In fact both extremes are right because there are so many psychological assessments that are positioned into the business context, although they do not belong there at all. There is no way that MBTI or Jungian typecasting tools could ever add value to long term business decisions like “hiring”. On the other side there is a very true and valid formula from Schmidt & Hunter (1998) and Brogdon-Cronbach-Gleser that takes validity into the fokus. However, the language of business is dollars, not validity.
So you need assessment that tell you something about the success probability of a person in a certain job. You are probably not interested how similar the person is to the average of a certain group, now would you like to see, what colour group he would probably have to be attributed to. You have to bear in mind that “psychology” is nothing that relates very well to business economics. It is a completely different discipline. These 4 aspects add to a good jobFit thus to the validity of your choices:
Most companies tell us that they are “reasonably good” in recruiting. If the majority of hires performs ok, and they stay for lets say average 5 years - you have probably some justification to say so.
But very good recruiting means that you can avoid people that will perform below average, 8 out of 10 applicants are above average and they reamin longer with your company than your todays average.
Only 20 % better sales for 2 more years give you 8 x 20% + 2 x 120%. This will probably accumulate to a 400% better income for this person. Now please deduct about 4000@ for the selection process for each position and then multiply this by the number of positions you will fill. Assuming that the 20% are 40000 € with a contribution margin of only 40% your will end up with a bottom line Return like 280 000€ with an investment of 4000€.
We can re-assure you. This is the basics that you could reach. With benchmark Job Requirement Profiles we can exceed this easily because we would be learning from performance reviews you are doing anyway.
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