range of occupations

Watson-Glaser Critical Thinking Appraisal (W-GCTA UK)


Measure higher level verbal reasoning abilities Author/s: Goodwin Watson and Edward M Glaser, 2002 Administration: Individual or Group - 40 minutes, Paper & Pencil or On Screen Scoring: Hand scored, software scored Description: The Watson-Glaser Critical Thinking Appraisal UK (W-GCTAUK) measures abilities that have clear relevance for the decision-makers in any organisation. This unique test provides an invaluable assessment strategy for human resource professionals and recruitment specialists involved in the selection and development of managerial and professional staff. This industry standard and highly demanding measure has been updated and improved. An extensive re-norming study with a sample size of over 1500 has produced new UK norms covering: Accountancy Security Services Insurance

Police Services Civil Service Management Consultants

The W-GCTAUK includes problems, statements, arguments and interpretations; processes similar to those encountered on a daily basis in responsible management roles. Five measures of critical thinking contribute to W-GCTAUK assessment: Drawing Inferences Recognising Assumptions Argument Evaluation Deductive Reasoning Logical Interpretation

This test requires consideration of a series of propositions (an inference, an assumption, a conclusion or an argument) relating to a given statement. The candidate's task is to study each statement and to evaluate how appropriate or valid these propositions are. The W-GCTAUK calls for responses to both neutral and controversial items. The controversial items are designed to arouse attitudes, opinions and biases that can interfere with the ability to think critically and refer to political, economic and social issues which frequently provoke strong feelings. Together they provide a broader and more precise assessment of critical thinking skills. This test needs to be administered in a proctored environment to maintain the integrity of the test. Reliability and Validity Watson-Glaser has been extensively validated to provide the most accurate picture available of critical thinkers. Reliability of the new Watson-Glaser Form D Coefficient Alpha = .83 Form E Coefficient Alpha = .81 Validity evidence on the Watson-Glaser Cognitive ability (e.g., r = .60 with WAIS-IV fluid reasoning composite; n = 49) Occupational and educational attainment (e.g., r = .28 with job level; n = 432; r = .33 with education level; n = 581) Job performance (e.g., r = .28 with supervisory ratings of core critical thinking behaviors; n = 68) Attitudes or personality preferences related to critical thinking performance (e.g., for the correlation between Watson-Glaser II Evaluate Arguments and Myers-Briggs Feeling, r = -.27, n = 60)

Ravens Progressive Matrices


Identify problem solving and learning abilities across cultures Author: J C Raven et al, 1998 Age Range: Varying age ranges Administration: Individual and Group - 40 to 60 minutes, Paper & Pencil Competency areas: Problem Identification, Problem Solving, Learning Agility Description: Ravens is a leading global non-verbal measure of mental ability, helping to identify individuals with advanced observation and clear thinking skills who can handle the complexity and ambiguity of the modern workplace. Ravens offers information about someone's capacity for analyzing and solving problems, abstract reasoning, and the ability to learn - and reduces cultural bias with a nonverbal approach. The Advanced Progressive Matrices (APM): Suitable for senior management positions and senior professional and technical positions Differentiates between people at the high end of intellectual ability Contains Set I, with 12 problems, used as a practice or screening test Set II, a 36 problem series that is always administered with Set I The Standard Progressive Matrices (SPM): Suitable for supervisory/entry level management positions and mid-level positions Contains 60 items, split across 5 sets (A - E) Validity Studies Scores correlate highly with other well-respected nonverbal reasoning measures (r = .81 with WAIS Matrix Reasoning) and measures of overall mental ability (r = .74 to .84 with WAIS overall scores) Abbreviated versions of SPM and APM correlate .97 with the original full-length versions Meta-analyses have consistently shown that mental ability measures like the Raven's predict job performance better than any other single predictor

Application Areas Raven's is an ideal assessment for high-level professional in many audiences: Global workforces Public sector and military Management Professionals in virtually every position and industry

