2012 Global Assessment Trends Report

2012 Global AssessmentTrends ReportSarah S. Fallaw, Ph.D. | Tracy M. Kantrowitz, Ph.D. | Craig R. Dawson, Ph.D.

2 | 2012 Global Assessment Trends Report

Tables

Table 1: Trends in Human Resources 9

Table 2: HR priorities – 2012 10

Table 3: Formality of process in HR areas 12

Table 4: Assessment use by Human 15Resources area

Table 5: Focus of assessment efforts 16by HR area

Table 6: General hiring tool usage 19and plans for use

Table 7: Pre-hire assessment usage 20and plans for use

Table 8: Trends in Human Resources: 22collecting metrics and valuing assessments

Table 9: Business outcomes targeted 23by using pre-hire tests/assessments

Table 10: Business outcomes targeted 23by tests/assessments with employees

Table 11: Recruiting and selection 25via smart phones/mobile devices

Table 12: Use and effectiveness of social 27media for recruiting and hiring

Table 13: Social media used In recruiting 28and hiring

Table 14: Candidate data reviewed 30from social media sites

Figures

Figure 1: Respondents by HQ location 6

Figure 2: Respondents by organisation size 7

Figure 3: Respondents by industry sector 7

Figure 4: HR priorities by region 11

Figure 5: Engagement and development 14strategies

Figure 6: Tests/assessments 17in the hiring process

Figure 7: Remote testing in the hiring process 17

Figure 8: Mobile testing perceptions 26by region – percentage endorsing “yes”

Figure 9: Informal social media searches 29as a hiring tool

Figure 10: Formal social media searches 29as a hiring tool

Figure 11: Percentage of respondents 30currently reviewing social media information by type and region

Executive summary 3

Introduction 5

About the report: methodology 6

and participating companies

Part I: Human Resources focus 8

and landscape in 2012Strategy and opportunity 8Competency models 8Challenges and focus in 2012 8Priorities for HR 9Overview of process and assessments in HR 11Engagement strategies and career development 13

Part II: Assessment use in organisations 15Ways assessments are used 15Business impact of assessments 21

Part III: Technology in testing: 24

mobile devices and social media

About SHL 32Why SHL? 32

Selected references 33

Appendix A: 2009 survey summary 34

Appendix B: 2010 survey summary 35

Appendix C: 2011 survey summary 37

Table of contents

shl.com | 3

The report focuses on organisations’ talent assessment practices with both employees and job candidates.

The Global Assessment Trends Report is an annual indicator of assessment practices, giving HR professionals a comprehensive view of how organisations around the world measure talent across the employee lifecycle.

This year’s report presents the results of an online survey conducted in late 2011 and completed by 481 human resources (HR) professionals employed in companies headquartered throughout the world. The report focuses on organisations’ talent assessment practices with both employees and job candidates. As in previous reports, pertinent comparisons are drawn to results of the prior years’ Global Assessment Trends Reports to identify trends over time.

The report concentrates on three areas: the HR focus and landscape in 2012, the nature of assessment use in organisations, and the use of technology in HR processes. Key findings from the report are listed below:

Human Resources focus and landscape in 2012

Key finding 1: The relationship between People Intelligence and business outcomes has room to grow

• More than 80% of respondents said their organisations link talent decisions to broader business objectives and goals.

• However, less than half indicated that their organisations use information about their talent to drive overall business decisions.

Key finding 2: A focus on engagement and leadership in 2012

• A majority of respondents indicated that engagement/retention (56%) and leadership development (55%) were top priorities for 2012, with nearly 70% of respondents indicating their organisations had formal, or both formal and informal processes in place for such initiatives.

Key finding 3: Giving up on career development?

• Despite the focus on engagement in 2012 and the finding that more than half of companies indicated focusing more on internal talent than hiring externally, just over a third of HR professionals cited career development as a top priority. Likewise, fewer HR professionals than in 2011 are using it as a retention strategy and fewer are offering a formal way for employees to find new careers internally.

Executive summary


Executive summary

Assessment use in organisations

Key finding 4: Hiring internally and externally continues to be the most prevalent use of assessments, however there is significant post-hire use

• More than 70% of organisations currently use assessments for external hiring, and over 60% use them for internal hiring.

• Post-hire use includes training (47%), leadership development (45%) and career development (39%).

• Top plan-to-use areas: workforce planning/talent analytics and career development.

Key finding 5: Talent measurement focus: current behaviours and potential

• Most HR professionals use either current behaviours or future potential as the focus of their assessment efforts versus examining relevant past experiences. Assessing past performance and experiences was cited by less than 30% for each of 14 key HR areas.

Key finding 6: Linking assessments to business outcomes

• Most respondents indicated using assessments to impact overall productivity of their workforce, but a little more than half indicated collecting metrics to assess impact.

Technology in testing: mobile devices and social media

Key finding 7: Asia leading the way in desire to use smart phones/mobile devices in recruiting

• Mirroring usage data, HR professionals in Asia indicated a higher desire to use smart phones/mobile devices in recruiting and also indicated a greater number of candidates requesting to take assessments via such devices as compared to their counterparts in Europe and the Americas.

Key finding 8: Increased allowance and perceptions of effectiveness of social media

• More companies are allowing the use of social media in recruiting and hiring as a review tool, but little change in formal policy about the use of it.

• Likewise, social media is growing in terms of acceptance, as perceptions of it being an effective tool for recruiting candidates grew 10 percentage points.

shl.com | 5

The global economy continues to relapse and recover from the chaotic financial conditions of the past several years. With turmoil continuing in key economies and even protests against some corporations around the world, companies must engage their workforces and recruit the best talent in an increasingly competitive market while maintaining a positive corporate image. Organisations are realising the potential for a talent exodus and are seeing the advantages of building talent in-house1. The focus on talent has never been greater and is magnified by:

• An aging workforce, with high numbers of retiring “baby boomers” (10,000 per day in US alone)

• A critical shortage of 35-50 year olds to replace them

• A fast pace of change in marketplace, and an uncertain future

• A changing business landscape requiring new skills

How can organisations simultaneously attract new talent and engage their current workforce? How do organisations know levels of internal talent and use it to their advantage? Does this talent truly make a difference? Can practitioners leverage technology to take advantage of the unique talent pools outside of their own country?

Companies that will have continued success despite ever-changing economic conditions have a culture that focuses on employees, as this culture shows through to customers2. Well-run organisations with a clear understanding of their internal talent may adapt and thrive better than their competitors. This depends on their ability to capitalise on the knowledge, skills and abilities of their respective workforces and recruit to supplement their current talent pool. Effective talent management starts with People Intelligence3 – a deep understanding of the skills, behaviours and potential within an organisation and how they align to current and future business objectives. We also see an increased appetite for talent analytics, which enables organisations to compare their talent with that of other organisations (by industry, country or globally).

This fourth annual Global Assessment Trends Report presents the results of an online survey conducted in late 2011 with 481 HR professionals employed with companies headquartered throughout the world4. This year’s report focuses again on organisations’ talent assessment practices with both employees and recruits/candidates. The 2012 report follows up on perspectives regarding social media in hiring and testing via smart phones/mobile devices. As in previous reports, pertinent comparisons are drawn to results of the prior years’ Global Assessment Trends Reports5 to identify trends over time. In each section, we provide an overview of our findings as well as commentary related to the trends.

