CORPORATEINDIAAFOCUSGROUPSTUDYRanjanSinha,MBADr.CabotJaffee,PhD.

Dr.VasanthiSrinivasan,PhD.
ReimaraValk,MSc.
ChandanaReddyBy:
PSYCHOMETRICSINKnowledgeSeries-1CORPORATEINDIAAFOCUSGROUPSTUDYRanjanSinha,MBADr.
CabotJaffee,PhD.
Dr.VasanthiSrinivasan,PhD.
ReimaraValk,MSc.
ChandanaReddyBy:
PSYCHOMETRICSINKnowledgeSeries-1
TABLE
OF

CONTENTS

*
Executive
Summary
Pg.
1
*
The
science
behind
the
art
of
Human
Resource
Management
Pg.
2-3
1.1
Psychometrics
*
Objectives
&
Methodology
Pg.
3-4
2.1
Objectives
of
the
Study
2.2
Methodology
*
Current
State
of
Psychometrics
in
India
Pg.
4-6
3.1
India
Story
3.2
Psychometric
tools
currently
used
in
India
3.3
Purpose
of
using
psychometric
assessment
tools
3.4
Use
of
psychometric
tools
at
different
job
levels:
3.5
Recruitment
and
Selection
Process:
The
importance
of
psychometric
assessment
tools
3.6
The
layers
in
recruitment
/selection
process
and
the
use
of
psychometric
tools
*
Emerging
trends
and
Best-suited
assessment
practices
Pg.
6-9
4.1
Gaps
in
current
availability/usage
of
psychometric
assessments
tools
4.2
Challenges/Reluctance
in
using
psychometric
assessment
tools
4.3
Expectations
from
Psychometric
Tools
4.4
Test
validity
and
reliability
4.5
Conclusion
4.6
Recommendations
4.7
Hiring
Risk
Management
System
*
Authors
Pg.
10
*
About
Global
Talent
Metrics
Pg.
11
*
References
Pg.
12
EXECUTIVE
SUMMARY

Some
HR
professionals
in
India
still
question
the
validity
and
credibility
of
psychometric
assessments
or
discount
the
use
of
such
tools.

Six
focus
groups
sessions
were
conducted
in
Mumbai,
Bangalore
and
Delhi,
between
January
and
February
2009.

In
India,
it
is
critical
for
organizations
to
deploy
psychometric
assessments
that
are
easy
to
administer
and
provide
results
that
are
fast,
accurate
and
predictive.
The
most
frequently
mentioned
purpose
of
using
psychometric
assessment
tools
was
for
the
recruitmentandselection.Thenext
frequently
mentioned
purposewaslearning
and
development.

Psychometric
tools
were
mostly
used
for
entry
level
job
positions,
55%
candidates
reported
using
psychometrics
for.

Most
respondents
also
indicated
that
Psychometric
tests
are
used
in
the
hiring
process
as
a
validation
tool
for
interviews
and
are
therefore
often
administered
after
interviewing
Most
companies
indicated
the
use
of
Executive
Search
firms
for
sourcing
senior
management
staff.

While
the
principal
means
of
selecting
applicants
is
through
interviews,
participants
highlighted
several
drawbacks
in
the
use
of
interviews
as
a
method
to
hiring
talent,
A
prominent
opinion
was
that
Interviews
come
with
an
element
of
bias
Organizations
are
hiring
large
number
of
people,
one
of
the
participants
highlighted
their
volume
hiring
to
be
in
the
range
of
2000
people
per
year
at
a
campus
level.

Participants
expressed
a
need
for
an
India-focused
psychometric
assessment
which
until
date
they
had
not
found.
A
key
reason
for
avoiding
psychometric
assessments
was
due
to
the
lack
of
knowledge
in
psychometrics,
its
uses,
applicability
and
awareness
of
the
product.
A
challenge
that
HR
managers
currently
using
such
assessments
faced
was
the
interpretation
of
test
results.

The
toughest
challenge
was
to
sell
psychometric
assessment
tools
to
higher
management,
convincing
management
of
the
benefits
and
building
a
belief
that
a
valid
decision
can
be
made
on
a
hiring
tool.
Contextbackground
is
crucial.Variancein
theworkplace
matters
alot.Interpretation
inIndian
contextwillbe
different.
The
staffing
budget
allocated
depends
on
the
level
of
recruitment
and
stability
of
organization.

Define,
measure
and
document
excellence
for
your
organization
by
implementing
psychometric
assessment
tools
to
address
the
right
fit
of
a
candidate
with
your
organization
and
to
ensure
performance
excellence
and
endured
tenure.
Most
participants
wished
for
a
tool
that
can
decide
whether
the
candidate
is
the
"Right
Fit"
for
the
organization.
Many
participants
preferred
a
tool
that
is
online
which
makes
it
flexible,
consistent
and
cost
effective.

Hiring
Risk
Management
Systems
through
proven,
validated
and
relevant
methods
collect
data
about
a
person
(typically
using
psychometric
tools),
his/her
historical
"performance
data
(if
it
exists)
and
combines
it
with
organizational
and
job
related
factors
using
predictive
analytics
to
provide
an
easy
to
use
decision
making
tool
as
an
interview
guide
for
recruiters
and
managers.
THESCIENCEBEHINDTHEARTOFHUMANRESOURCEMANAGEMENTTHESCIENCEBEHINDTHEARTOFHUMANRESO
URCEMANAGEMENT
With
a
liability
to
build
well
oiled
"people
production
lines"
for
organizations,
the
role
of
the
HR
is
undoubtedly
the
most
vital
for
any
business.
What
began
as
an
administrative
function
within
a
business
has
today
transformed
into
a
function
that
builds
and
manages
the
organizations'
employee
life-cycle.
The
dawn
of
HR
as
a
strategic
function
can
be
marked
to
when
the
term
"Organizations"
superseded
the
term
"Businesses".
As
companies
graduated
from
businesses
to
organizations,
managing
and
improving
the
employee
life-cycle
was
equated
to
the
growth
of
the
organization.
Through
structured
methods
and
innovative
concepts
evolved
several
talent
management
and
enrichment
systems
and
process
that
make
up
today's
HR
function.

These
systems
and
processes
essentially
revolve
around
the
following
key
areas:
-Recruitment
and
selection
-Individual
development
programs
-Learning
and
development
-Competency
mapping
-Promotions
and
appraisal
processes
-Career
planning
-Coaching
and
counseling
-Succession
planning
-Benchmarking
internal
people
and
the
industry
-Assessing
leadership
skills
-Employee
engagement

Organizations
have
increasingly
innovated
tools,
systems
and
processes
along
these
phases
to
ensure
they
acquire,
foster
and
retain
the
"Right"
talent.
Companies
invest
significant
time
and
money
to
acquire
these
assets.
Every
time
a
company
extends
an
offer,
it
needs
to
answer
few
critical
questions
such
as:

"Will
the
person
be
able
to
perform
the
job
and
to
what
level
of
excellence?"
"Will
the
person
stay
in
the
job
long
enough
to
justify
the
costs
that
are
associated
with
hiring
and
training
the
person"
i.e.
Does
my
company
offer
what
this
person
is
looking
for
in
terms
of
his
psychological,
sociological
and
demographical
needs?