Core Abilities Assessment


Administration: 15 minutes, Online Competency areas: Verbal Reasoning, Numerical Ability, Abstract Reasoning With more resumes for an average job than ever before, managers don't need more applicants they need screening tools to quickly identify the best ones. More effective than a phone screen, the Core Abilities Assessment measures an individual's verbal, numerical and abstract reasoning skills - the building blocks for success in any job. The score provides insight into someone's ability to learn and perform on the job. Let Core Abilities guide you to the applicants who should advance to the next stage or interview. Reliability and Validity The internal consistency reliability estimate for the Core Abilities Assessment total raw score was .85 in the standardization sample of 314 individuals. This reliability estimate indicates that the total raw score on the Core Abilities Assessment possesses good internal consistency reliability as provided in the guidelines of the U.S. Department of Labor (1999) for interpreting a reliability coefficient. Content Validity In an employment setting, evidence of content validity is demonstrated by measuring competencies that are required for the job. The competencies measured by the Core Abilities Assessment are required for a broad range of jobs. Convergent Validity Evidence of convergent validity is provided when scores on an assessment relate to scores on other assessments that claim to measure similar traits or constructs. Convergent validity for the Core Abilities Assessment is supported by correlations among Core Abilities Assessment items and the DAT for PCA tests that the items were drawn from. These correlations range from .85 to .90, providing evidence that the abbreviated item sets from the Core Abilities Assessment measure

the same constructs as the corresponding DAT for PCA full-length tests. All correlations are significant at the .001 level. Criterion-Related Validity Criterion-related validity addresses the inference that individuals who score better on an assessment will be more successful on some criterion of interest. Criterion-related validity for the Core Abilities Assessment is supported by three lines of research, including validity generalization, DAT for PCA criterion-related validity studies, and the Core Abilities Assessment standardization study. Application Areas Use the Core Abilities Assessment to screen candidates for entry to mid-level positions across occupations, including: Frontline Supervisors and New Managers Office Managers Customer Service personnel Any entry to mid-level job that requires the candidate to learn new skills quickly in order to succeed in the workplace will benefit from an efficient screening offered by the Core Abilities Assessment.

Criteria Cognitive Aptitude Test (CCAT)


Test Description The Criteria Cognitive Aptitude Test (CCAT) measures an individual's aptitude, or ability to solve problems, digest and apply information, learn new skills, and think critically. Individuals with high aptitude are more likely to be quick learners and high performers than are individuals with low aptitude. The CCAT consists of 50 items; very few people finish all 50 items in the 15 minute time limit. Score Reports Each individual is given a raw score and a percentile ranking. The raw score indicates how many questions (out of 50) the individual answered correctly, while the percentile ranking is a relative performance metric that indicates how the individual scored relative to others who have taken the test. Aptitude as a Predictor of Performance Research shows that aptitude is one of the most accurate predictors of job success: twice as predictive as job interviews, three times as predictive as experience, and four times as predictive as education level.

Validity Information Construct Validity: The CCAT has been shown to be highly correlated to other leading measures of cognitive aptitude.
Predictive Validity: Various studies have shown that CCAT results correlate significantly with job

performance for a wide variety of jobs, but it is an especially effective predictor of performance for jobs that require enhanced abilities in the areas of problem-solving, learning, critical thinking, and verbal and mathematical reasoning. Standardization Sample Norms for the CCAT were developed using a sample of 985 individuals. The sample was made up of working adults aged 18 and older. These individuals were being assessed for employee selection purposes, and represented a mixture of individuals from over 50 companies whose current positions included managerial positions, technical services positions, customer service positions, and sales and sales-related positions. The mean score for the standardization sample for the CCAT is 24.2, the median score is 24, and the standard deviation is 8.58. Mean Scores and Standard Deviations for Various Occupational Samples Type of Sample Applicants for sales associates position at direct marketing company Applicants for marketing representative position at direct marketing company Applicants for software engineer positions at a technology company Incumbent bank tellers at a regional bank Incumbent bank/branch managers at a regional bank Incumbent auditors at claims recovery company Total standardization sample (including all of the above and many other samples) Application Areas CCAT has high predictive validity for: managerial positions software engineers and other technology workers
N 39 74 36 17 18 19 M SD

23.1 6.63 25.1 6.63 25.2 7.35 22.7 7.52 28.1 7.38 26.4 6.15

985 24.2 8.58

financial analysts, Auditors and many others.