“ One in four CEOs said they were unable to pursue a market opportunity or have had to cancel or delay a strategic initiative because of talent challenges. One in three is concerned that skills shortages will impact their company’s ability to innovate effectively.” PWC, Annual CEO Survey, Feb 2012

Introduction

1. Manpower, 2011b; O’Leonard, 2011.2. Busser, 2011.3. Bersin & Associates, September 2011.4. Note that in previous years, the Global Assessment Trends Reports have reported results based on number

of companies, allowing one respondent to represent each company (note that this typically eliminated only 5-8 respondents total). This year, we report our findings based on number of HR professionals, or number of respondents. Although comparisons are made to previous years’ findings, we believe that the comparisons are appropriate because so few respondents were eliminated previously.

5. Key Findings of the 2009, 2010 and 2011 Global Assessment Trends Reports are located in Appendices A, B and C, respectively.


The 2012 report is based on data from an online survey of 481 Human Resources (HR) professionals representing organisations who work with SHL and/or its affiliates. The survey was conducted in November and December 2011.

Most respondents indicated their companies are headquartered in Europe, Africa or the Middle East. Approximately 23% of respondents indicated their companies are headquartered in the United States, while the remaining companies are headquartered in China, the United Kingdom, Australia, the Netherlands, South Africa and other locations (Figure 1). As in previous years’ surveys, respondents represented a variety of company sizes and industries (see Figures 2 and 3). Most respondents report into a Human Resources function within their organisations and represent a variety of roles including HR or staffing managers, HR leadership and HR generalists.

Figure 1: Respondents by HQ location

About the report: methodology and participating companies

23%24%

19%

16%

7%

6%

5%

Netherlands

South Africa

Other

United States

China

United Kingdom

Australia

shl.com | 7

Respondents represented a wide cross-section of organisation size, location and industry sector.

Figure 2: Respondents by organisation size

16%

5%

21%

11%

19%

9%

2%

17%

Figure 3: Respondents by industry sector

4%6%

8%

3%3%

4%

16%

18%

6%

6%

3%

23%

Educational services

Financial

Government/public administration

Healthcare insurance

Information

Insurance

Manufacturing

Professional services

Retail

Staffing

Telecommunications

Other

1,000-4,999

5,000-9,999

10,000-12,000

Over 12,000

0-49

50-99

100-499

500-999

About the report: methodology and participating companies


Key finding 1: The relationship between People Intelligence and business outcomes has room to grow

• More than 80% of respondents said their organisations link talent decisions to broader business objectives and goals.

• However, less than half indicated that their organisations use information about their talent to drive overall business decisions.

Key finding 2: A focus on engagement and leadership in 2012

• A majority of respondents indicated that engagement/retention (56%) and leadership development (55%) were top priorities for 2012, with nearly 70% of respondents indicating their organisations had formal, or both formal and informal processes in place for such initiatives.

Strategy and opportunityTable 1 shows that nearly three-quarters of respondents believe HR is viewed as strategic within the organisation. However, while more than 80% of respondents said their organisations make talent decisions based on the broader organisation objectives and goals, less than half indicated that their organisations use information about talent to drive overall business decisions. This signals an opportunity to connect HR data to overall business decisions.

Competency models As an overarching model for performance, competency models are often used as the basis for job descriptions, hiring and training criteria and leadership development programmes. About half of respondents indicated that competency models are used effectively and as the basis for HR areas (see Table 1). Specifically, nearly 60% of companies indicated they are used as the foundation for job descriptions and qualifications, while less than 50% indicate that HR decisions are made based on such models. A little over 40% of respondents indicated that these models are being used effectively as part of the overall employee lifecycle.

Challenges and focus in 2012As in years past, over 50% of companies reported focusing on internal roles in 2012 versus outside hiring, and less than 40% of companies indicated recruiting for more roles in 2012 versus 2011. Nearly 65% of companies indicated that recruiting and hiring top talent will be challenging in 2012. This continued concern over the war for talent has been echoed in other survey results,6 and highlights the ongoing need to both attract and retain talent, which will be discussed later in the report.

Part I: Human Resources focus and landscape in 2012

6. Jobvite 2011

shl.com | 9


Employees around the world are less engaged. Mercer, What’s Working, 2012

Table 1: Trends in Human Resources

Yes

My organisation views HR as a strategic function 74%

My organisation considers people decisions (hiring, promotion) in the context of business objectives

83%

My organisation uses information about talent to make business decisions 48%

Our organisation’s competency model is being used effectively as part of our overall employee lifecycle (from hiring to development to promotion)

43%

Our competency model serves as the basis for our job descriptions and required qualifications

57%

We base all assessment programmes for selection, promotion and/or development on our competency model

48%

In general, my organisation is focusing more on developing talent internally than on hiring externally

53%

We are currently recruiting for more open positions organisation-wide as compared to last year

39%

We expect it will become increasingly challenging to recruit and hire talented individuals for key positions in the coming year

64%

Priorities for HRWe begin the look at assessment trends by examining the priorities for HR in 2012. Assessment occurs in the broader context of the organisation at large, and other HR initiatives, specifically. We focused on 14 different areas of interest to determine the broader context for assessment use in 2012. Respondents were asked to indicate whether each area was a top, medium or low priority for their organisation in 2012.

In 2012, a majority of HR professionals around the world indicated that engagement/retention (56%) and leadership development (55%) were top priorities (see Table 2). These findings were similar across regions (see Figure 4). Clearly, HR professionals recognise the need for a focus on keeping talent within their organisations, and for good reason. According to Mercer’s “What’s Working” research, employees around the world are less engaged and the reasons for being disengaged appear to vary by country/ region,7 a particularly challenging prospect for those who manage global workforces.

Workforce planning/talent analytics and performance management tied for the third spot, both being endorsed as top priorities by more than 40% of respondents. Planning/talent analytics, specifically, has been cited as a key growth/trend area by analysts who demonstrate that companies have these data on hand, but need a focused area around analysis to harness the capability of available data.8 Indeed, Manpower cited this as “manufacturing” talent – a strategy to examine talent within the current workforce in order to leverage talent in a new way: anticipating talent needs and having an accurate perspective of workforce talent versus reacting to talent shortages with short-term fixes.9

7. Mercer 2012 8. Bersin 2011 9. Manpower 2011



Table 2: HR priorities – 2012

HR initiative/areaTop priority

%Rank

Engagement/retention 56% 1

Leadership development 55% 2

Workforce planning/talent analytics 43% 3

Performance management 43% 4

Training 40% 5

Succession planning 40% 6

Change management 38% 7

External hiring (including recruitment) 37% 8

Career development 36% 9

Internal hiring (including promotion) 33% 10

Creating/implementing competency model(s) 27% 11

Restructuring 25% 12

Onboarding 19% 13

Outplacement/redeployment of talent 14% 14

shl.com | 11


Overview of process and assessments in HRWe asked participants to indicate the level of formality associated with various HR functions within their organisations (Table 3). External hiring and performance management were the most formal of the processes examined, while respondents indicated that change management, succession planning and outplacement were the most likely areas to use informal processes, or no processes.