Most
of
these
decisions
are
taken
typically
through
a
nebulous
process
of
unstructured
interview,
utilizing
information
about
the
candidate
that
is
confined
to
a
resume
(not
necessarily
an
unbiased
or
accurate
representation
of
the
individual)
and
the
recruiters
or
managers
interpretation
of
"right"
talent,
with
scope
for
bias
exposing
the
organization
to
significant
hiring
risks.
With
the
risk
of
misjudged
hiring
looming
high
and
challenged
by
the
need
to
acquire
talent
for
high
impact
jobs
and
in
most
cases,
volume
hiring,
recruiters
and
HR
executives
are
faced
with
a
daunting
challenge.
With
the
risks
of
hiring
looming
high
on
hiring
systems
and
processes,
organisations
are
infusing
scientific
methods
into
the
traditional
hiring
systems
an
processes,
to
reinforce
the
"Right"
quotient
in
the
talent
acquiring
process.
Psychometricsisthefieldofstudyconcernedwiththetheoryandtechniqueofeducationaland
psychologicalmeasurement,
whichincludesthemeasurementofknowledge,abilities,attitudes,andpersonalitytraits.
Itisprimarilyconcernedwiththestudyofmeasurementinstrumentssuchasquestionnairesan
dtests.Muchoftheearlytheoreticalandappliedworkinpsychometricswasundertakeninanat
tempttomeasureintelligence.
OriginallybuiltduringtheWorldWarera,psychometricalgorithmshavesincebeenmimickeda
satoolandmodelacrosstheglobe.Thishas,throughtime,ledHRprofessionalstoquestionthe
validityandcredibilityofpsychometricassessmentsordiscounttheuseofsuchtools.
Therationaleforthepresentstudywastoexplorethecurrentstateofpsychometricassessmen
tsusedbyorganizationsinIndia.
Maintaininganindustryapproachtoidentifygapsinavailablepsychometricassessmenttool
s&theneedforenhancements,focusgroupstudywasconductedinkeycitiesacrossthecountryb
yinvitingseniorHRprofessionalsworkinginvariedsectors.Adoptingaqualitativemethodo
logyofresearch,topicssuchaspsychometrictoolsinuse,
recruitment,attrition,costsofrecruitment&
attritionwerestudiedindetail.
Weusebasictestsforrecruitmentandhaveavoidedpsychometricassessmentsincetheseasses
smentsarenotvalidatedforIndia.
Thecompanyalsodevelopstrainingprogramsaroundthebasictests,usedpreandposttraining
.Byrepeatedmatchingtheyareabletoidentifyandmeasuretheirtalentpoolforverybasicfac
tors:saystheVP-HRofaleadingautomotivegiant.
Source:GlobalTalentMetrics:FocusGroupStudy.
OBJECTIVES&METHODOLOGYOBJECTIVES&METHODOLOGYPSYCHOMETRICSOBJECTIVESOFTHEFOCUSGRO
UPSTheprimeobjectiveofthefocusgroupswastoexplorethepsychometricassessmentlandsca
einIndia.Thestudywasaimedtogainthefollowinginsights:
ThevarietyofpsychometricassessmentsthatareusedbyorganizationsinIndia.
"Ihaveseentheuseofmanypsychometrictoolswhetherinselection,trainingofdevelopmenta
ndinassessmentscenters.WhatIwouldalsoliketounderstandfromthissessionthoughintera
ctions,istheexperienceofpeopleusingpsychometricandhowtheotherfunctionswouldlooka
tpsychometriccontributingtothebusiness."
(HeadHR,AleadingManufacturingcompany)
4Psychometricsisthefieldofstudyconcernedwiththetheoryandtechniqueofeducationalan
dpsychologicalmeasurement,
whichincludesthemeasurementofknowledge,abilities,attitudes,andpersonalitytraits.
Itisprimarilyconcernedwiththestudyofmeasurementinstrumentssuchasquestionnairesan
dtests.Muchoftheearlytheoreticalandappliedworkinpsychometricswasundertakeninanat
tempttomeasureintelligence.
OriginallybuiltduringtheWorldWarera,psychometricalgorithmshavesincebeenmimickeda
satoolandmodelacrosstheglobe.Thishas,throughtime,ledHRprofessionalstoquestionthe
validityandcredibilityofpsychometricassessmentsordiscounttheuseofsuchtools.
Therationaleforthepresentstudywastoexplorethecurrentstateofpsychometricassessmen
tsusedbyorganizationsinIndia.
Maintaininganindustryapproachtoidentifygapsinavailablepsychometricassessmenttool
s&theneedforenhancements,focusgroupstudywasconductedinkeycitiesacrossthecountryb
yinvitingseniorHRprofessionalsworkinginvariedsectors.Adoptingaqualitativemethodo
logyofresearch,topicssuchaspsychometrictoolsinuse,
recruitment,attrition,costsofrecruitment&
attritionwerestudiedindetail.
Weusebasictestsforrecruitmentandhaveavoidedpsychometricassessmentsincetheseasses
smentsarenotvalidatedforIndia.
Thecompanyalsodevelopstrainingprogramsaroundthebasictests,usedpreandposttraining
.Byrepeatedmatchingtheyareabletoidentifyandmeasuretheirtalentpoolforverybasicfac
tors:saystheVP-HRofaleadingautomotivegiant.
Source:GlobalTalentMetrics:FocusGroupStudy.
OBJECTIVES&METHODOLOGYOBJECTIVES&METHODOLOGYPSYCHOMETRICSOBJECTIVESOFTHEFOCUSGRO
UPSTheprimeobjectiveofthefocusgroupswastoexplorethepsychometricassessmentlandsca
einIndia.Thestudywasaimedtogainthefollowinginsights:
ThevarietyofpsychometricassessmentsthatareusedbyorganizationsinIndia.
"Ihaveseentheuseofmanypsychometrictoolswhetherinselection,trainingofdevelopmenta
ndinassessmentscenters.WhatIwouldalsoliketounderstandfromthissessionthoughintera
ctions,istheexperienceofpeopleusingpsychometricandhowtheotherfunctionswouldlooka
tpsychometriccontributingtothebusiness."
(HeadHR,AleadingManufacturingcompany)
4
Understand
the
stages
of
talent
acquisition/engagement
in
which
the
psychometric
assessments
are
being
used:

Sourcing
.
Hiring
.
Retention
.
Training
&
Development
.
Exit

"Weareheretoknowthatwhatmorehasevolvedinpsychometrictestingandhowitcanbecomeamuc
hmoreclosertoHRthanwhatitwasearlier.ItstillcarriesthatimageofthatitisatestandIwo
uldliketofindsomethinghidden,Idon'tknow.Whetherpeopleundergoingthisstilltodaythe
yfeeluncomfortableanditistimetomakethemcomfortable.That'swhereI'mtrying "
(DirectorHR,Awhite-goodsmanufacturingcompany,)
Demonstrate
the
"gaps"
or
opportunities
for
improving
the
state
of
psychometric
assessments
in
India.
Discuss
the
assessments
that
provide
Indian-based
companies
an
opportunity
to
reduce
their
cost-per-hire.
Most
importantly,
share
knowledge
on
how
organizations
can
improve
their
quality-of-hire.

METHODOLOGY

In
order
to
gather
information
on
the
current
state
of
psychometric
assessments
and
the
products
in
India,
senior
HR
professionals
from
across
industries,
sectors
and
organisations
were
invited
to
attend
focus
group
studies
conducted
across
the
country.

Locations
&
time
period

Six
focus
groups
sessions
were
conducted,
2
sessions
across
3
metropolitan
cities
in:
Mumbai,
Bangalore
and
Delhi,
between
January
and
February
2009.
The
focus
group
sessions
were
held
at
renowned
hotels,
away
from
the
corporate
environment,
ensuring
participants
networked
&
shared
opinions,
thoughts
and
ideas.

Each
session
had
a
facilitator,a
moderator&aresearch
associate.The
facilitator
briefly
explained
the
purpose
of
the
focus
group
sessions
and
introduced
the
focusgroup
team.The
moderator
guided
the
discussion
from
topic
to
topic,probed
and
encouraged
discussion,
ensuring
disciplined
use
of
time,
giving
all
participants
the
opportunity
to
contribute
their
views.
Using
examples
such
as
the
recruitment
of
a
pilot,
participants
were
encouraged
to
identify
appropriate
assessment
tools
for
specific
job
skills
and
competencies.This
method
would
be
aneffective
way
to
probe
the
issues
HR
professionals
are
facing,particularly
identifying
barriers
to
use
psychometric
assessment
tools
and
perceived
benefits
of
the
tools
that
participants
were
currently
using
in
their
companies
or
had
used
in
companies
they
had
worked
for
earlier.
Open
discussions
were
held
to
investigate
whether
participants
felt
that
they
shared
similar
experiences
in
using
psychometric
assessment
tools
and
to
build
a
synergy
of
ideas
in
a
dynamic
way.
The
topics
included
recruitment
and
selection
processes,
usage,
utility
and
costs
of
psychometric
assessment
tools
and
the
purpose
of
using
such
tools.

Some
of
the
questions
asked
were:

1.
Do
you
have
experience
with
using
psychometric
assessment
tools?
2.
What
is
your
organization's
purpose
of
using
psychometric
assessment
tools?
For
example,
recruitment,
selection,
placement,
training,
development,
promotions
etc.
3.Whatisthe
current
hiringprocess,For
example,psychometric
tests,interviews,assessmentcenters,referenceand
background
check
etc.
Theresearchassociate,inadditiontothemoderator,posedquestionsontopicsthathadnotye
tbeenaddressedbyparticipantsortoprobefurtheronaparticulartopicinordertomeettheor
iginalaimsofcnductingthesefocusgroupsessionsandtryingtoidentifygapsinthefindings
sofar.Awhiteboardwasusedtovisualizetheissuesaddressedbyparticipants.Allsessionsw
erevideotapedforprecisereferencesforthefuture.
FocusgroupdataanalysisToanalyzethequalitativedata,contentanalysiswasconducted&fo
cusedonanalyzingthefrequencyofparticularwordsorphrases.Aninitialgroupingbyemergi
ngthemes&topicsincludingthefrequencywasmadebytheresearchassociate.Thestructuredt
ranscriptswerethenexaminedbythemoderator&recurringthemeswereidentified.Acomparis
onwasmadewithnotesmadebyboththemoderator&theresearchassociate.Quotationswhichill
ustratekeyissueswereidentified&arementionedinthenextsection.
CURRENTSTATEOFPSYCHOMETRICSININDIACURRENTSTATEOFPSYCHOMETRICSININDIATheresearcha
ssociate,inadditiontothemoderator,posedquestionsontopicsthathadnotyetbeenaddress
edbyparticipantsortoprobefurtheronaparticulartopicinordertomeettheoriginalaimsof
cnductingthesefocusgroupsessionsandtryingtoidentifygapsinthefindingssofar.Awhite
boardwasusedtovisualizetheissuesaddressedbyparticipants.Allsessionswerevideotape
dforprecisereferencesforthefuture.
FocusgroupdataanalysisToanalyzethequalitativedata,contentanalysiswasconducted&fo
cusedonanalyzingthefrequencyofparticularwordsorphrases.Aninitialgroupingbyemergi
ngthemes&topicsincludingthefrequencywasmadebytheresearchassociate.Thestructuredt
ranscriptswerethenexaminedbythemoderator&recurringthemeswereidentified.Acomparis
onwasmadewithnotesmadebyboththemoderator&theresearchassociate.Quotationswhichill
ustratekeyissueswereidentified&arementionedinthenextsection.
CURRENTSTATEOFPSYCHOMETRICSININDIACURRENTSTATEOFPSYCHOMETRICSININDIA
THE
INDIA
STORY

While
psychometrics
is
broadly
an
effective
and
efficient
tool
for
managing
talent,
its
delivery
and
impact
has
been
questioned
time
and
again.
Many
HR
professionals
who
work
in
staffing
face
constant
pressure
from
their
internal
client
groups
to
deliver
qualified
candidates
quickly
and,
as
a
result,
they
lack
the
time
and
resources
to
create
new
recruiting
and
selection
programs.
In
India,
where
the
labour
market
provides
a
far
greater
number
of
candidates
per
job
opening,
it
is
critical
for
organizations
to
deploy
psychometric
assessments
that
are
easy
to
administer
and
provide
results
that
are
fast,
&
accurate.
Clearly,
any
assessment
that
reduces
cost-per-hire
and
improves
the
time
associated
with
filling
openings
adds
value.
Ultimately,
however,
the
assessment
should
improve
quality-of-hire,
which
is
a
true
leading
indicator
in
predicting
performance,
turnover
and
operating
results.