The MRAB
Description MRAB is one of the most innovative assessment tools in the world. MRAB is a unique battery of tests created by a research team led by Dr. Stephen Kosslyn (Harvard University).The MRAB, or MiniCog Rapid Assessment Battery, is a series of nine short web-based exercises that measure a person's "information processing" functions. The MRAB differs from traditional "I.Q." tests because it is based on a newer understanding of cognitive competency that is less narrow than the conventional understanding of what constitutes "intelligence." The MRAB tests a subject's attention skills, powers of concentration, working memory, and problem-solving abilities, and can be seen as a kind of "cognitive fitness test," The MRAB takes between 25 and 30 minutes to complete. Application Areas The MRAB tests a subject's attention skills, powers of concentration, working memory, and problem-solving abilities;

Collectively these measures provide a measure of a test subject's "brain fitness."

Criteria Attention Skills Test (CAST)


Description The CAST is a short (9-12 minute) test that measures a person's concentration and ability to sustain focus on one or more tasks while avoiding distractions. The CAST consists of four of the subtests of the MRAB (Divided Attention, Selective Attention: Vigilance, and Selective Attention: Filtering, and Perceptual Reaction Time). Because of its ability to measure concentration skills, the CAST helps predict employee success in a wide variety of positions ranging from skilled manufacturing jobs to casino gaming dealers to video surveillance workers. CAST Details The CAST consists of four sub-tests: Divided Attention, Selective Attention: Vigilance, Selective Attention: Filtering, and Perceptual Reaction Time.

Divided Attention - The Divided Attention test measures a person's ability to "multi-task" or concentrate on two or more things simultaneously. Divided Attention abilities are necessary in positions as diverse as restaurant cooks, police officers, pilots, and air traffic controllers. Examples of jobs for which elevated divided attention abilities are an asset include: cooks in a restaurant, airline pilots, air traffic controllers, and police officers. Selective Attention: Vigilance - The Vigilance task measures a person's ability to maintain concentration on a task for a sustained period of time. Examples of jobs for which selective attention is important include: drivers, security guards (ex. video surveillance), surgical technologists, and gaming dealers. Selective Attention: Filtering - The Filtering Task measures an individual's ability to focus on important information and ignore irrelevant distractions. Together with the Vigilance Task, Filtering provides an indication of the test subject's selective attention, the ability to sustain concentration and ignore distraction-a characteristic important to job performance in a wide variety of jobs. Examples of jobs for which selective attention is important include: drivers, security guards (eg video surveillance), surgical technologists, and gaming dealers. Perceptual Reaction Time - The perceptual reaction time task measures one of the most basic cognitive processes: perceptual reaction time, or the speed at which a person recognizes and responds to a stimulus. Application Areas: Truck Drivers Light or Delivery Services

Security Guards Gaming Dealers Airline Pilots Surgical technologists Police Officers Air Traffic Controllers

SalesMax Test
Description SalesMax is a state-of-the-art, Internet-based pre-employment test that assists and advises in the selection of candidates for professional sales positions. It predicts performance in the sales job

SalesMax was designed and validated with top performers and built around a consultative sales approach. Because it is web-based, it is easy to use in the field and provides immediate testing, evaluation and reporting, giving you access where and when you want it. The SalesMax report provides:

Success Index - The probability of the candidate's success in a sales role. Interview Probes - A set of questions designed by psychologists to ensure that personality gaps identified by the assessment can be verified, so that you don't hire poor sales performers. Management Suggestions - Recommendations for how to manage the candidates if you take them on. SalesMax provides three additional types of information to help evaluate the candidate: Sales Personality - Relatively stable characteristics that do not change easily over time. All are work-related and have direct applicability to sales positions. Sales Knowledge - Evaluates the candidate's understanding of effective behaviours and strategies at key stages of the sales cycle. The emphasis is on consultative and relationshiporiented sales. Sales Motivations - The relative strength of eight sources of personal motivation to help to manage and motivate the candidate, if hired .

Sales personality SalesMax measures personality characteristics that contribute to an individual's effectiveness in the sales role.