Comparing the findings regarding HR priorities to the extent to which processes are in place to support such priorities reveal some interesting findings. For instance, while engagement/retention was found to be the top HR priority, only 19% of respondents indicated having a formal process in place to support this initiative, and under half of all respondents indicated having both formal and informal processes. Similarly, only 22% of respondents indicated having a formal process in place for leadership development, the second HR priority. Just under half of all respondents indicated having both formal and informal processes to support leadership development.

Figure 4: HR priorities by region

1. Competency models

2. Workforce planning/talent analytics

3. Engagement/retention

4. Change management

5. Restructuring

6. External hiring (including recruitment)

7. Internal hiring (including promotion)

8. Onboarding

9. Training

10. Performance management

11. Career development

12. Leadership development

13. Succession planning

14. Outplacement/redeployment of talent

0

Per

cen

tag

e

10

20

30

40

50

60

70Asia/Australia/NZ

Europe/ME/Africa

Americas

1 2 3 4 5 6 7 8 9 10 11 12 13 14



Table 3: Formality of process in HR areas

HR initiative/areaFormal process

Formal & informal

processes

Informal processes

No process

Creating/implementing competency model(s) 33% 36% 17% 15%

Workforce planning/talent analytics 21% 42% 23% 14%

Engagement/retention 19% 41% 26% 13%

Change management 17% 38% 24% 21%

Restructuring 30% 32% 18% 20%

External hiring (including recruitment) 71% 24% 3% 1%

Internal hiring (including promotion) 52% 38% 8% 3%

Onboarding 50% 28% 10% 12%

Training 47% 43% 8% 2%

Performance management 64% 25% 7% 4%

Career development 17% 44% 26% 13%

Leadership development 22% 47% 18% 12%

Succession planning 23% 35% 23% 19%

Outplacement/redeployment of talent 29% 31% 13% 27%

shl.com | 13


Three areas that make the biggest impact on business are development planning, talent mobility and career development expertise.

Engagement strategies and career development

Key finding 3: Giving up on career development?

• Despite the focus on engagement in 2012 and the finding that more than half of companies indicated focusing more on internal talent than hiring externally, only 36% of HR professionals cited career development as a top priority. Likewise, fewer HR professionals than in 2011 are using it as a retention strategy and fewer are offering a formal way for employees to find new careers internally.

Providing internal career opportunities can help organisations keep top talent from seeking those opportunities elsewhere. Contrasting our findings from 2011, fewer organisations, nearly 60%, indicated using career development as a means of affecting retention. Likewise, formal career development programmes were only used by a little more than one-fourth of respondents (see Figure 5).

Are companies giving up on career development? If organisations believe that engagement is a top priority for their companies (see key finding 2), formal career development programmes are crucial to demonstrating to their workforce that career opportunities exist within their organisations. With only 30% of respondents indicating that career paths exist in their organisations for all jobs, it is not surprising that engagement is low. Best-in-class organisations are offering such programmes to their employees, and for good reason, as some experts find that three areas that make the biggest impact on business are development planning, talent mobility and career development expertise.10

However, these findings may not indicate a shift away from career development per se, but a realisation that the contingent workforce is growing within their organisations.11 Likewise, most analysts believe there will be a resurgence in career development strategies as companies leverage social media and mobile technology to stay engaged with their employees and provide more agile technology to accomplish career-related goals.12 A little over half of respondents indicated using assessments to uncover developmental needs within their workforces – an area that could be improved in order to “manufacture” talent.13

10. Bersin, 2011 11. McIllvane, 2011 12. Bersin, 2011 13. Manpower, 2011b


Figure 5: Engagement and development strategies

1. We use career development as a retention strategy

2. My company has a formal career development programme for all employees

3. We have a formal career development programme that employees can choose to participate in (versus an invite-only programme)

4. We have a formal process in place to help employees find new careers internally

5. We have created career paths for most or all of our job families

6. My organisation uses assessments to uncover developmental areas for employees

0

Per

cen

tag

e

10

20

30

40

50

60

70

80

321 4 5 6

2011

2012


shl.com | 15

Organisations can benefit from the use of assessments when undergoing restructuring.

Ways assessments are used

Key finding 4: Hiring internally and externally continues to be the most prevalent use of assessments, however there is significant post-hire use

• More than 70% of organisations currently use assessments for external hiring, and over 60% use them for internal hiring.

• Top plan-to-use areas: workforce planning/talent analytics and career development.

When measuring the talent within a company, HR professionals have a wide variety of choices. However, the best assessments, measurements of talent that can help guide decision-making and lead to demonstrable results, are those that are both well-designed and well-researched to ensure they are valid, useful tools.

Not surprisingly, more than 70% of organisations currently use assessments for external hiring, and over 60% use them for internal hiring (see Table 4). In terms of plans to use assessments, the top HR areas include workforce planning/talent analytics and career development. More than half of respondents indicated that they had no plans to use assessments for change management, restructuring of the organisation or outplacement/redeployment of talent.

Despite these findings, organisations can benefit from the use of assessments when they undergo restructuring: examining potential of current employees or providing interest measures to identify new areas for which current employees may be well-suited can be accomplished using assessments.

Table 4: Assessment use by Human Resources area

HR initiative/areaNo plans for assessments

Plan to use in near future

Currently use

Creating/implementing competency model(s) 35% 29% 36%

Workforce planning/talent analytics 37% 34% 30%

Engagement/retention 38% 30% 32%

Change management 57% 25% 18%

Restructuring 53% 21% 27%

External hiring (including recruitment) 11% 19% 71%

Internal hiring (including promotion) 16% 22% 62%

Onboarding 49% 19% 33%

Training 30% 24% 47%

Performance management 32% 25% 42%

Career development 28% 33% 39%

Leadership development 25% 30% 45%

Succession planning 37% 32% 31%

Outplacement/redeployment of talent 53% 22% 25%

Part II: Assessment use in organisations



Key finding 5: Talent measurement focus: current behaviours and potential

• Most HR professionals use either current behaviours or future potential as the focus of their assessment efforts versus examining relevant past experiences. Assessing past performance and experiences was cited by less than 30% for each of 14 key HR areas.

When making decisions about employees – both potential and current – the focus of assessment efforts may be on their current performance, their potential or their past performance in other roles. There are benefits from examining all three – a comprehensive talent analytics strategy that includes past experiences, current performance and potential.

Most organisations focused on current behaviours of their talent in an assessment context, particularly for onboarding of new employees and for performance management (see Table 5). Future potential of employees was the focus of most leadership-focused areas, including career development, leadership development and succession planning.