A
lot
of
factors
are
considered
while
building
a
psychometric
assessment
solution,
which
include
the
state
of
the
labour
market
and
the
country's
social
environment.
Psychometric
tests
are
widely
used
in
the
US
and
Europe.
However,
psychometric
assessments
are
nascent
in
India.
When
psychometric
testing
was
introduced
in
India,
it
was
hailed
as
a
"major
help"
to
organizations
as
they
attempted
to
find
the
right
people,
with
the
right
frame
of
mind.
The
below
diagram
maps
some
of
the
prominent
psychometric
assessments
services
in
India
on
the
price
&
experience
level
of
the
employee
for
which
the
tools
have
been
designed.
The
objective
of
this
table
is
to
provide
a
comprehensive
view
enabling
organizations
to
identify
the
right
psychometric
assessment
solution
based
on
their
hiring
pattern
and
their
budget.
7PSYCHOMETRICLANDSCAPEININDIA:
PSYCHOMETRICTOOLSCURRENTLYUSEDININDIA-Thomasprofiling-16PF-FiroB-PredictiveIndex
-DISC-MBTI-Work-basedsimulation-Technicaltests-Behavioraltests-Aptitude:verbalre
asoning,mathematics,problem-solving,generalknowledge-IQtests-PersonalityandPrefe
renceInventory-Normative(PAPI):UsedpredominantlyusedinIndiaforhiring.Itisalsouse
dforpeoplewhoareinthesystemwithupto2yearsofexperience.
THREECOMPANIESMENTIONEDRATHERUNKNOWNTOOLS:
-SHL:competencytoolforIndia.TheparticipanthasusedthetoolinSingapore,HongKongandt
heUKincomparativegroupsandhasmadeacomparisontotheIndiangroup.
-TheHayGroup'spsychometrictoolevaluates6differenttypesofleadership.Thetoolisused
foridentifyinghis/herleadershipstyleandtheshortcomingsandimprovementsforthesame.
Expertsbelievethatatleast4leadershipstylesaretakenasabenchmarkofgoodleadershipsk
ills.Asinglestylecannotworkfortheorganizationforever;therolemightchangedemanding
adifferentskillsettheindividualwillthereforeneedtobeabletoadapthis/herleadership
styleaccordingly.
6Years+
2-5Years0-2Years0100PAC,Meta-I,
STG,SkillProfiler,
MeritTrac&
others2004006008001000+1200SHLTHOMASDDISHL,DDI,andothersaredistributorsofproduct
sandnotinnovatorsordevelopersoftoolsfortheIndianmarket7PSYCHOMETRICLANDSCAPEININ
DIA:
PSYCHOMETRICTOOLSCURRENTLYUSEDININDIA-Thomasprofiling-16PF-FiroB-PredictiveIndex
-DISC-MBTI-Work-basedsimulation-Technicaltests-Behavioraltests-Aptitude:verbalre
asoning,mathematics,problem-solving,generalknowledge-IQtests-PersonalityandPrefe
renceInventory-Normative(PAPI):UsedpredominantlyusedinIndiaforhiring.Itisalsouse
dforpeoplewhoareinthesystemwithupto2yearsofexperience.
THREECOMPANIESMENTIONEDRATHERUNKNOWNTOOLS:
-SHL:competencytoolforIndia.TheparticipanthasusedthetoolinSingapore,HongKongandt
heUKincomparativegroupsandhasmadeacomparisontotheIndiangroup.
-TheHayGroup'spsychometrictoolevaluates6differenttypesofleadership.Thetoolisused
foridentifyinghis/herleadershipstyleandtheshortcomingsandimprovementsforthesame.
Expertsbelievethatatleast4leadershipstylesaretakenasabenchmarkofgoodleadershipsk
ills.Asinglestylecannotworkfortheorganizationforever;therolemightchangedemanding
adifferentskillsettheindividualwillthereforeneedtobeabletoadapthis/herleadership
styleaccordingly.
6Years+
2-5Years0-2Years0100PAC,Meta-I,
STG,SkillProfiler,
MeritTrac&
others2004006008001000+1200SHLTHOMASDDISHL,DDI,andothersaredistributorsofproduct
sandnotinnovatorsordevelopersoftoolsfortheIndianmarket
The
bar
chart
below
(see
figure
2),
shows
the
tests
that
participants
used
in
their
organizations
or
had
used
in
previous
organizations.
In
addition
to
some
well-known
psychometric
tests,
participants
also
mentioned
the
use
of
relatively
unknown,
rather
recently
developed
in-house
tests.
It
was
recorded
that
personality
tests
such
as
Myers
Briggs
Type
Indicator
(MBTI)
and
Preference
Inventory-Normative
(PAPI)
are
used
in
India
predominantly
for
hiring.

Thomasprofiling
16PF

Psychometric
assessment
tools

FiroB
PredictiveIndex

DISC
Numerical/verbal/listening
Belbinroles
Aptitudetests

TAT
(especiallyatentrylevels
)
WAT
Situationaltests
Groupexercises/casestudies

GRIDanalysis

1
Typesoftools

Frequency

2
1

IQ
andEQ
testsatentrylevel)
MBTI
Simulationtests
Skillsbasedtestatentrylevel
Technicaltests
Behaviouraltests
DPQ
MIP
MAP
Inventory
Caliber
CPI
260
Gallops
(usedfordevelopment)
Technicaltests
SHL
HayGrouptool
PAPI

PURPOSE
OF
USING
PSYCHOMETRIC
ASSESSMENT
TOOLS

The
most
frequentlymentioned
purpose
of
using
psychometric
assessment
tools
was
for
the
recruitment
and
selection.The
next
frequently
mentioned
purpose
was
learning
and
development.
Competency
mapping,
performance
appraisal
and
using
tools
for
validation
of
other
assessment
practices
such
as
interviews
were
reported
equally.
Following
the
two
prime
purposes
for
usage
of
psychometric
assessment
tools,
broad
range
of
purposes
was
mentioned
by
the
participants
covering
the
full
Human
Capital
cycle
from
recruitment
to
exit.
Figure
1
below
shows
the
full
range
and
the
frequency
of
use
shared
by
participants.

Useofpsychometricassessmenttools

Recruitment/hiring
9
promotion
learning
&
development
8
careerplanning/development
on-boarding
manpowerplanning
7
placement
training
6
coaching
&
counseling
competencymapping
5
performance
appraisal

Frequency
1Purposeofusage

growthpotential

P-O
fit
Talentmanagement/Talent
mapping
successionplanning

Benchmarkinginternal
people/industry
SWOTanalysisemployees

employeeengagement

validation(ofotherrecr.

practices)
Leadership/supervisory/manage
rialskills

reducingattrition

retention

capabilityassessment
Psychometrictoolsweremostlyusedforentryleveljobpositions.Thepiechartshowstheperc
entageofusageateachjoblevel.
ParticularlyinITcompanies,psychometricassessmentsareusedforentrylevel.Participan
tsjustifiedtheuseornon-useofpsychometricassessmenttoolsattheselevels:
"Incampushiringpsychometrictoolsarenotused,becauseofthecostsandthetime;everythin
ghastobedoneinoneday:testsandinterviews."
"Attheseniorlevelpsychometrictestsareusedtocheckthetechnicalknowledgeoftheperson
inadomain.Theperformanceappraisalsystemisbuiltinsuchawaythatthetoolshowswhatisvi
able;itisanin-houseassessmenttoolandmodulesarebuiltfortheITteams."
Participantshowever,didmentionthatpsychometrictestsareadministeredwhenapersonent
erstheorganizationatanylevel.
9Assessmentcenterwithinorganizationisusedforleadershipdevelopment,careerdevelopm
ent,counseling,360degreeassessment.Feedbackispostedontheintranet.Identifyingpass
ion,correlationwithengagement.Budgetforusingpsychometricassessmentsisacoupleofmi
lliondollars.Theorganizationhires8000-9000peopleperyear.-Sr.VPandGlobalHead,Tale
ntTransformation,ofaleadingITfirm.
USEOFPSYCHOMETRICTOOLSATDIFFERENTJOBLEVELSFigure318%
18%
9%
55%
Freshers/entrylevellateralhiringmanageriallevelseniorlevel9Assessmentcenterwithi
norganizationisusedforleadershipdevelopment,careerdevelopment,counseling,360degr
eeassessment.Feedbackispostedontheintranet.Identifyingpassion,correlationwitheng
agement.Budgetforusingpsychometricassessmentsisacoupleofmilliondollars.Theorgani
zationhires8000-9000peopleperyear.-Sr.VPandGlobalHead,TalentTransformation,ofale
adingITfirm.
USEOFPSYCHOMETRICTOOLSATDIFFERENTJOBLEVELSFigure318%
18%
9%
55%
Freshers/entrylevellateralhiringmanageriallevelseniorlevel
RECRUITMENT
AND
SELECTION
PROCESS:
The
importance
of
psychometric
assessment
tools

Participants
indicated
that
Psychometric
tests
are
used
in
the
hiring
process
as
a
validation
tool
for
interviews
and
are
therefore
often
administered
after
interviewing.
Participants
were
asked
to
outline
their
recruitment
and
selection
process
used
in
their
organization,
while
referring
emphasizing
the
processes
where
psychometric
assessment
tools
have
been
deployed.

