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GLOBAL ASSESSMENT TRENDS REPORTSarah S. Fallaw, Ph.D. • Andrew L. Solomonson, Ph.D.



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1. Executive Summar y ........................................................................................................................................................................ 3

2. Introduction...................................................................................................................................................................................... 4

- The Case for Talent Measurement ............................................................................................................................................. 5

3. About the Report: Methodology and Participating Companies ................................................................................................. 6

4. The Climate for Talent Management in 2010 ................................................................................................................................ 8

- Change in Priorities ..................................................................................................................................................................... 8

- New Fears About the Talent Landscape.................................................................................................................................... 10

5. Testing the External Talent Landscape ........................................................................................................................................11

- Remote Testing ......................................................................................................................................................................... 12

- Business Outcomes: Connecting Assessments to Criteria that Matter ..................................................................................... 13

- The Hiring Process: What Talent Measurement Tools Do Organizations Really Use? ............................................................. 16

- Social Media: An Evolving Trend for Hiring and Recruiting ...................................................................................................... 18

- Are We Treating Our Candidates As Customers? ..................................................................................................................... 20

6. Measuring the Internal Talent Landscape .................................................................................................................................. 22

- Employee Initiatives and Talent Measurement.......................................................................................................................... 23

7. Looking Ahead: Talent Measurement in 2010 and Beyond ...................................................................................................... 24

8. Additional Information .................................................................................................................................................................. 26

- About PreVisor .......................................................................................................................................................................... 26

- About ADP................................................................................................................................................................................. 26

9. References .................................................................................................................................................................................... 27

Appendix A: Executive Summary of 2009 Global Assessment Trends Survey........................................................................... 28

Tables

Table 1: Company Headquarters by Geographic Location .............. .............. ............. .............. .............. .............. ............. .............. ...... 6

Table 2: Companies Represented by Company Size ............. ............. .............. .............. .............. ............. .............. .............. ............. .. 6

Table 3: Companies Represented by Industry............ .............. ............. .............. .............. .............. ............. .............. .............. ............. 7

Table 4: Participant’s Role in Company ............. ............. .............. .............. .............. ............. .............. .............. ............. .............. ......... 7

Table 5: Top Priorities for 2009 and 2010 and Change in Priority ............ .............. .............. .............. ............. .............. .............. .......... 9

Table 6: Trends in Human Resources – Comparisons between 2009 and 2010 ............. .............. ............. .............. .............. ............. . 9Table 7: Trends in Human Resources – Recruiting and Retention .............. .............. ............. .............. .............. ............. .............. ...... 10

Table 8: Reasons for Pre-Hire Remote Testing ............ .............. .............. .............. ............. .............. .............. ............. .............. ......... 13

Table 9: Trends in Human Resources – Collecting Metrics and Valuing Assessments ............. .............. .............. .............. ............. ... 14

Table 10: Business Outcomes Targeted by Using Pre-Hire Tests/Assessments .............. .............. ............. .............. .............. ............ 15

Table 11: General Hiring Tool Usage and Plans for Use ............. ............. .............. .............. ............. .............. .............. ............. ......... 17

Table 12: Pre-Hire Assessment Usage and Plans for Use .............. .............. .............. ............. .............. .............. ............. .............. .... 17

Table 13: Use and Effectiveness of Social Media for Recruiting and Hiring .............. .............. ............. .............. .............. .............. ..... 20

Table 14: Trends in Human Resources – Attitudes and Actions Toward Candidates .............. .............. ............. .............. .............. ..... 21

Table 15: Trends in Human Resources – Current Workforce Strategies ............ .............. ............. .............. .............. .............. ............ 22

Table 16: Use of Assessments with Current Workforce by Workforce Initiative ............. ............. .............. .............. .............. ............. . 23

Figures

Figure 1: Tests/Assessments in the Hiring Process .............................................................................................................................11Figure 2: Online Tests/Assessments in the Hiring Process ..................................................................................................................11

Figure 3: Remote Testing in the Hiring Process ............. .............. .............. ............. .............. .............. ............. .............. .............. ....... 12

Figure 4: Internal Requirements for Measuring Business Impact of Pre-Hire Tests/Assessments .................... .............. .............. ..... 14