Fewer than 30% of organisations focused assessment areas on past performance. While this makes sense for most areas of HR, including those that are primarily related to current behaviours on the job like performance management, some areas could benefit by examining the past performance of employees in various roles.14

Table 5: Focus of assessment efforts by HR area

HR initiative/areaPast

performanceCurrent

behavioursFuture

potential

Creating/implementing competency model(s) 20% 49% 31%

Workforce planning/talent analytics 13% 39% 47%

Engagement/retention 15% 57% 28%

Change management 14% 53% 34%

Restructuring 20% 42% 38%

External hiring (including recruitment) 28% 38% 34%

Internal hiring (including promotion) 21% 40% 39%

Onboarding 18% 65% 17%

Training 10% 56% 35%

Performance management 23% 64% 13%

Career development 7% 26% 67%

Leadership development 7% 26% 67%

Succession planning 6% 23% 71%

Outplacement/redeployment of talent 20% 56% 24%

14. Mael, 1991

shl.com | 17


The Talent Pool: using assessments for hiring

Organisations have a wide variety of choices to make when it comes to the way in which candidates are selected. However, not all assessments are created equal nor are they all appropriate for each human resource decision. The best assessments, those that provide demonstrable benefits to organisations, are those that are well-designed, valid measures of characteristics important to job performance. In addition to time and cost, companies must carefully consider the performance of their hiring tools (i.e. links to metrics that are important to the company) when designing their hiring process. Cognitive ability, personality, work samples and other tests have been shown to consistently predict job performance,15 while others, such as handwriting analysis, have little scientific support. Best in class organisations use tests that have been proven to predict key metrics within their companies, such as turnover, performance and sales revenue.

As in years past, we found that the majority of companies use some sort of test as part of their hiring practices (75%; see Figure 6). More than 60% of HR professionals indicated their companies allow remote testing – testing from a non-company location, without direct supervision from a test administrator, such as the candidate’s home or a library (see Figure 7).

Figure 6: Tests/assessments in the hiring process

75%

16%

9%

Figure 7: Remote testing in the hiring process

64%

14%

22%

Yes

Unsure

No

Yes

Unsure

No

15. Schmidt & Hunter, 1998



Situational judgement tests are becoming more popular with 70% of respondents either using or planning to use them.

As in years past, most companies use résumé screens, structured interview guides, reference checks, pre-screening questions and application forms as part of their hiring practices (see Tables 6 and 7). These traditional hiring tools are used or will be used by more than 82% of respondents, and indeed, the first three (résumé screens, structured interview guides, reference checks) are used or will be used by 90% or more of companies. However, as noted by Bersin & Associates,16 HR is typically inundated with applications and résumés: 144 résumés per job for hourly roles, and 90 per job for white-collar roles. With this barrage of personal information on candidates, companies are increasingly interested in, and using, assessments as part of their hiring process.

As in 2011, the top five used or soon to be used assessments include skills/knowledge tests, cognitive ability tests and personality tests, as well as job fit tests (see Table 15). More than 90% of companies indicated they use or plan to use tests that measure skills and knowledge. Similarly, around 85% of respondents indicated using or planning to use broad tests in their hiring processes, including personality tests and/or cognitive ability tests. Unlike last year, situational judgement tests rose into the top five, being used or having plans to be used by 70% of respondents.

Frequently used hiring tools – top 5 lists

General hiring tools Assessments

• Résumé review/screen

• Structured interview guides

• Reference checks

• Pre-screening questions (minimum qualifications questions)

• Application forms

• Skills/knowledge tests

• Personality tests

• Cognitive ability/general problem solving tests

• Job fit tests

• Situational judgement tests

16. O’Leonard, 2011

shl.com | 19


Table 6: General hiring tool usage and plans for use

2009 2010 2011 2012

Hiring tool Total Rank Total Rank Total Rank Totals Rank

Plan to use

Use Total

Résumé review/screen 95% 2 96% 1 94% 1 5% 90% 95% 1

Structured interview guides 85% 5 84% 7 94% 1 11% 80% 91% 2

Reference checks – – 93% 2 90% 3 12% 78% 90% 3

Pre-screening questions (minimum qualifications questions) 93% 3 92% 3 84% 4 12% 71% 83% 4

Application forms – – 89% 5 84% 4 5% 77% 82% 5

Background checks17 98% 1 92% 4 83% 6 10% 71% 81% 6

Phone screens (person to person or IVR) 88% 4 86% 6 77% 7 9% 69% 78% 7

Work samples/Assessment centres 59% 6 67% 9 71% 8 21% 50% 71% 8

Social media searches – Informal – – 69% 8 67% 9 24% 47% 71% 8

Social media searches – Formal – – 54% 12 51% 10 24% 34% 58% 10

Unstructured interviews 44% 7 61% 11 50% 11 9% 42% 51% 11

Credit checks – – 53% 13 43% 12 13% 28% 41% 12

Drug screens – – 62% 10 41% 13 7% 27% 34% 13

17. Note: In 2009, this was combined to read “Background checks, drug screens.”



Table 7: Pre-hire assessment usage and plans for use

2009 2010 2011 2012

Assessment types Total Rank Total Rank Total Rank Totals Rank

Plan to use

Use Total

Skills/knowledge tests 85% 2 84% 1 84% 1 11% 80% 91% 1

Personality tests 66% 8 68% 4 78% 3 17% 69% 86% 2

Cognitive ability/general problem solving tests 85% 1 74% 2 79% 2 15% 70% 85% 3

Job fit tests 76% 7 62% 6 68% 4 20% 56% 76% 4

Situational judgement 68% 7 67% 5 63% 5 24% 46% 70% 5

Specific ability tests 84% 3 73% 3 58% 8 14% 55% 69% 6

Culture fit tests 59% 9 52% 9 55% 9 27% 42% 69% 6

Job simulations 70% 6 56% 8 60% 7 26% 42% 68% 8

Job-specific solutions 82% 4 62% 7 63% 5 23% 42% 65% 9

Biodata (life history information) 43% 11 36% 11 52% 10 7% 48% 55% 10

Interest assessments 50% 10 42% 10 45% 11 17% 28% 45% 11

shl.com | 21


Business impact of assessments

Key finding 6: Linking assessments to business outcomes

• Most respondents indicated using assessments to impact overall productivity of their workforce, but a little more than half indicated collecting metrics to assess impact.

As a cost centre, HR professionals know they must demonstrate the value of their initiatives. Effective use of assessments can provide practitioners with data that demonstrate the value of their processes, but the data are only as good as the measures used to gather them. In many cases, professionals have demonstrated that the use of assessments for hiring and/or promotion has led to increases in revenue, performance and retention. This is highlighted in SHL’s Business Outcomes Study Report.18

We asked respondents to respond to a variety of statements related to examining the value of their workforce initiatives. The results were similar to those of last year: slightly less than 50% of respondents indicated they collect metrics to demonstrate the value of their initiatives, and slightly more than half of respondents indicated collecting metrics to examine the value of tests to the hiring process and using those results to change and/or improve hiring (see Table 8). Slightly fewer respondents indicated collecting metrics (42%) and/or linking those metrics to developmental programmes within their organisations (45%) as compared to those that collect and examine metrics for hiring. Most HR professionals believe that testing candidates is valuable in the hiring process (89%; see Table 8).

18. SHL, 2011



Respondents named performance ratings as the key metric to be linked to assessments.