."We
first
conduct
interviews,
then
administer
tests.
Identify
which
competencies
are
lacking
then
decide
which
kind
of
job
the
candidate
to
assign
to."
."Psychometric
tests
don't
come
cheap.
These
are
introduced
later
in
the
recruitment
process
stage
before
the
final
round
of
interviewing.The
testreportisusedbeforethelast
round
of
interviewing."

.
"Psychometric
tools
are
used
in
the
final
round
where
it
makes
a
difference."

.
"Not
using
psychometric
tests
alone.
Competency
based
interview,;
preparing
a
psychometric
repor,
satisfaction
with
the
connection
between
the
report
and
the
interview.
Providing
the
senior
most
people
with
the
report
to
show
how
it
is
working
out.
Hence,
we
first
conduct
an
interview
&
then
administer
the
psychometric
test."
THE
LAYERS
IN
RECRUITMENT
/SELECTION
PROCESS

-Campus
hiring:
50%
of
the
focus
group
participants
used
campus
hiring.
In
fact,
campus
recruitment
has
gone
up
and
in
some
companies
in
India
and
this
has
become
a
major
responsibility
of
HR
managers
(Rao,
2008).
Organizations
hire
large
number
of
people,
one
of
the
participants
highlighted
their
volume
hiring
to
be
in
the
range
of
2000
people
per
year
at
a
campus
level.

-Company
Portal/
Job
Portal:
Internet
based
recruitment
has
gone
up
and
the
most
popular
among
job
portals
is
Naukri.com.
For
example,
ICICI
bank
has
automated
its
recruitment
through
its
career
site
which
includes
features
like
job
postings,
organization
profile,
online
skills
tests
and
virtual
interviews.
Only
a
small
population
of
participants
indicated
the
use
of
internet
based
recruitment,
they
however
leveraged
their
own
company
website
to
post
vacancies
and
to
recruit
people.

-Executive
search
firms
for
senior
levels:
Most
companies
indicated
the
use
of
Executive
Search
firms
for
sourcing
senior
management
staff.
Participant
quote:
"Senior
management
recruitment
is
handled
by
executive
search
firms,
and
mandatory
psychometric
tests
are
used
for
extensive
profiling."

-Recruitment
vendor:
The
purpose
of
hiring
through
a
recruitment
vendor
was
to
deploy
recruitment
tools,
where
the
profile
of
the
candidate
would
be
sold
to
the
organization
instead
of
internal
recruiters
administering
tests.
Psychometric
test
in
this
process
is
outsourced.

-Applicant
tracking:
Very
few
organizations
indicated
using
any
means
of
applicant
tracking.

-Psychometric
testing:
Almost
50%
of
participants
have
used
explored
or
considered
psychometric
tests
as
a
part
of
their
organizations.
However
a
larger
population
of
participants
considered
psychometric
tools
but
did
not
use
the
tools
for
reasons
such
as:
cost,
lack
of
knowledge
in
the
domain
and
validity
and
reliability
concerns
-Interviewing:
The
principal
means
of
selecting
applicants
is
through
interviews.
Organizations
use
interviews
as
an
assessment
of
competencies
for
talent
management,
moreover
interviews
are
used
to
reconfirm
tests
results.
Some
excerpts
of
participants
views
on
interviews:

.
"Capability
to
be
in
a
role.
Test
him/her
on
whether
he/she
is
a
fast
or
slow
track
person.
Not
everybody
can
identify
this.
It
comes
from
interaction
and
body
language."
.
"Panel
interviewing
at
VP
level
to
prevent
misjudgment
of
interviewer
on
hiring.
If
there
are
gaps,
then
probe
further.
It
depends
on
the
interviewer
skills,
not
the
panel.
Are
there
guidelines?"
Wegivethepersonatestwhichgivesa'fairidea'oftheperson'snumericalability.Predictiv
eIndexisusedjustorprofiling,ahelpinghandtowhetheritmatcheswiththeinterview.Ihave
seeneffectivenessoftestswithinthecompanywhichhasover40,000peopletoadministertest
sto.Itservesasaplatformfordecidingwhomtotakeon.AsstVP-HRpfaleadingRetailChain.
."Intheinterviewprocessthereisan80%matchingwithThomasprofiling;itcanbeconfusingr
elyingonthetool.Interviewisjustlearning."
."Interviewplaysarole.Bodylanguageshowsclearlywhatthepersonisinfor.Interviewismo
stsuitedtoassessthePOfit."
."Thepersonisinterviewedandunderstandsrepercussions.Selectivelyhe/shewillrespond
.Whentakingapsychometrictesttheintervieweedoesnotunderstandwhereitisleadingto."
11-Participantsalsohighlightedseveraldrawbacksintheuseofinterviews:
."Interviewscannotoverlookbiasthattheinterviewermighthaveassimilated.Iftheinterv
iewerseesthecandidateastooambitious,hemightcometotheconclusionthatthecandidate,i
fhired,willquitsoon..Whatyouarelookingatistheopportunityapersonhasonthejob."
."Whileconductinginterviews,youtendtoviewpeoplethewayyouareyourself.Youtendtoass
umethatpeoplearewhoweare.Theinterviewerformsabiasinhiringbasedonifwestaylongorif
wechangejobs."
ItwasconcludedthattheInterviewdrawbackscanstimulatetheusepsychometrictestingtool
s.
Severalparticipantsinthefocusgroupsexpressedthattheywerenotfamiliarwithusingpsyc
hometricassessmenttools.
Table1:GapsinpsychometricassessmenttoolsTooladjustedforIndiangeography,
cultureandlanguageNoIndiafocusedassessmentLotofassimilationforIndiarequired"Test
sfromotherculturestoIndia;whatisforeignwon'tbeacceptedinIndia;tagofIndiawillbeac
cepted;adaptingwhatisavailableandsuitable;nothappywiththevocabulary:Englishlangu
ageisnotappropriateinIndiantests;ThomasprofilingtranslatingintoHindiandMarathiis
notaccurate"
Thereisnostandardizedindustryorstatespecifictool.
EMERGINGTRENDSANDBEST-SUITEDASSESSMENTPRACTICESEMERGINGTRENDSANDBEST-SUITEDASSES
SMENTPRACTICESGapsParticipantcomments11-Participantsalsohighlightedseveraldrawba
cksintheuseofinterviews:
."Interviewscannotoverlookbiasthattheinterviewermighthaveassimilated.Iftheinterv
iewerseesthecandidateastooambitious,hemightcometotheconclusionthatthecandidate,i
fhired,willquitsoon..Whatyouarelookingatistheopportunityapersonhasonthejob."
."Whileconductinginterviews,youtendtoviewpeoplethewayyouareyourself.Youtendtoass
umethatpeoplearewhoweare.Theinterviewerformsabiasinhiringbasedonifwestaylongorif
wechangejobs."
ItwasconcludedthattheInterviewdrawbackscanstimulatetheusepsychometrictestingtool
s.
Severalparticipantsinthefocusgroupsexpressedthattheywerenotfamiliarwithusingpsyc
hometricassessmenttools.
Table1:GapsinpsychometricassessmenttoolsTooladjustedforIndiangeography,
cultureandlanguageNoIndiafocusedassessmentLotofassimilationforIndiarequired"Test
sfromotherculturestoIndia;whatisforeignwon'tbeacceptedinIndia;tagofIndiawillbeac
cepted;adaptingwhatisavailableandsuitable;nothappywiththevocabulary:Englishlangu
ageisnotappropriateinIndiantests;ThomasprofilingtranslatingintoHindiandMarathiis
notaccurate"
Thereisnostandardizedindustryorstatespecifictool.
EMERGINGTRENDSANDBEST-SUITEDASSESSMENTPRACTICESEMERGINGTRENDSANDBEST-SUITEDASSES
SMENTPRACTICESGapsParticipantcomments
GapsParticipantcommentsFamiliaritywithtoolsDesignandusageoftoolsNoknowledge,fait
hofawarenessinpsychometrictests.
NotoolavailabletoassesstheculturalmatchwithinorganizationGapsParticipantcomments
FamiliaritywithtoolsDesignandusageoftoolsNoknowedge,faithofawarenessinpsychometr
ictests.
Notoolavailabletoassesstheculturalmatchwithinorganization
A
gap
that
was
common
across
all
focus
groups
was
that
in
contrast
to
familiarity
with
well-known
tests,
participants
were
not
aware
of
customized
tests
available
for
specific
companies.

