Assessments 101

How employee assessments improve performance.
 
  Employee Assessments 101

Companies have been assessing their employees since the 1940s when the U.S. military developed surveys to determine whether their pilots were best suited to be long-range bomber pilots or short-range fighter pilots, which are positions that require people with very different personality profiles. Since that inauspicious beginning, thousands and thousands of companies have given behavioral surveys to help them identify the best employes to hire and promote.

  Assessment versus Behavioral Surveying

Employee assessment is the process of identifying which employee is suited for promotion to a specific position, or which new person should be hired as a new employee to fill a specific position. Behavioral surveying or profiling, also known as personality surveying, is the means by which each employee's personality is identified. In addition to using a survey to identify personality, the employer also must take into consideration other factors, such as appearance, education, skills, and employment background.

  How important is the surveying component?

Numerous studies have identified a significant correlation between using behavioral surveys and selecting employees who have superior performance. In one of our recent studies, we did behavioral surveys on the franchisees of a mid-sized franchisor, and also did a job survey in which they identified the profile of what they considered an ideal. The results were absolutely eye-opening. Before having their franchisees do the survey, the franchisor divided them into multiple groups based on the amount of royalties they generated. The employer knew who the best franchisees were in terms of generating royalties, but did not know why they were different.

When we gave each franchisee behavioral surveys, we found a direct correlation between the franchisees who were closest to the ideal profile of a franchisee, and those who had the least ideal profiles. The results are summarized in the table entitled, "Engagement Study of Leading Franchisor." The franchisees with the closest profile to the ideal generated an average of $52,000 of royalties annually, franchisees with what were considered "good" profiles generated an average of $24,000, franchisees with just "fair" profiles generated an average of $14,000, and franchisees with "wrong" personalities generated an average of only $6,500. The franchisor is now surveying new franchisee prospects to help determine their likelihood of success.

  The Bottom Line

Using surveys in the hiring process may be the most important thing a company can do to assure that they put "the right people on the bus." In today's complex business environment, fewer and fewer companies are willing to allow its managers to provide references for employees who leave their company. In addition, online employee ads often brings a flood of resumes. While companies may be able to identify multiple candidates who seem to have the right skills and appearance, the best way they can determine whether the employee has the right personality profile is through surveying.

 
   
 
© ACCORD MANAGEMENT SYSTEMS, INC. 2008