Table 8: Trends in Human Resources: collecting metrics and valuing assessments

Per cent endorsing

Survey statement 2011 2012

We collect metrics to show the value of our HR investments 51% 46%

Testing candidates is a valuable part of the hiring process 94% 89%

We collect metrics to determine how assessments add value to the hiring process19 52% 51%

We have/will change(d) or enhance(d) our hiring process(es) based on examining the success of the programme via business metrics 60% 54%

We link assessment results from employee development efforts to business outcomes to evaluate their effectiveness – 45%

We collect metrics to determine how assessments add value to our development programme(s) – 42%

Assessments are an effective way to pinpoint employee engagement issues – 54%

My organisation views assessments as a critical component of any promotion and/or development programme – 62%

What metrics are organisations focusing on when using assessments? For pre-hire assessments, we saw a shift this year in rank of various business outcomes: in 2012, respondents indicated productivity was the main metric targeted, followed by retention and performance ratings (see Table 9). For employee-focused initiatives, respondents named performance ratings as the key metric to be linked to assessments, followed by retention and productivity (see Table 10). While performance ratings are important to help provide information on the relative performance of employees, they are more difficult to link to monetary value for the organisation. In order to ensure continued support and success of an assessment programme, linking assessment scores to performance areas such as sales revenue or production can be beneficial.

19. In 2011, this statement read “how tests” instead of “how assessments.”

shl.com | 23


Table 9: Business outcomes targeted by using pre-hire tests/assessments

2010* 2011 2012

Business outcomePer cent

endorsingRank

Per cent endorsing

RankPer cent

endorsingRank

Productivity 47% 2 56% 2 60% 1

Retention (or turnover) 52% 1 57% 1 58% 2

Performance ratings 38% 4 47% 4 53% 3

Process efficiency (e.g. cost per hire, time to hire) 44% 3 52% 3 50% 4

Training effectiveness/cost 24% 5 31% 5 34% 5

Financial metrics (e.g. sales revenue, shrink/loss) 16% 7 28% 6 34% 6

Legal compliance 19% 6 17% 7 21% 7

We do not target any specific metrics or business outcomes with our pre-hire tests

9% 8 14% 8 17% 8

* Note: In 2010, Quality of Hire was included and was ranked #1. QOH is typically thought of as a combination of business outcomes and was not included in the 2011 or 2012 surveys.

Table 10: Business outcomes targeted by tests/assessments with employees

2012

Business outcomePer cent

endorsingRank

Performance ratings 62% 1

Retention (or turnover) 57% 2

Productivity 57% 2

Training effectiveness/cost 45% 4

Financial metrics (e.g. sales revenue, shrink/loss) 36% 5

Process efficiency (e.g. cost per hire, time to hire) 33% 6

We do not target any specific metrics or business outcomes with our assessments 18% 7


Key finding 7: Asia leading the way in desire to use smart phones/mobile devices in recruiting

• Mirroring usage data, HR professionals in Asia indicated a higher desire to use smart phones/mobile devices in recruiting and also indicated a greater number of candidates requesting to take assessments via such devices as compared to their counterparts in Europe and the Americas.

Smart phone technology is increasingly changing the way organisations interact with potential candidates. Initial interactions between organisations and candidates are occurring over mobile-enabled career sites and applicant tracking systems (ATSs). Whether it is considered a competitive advantage to test candidates via such devices due to expediency or if it is simply a convenience in the hiring process, testing via smart phones/mobile devices is of growing interest to HR professionals.

The 2012 survey again focused on the use of smart phones/mobile devices to test candidates. While the use of these devices is growing dramatically,20 their use as a means to complete hiring tests (versus completing pre-screening questions or application forms) is relatively unknown. Compared to 7% in 2011, 14% of HR professionals indicated that their human resources information systems (HRIS) can be accessed through such devices (see Table 11). Likewise, we saw a small increase in the number of HR professionals indicating that recruiter access to candidate data on these devices would make their processes more efficient. In terms of requests to have such technology available, we also saw an increase from both recruiters and candidates.

We also asked participants to comment on the appropriateness of using smart phones/mobile devices in hiring: around half of HR professionals were unsure if testing via mobile devices was unfair, would encourage cheating or is inappropriate. These findings highlight the caution associated with the use of this new technology for decision-making purposes in hiring. There was a slight increase in the percentage of respondents who would allow candidates to take tests via smart phones/mobile devices. This year, we asked if additional research (e.g. research regarding fairness and/or validity of using such devices) would increase this number, and found a very small increase in companies who would allow the use of such devices if research supports it (38% of respondents would allow it versus 42% who would allow it if research existed to support it).

The potential challenges with testing via smart phones/mobile devices may prohibit and/or dissuade the use of such technology by some organisations. Such challenges may include fairness in access to tests via mobile devices, uncertainty over the equivalence between online and mobile versions of a given test, concerns about the increased potential for cheating, and the potential technological challenges related to the administration of such a test.21

Regardless of hesitancy about new technology, we anticipate that as smart phone /mobile device use increases and the technology becomes more sophisticated, companies will need to use this technology to compete effectively in the war on talent – engaging recruits and candidates early in the hiring process and providing real-time information to recruiters and hiring managers. The best use of such technology must be tempered with using assessments that are most appropriate for the medium.

Part III: Technology in testing: mobile devices and social media

20. Deloitte, 2011 21. Fallaw & Mattocks, 2011

shl.com | 25


Table 11: Recruiting and selection via smart phones/mobile devices

2011 2012

No Unsure Yes No Unsure Yes

Our human resources information systems (HRIS) systems are accessible via smart phones/mobile devices

70% 23% 7% 65% 21% 14%

Recruiter access to candidate information (e.g. application forms, assessment scores) via smart phone/mobile devices would make our hiring process more efficient

35% 40% 25% 38% 29% 32%

Recruiters and hiring managers are requesting to have mobile access to candidate information 69% 23% 9% 54% 24% 22%

Candidates are requesting to complete application forms and/or assessments on their mobile devices

67% 24% 9% 53% 28% 19%

We would allow candidates to complete assessments via smart phones/mobile devices today if such an option existed

33% 34% 33% 32% 30% 38%

We would allow our candidates to complete assessments on smart phones if there was research showing how assessment scores compare to taking assessments on computers

– – – 22% 36% 42%

It may be unfair to allow candidates to complete assessments via smart phones – – – 27% 50% 23%

Allowing candidates to use mobile devices to complete assessments would encourage cheating

– – – 25% 56% 20%

Allowing candidates to use mobile devices to carry out assessments is inappropriate – – – 30% 47% 23%

Global comparison: mobile testing by region

Given the variations in smart phone usage and ownership around the world, we present data by geographic region. Indeed, China leads the world in mobile phones in use, followed by India, the United States, Indonesia, Brazil and Russia.22 We examined regional differences in perceptions and use of mobile testing by examining how respondents felt about access and appropriateness by region (see Figure 8). Recruiters are requesting more access to candidate information via their mobile devices in Asia as compared to the other regions. This mirrors the findings related to mobile access in this region, as noted above. Likewise, candidates are requesting the ability to complete application forms and/or take assessments on mobile devices more in Asia as compared to Europe/Africa and the Americas.

22. Wikipedia, 2012



Figure 8: Mobile testing perceptions by region – percentage endorsing “yes”

1. Recruiters requesting mobile access

2. Candidates requesting mobile access

3. Would allow candidates to take assessments on smart phones

4. Unfair to access via mobile

Key finding 8: Increased allowance and perceptions of effectiveness of social media

• More companies are allowing the use of social media in recruiting and hiring as a review tool, but little change in formal policy about the use of it.

Likewise, social media is growing in terms of acceptance, as perceptions of it being an effective tool for recruiting candidates grew 10 percentage points.

