Hiring people: Simulations, Competitions, Analytics

It is nowadays more common to evaluate candidates going further than interviews and resumes and using “Employment or Role Simulations”, so that performance shown in work situations is more relevant than where the person went to school. These simulations provide tools for a better evaluation of candidates and at the same time they create opportunities to attract and hire superior talent from non traditional sources.

If one looks at organizations whose success depends on the quality of the individual talent (sports teams, orchestras, theater groups) we find that all of them use some versión of tryouts or auditions to select their talent. This type of simulation was originally used in manufacturing to evaluate specific abilities to perform particular functions. The use of auditions or simulations is becoming more popular, since companies can obtain information about potential candidates not available from personal interviews. Here are some the tools available:

·      Simulations, used to judge the potential capacity of the candidate, where the observation is based on real work situations, that imitate the challenges that will be later found in the work environment. These can include (1) written assignments, (2) presentations by the candidate and (3) scenarios based on real work situations.  

·         Competitions, have been used more frequently to identify technical coding talent. This permits the participation of thousands of potential candidates  and it also provides an objective evaluation of the results. This strategy is also being applied in non-technical áreas such as traders.

·     Analytics, where the analysis of performance metrics is used to develop predictive talent algorithms.

Work Role Simulations and the Transition

For these simulations to be valid and realistic, the companies have to have a very clear sense of their strategy and the type of challenges that occur internally. There are multiple available tools for the searching for talent and to directly measure relevant abilities. However, it is important to understand that it is not that easy and simple to transition to a successful aplication of these tools. The first step has to be to recognize that not everything has to be changed in the hiring process:

•          The talent strategy has to prioritize the roles for which the corporate competencies and analytics are relevant and which will also provide the highest value to the business.
•          To recognize that a major effort is required to break with the traditional way of doing things.
•          To be open to utilize specialized consulting companies knowledgeable in simulations and anaytics.

Specific Work Simulations

In place of generic simulations, the use of specific specific work simulations allow companies to concentrate directly on the desired abilities and characteristics and this way they can have a clearer view of the candidates. The hiring process is more effective since (1) they are more accurate than interviews, (2) they reduce bias since performance indicators are used, (3) it allows candidates to get a better idea of the company and (4) the company can observe the abilities of the candidates in action. The efectiveness of these simulations can be limited by the quality of the software.

Statistics

A survey of 517 important corporations indicates that two thirds of these evaluate executives using behavioral, cognitive and psychological tests. Out of these, 46% apply executive simulations. A simulation for a CEO can cost US$25.000 per candidate and this is considered  a low cost if you compare it to the financial impact of a bad hiring.

We make reference to “How Companies Are Using Simulations, Competitions, and Analytics to Hire” http://bit.ly/214qCOL, “The Future of Hiring: Human Resources, Without the Humans” http://theatln.tc/1PhJ5Ax, “Customized Hiring Simulations: 4 Benefits You Need to Know” http://entm.ag/28kWCmp and “Extreme Hiring” http://onforb.es/1XaMw3u.