CHALLENGES
AND
RELUCTANCE
IN
USING
PSYCHOMETRIC
ASSESSMENTS
TOOLS

There
were
quite
a
number
of
challenges
mentioned
in
using
psychometric
assessments
tools.
A
key
reason
for
avoiding
psychometric
assessments
was
due
to
the
lack
of
knowledge
in
psychometrics,
its
uses,
applicability
and
awareness
of
the
product.
A
challenge
that
HR
managers
currently
using
such
assessments
faced
was
the
interpretation
of
test
results.
As
a
result
some
HR
managers
do
not
divulge
the
candidate's
score,
but
merely
points
at
areas
where
the
candidate
did
not
suit
the
requirements.
Some
of
the
key
areas
of
reluctance
in
using
these
tools,
as
mentioned
by
the
participants
are:

Lot
of
resources
required
to
administer
tests
Unsure
of
validity
and
reliability
of
the
psychometric
tests
used.
Lack
of
knowledge
of
HR
professionals,recruiters
and
managers
in
interpreting
results
of
tests
and
how
to
use
the
outcomes.
Selling
psychometric
tests
to
top
management
(validity;
reliability;
ROI)
There
is
no
knowledge,faith
or
awareness
in
psychometric
tests
People
do
not
understand
which
type
of
psychometric
assessment
tools
to
use
for
which
purpose
Lack
of
statistics
showing
value
for
money
Reluctance
of
senior
job
applicants
to
fill
out
a
test

Researchtoconvincetheboss;giveactualnumbersonpeoplewhoweresuccessfulandcreateaba
sicsheetbasedonthisdata.
Showearliersuccessinsimilarkindofroles.DISCisusedasaself-
developmenttool.Itiscrude,yougetagraph,notanauthenticatedreport.Theoutcomeisused
asadditionalinputforseniormanagementfordecisionmaking.Itisnotusedforthestaffingp
art,butitisextensivelyusedfordevelopment.
Sr.Manager,HRofaleadingITfirm
An
elaboration
of
lack
of
interpretation
skills
is
given
here
forth:

"Tests
are
free
in
the
public
domain
and
people
do
not
know
how
to
interpret
the
results.
There
is
an
issue
of
'post-assessment'
interpretation.
There
is
a
need
to
get
into
the
interpretation,
and
the
adaptability
of
interpretation
of
the
instrument,
because
90%
of
its
effectiveness
is
based
on
that.
Interpretation
also
depends
on
the
recruiter's
experience.

The
toughest
challenge
was
to
sell
psychometric
assessment
tools
to
higher
management,
convincing
management
of
the
benefits
and
building
a
belief
that
a
valid
decision
can
be
made
on
a
hiring
tool.
Convincing
top
management
was
addressed
in
all
six
of
the
focus
groups
and
was
mentioned
repeatedly
by
participants
as
being
a
major
challenge.
Participants
mentioned
that
senior
management
does
not
understand
the
value
of
using
psychometric
assessments
tools.
It
is
a
challenge
to
make
a
value
proposition:
"how
will
it
add
value
to
what
I
am
doing
today?"
One
of
the
participants
expressed:

"Compared
to
the
West,
India
is
lagging
behind
in
understanding,
knowledge
and
the
mindset
for
people
in
management
to
makethese
toolsmore
effective.Managementneedstobelieve
in
suchassessments."

Another
participant
stated:

"It's
how
people
accept
it
right
from
Chandigarh
to
Kanyakumari
because
at
every
location
when
you
go
different
set
of
people
look
at
it
differently"

EXPECTATIONS
FROM
PSYCHOMETRIC
TOOLS

Further
to
exploring
the
gaps
in
psychometric
tools
participants
were
asked
to
list
their
expectations
from
a
psychometric
tools
beginning
with
their
most
important
expectation.
At
the
top
of
the
list
ranked
the
wish
to
have
easily
available
and
interpretable
results.

Rank

Expectations
Details

Efficient
use
and
Interpretable
results

composite
instrument
and
a
final
index
to
provide
differences
in
candidates,
Composite
score
report
on
existing
employees
Find
a
test
that
can
be
used
more
often,
on
a
large
number
of
people,
which
is
less
costly

Tool
that
assesses
a
person's
characteristics

psychometric
tool
should
measure
the
attitude
of
the
person
Checklist
with
specific
behavior
traits,
this
makes
hiring
easier
for
customer
support
positions.
Should
be
clear
on
what
the
company
is
hiring
for
based
on
competency
framework
specified
for
the
company.
Can
we
use
an
aptitude
test
customized
for
competency
framework
of
the
company?
Aptitude
is
organization
specific
Different
tools
for
different
personalities
Testing
tool
to
identify
skill
maturity.
Look
at
competency

based
tests.

India-industry
customized
tool

Context
background
iscrucial.Variance
in
the
workplace
matters
a
lot.
Interpretation
in
Indian
context
will
be
different.

Online
tool

online
tests
have
preference
Flexibility
of
an
online
system
that
is
fairly
consistent
and
cost
effective.

Training

Is
there
a
tool
to
get
post-training
feedback?
Is
there
a
licensed
trainer
available
in
India?

Right
fit

analyze
top
performers
to
retain
people
to
meet
organization's
expectations
Introduce
a
psychometric
assessment
tool
to
get
the
right
candidate
in
place.
Giveitemsontheaptitudeside,givesectionwise,percentilescore.
Mustbecost-effective.Employeeturnoverislow.Throughputishigherthantheindustry,16-
18%.Assoc.VPHR,ofaprominentBPO.
Giveitemsontheaptitudeside,givesectionwise,percentilescore.
Mustbecost-effective.Employeeturnoverislow.Throughputishigherthantheindustry,16-
18%.Assoc.VPHR,ofaprominentBPO.
The
need
for
psychometric
assessment
tools
is
instigated
by
for
example
incorrect
hiring
decisions.
There
is
a
need
for
tests
that
are
a
proof
of
retention
and
enhance
the
predictability
of
job
performance
and
likelihood
to
stay
with
the
organization
for
long
periods
of
time.
As
one
the
participants
stated:

"If
the
hiring
decisions
are
not
going
right,
then
the
need
arises
and
companies
look
to
assessments
tools
for
a
better
fit.
Look
at
the
roles,
performance
on
the
job,
competencies
and
job
change."

Are
costs
an
issue
or
a
deterrent
in
using
psychometric
assessment
tools?

Answers
to
this
question
varied
between
participants
and
between
groups.
Cost
is
an
issue
and
a
major
factor
in
deciding
to
implement
psychometric
tools.
There
was
a
clear
consent
amongst
the
participants
in
all
the
focus
groups
that
psychometric
tests
are
expensive
and
a
key
factor
for
companies
to
inhibit
the
use
of
these
assessments.

Issues
that
were
expressed:

Use
of
psychometric
assessment
tools
is
on
a
per
use
basis;
Price
limits
to
use
it
extensively
range
of
costs
is
3x
the
compensation
Costs
of
psychometrics
are
Rs.200-1500.Rs.2000
for
3test
reports
15
months
to
break
even
the
costs
of
recruitment
and
salary
Campus
recruitment
has
high
costs
for
logistics
Tests
are
expensive,
Rs.
2000-3000
for
senior
and
niche
positions,
like
legal
positions.
Few
thousand
rupees
per
person
Thomas
profiling
is
Rs.
1000,
per
candidate,
which
is
too
expensive.

The
staffing
budget
allocated
depends
on
the
level
of
recruitment
and
stability
of
organization.
One
of
the
participants
whose
company
allocates
40%
of
the
budget
for
psychometric
tests
posed
the
following
question:

"Is
there
a
particular
figure?
10%
of
the
hiring
costs?"
Broadly,
most
participating
companies
displayed
a
cost
conscious
mindset,
however
mere
costs
were
not
deterrents
to
using
psychometric
assessments.
Nevertheless
organizations
are
selective
in
using
tests
determined
by
the
job
level
being
assessed
and
also
know
the
amount
they
are
wiling
to
pay
for
tests.
Participants'
are
willing
to
pay
Rs.
200
per
psychometric
assessment.
On
further
probing
that
whether
candidates
will
be
willing
to
pay
for
these
tests,
participants
agreed
that
a
college
student
would
be
willing
to
pay
if
he/she
can
see
the
value
it
can
have
on
their
resume.
It
was
clear
from
the
discussions
in
all
focus
groups
that
cost
was
one
of
the
bigger
stumbling
blocks
to
in
using
psychometric
tests.