Companies are increasingly spending their recruiting budgets on social media (SM)23 – in the United States, for example, 10% of the $124 billion (US) recruiting market is spent on SM and around 89% of US companies reported that they will use social media in recruiting.24 The UK has been slower to adopt with just 8% of open positions in 2011 being filled using professional networking sites. As in last year’s report, the 2012 SHL Global Assessment Trends survey includes a focus on social media as a source for candidates and candidate information. This technology is increasingly relied upon by recruiters and HR professionals.

More HR professionals reported that SM was having a large impact on how they recruit and more were using the sites to advertise jobs (see Table 12). More HR professionals indicated that their companies allow them to recruit from SM sites (up from the 2011 report), and slightly more companies were allowing their HR teams to use social media information about candidates to make decisions (from 17% in 2011 to 22% in 2012). Additionally, since 2011, more companies are allowing their recruiters and hiring managers to review SM information and make decisions with this data. However, formal policies regarding how this information should be used have stayed relatively the same since 2011.

23. O’Leonard, 2011 24. Jobvite, 2011

0

Per

cen

tag

e

5

10

15

20

25

30

35

40

45

1 2 3 4

Asia/Australia/NZ

Europe/ME/Africa

Americas

shl.com | 27


We continue to see the trend towards using social media search information as part of the hiring process.

Table 12: Use and effectiveness of social media for recruiting and hiring

Survey statement 2011 2012

Social media websites (e.g. Facebook, Twitter) are having a large impact on how we recruit, manage and measure talent 28% 37%

Social media sites are effective tools for recruiting and reaching quality candidates 36% 46%

We use social media (e.g. Facebook, Twitter, LinkedIn) to advertise job openings 38% 47%

Candidate information on social media sites is useful in determining candidate fit with an organisation 25% 29%

We allow our recruiters/hiring managers to review social media information about potential candidates 31% 45%

We allow our recruiters/hiring managers to use social media information to make decisions about candidates 17% 22%

We have a formal policy in place regarding social media information and our hiring practices 15% 17%

Social media continues to grow as a means by which candidates are attracted to an organisation via social media sites created by organisations, and how candidates are contacted through these sites. Recruiters are increasingly using these sites to source candidates and advertise job openings. Likewise, we see an increase in the use of social media sites as a way to communicate with job seekers (see Table 13), findings that mirror Jobvite’s large survey of social media usage in the US.25 Bersin & Associates refer to this as the “employment tunnel” – the pool of individuals who are engaged with your brand on social media but have not yet applied for jobs.26

Concerns remain related to using social media information in hiring: validity (does this information predict job performance?) and legality (is it legal to use such information?) Employee selection, in most countries, involves making critical decisions about individuals, typically governed by corporate, local and national laws related to hiring. Following the trend in individual use of social media as a form of communication and entertainment, we continue to see the trend towards using social media search information, both formal and informal searches, as part of the hiring process (see Figures 9 and 10). These figures have increased since 2010. As companies continue to want to interact and build brand loyalty via these sites, so too will the desire to engage candidates using SM and review the information they provide therein.

25. Ibid 26. Bersin, 2011



Table 13: Social media used in recruiting and hiring

Social media and recruiting area2011 per cent

endorsing2012

Our recruiters use social media sites to source candidates 30% 42%

Our recruiters email potential candidates via LinkedIn and/or other sites 36% 39%

We advertise to potential job seekers to become followers/friends of our career sites 23% 30%

We monitor comments and emails from job seekers and respond to them actively on social media sites 16% 24%

We have a career site on Facebook 18% 19%

We have a career site on Twitter 12% 11%

What are recruiters and hiring managers viewing when they conduct social media searches? As we found last year, most respondents indicated examining previous work history, education, recommendations from others and other types of candidate information when examining candidate data on social media sites. More concerning, however, was the increase this year in the use of candidate pictures as part of the search process (see Table 14), rising from 15% in 2011 to 26% this year. Pictures of candidates on social media sites can be somewhat out of the control of the candidate and could be potentially cited as a source for discrimination against protected groups. In examining regional differences in the current review of various types of social media information, we saw that respondents were relatively similar across geographic regions, with the greatest differences, perhaps, in respondents from the Australasia region, who reviewed more information than their counterparts for pictures, group affiliations, and links/comments posted by candidates’ friends (see Figure 11). Without guidelines in place, social media searches on candidates are potentially perilous for organisations and cannot be recommended without further research and legal scrutiny.

SHL’s approach to mobile assessment

To support our customers’ evolving needs in online recruitment, we are committed to extending our assessment capabilities to enable candidate assessment on mobile devices in 2012.

Our approach will offer device-independent assessments for small form factor devices. We will also consider developing device-specific applications with individual customer partners where it makes sense.

SHL will work directly with customers and research partners on product trials throughout 2012 to ensure our approach addresses both the capabilities and limitations of mobile assessment.

shl.com | 29


Figure 9: Informal social media searches as a hiring tool

Figure 10: Formal social media searches as a hiring tool

Per

cen

tag

e

Plan to use Do not use/No plans to use

0

5

10

15

20

25

30

35

40

45

50

Currently use

2010

2011

2012

Per

cen

tag

e

Plan to use Do not use/No plans to use

0

10

20

30

40

50

Currently use

2010

2011

2012



Table 14: Candidate data reviewed from social media sites

2011 2012

Survey statementCurrently

reviewRank

Currently review

Rank

Previous work history 46% 1 51% 1

Education 46% 1 49% 2

Recommendations from others (e.g. on LinkedIn) 33% 3 39% 3

Other candidate information (e.g. hobbies, interests) 24% 4 33% 4

Pictures 15% 8 26% 5

Candidate’s stated interests, “likes,” current activities 21% 5 24% 6

Comments/links posted by candidate 21% 5 23% 7

Group affiliations (e.g. community or religious groups) 21% 5 22% 8

Comments/links posted by candidates’ friends 10% 9 14% 9

Figure 11: Percentage of respondents currently reviewing social media information by type and region

1. Candidates’ stated interests, “likes”, activities

2. Comments/links posted by candidates

3. Comments/links posted by candidates’ friends

4. Education

5. Group affiliations

6. Pictures

0

Per

cen

tag

e

10

20

30

40

50

60

1 2 3 4 5 6

Asia/Australia/NZ

Europe/ME/Africa

Americas

shl.com | 31


Having a comprehensive talent analytics strategy allows HR to demonstrate their value to the broader organisation.

Summary: assessment trends in 2012

In summary, the 2012 Global Assessment Trends survey pinpointed key areas of consideration for HR professionals when considering their overall talent measurement programmes.

Linking business results and assessments

HR professionals around the world indicated relative confidence in their use of assessments, but fewer were actually linking their assessment data to business outcomes that mattered. Having a comprehensive talent analytics strategy allows HR ability to demonstrate their value to the broader organisation.

Engagement and career development

Career development programmes can be dually successful: they can provide talent with clear opportunities in the company, and can simultaneously showcase how the current workforce could be used to fill gaps in skills and competencies. Indeed, one HR professional noted that one of the unique ways of using assessments was in “identifying employees’ hidden and under-utilised capabilities to stimulate productivity and contribute to retention.” To be successful, career development efforts need to be formalised (e.g. creating and articulating career paths and development tracks for employees) and measured on an ongoing basis.

