If we take the candidate or talent assessment process as an example, it is recognised in the human resources arena that a robust strategy will lead to a strategic career development plan and greater staff retention. However, it is also not only possible, but more importantly, beneficial, to demonstrate the monetary value in getting this process right.
As a case in point, we worked with one of the world's largest pump manufacturers, Grundfos, to design and implement a robust talent assessment process for nominated high performing and high potential individuals. The project began with job analysis and included interviews with key stakeholders to define the competency framework for three specific talent pools. Based on this, bespoke exercises were designed that focused on high-potential behaviours and the ability to demonstrate these under stretching and realistic situations which are part of everyday senior level roles.
Three years on, we have accumulated sufficient numbers to create a robust analysis of the return on investment through the use of this bespoke talent centre. By correlating job performance over the three year period with scores from the talent centre and incorporating that correlation into a ‘Utility Analysis’ (Gatewood, Feild, & Barrick, 2008) we were able to estimate that Grundfos would make monetary gains in the region of £539,247.* In comparison, if they had used an approach with zero validity, the return-on-investment would be negative at -£108,438.
But don’t just take my word for it. Susanne Hoffmann, Group Talent Manager from Grundfos will be presenting alongside a&dc at the UK’s only Assessment Centre Conference next week – on Tuesday 5th November.
*Based on estimated talent and assessor salaries.