ATTRITION

In
addition
to
exploring
the
use
of
psychometric
assessment
tools
and
inquiring
about
the
recruitment
process,
the
topic
of
employee
attrition
was
addressed
in
each
focus
group.
There
is
a
lot
of
attrition.What
can
be
done
and
how
reliable
are
the
instruments?"
Many
participants
acknowledged
that
a
valid
instrument
that
measures
likelihood
of
attrition
was
yet
to
be
found.
Participants
addressed
the
trends,
shared
ways
of
trying
to
prevent
attrition
and
elaborated
on
the
costs
of
attrition.
Once
this
issue
had
been
raised
other
participants
expressed
their
concerns.
The
table
below
provides
an
overview
of
attrition
issues.
TrendsTalentacquisition:ateamthattracksapersoninthefirstyear.
Peerpressureishigh.Salarycomesfirst,thenwhatyouaredoingandwhereyouwork.Thejobcon
tenttakesabackseat,paycomesfirst.
Atentry/juniorlevelthehygienefactorisveryimportant.
Highestattritionatthefrontend,attritionattrainers'level.
ChallengesAmbitionishigh.Youhavetobeanexpertininterviewingtoassesstheambitionsof
acandidate.Howtoretainpeople?Attritionishighinlifeinsurance.Recruiting400peoplep
ermonth.
Exitinterview;thereisnowayofstoppingthemfrommoving.
Culturalfitment:notabletofitintotheculture.
Rates5%ofbottomperformersneedtoleave.
Involuntaryattritionisatahigherlevel.Scaleshaveturnedduetomarketcondition.70%inv
oluntary,30%voluntaryattrition.
Involuntaryattrition70%inIT.
Insuranceindustryhasahighattritionrate.
CostsCostsofattrition:amountoftraininginvested,individualcosts,
infrastructure,managerspendingtimeonhiringOutcomesOnepersonleaves,thesecondfeels
rejected.Thisresultsinemployeedissatisfactionanddisengagement.Thiscreatesawrongi
mpressioninthemindsofremainingemployeesandcustomers.Itcreatesabadenvironment.
AttritionParticipantcommentsTrendsTalentacquisition:ateamthattracksapersoninthef
irstyear.
Peerpressureishigh.Salarycomesfirst,thenwhatyouaredoingandwhereyouwork.Thejobcon
tenttakesabackseat,paycomesfirst.
Atentry/juniorlevelthehygienefactorisveryimportant.
Highestattritionatthefrontend,attritionattrainers'level.
ChallengesAmbitionishigh.Youhavetobeanexpertininterviewingtoassesstheambitionsof
acandidate.Howtoretainpeople?Attritionishighinlifeinsurance.Recruiting400peoplep
ermonth.
Exitinterview;thereisnowayofstoppingthemfrommoving.
Culturalfitment:notabletofitintotheculture.
Rates5%ofbottomperformersneedtoleave.
Involuntaryattritionisatahigherlevel.Scaleshaveturnedduetomarketcondition.70%inv
oluntary,30%voluntaryattrition.
Involuntaryattrition70%inIT.
Insuranceindustryhasahighattritionrate.
CostsCostsofattrition:amountoftraininginvested,individualcosts,
infrastructure,managerspendingtimeonhiringOutcomesOnepersonleaves,thesecondfeels
rejected.Thisresultsinemployeedissatisfactionanddisengagement.Thiscreatesawrongi
mpressioninthemindsofremainingemployeesandcustomers.Itcreatesabadenvironment.
AttritionParticipantcomments
Test
Validity
and
Reliability

An
important
issue
addressed
throughout
the
six
focus
groups
was
validity
and
reliability
of
psychometric
assessments
tools.
The
validity
(predictive,
construct,
incremental)
of
different
assessment
methods
has
been
debated
in
the
academic
literature.
Experts
have
questioned
the
accuracy
of
the
tests
in
what
they
are
supposed
to
measure.
This
in
turn
has
its
influence
on
the
predictive
power
of
these
tests
and
the
desired
outcome
for
an
organization.
In
case
of
measuring
employee
turnover,
the
validity
in
this
test
is
the
accuracy
with
which
the
questions
can
predict
employee
tenure.
Validity
correlates
to
how
accurately
a
tool
measures
what
it
is
theoretically
supposed
to
measure.

A
test
with
low
validity
seems
unlikely
to
result
in
good
hiring
decisions
and
would
be
much
more
costly
in
the
long
run.
However,
the
value
of
assessments
depends,
among
other
parameters,
on
the
number
and
quality
of
applicants
found
in
the
candidate
pool.
This
will
determine
if
an
assessment
will
work
and
how
well
it
will
work.
Even
assessments
with
relatively
low
validity
can
add
substantial
value
when
they
are
used
to
evaluate
large
numbers
of
candidates.

Test
validity
was
repeatedly
mentioned
as
a
challenge
in
acceptance
and
using
psychometric
tests.The
relation
between
Indian
culture,
and
acceptance
of
tests
in
the
Indian
market
was
addressed
by
one
participant:
"Psychometric
tests
become
accepted
when
you
have
a
validated
report
with
cross-cultural
validation.
Then
acceptance

becomes
higher
when
selling
it
to
management"
"If
a
test
is
able
to
get
a
lot
of
predictions
right,
then
it
is
easier
to
sell
it
to
management"
CONCLUSION

Ihave15yearsofexperienceofusingpsychometricassessmenttests.Companyusestheseforca
reermanagementandseniorleadershipdevelopment.InIndiausingpsychometricassessmentt
oolsisnewespeciallyinIT.Oneneedstoassessthesocio-culturalbackgroundtopredict.Usi
ngandvalidating,statisticalvalidityregardingrelationtosocio-culturalbackground.V
.P.HeadHRofaleadingITfirm.
Decisionstodeploypsychometrictoolsaremadebytopmanagement.TheroleofHRprofessional
sistoconvincetopmanagementabouttheutilityofvalidatedtoolsthataccuratelyandreliab
lypredictsuccessonthejobsuchasperformanceandretentioninordertoselectthecandidate
sthatfittheorganization.Aneasy-to-administerandeasytointerpretreportofapsychomet
ricassessmenttoolwillmakeiteasiertoconvincetopmanagement.
Overall,
the
majority
of
the
participants
used
psychometric
assessment
tools
in
their
current
organizations
or
had
used
it
in
previous
organizations
that
they
had
worked
for.
Only
a
few
participants
did
not
use
psychometric
tools
in
their
organizations.

Hiring
people
is
an
investment
and
hiring
the
wrong
people
can
be
very
expensive
some
times
as
much
as
-500%.
Proper
placement
and
matching
of
individuals
with
the
company
is
crucial.
An
improper
placement
will
result
in
HR
wastage
and
attrition,
on
the
other
hand
a
well-motivated
employee
is
likely
to
stay
longer
and
contribute
better.
By
selecting
employees
who
have
positive
work
attitudes,
who
are
high
performers
and
who
are
more
likely
to
stay
longer
with
the
organization,
an
organization
will
build
a
workforce
that
make
the
business
succeed.
Selecting
the
right
people
for
the
right
jobs
constitutes
a
source
of
competitive
advantage.

Successful
companies
will
know
how
to
attract
and
harness
the
right
talent
at
the
right
time.
In
this
era
with
global
economic
crises,
yet
an
Indian
economy
with
considerable
growth
presents
challenges
and
opportunities
for
HR
to
move
front
and
center
and
make
a
major
contribution
to
business
results
by
adopting
validated
psychometric
assessment
tools
that
increases
the
likelihood
of
successful
hires
that
perform
and
remain
with
the
organization.
RECOMMENDATIONS

To
highlight
the
course
of
action
for
organizations
in
order
to
make
their
recruitment
process
more
efficient
we
recommend:

.
Define,
measure
and
document
excellence
for
your
organization
by
implementing
psychometric
assessment
tools
to
address
the
right
fit
of
a
candidate
with
your
organization
and
to
ensure
performance
excellence
and
endured
tenure.
Indian
organizations
also
tend
to
have
human
resources
practices
that
emphasize
person
organization
fit.
For
example,
organizations
in
India
are
more
likely
to
use
internal
recruitment
and
word-of-mouth
advertising,
and
rely
strongly
on
recommendations
for
selection.
These
studies
seem
to
suggest
that,
in
India,
the
primary
attachment
to
an
organization
is
through
fit
with
the
organization,not
with
the
job.Therefore,a
psychometric
test
that
could
capture
the
fit
of
the
person
to
the
organization
as
opposed
to
the
job
as
such
is
a
welcome
addition
to
the
range
of
already
existing,
widely
used
methods.

.
Implement
a
psychometric
screening
tool
that
can
predict
and
reduce
attrition
in
addition
to
the
selecting
methods
already
in
use.

.
Promote
self-screening
among
candidates
by
administering
the
online
STAR
Personal
survey
to
show
individuals
the
company
culture
match
with
the
organization.

.
Implement
a
psychometric
assessment
system
that
will
generate
the
company's
desired
ROI
of
recruitment.
ROI
on
recruitment
is
high
if
it
is
scientific
[1].

.
Convince
management
of
the
utility
of
psychometric
assessment
by
showing
proof
of
a
validated
tool.

HIRING
RISK
MANAGEMENT
SYSTEMS

While
companies
constantly
manage
business
risks
like
extending
credit,
underwriting
insurance,
selling
mortgage,
investing
their
cash
utilizing
tools
and
models
to
set
guidelines
for
their
managers.We
all
know
hiring
decisions
are
not
perfect
and
have
the
most
significant
impact
on
the
short
and
long
term
value
of
the
company,
however
most
companies
do
not
systematically
manage
their
hiring
risk.

WHAT
IS
A
HIRING
RISK
MANAGEMENT
SYSTEM?

Hiring
Risk
Management
Systems
are
similar
to
any
other
risk
management
systems
in
approach.
For
example,
Banks:
Before
extending
a
loan
(mortgage);
banks
request
the
applicant
for
certain
information
as
determinant
factors
to
ascertain
the
risk
the
company
undertakes
when
giving
someone
a
mortgage.
They
input
the
information
into
a
system
that
utilizes
sophisticated
algorithms
and
in-turn
compares
them
with
historic
outcomes
to
decided
whether
to
give
someone
a
loan,
how
much
and
at
what
interest
rates.

Similarly,
Hiring
Risk
Management
Systems
through
proven,
validated
and
relevant
methods
collect
data
about
a
person
(typically
using
psychometric
tools),
his/her
historical
"performance"
data
(if
it
exists)
and
combines
it
with
organizational
and
job
related
factors
using
predictive
analytics
to
provide
an
easy
to
use
decision
making
tool
as
an
interview
guide
for
recruiters
and
managers.
These
systems
take
complex
analytics
and
data
analysis
and
present
them
as
simple
ready
to
use
decision
making
tools.

