How does
it work?
Pre-screening and assessment tools have been around in one form
or another for the better part of a decade. It has been within
the last five years, however, that the technology's sophistication
and reliability are at a level that demands the attention of human
resource managers.
Although the technology and methods vary, generally benchmarking works
like this: employers screen all potential employees in terms of
their behavioural attributes, and they then align all new or potential
hires against a benchmark “top
performer” to discover who the best matches are.
PhD
PhD – a program created by a team of experts with over 70 years of
combined experience in employee selection, psychological assessment and
information technology - is ahead of the curve in terms of accuracy and
efficiency. Designed as an in-house procedure, the program does not require
an off-site consultant (which costs more time and money), with the system
standing by itself as a service in recruitment.
Unlike traditional testing instruments and services for employee aptitude
and benchmarking, PhD uses an organization's current employee population
as a template of what to look for in future applications. Clients create
a benchmark of traits possessed by the best workers in any position in
their company, thus defining their own definition of their top performers
instead of depending upon the generic job profile template provided by
traditional testing.
The process
The PhD process begins with a 10-minute, Internet-based assessment
test. This test gives the company a sense of each candidate in terms
of his or her attributes. The key is the test's ability to decipher the
traits and behaviour styles displayed by the company's top performers.
Managers identify a performance outcome goal for the position they are
looking to fill and a candidate’s results are ranked by “percentage
of fit. ”
How can you get the best?
The PhD creaters have researched and developed a mathematical assessment approach
that provides greater predictive validity than other industry method. The system
does this by creating mathematical equations that synthesize particular behavioural
attributes to characteristics that are associated with success in a position.
In general, high performer employees tend to produce better than average
performances on a consistent basis. This consistency of performance
over time indicates that success is neither accidental nor random. Success
is caused by attributes that are possessed by certain employees.
When true causes of success can be identified, predictive co-relationships
between particular attributes and important outcomes (such as sales
volume and retention) can be described by mathematical equations. These
equations can then be used as a selection tool in the workplace to identify
those applicants who are most likely to succeed before they are hired,
transferred or promoted.
Case studies
In one case a client used PhD to solve the problem of a retention problem. The
company had a 56 percent turnover rate in two key positions. By using PhD,
the company created a benchmark that focused on the behavioral attributes associated
with the client's long-term employees. The result? Turnover dropped from 56
percent to 18 percent, saving the client between $4 and $8 million a year in
replacement costs, and the company is now one of Forbes "25 Top Companies."
Another client, auto dealership Drew Ford in San Diego, increased their
average auto sales from 500 to 800 per month since starting with PhD
four years ago. This has worked out to be an increase of sales of over
$380 million, or 67 percent, and the company is now ranked #1 Auto Dealership
in San Diego County.
By using PhD, it was discovered that existing high performer employees
selected by the PhD system sold, on average, 2 to 3 more cars per month
than employees selected by the previous hiring strategy.
This compelling evidence shows how the use of PhD Benchmarks can significantly
reduce early terminations and the replacement costs associated with
them, as well as increasing employee productivity.
The Personnel Department, a leading Human Resources company with
clients in Australia, Canada, the US and the UK, is the current
service provider for PhD.
For more information:
TPD: http://www.tpd-phd.com
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