Energy Level - Enthusiasm, hard work and visible effort Follow-Through - Completes tasks, while following through on commitments Resilience - Able to handle rejection and criticism Responsibility - Serious minded, businesslike and professional Optimism - Positive, optimistic outlook and weathers adversity well Sociability - Outgoing, enjoys client / customer contact Assertiveness - Possesses a confident sales presence

Plus three secondary factors to help manage the candidate, if recruited:


Self-Reliance Accommodation Positive View of People

Sales knowledge SalesMax measures the candidate's knowledge of effective strategies for various sales situations. Experienced candidates should score well in most of these areas. For the inexperienced or poorly trained candidate, SalesMax helps target training needs. The sales knowledge areas it evaluates are:

Prospecting / Pre-qualifying Probing / Presenting Influencing / Convincing First Meeting / First Impressions Overcoming Objections Closing

Sales motivations The sales motivations section of SalesMax will help you understand the fit between the candidate's motivational needs, your management style, and the rewards available in your company. SalesMax looks at these motivators: Recognition / Attention Money Developing Expertise Security / Stability Control Freedom Affiliation Achievement

Application Areas Used for Sales Positions across various domains like Technology, Insurance, Multimedia etc.

Case Studies
Prevue Assessment Company Dramatically Reduces Turnover
The client in this case was a financial institution specializing in automobile financing and leasing as well as consumer debt consolidation. The collection department struggled under an employee turnover rate of 41.4%. This high turnover rate required the company to be recruiting 365 days a year. The Need First and foremost the company needed to reduce turnover. At the same time they wanted to hire consistently better people without increasing their time or cost to hire. The company had tried several tools and programs to remedy the problem but none had proved successful.

The Solution As the first step in developing a hiring solution team worked with the company to identify the employees who best represented the profile of a top performing Collection Agent. The selected employees were invited to take the Prevue Assessment (Abilities Test, Motivations and Interest Survey and Personality Inventory). At the same time four of the companys best supervisors were invited to complete an online job survey that asked specific questions regarding the demands and expectations of a collection agent. Both the testing of the top performing employees and the completion of the job surveys were administered online using the Prevue Assessment System. Once completed the assessment results of the job incumbents and the surveys from the supervisors were analyzed to provide a Prevue Job Fit Benchmark for the collection agent position within this companys unique environment. This benchmark defined the preferred profile of abilities, interests and personality traits of a collection agent. The company implemented a policy to test every applicant and interview only those who exhibited an 80% match to the benchmark. Further, the hiring manager and her recruiting staff used the Interview questions provided in the Prevue Selection report to focus quickly on areas where an applicant might be challenged by the demands of the position. The Result This revised screening and interviewing process resulted in reduction of the turnover rate for the position to 31% in 6 months. After 18 months the collection department had reduced their turnover to less than 20% and attributed the implementation of the Prevue Assessments System as one of the major contributors to this success.

SalesMax Case Study Technology Co. (Corporate)


Summary: The data from this study shows that Technology Co. sales professionals who score in the BETTER / BEST range on the SalesMax Index achieve better overall sales performance:

Candidates who scored BETTER / BEST averaged TWICE as much gross sales profit as candidates who scored AVOID / OK / GOOD. Candidates who scored BETTER / BEST achieved 10% higher sales targets that candidates who scored AVOID / OK / GOOD.

Case Study The purpose of this study was to test the predictive ability of SalesMax in Technology Co., which is a company, involved in relationship-based sales on large-scale technology implementations. A total of 55 individuals who were hired using the SalesMax survey were included in the sample. Data was collected on objective sales performance (gross profit and sales targets). Confirmation of the predictive power of the SalesMax Sales Personality Index to demonstrate the predictive ability of the Sales Personality Index, the relationship between gross profit sales performance and the survey results was investigated. Gross Profit Sales people who scored in the BETTER / BEST categories averaged twice as much in gross profit sales as those who scored in the AVOID / OKAY / GOOD ranges. (52k vs. 108k)

Gross Profit per day Sales people who scored in the BETTER / BEST ranges averaged virtually twice as much in gross profit sales as those who scored in the AVOID / OK / GOOD ranges. (401 vs. 708)

Percent of Sales Target While the average percentage of Sales Target met for the whole sample was 60%, sales people who scored in the BETTER / BEST ranges had a higher percent of goal than those who scored in the AVOID / OK / GOOD ranges. (53% vs. 63%)

References
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