Hiring
Risk
Management
System
ties
business
outcomes
to
hiring
decisions
and
gives
your
organization
the
ability
to
develop
QUANTIFIABLE
metrics
around

Hiring
process
efficiency

Cost
per
hire

Workforce
performance

Talent
measurement.
SuccessfulHRprofessionalshavealwaysunderstoodthattherecruitingselectionprocessmu
stbesystematizedandlinkedtorevenuesandprofits.
AHiringRiskManagementSystemcanprovidetheinformationplatformanddatathatbusinessle
adersneedtomakedecisionsabouthumanresource,costallocation,processimprovement,sta
ffperformanceandultimately,thefuture-directionofthecompany,tosignificantlyimprov
ethequalityofhire.
GLOBALTALENTMETRICSGLOBALTALENTMETRICSGLOBALTALENTMETRICSGLOBALTALENTMETRICS
Global
Talent
Metrics
(GTM)
is
a
human
resource
information
services
company,
dedicated
to
helping
organizations
and
individuals
make
better
hiring
and
selection
decisions
with
greater
confidence
and
control.

Established
in
2006,
Global
Talent
Metrics
is
a
part
of
Alignmark.Inc,
a
leading
provider
of
innovative
products
and
services
that
help
organizations
optimize
their
investment
in
human
capital
across
Europe,
USA
and
Latin
America
for
over
30
years.
Leveraging
this
global
expertise
in
the
design
and
deployment
of
assessment
and
by
combining
dedicated
research
on
Indian
organizations
and
individuals,
we
offer
a
range
of
innovative
solutions
in
the
areas
of
talent
management.

A
team
of
expert
industrial
and
clinical
psychologists
and
technologists
make
up
the
research
wing,
which
is
at
the
core
of
the
Global
Talent
Metrics.
Over
the
last
30
years,
the
team
has
developed
innovative
solutions
and
products
for
over
100
global
giants
that
have
gained
significant
competitive
advantage
by
better
managing
their
talent.
Dr.Jaffeeisarecognizedauthorityintheareaofpersonnelevaluationanddevelopment.Heha
sbeenanomineefortheTrainingMagazineHallofFame.HestartedhiscareerwithATandTandwas
responsibleforassessmentcenteractivitiesfortheBellSystem.
Forover30years,hehasbeenaconsultantforavarietyoforganizationsintheU.S.andotherco
untries,bothintheprivateandpublicsectors.
Dr.Jaffee'sareasofexpertiseincludetesting,electronicselection,assessmentcenters,
jobanalysis,careerdevelopment,
managerialdevelopment,performanceappraisalandlegalconcernsassociatedwithpersonne
levaluation.Asoneoftheworld'sleadingexpertsintheareaofpersonnelevaluation,Dr.Jaf
feehasbeenanexpertwitnessinavarietyofcourtcases.
Dr.Jaffeehaspublishedextensivelyinthefield,andhasauthoredseveralbooks,chaptersan
dnumerousarticles.HehasbeenafrequentpresenteratmajorconferencesincludingtheAmeri
canSocietyforTrainingandDevelopment'sNationalConference,
Training,AmericanSocietyofPersonnelAdministration'sNationalConference,etc.
Dr.JaffeeholdsaB.A.degreeinPsychologyfromNewYorkUniversity,anM.A.degreefromColum
biaUniversityandaPh.D.
degreeinPsychologyfromFloridaStateUniversity.Dr.Jaffeehasbeenonthefacultiesofthe
UniversityofTennesseeandtheUniversityofCentralFlorida.Hehasgivenguestseminarsonp
ersonnelpracticesatsuchinstitutionsastheUniversityofMichigan,etc.
RANJANSINHACHAIRMANANDCEO,SUMMITHRRanjanSinhahasfoundedanddirectedanumberofservi
ceandtechnologycompaniesintheareaofhumanresources,e-mailandmarketingservicesinIn
diaandtheUSA.RanjanfoundedSummitHRwiththevisionofhelpingCEOsandtheirteamswinthew
arfortalent.SummitHRisrecognizedastheTopHROutsourcingCompanybyTheWallStreetJourn
al®,InternationalAssociationofOutsourcingProfessionals,TheGartnerGroupandFortune
®magazine.
Ranjanhasbeenselectedasthe"HROutsourcingSuperstar'severaltimesbyHROutsourcingTod
aymagazineforhiscontributionstotheHRIndustryintheUSandIndia.Heisafrequentspeaker
onvariousindustrypanelsonTalentManagement,
HiringRiskManagementandHROutsourcing.HecurrentlywritesacolumnforTheFinancialExpr
essandhaswrittennumerousarticlesonSixSigmaapplicationsinHRandTalentSupplyChainMa
nageent.RanjanservesontheboardofSummitHRWorldwideInc.,GlobalTalentManagementInc.
andGreenwichCapitalVentureCorporation.RanjanlivesinCaliforniaandisamemberoftheYo
ungPresidentsOrganization(YPO),NorthernCaliforniaChapter.RanjanhasaMastersDegree
fromTheWhartonSchoolofBusinessandaMBAfromtheIndianInstituteofManagement,Bangalor
e.HehasaB.TechfromtheIndianInstituteofTechnology,Roorkee.
19CABOTL.JAFFEE,SR.,PH.D.
CHAIRMAN,GLOBALTALENTMETRICSAUTHORSAUTHORSDr.Jaffeeisarecognizedauthorityinthear
eaofpersonnelevaluationanddevelopment.HehasbeenanomineefortheTrainingMagazineHal
lofFame.HestartedhiscareerwithATandTandwasresponsibleforassessmentcenteractiviti
esfortheBellSystem.
Forover30years,hehasbeenaconsultantforavarietyoforganizationsintheU.S.andotherco
untries,bothintheprivateandpublicsectors.
Dr.Jaffee'sareasofexpertiseincludetesting,electronicselection,assessmentcenters,
jobanalysis,careerdevelopment,
managerialdevelopment,performanceappraisalandlegalconcernsassociatedwithpersonne
levaluation.Asoneoftheworld'sleadingexpertsintheareaofpersonnelevaluation,Dr.Jaf
feehasbeenanexpertwitnessinavarietyofcourtcases.
Dr.Jaffeehaspublishedextensivelyinthefield,andhasauthoredseveralbooks,chaptersan
dnumerousarticles.HehasbeenafrequentpresenteratmajorconferencesincludingtheAmeri
canSocietyforTrainingandDevelopment'sNationalConference,
Training,AmericanSocietyofPersonnelAdministration'sNationalConference,etc.
Dr.JaffeeholdsaB.A.degreeinPsychologyfromNewYorkUniversity,anM.A.degreefromColum
biaUniversityandaPh.D.
degreeinPsychologyfromFloridaStateUniversity.Dr.Jaffeehasbeenonthefacultiesofthe
UniversityofTennesseeandtheUniversityofCentralFlorida.Hehasgivenguestseminarsonp
ersonnelpracticesatsuchinstitutionsastheUniversityofMichigan,etc.
RANJANSINHACHAIRMANANDCEO,SUMMITHRRanjanSinhahasfoundedanddirectedanumberofservi
ceandtechnologycompaniesintheareaofhumanresources,e-mailandmarketingservicesinIn
diaandtheUSA.RanjanfoundedSummitHRwiththevisionofhelpingCEOsandtheirteamswinthew
arfortalent.SummitHRisrecognizedastheTopHROutsourcingCompanybyTheWallStreetJourn
al®,InternationalAssociationofOutsourcingProfessionals,TheGartnerGroupandFortune
®magazine.
Ranjanhasbeenselectedasthe"HROutsourcingSuperstar'severaltimesbyHROutsourcingTod
aymagazineforhiscontributionstotheHRIndustryintheUSandIndia.Heisafrequentspeaker
onvariousindustrypanelsonTalentManagement,
HiringRiskManagementandHROutsourcing.HecurrentlywritesacolumnforTheFinancialExpr
essandhaswrittennumerousarticlesonSixSigmaapplicationsinHRandTalentSupplyChainMa
nageent.RanjanservesontheboardofSummitHRWorldwideInc.,GlobalTalentManagementInc.
andGreenwichCapitalVentureCorporation.RanjanlivesinCaliforniaandisamemberoftheYo
ungPresidentsOrganization(YPO),NorthernCaliforniaChapter.RanjanhasaMastersDegree
fromTheWhartonSchoolofBusinessandaMBAfromtheIndianInstituteofManagement,Bangalor
e.HehasaB.TechfromtheIndianInstituteofTechnology,Roorkee.
19CABOTL.JAFFEE,SR.,PH.D.
CHAIRMAN,GLOBALTALENTMETRICSAUTHORSAUTHORS
DR.VASANTHI
SRINIVASAN,
PHD
PROFESSOR,
INDIAN
INSTITUTE
OF
MANAGEMENT
BANGALORE
(IIMB)

Prof.
Vasanthi
has
a
Bachelors
degree
in
Commerce
from
Bangalore
and
a
Post
Graduate
Diploma
in
Personnel
Management
and
Industrial
Relations
from
XLRI,
Jamshedpur.
She
worked
with
Wipro
Limited
before
getting
her
Fellow
in
Management
(doctoral
degree)
from
the
Indian
Institute
of
Management,
Bangalore.
Her
consulting
experience
has
largely
been
in
designing
and
developing
performance
management
systems.
Her
areas
of
interest
are
Performance
Management,
Team
based
Human
Resource
Management
systems
and
International
Human
Resource
management.
She
has
done
specialized
performance
management
workshops
for
senior
and
middle
level
managers
in
a
number
of
organizations.
She
is
currently
the
Executive
committee
member
of
the
International
Society
of
Business
Ethics
and
Economics
and
is
the
head
of
the
Faculty
of
HRM
and
OB
at
IIMB.

