Industrial Organizational, Forensic, and Police Psychology
Of Interest
“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.”
- Charles Darwin
" Chains of habit are too light to be felt until they are too heavy to be broken. "
- Warren Buffett
Demonstrating the Positive Impact of Assessment on Business Performance
Many of our core assessment instruments are from the SHL group. They recently published results of a large study related to the use of psychological assessments and the demonstrated impact on business performance. The results are impressive. For example, here is an excerpt:
According to an independent study by Aberdeen Group, compared to organizations using other solutions, SHL customers using assessments in the pre- and post-hire are seeing:
• 12% increase in revenue and an 11% increase in profit per FTE Times of economic hardship are precisely the moment when a hiring error can be most damaging to an organization. The cost of a "bad hire" or promotion is widely estimated to be between four to five times the annual salary of the position. In other words, a poor hiring decision for a $100,000 per year job costs the organization between $400,000 and $500,000 in losses in productivity, morale, damaged client relationships, etc. in addition to costs associated with recruitment and potential litigation.
• 47% greater improvement in hiring manager satisfaction
• 15% greater performance in first year retention
• 18% greater new-hire performance
To read more, click here: http://www.shl.com/AboutSHL/PressReleases/Pages/Positive_Impact_of_Assessment_Aberdeen_Group.aspx
We highly recommend the book, "Good to Great" by Jim Collins. It reports on the results of an empirical study of why some companies become phenomenal performers while others don't. It is filled with useful and scientifically-based conclusions, such as the following (pg. 63):
"We uncovered three practical disciplines for being rigorous in people decisions:
- When in doubt, don't hire - keep looking. (Corollary: A company should limit its growth based on its ability to attract enough of the right people.)
- When you know you need to make a people change, act. (Corollary: First be sure you don't simply have someone in the wrong seat.)
- Put your best people on your biggest opportunities, not your biggest problems (Corollary: If you sell off your problems, don't sell off your best people.)"