Assessing the past, present and future

The talent pool, both outside and within an organisation, brings with it a variety of competencies and experiences that, if measured and examined, could serve both the employee and organisation well. When new openings exist or jobs change, understanding the potential and current performance are important, but a comprehensive programme should also include an examination of employees’ relevant experience in other roles.

To that end, we anticipate seeing an increase in the use of a comprehensive talent analytics programme in organisations wishing to capitalise on their current internal talent.

Meshing old methods with technology

The use of technology in hiring helps organisations quickly reach their potential candidate pool and candidates, and is increasingly becoming the most critical part of a recruiting strategy. There is still some caution in using social media information to make decisions about candidates: a) such measures have been shown to be related to bottom-line results for organisations, and b) the use of social media data in hiring has potential legal concerns for organisations. However, despite these concerns, we anticipate a continued increase in the use of social media data.

Likewise, we believe practitioners will increasingly need to leverage mobile technology to reach quality candidates earlier in the recruiting and hiring process and provide greater flexibility to recruiters. Using mobile technology in hiring, including using smart phones/mobile devices in the testing process is the next generation of testing.


For more information visit www.shl.com

SHL is the global leader in talent measurement driving better business results for clients through superior People Intelligence and decisions – from recruiting to employee development and succession planning.

Why SHL?Verifiable business results

The insights provided by SHL People Intelligence result in client benefits such as increased revenues, lower costs, greater efficiencies and more effective leadership.

The world’s largest source of data on people at work

Delivering over 25 million assessments every year gives us an unrivalled database of People Intelligence, enabling us to provide key analytics and benchmark talent across all industries and all roles.

Global presence, local flexibility

We maintain a local presence in over 50 countries, deliver assessments in more than 30 languages and deploy solutions in more than 150 countries worldwide. Together, that gives us a unique insight into people’s behaviour, ability and potential wherever they work.

Over 30 years’ global assessment innovation and expertise

Our offerings are robust, accurate and fair, based on over 30 years of research and development. We pioneered online testing and launched the first randomised and verifiable cognitive ability test.

Leading global organisations choose SHL solutions

We work with some of the largest organisations around the world, including over 50 per cent of the Global Fortune 500, over 80 per cent of the Financial Times Stock Exchange (FTSE), and over 50 per cent of the Australian Stock Exchange.

About SHL

shl.com | 33

Bersin, J. (2011). Strategic Human Resources and Talent Management: Predictions for 2012. Bersin & Associates. Retrieved January 11, 2012 http://marketing.bersin.com/2012Predictions.html.

Deloitte. (2011). Addicted to connectivity: perspectives on the global mobile consumer. Deloitte. Retrieved January 14, 2012 from http://www.deloitte.com/assets/Dcom-Global/Local%20Assets/Documents/TMT/9314A_Mobile_Reports_sm5.pdf.

Fallaw, S. S., Muñoz, C. S. & Dawson, C. R. (2005, April). Administering online testing: a benchmarking study. Poster presented at the 20th annual conference of the Society for Industrial and Organisational Psychology, Los Angeles, CA.

Fallaw, S. S., & Kantrowtiz, T. M. (2011). 2011 Global Assessment Trends Report. SHL.

Fallaw, S. S., & Solomonson, A.L. (2009). 2009 Global Assessment Trends Report. SHL.

Fallaw, S. S., & Solomonson, A.L. (2010). 2010 Global Assessment Trends Report. SHL.

Fallaw, S. S., Solomonson, A. L., & McClelland, L. (2009, April). Current trends in assessment use: A multi-organisational survey. Poster presented the 24th annual conference of the Society for Industrial and Organisational Psychology, New Orleans, LA.

Fallaw, S. S., Solomonson, A. L., Montagliani, A. J., Wise, P. G., Gerber, E., & Facteau J. D. (2004, April). Selecting hourly, entry-level employees: A benchmarking study. Poster presented at the 19th annual meeting of the Society for Industrial and Organisational Psychology, Chicago, IL.

Gatewood, R. D., Feild, H. S., & Barrick, M. (2007). Human Resource Selection (6th ed.). Fort Worth, TX: South Western College Publications.

Jobvite. (2011). 2011 Social Recruiting Survey Results. Jobvite. Retrieved January 14, 2012 from http://recruiting.jobvite.com/resources/social-recruiting-survey.php.

Jolly, D. (2010, August 25). Germany plans limits on Facebook use in hiring. The New York Times. Retrieved January 25, 2011 from http://www.nytimes.com/2010/08/26/business/global/26fbook.html.

Manpower. (2011a). Manpower Employment Outlook Survey – Global. Q1/2012. Manpower. Retrieved January 14, 2012 from http://us.manpower.com/us/en/multimedia/MEOS_Report_Q1_2012_Final.pdf.

Manpower. (2011b). “Manufacturing” Talent for the Human Age. Manpower. Retrieved January 14, 2012 from http://us.manpower.com/us/en/multimedia//ManufacturingTalent.pdf.

O’Leonard, K. (2011). The Talent Acquisition Factbook 2011. Bersin & Associates. Retrieved January 14, 2012 from http://www.bersin.com/Lib/Rs/ShowDocument.aspx/111611_FB_TAFB2011_KOL_Final.pdf?docid=15006&ref=ml.

Rainie, L., & Anderson, J. (2008). The Future of the Internet III. Pew Internet & American Life Project. Retrieved November 1, 2010 from http://www.pewinternet.org/Reports/2008/The-Future-of-the-Internet-III.aspx.

Schmidt, F. L., & Hunter, J. E. (1998). The validity and utility of selection methods in personnel psychology: Practical and theoretical implications of 85 years of research findings. Psychological Bulletin, 124 (2), 262-274.

SHL (2011). 2011 Business Outcomes Study Report. Retrieved January 9, 2012 from http://www.shl.com/us/forms/content/business-outcomes .

Smith, A. (2010). Mobile Access 2010. Pew Internet & American Life Project. Retrieved November 1, 2010 from http://www.pewinternet.org/~/media//Files/Reports/2010/PIP_Mobile_Access_2010.pdf.

Solomonson, A. L. & Fallaw, S. S. (2010). Current trends in assessment use: Global survey results. In S. Fallaw (Chair), Assessment trends in organisations: How companies measure talent. Paper presented at the annual meeting of the Society for Industrial and Organisational Psychology, Atlanta, GA.

Wikipedia. (2012). List of countries by number of mobile phones in use. Retrieved January 16, 2012 from http://en.wikipedia.org/wiki/List_of_countries_by_number_of_mobile_phones_in_use.

Selected references


Executive summary of 2009 Global Assessment Trends Survey One hundred and seventy companies from around the world responded to PreVisor’s Global Assessment Trends Survey to provide their perspectives on talent measurement practices and trends. Key findings from the report are listed below:

Key finding 1: Top talent management priorities for 2009

• External Recruiting/Hiring and Performance Management are top priorities for companies around the world in 2009. Internal Promotion/Placement is third in priority for US companies, and Career Development is third in priority for Non-US companies.

