On the complicated end of the work-sample spectrum, Seymour Adler, the Aon Consulting psychologist, has created a four-hour online exercise called Leader, which Motorola and other companies use to test would-be executives. Candidates see an in box with e-mails that came in the night before, answer phone calls and listen to voice mails, and have access to reports and research. They're asked to tackle tasks like ones they would see on the job, such as solving a conflict between two underlings or leading a team of workers in creating a presentation for the CEO. At the end, Adler's team assesses the candidates on whatever areas the company is curious about--decisiveness, leadership, and so forth--and issues a report to the company. A company called Development Dimensions International offers similar exercises; these take place at one of its 75 assessment centers rather than online. Half-day and full-day job simulations cost from $4,000 to $12,000.
And finally...
Put it all together-- without riling your candidates
Dan Weinfurter runs Capital H Group, a human resources consulting firm in Chicago, though he's not an HR guy but an entrepreneur at heart. He founded the accounting and consulting firm Parson Group, which hit No. 1 on the Inc. 500 in 2000 with a four-year growth rate of 27,992 percent, and sold it four years ago for $55 million. Before that, he was second in command at Alternative Resources, an IT staffing company that was a two-time Inc. 500 honoree. For all he knew about running a company, however, Weinfurter came to the conclusion that he didn't know much about hiring. "I thought I was pretty good at interviewing," he says, "but I was no better, and maybe was worse, than other people. If you're just going through it and trying to guess, you'll guess right some of the time. But you won't be able to guess right often enough to grow a business from scratch."
So at Capital H, he unleashed his on-staff psychologists, who created a hiring system that's a textbook example of the latest hiring research. Let's say Capital H has an opening for a consultant. A group of candidates are interviewed by telephone by the HR manager (or by Weinfurter himself, if the position is very senior), and candidates with appropriate skills and backgrounds are then passed to a local office to meet with local executives. He or she takes the Watson-Glaser Critical Thinking Appraisal, a popular and well-validated cognitive-ability test, and the Devine Inventory, which measures the applicant's traits and tendencies against those of existing Capital H consultants. (See "Let's Turn the Tables" for a sample of questions from Watson-Glaser.) About one in four candidates are then flown to Chicago headquarters, where they spend a full day in behavioral interviews with multiple executives. Finally, applicants are asked to choose a presentation they've done in the past and give that to a group of Capital H execs back at the local office in a work-sample exercise. The executives discuss the candidates until they reach consensus.
Weinfurter figures he spends up to four weeks, and tons of his workers' billable hours, per interview. But he estimates the cost of hiring a bad consultant can be in the millions, considering not just salary but also missed sales and lost clients. "I think the hiring process is the most important process in business, but it's probably the least disciplined in terms of how it's executed across American business," he says.
People who study hiring, and business owners who are passionate about the subject, love to see systems like Capital H's. Candidates may not feel the same way. Certainly you'll have to make concessions in some cases--say you're trying to recruit a CFO from a rival company. "If they've already done a job like this, what's the point of the test? It's not obvious you want to give this to everyone and for every job," Peter Cappelli at Wharton notes. In every case, candidates will have a better attitude toward the process, and the company, if they believe that the hiring methods are respectful, fair, and smart. So use appropriate cognitive tests--don't ask accountants basic math questions. Use only tests designed for the workplace, so that the questions clearly deal with business situations and seem relevant. And explain why you're adopting an approach that to some candidates will seem overwrought: to be fair and quantitative.
There will always be skeptics about this approach to hiring, people who believe their gut tells them more than any structured interview or test could. And while Bill Vogt or Denise Noel or Dan Weinfurter could offer testimonials about the new science of hiring, the point is not that this system has worked in a handful of cases. It's that hundreds of studies have confirmed that testing and structured interviews do a much better job at finding good workers than do regular interviews. Given that, the gut-feel proponents start to seem like people who eschew antibiotics in favor of good old-fashioned bloodletting.
Maybe people don't like to believe that something as crucial to a business as hiring can be reduced to a series of processes. After all, we rely on feeling and judgment to get through our lives, whether to fall in love, keep safe on dark streets, or assess business partners. This science-based approach isn't perfect. It won't anoint every superstar, and it won't bar the door to all of the mediocre players. What it will do is give employers a fuller, more balanced, and fairer view of candidates, and give them a much better shot at hiring the best people. It's still up to employers to make the call on whether to hire or to pass, and that's where feeling and judgment still play a part. But that part now comes after employers have gathered all of the facts.