REIMARA
VALK
SENIOR
RESEARCH
ANALYST,
GLOBAL
TALENT
METRICS
/
IIMB

Reimara
Valk
(MSc,
BA
Honors,
BA)
is
a
Senior
Research
Analyst
for
Global
Talent
Metrics
based
at
the
Indian
Institute
of
Management
Bangalore
(IIMB),
India.
In
collaboration
with
professor
Vasanthi
Srinivasan,
(IIMB)
Reimara
has
worked
on
various
studies
in
the
field
of
human
resources
(HR),
including
work-family
balance
of
women
and
male
IT
professionals
in
India,
global
staffing
strategies
of
expatriates
involving
companies
like
Sun
Microsystems,
Google,
Volvo,
Honeywell,
Alcatel-Lucent,
Philips,
Bosch,
Hyatt
Hotels,
employee
attrition
in
India
a
collaborative
endeavor
between
IIMB,
Summit
HR
Worldwide
and
Alignmark
Inc.
Reimara
has
gained
prior
work
experiences
in
the
area
of
HR
and
business
process
analyses,
customer
services
and
facilities
management
within
industries
such
as
IT,
chemical
manufacturing,
healthcare,
hospitality
and
municipality
government
across
the
Netherlands,
UK
and
India.

CHANDANA
REDDY
PRODUCT
MANAGEMENT
CONSULTANT,
GLOBAL
TALENT
METRICS

Chandana
Reddy
has
over
15
years
of
experience
in
software
product
marketing
in
psychometrics,
K-12
education,
assessment
and
analysis.
She
has
worked
extensively
with
globally
distributed
engineering
teams
and
customers
in
the
US
and
India
to
define,
develop
and
deploy
products.
Her
most
recent
venture
School
Portfolio
developed
in
partnership
with
a
non-profit
organization
Education
For
the
Future
and
Dr.Victoria
Bernhardt
is
a
software
platform
that
assists
with
the
creation
of
a
school
or
district
Continuous
Improvement
Portfolio
to
support
the
process
of
systemic
continuous
improvement
in
learning
organizations.
She
has
trained
and
coached
over
3,000
educators,
teachers
and
principals
,
across
60
school
districts
on
the
use
of
data
analysis,
quantitative
techniques
and
use
of
standardized
assessments
to
help
improve
student
and
teachers
performance.
She
is
a
frequent
speaker
at
various
K-12
education
conferences
and
forums
across
the
country.
Chandana
started
her
career
in
software
outsourcing
and
managed
product
development
alliances
with
key
partners
such
as
Motion
Picture
Association
of
America,
Sony
Pictures,
Buena
Vista
Home
Pictures,
and
Santa
Clara
County
Office
of
Education
in
California,
Pearson
Learning,
Scantron
Corporation
and
MGT
of
America.
REFERENCESREFERENCESREFERENCESREFERENCES
1.
Rao,T.V.(2008).Hurconomics:makingtheHRDmissionarybusinessdriven.NewDelhi:oxforda
ndIBHPublishingServices.
2.
Ryan,
A.M.
and
Tippins,
N.T.
(2004).
Attracting
and
selecting:
what
psychological
research
tells
us.
Human
Resource
Management,
43
(4),
305-318.
3.
Polonsky,
M.J.
and
Waller,
D.S.(2005).
Designing
and
Managing
a
research
project:
a
business
student's
guide.
New
Delhi:
Sage
Publications
India
Pvt.
Ltd.
4.
Ramamoorthy,
N.,
and
Carroll,
S.
(1998).
Individualism/collectivism
orientations
and
Reactions
toward
alternative
human
resource
management
practices.
Human
Relations,
51,
571-588.
5.
Budhwar,
P.S.,
and
Khatri,
N.
(2001).
A
comparative
study
of
HR
practices
in
Britain
and
India.
International
Journal
of
Human
Resource
Management,
12,
800-826.
6.
Sinha,
J.B.P.(1998).
Cultural
embeddedness
and
the
developmental
role
of
industrial
organizations
in
India.
In:
Triandis,
H.C.,
Dunnette,
M.D.
and
Hough,
L.M.
(eds.)
handbook
of
industrial
and
organizational
Psychology,
vol.
4.
Palo
Alto,
Ca,
USA:
Consulting
psychologist
press.
7.
Mattone,
J.S.,
Jaffee,
C.L.
and
Struth,
M.R.
(2009).
Sales
Results
are
Predictable!
A
Sales
Leader's
Guide
to
Measuring
and
Managing
Leading
Indicators.Whitepaper
series
AlignMark
Inc.,1-28.
8.Tippins,N.T.(2002).Issues
in
implementing
large
scale
selection
programs.In
J.W.Hedge
and
E.D.Pulakos
(Eds.),Implementing
organization
interventions:
Steps,
processes,
and
best
practices
(pp.
232-269).
San
Francisco:
Jossey-Bass.
(pp.
232-269).
San
Francisco:
Jossey-Bass.
Academic
Snippets

1.
Sackett,
P.
R.,
Schmitt,
N.,
Ellingson,
J.
E.,
and
Kabin,
M.
B.
(2001)
suggested
that
the
item
content
of
a
psychometric
test
should
not
be
unfamiliar
to
those
of
a
particular
culture
and
should
not
be
more
verbally
complex
than
warranted
by
job
requirements.
2.
Ryan,
A.M.
and
Tippins,
N.T.
(2004)
believes
that
the
usefulness
of
a
selection
tool
in
any
given
situation
will
require
evaluating
context-specific
information
such
as
the
selection
ratio
(number
of
candidates
hired
relative
to
the
number
of
candidates
who
applied),
hiring
cycle
time,
costs
of
a
selection
error
(e.g.,
cost
of
replacement,
error,
lost
opportunities),
marketability
(getting
people
in
the
organization
to
use
the
tools),
timeliness
(feedback
to
applicants
and
hiring
managers),
and
management
of
the
process
(selection
system
administrator
ability
and
credibility)-are
all
context-specific
and
may
be
more
challenging
for
some
HR
managers
than
others.
3.
Tippins,
N.
T.
(2002),
argues
that
putting
a
selection
system
into
use
involves
a
host
of
implementation
issues-decisions
about
the
ordering
of
process
elements,
the
ways
in
which
information
will
be
combined,
the
use
of
technology
in
delivery
of
tools,
the
training
of
tool
users,
policies
(e.g.,
waivers),
the
database
structure
and
access,
and
communications
about
the
system-all
of
which
contribute
to
the
success
or
failure
of
a
selection
system.
4.
Mattone,
J.S.,
Jaffee,
C.L.
and
Struth,
M.R.
(2009),
believes
that
technology
should
be
leveraged
to
help
organizations
source
and
screen
talent
more
effectively.
SOME
OF
THE
PARTICIPANTS

DesignationDesignationCompanyNameCompanyNameDeputyDirectorHRMetLifeIndiaInsuranc
eCompanyPrivateLimitedSeniorVicePresidentandGloalHeadTalentTransformationHCLTech
nologiesLimitedNameNameMr.KiranYadavMr.AnandPillaiMr.RahulGautamMr.PramathNathDr
.NKulkarniMr.ShehnazBegumMr.KapadiaMr.TripathyMr.SultanaMr.VRamaswamyMr.Ramachan
dranDr.BandyopadhyayMr.SrivatsanMr.RajendraHedgeMr.GovindrajMr.SSindhuMr.SinghKh
andujaMr.DPatilMr.PageyMr.TelangMr.DasmahapatraMrs.KaushikMr.GodboleMr.NJoshiVic
ePresidentHRandERUnichemLaboratoriesLimitedChiefManagerTheNewIndiaAssuranceCompa
nyLimitedDeputyGeneralManagerCorporateRTheBombayDyeingandManufacturingCompanyLim
itedVicePresidentCorporateHumanResourcesTheBombayDyeingandManufacturingCompanyLi
mitedhiefManagerHRTechProcessSolutionsLimitedHeadHumanCapitalandOrganisationDeve
lopmentSharekhanLimitedVicePresidentHRReproIndiaLimiedAssistantVicePresidentHRRe
lianceIndustriesLimitedVicePresidentHRGodrejAgrovetLimitedHeadPlacementUTLTechno
logiesLimitedDeputyeneralManagerHRToyotaKirloskarMotorPrivateLimitedSeniorManage
rHRTTKPrestigeLimitedVicePresidentandHeadHRPerotSystems(India)LimitedSeniorDirec
torHumanResourcesIndianSubcontinentMotorolaIndiaPrivateLimitedDeputyGeneralManag
erHRJindalAluminiumLimitedAssstantManageTalentAcquisitionINGVysyaLifeInsuranceCo
mpanyLimitedManagerInfosysBPOLimitedManagerHumanResourcesInfineonTechnologieIndi
aPrivateLimitedAssistantManagerHRHewlettPackardIndiaPrivateLimitedChiefHumanReso
urcesManagerHMTMachineToolsLimitedCentreMangerHPGlobale-BusinessOperationsPrivat
eLimitedManagerHRNokiaIndiaPrivateLimited
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