Key finding 2: Top talent management increases in priorities from 2008 to 2009

• Areas with the highest projected increase in priority for US companies include Competency Modeling, Career Development, and Bench Strength Analysis; whereas outside the US, Succession Planning and External Recruiting/Hiring showed the greatest increase in priority.

Key finding 3: Confidence in the value of assessments

• More than 90% of all companies believe testing is a valuable part of their hiring process. Approximately 50% of clients reported that they collect metrics to show the value of HR investments.

Key finding 4: Preference for simulated, real-world assessments

• Most organisations indicated their preference to use realistic assessments. While many are not using job simulations yet today, more clients plan to expand usage of simulations in the next year as compared to other assessment types.

Key finding 5: Plans to expand use of “fit” assessments

• In addition to simulations, organisations plan to expand the use of “fit” measures (culture fit, job fit, and interest assessments) in their hiring processes in the near future.

Key finding 6: Talent measurement post-hire

• Promotion, career development, and training needs analysis/skills gap analysis were the most frequently cited areas where assessments are used to measure talent of a current workforce.

Key finding 7: Leader selection – important, but not structured

• Nearly half of all companies agreed that assessments are a critical part of their succession planning programmes, but only one out of three clients agreed that their company uses a structured promotion process for all leader roles within their organisations.

Appendix A: 2009 survey summary

Note: The 2009 Global Assessment Trends Report compared results from US companies and companies outside the US

shl.com | 35

Executive summary of 2010 Global Assessment Trends Survey

Over 230 companies from around the world responded to PreVisor’s and ADP’s Global Assessment Trends Survey in late 2009 to provide their perspectives on current and anticipated talent measurement practices and trends. Key findings from the report are listed below:

Key finding 1: Top talent priorities for 2010 – the emergence of performance management and career development

• Managing the performance of the current workforce is the highest priority for HR in 2010 with career development and external recruiting/hiring following as the next highest priorities. External recruiting/hiring, which was projected as a top priority prior to the economic downturn, had the largest decrease in priority from 2009-2010 of any HR initiative included in the survey.

Key finding 2: Talent impact of economic recovery – retention, recruitment, retirement

• Most companies (68%) indicated concern about retaining employees during the economic recovery. Likewise, 54% believe it will be challenging to recruit talented employees in 2010. However, less than 19% of companies reported being concerned about the talent gap to be left by retiring employees and leaders.

Key finding 3: Focus on quality of hire – whether it is measured or not

• Most companies (70%) are feeling pressure to demonstrate return on investment for assessment products. Quality of Hire is the most common business outcome that companies (84%) are trying to improve with pre-hire assessments. However, only 56% of companies reported that they collect metrics to show the value of HR investments, and only 42% are required by internal stakeholders to demonstrate a link between assessments and business outcomes.

Key finding 4: “Wait and see” perspective on plans to use new tools, processes

• Compared to the previous year’s survey, the proportion of respondents who plan to use processes (which they are not currently using) within the next year has decreased, indicating a more cautious approach toward purchasing and using new tools, technologies, and processes. A few exceptions to this finding include the use of informal social media searches, formal social media searches, and situational judgement tests as hiring tools.

Appendix B: 2010 survey summary


Appendix B: 2010 survey summary

Key finding 5: Social media as a hiring tool: the jury is still out

• Over 68% of organisations use or plan to use informal Web 2.0 searches as a hiring tool. However, only 20% of the organisations surveyed indicated that social media sites are effective tools for determining candidate fit, while nearly 50% are uncertain. Accordingly, only 24% of companies are currently in agreement that social media websites such as Twitter and Facebook are having a large impact on how talent is recruited, measured, and managed.

Key finding 6: Treating candidates as customers is emphasised but not evaluated

• Most organisations (84%) agreed that applicant reactions to the recruitment and hiring process are important. For example, convenience to applicants was the most frequently cited reason (86%) that companies use remote testing. However, only 41% of companies obtain feedback from their candidates, who are likely to be their customers and/or future employees.

Key finding 7: Opportunity exists to formalise talent programmes

• While career development is a top priority and more than 60% of companies use it as a retention strategy, only 29% have established a formal career development process for their employees.

• Only 28% of companies have a structured promotion process for leaders. This is a consistent finding from the previous year’s survey.

• Only 50% of organisations indicated they use assessments/talent measurement tools with their current workforce. Of those who do, most use or plan to use such tools for career development, training needs analysis, and promotion programmes within their companies

shl.com | 37

Executive summary of 2011 Global Assessment Trends Survey

Over 460 human resources professionals from around the world responded to SHL’s Global Assessment Trends Survey to provide their perspectives on talent measurement practices and trends, and the effect these practices and trends are having on organisation’s People Intelligence programmes. Key findings from the report are listed below:

Key finding 1: Succession planning becomes increasingly important

• Succession planning rose from 6th in priority in 2010 to 2nd in priority in 2011, indicating an increased focus on key leadership roles within organisations versus other HR initiatives.

Key finding 2: In rebounding economic environment, performance management remains top priority

• As in 2010, companies from around the world indicate that performance management is a top priority for 2011. Succession planning, external recruiting and hiring, career development and internal promotion/placement round out the top five priorities.

Key finding 3: Companies allowing testing from “anywhere” increases

• The use of remote testing (e.g. from a candidate’s home) has increased year on year since 2009.

• Likewise, over a third of responding HR professionals indicated they would allow candidates to complete tests on smart phones/mobile devices.

Key finding 4: On the leading edge… hiring via smart phones/mobile devices

• While the use of smart phones/mobile devices is increasing, recruiters and candidates are not clamouring to use this technology for completing assessments. Only 33% of companies stated they would allow candidates to test via these devices, and less than one out of ten recruiters and candidates are requesting to have testing available via mobile devices.

Key finding 5: Pre-hire testing includes the general and the specific

• HR professionals stated they use both general types of tests (e.g. cognitive ability, personality) as well as job-specific tests (including knowledge, job fit tests and job-specific solutions) in their hiring processes, indicating a desire to both assess competencies that broadly predict successful performance as well as those that are required for specific job roles.

Appendix C: 2011 survey summary


Appendix C: 2011 survey summary

Key finding 6: Structured interviewing gaining in use

• Nearly 95% of companies use or plan to use structured interviews in their hiring processes, up from approximately 85% in the previous two years.

• In-person, single interviewer interviews and phone interviews are used by most companies (80% and 76%, respectively), while in-person panel interviews are used by 73% of companies. Remote, web-cam interviews are used by over 25% of companies.

Key finding 7: Somewhat “safe” use of social media information about candidates

• More than 50% of HR professionals review or plan to review previous work experience, education and recommendations from others on social media sites as part of their applicant review/hiring process.

• A smaller proportion of professionals examine comments and links posted by candidates’ friends, as well as pictures of candidates – types of information that may prove to be less legally defensible.

• Only 16% have a formal policy in place regarding the use of social media information in the hiring process.

SHL Group Limited. Registered in England No. 01328744 VAT No. GB 664 160247Registered office: The Pavilion, 1 Atwell Place, Thames Ditton, Surrey, KT7 0NE, UK

Tel +44 (0) 870 070 8000 Email [email protected] Web shl.com

2012 Global Assessment Trends Report

Business

tables table

10introduction5 table

hr11 table

resources area table

hr focus

hiring process figure

strategies figure

hr priorities