Figure 5: Informal Social Media Searches As a Hiring Tool ............. ............. .............. .............. ............. .............. .............. ............. ..... 19

Figure 6: Formal Social Media Searches As a Hiring Tool .............. ............. .............. .............. ............. .............. .............. ............. ..... 19

Table of Contents



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KEY FINDING 1: Top Talent Priorities for 2010 – TheEmergence of Performance Management and Career Development

- Managing the performance of the current workforce is the

highest priority for HR in 2010 with career development

and external recruiting/hiring following as the next highest

priorities. External recruiting/hiring, which was projected as

a top priority prior to the economic downturn, had the largest

decrease in priority from 2009-2010 of any HR initiative

included in the survey.

KEY FINDING 2: Talent Impact of Economic Recovery – Retention, Recruitment, Retirement

- Most companies (68%) indicated concern about retaining

employees during the economic recovery. Likewise, 54%

believe it will be challenging to recruit talented employees

in 2010. However, less than 19% of companies reported

being concerned about the talent gap to be left by retiring

employees and leaders.

KEY FINDING 3: Focus on Quality of Hire – Whether It Is Measured or Not

- Most companies (70%) are feeling pressure to demonstrate

return on investment for assessment products. Quality of

Hire is the most common business outcome that companies

(84%) are trying to improve with pre-hire assessments.

However, only 56% of companies reported that they collect

metrics to show the value of HR investments, and only 42%

are required by internal stakeholders to demonstrate a link

between assessments and business outcomes.

KEY FINDING 4: “Wait and See” Perspective on Plansto Use New Tools, Processes

- Compared to the previous year’s survey, the proportion of respondents who plan to use processes (which they are not

currently using) within the next year has decreased, indicating

a more cautious approach toward purchasing and using new

tools, technologies, and processes. A few exceptions to this

nding include the use of informal social media searches,

formal social media searches, and situational judgment

tests as hiring tools.

KEY FINDING 5: Social Media As a Hiring Tool:The Jury Is Still Out

- Nearly 70% of organizations use or plan to use informa

Web 2.0 searches as a hiring tool. However, only 20% o

the organizations surveyed indicated that social media sites

are effective tools for determining candidate t, while nearly

50% are uncertain. Accordingly, only 24% of companies are

currently in agreement that social media websites such as

Twitter and Facebook are having a large impact on how

talent is recruited, measured, and managed.

KEY FINDING 6: Treating Candidates As CustomersIs Emphasized but Not Evaluated

- Most organizations (84%) agreed that applicant reactions

to the recruitment and hiring process are important. Fo

example, convenience to applicants was the most frequently

cited reason (86%) that companies use remote testing

However, only 41% of companies obtain feedback from

their candidates, who are likely to be their customers and/or

future employees.

KEY FINDING 7: Opportunity Exists to Formalize TalentPrograms

- While career development is a top priority and more than

60% of companies use it as a retention strategy, only 29%

have established a formal career development process fo

their employees.

- Only 28% of companies have a structured promotion process

for leaders. This is a consistent nding from the previous

year’s survey.

- Only 50% of organizations indicated they use assessments

talent measurement tools with their current workforceOf those who do, most use or plan to use such tools fo

career development, training needs analysis, and promotion

programs within their companies.

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1. Executive Summary

Over 230 companies from around the world responded to PreVisor and ADP’s Global Assessment Trends Survey in late

2009 to provide their perspectives on current and anticipated talent measurement practices and trends. Key ndings from

the report are listed below.



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With increasing pressure and continuous change occurring in organizations due to economic conditions, globalization, and

other forces, it can be said that the human talent within organizations is critical to the survival and success of any business.

Talent measurement, the assessment of current or potential employees’ skills, abilities, knowledge, and competencies,provides companies with data to make better talent decisions and ultimately help drive sustained business success. The

Global Assessment Trends Report is designed to uncover some of the key trends in the area of talent measurement and

offers insights on how companies may enhance their own talent measurement practices.

This second annual Global Assessment Trends Report presents the results of an online survey conducted in late 2009

with representatives of over 230 companies headquartered throughout the world. The report aims to provide HR and

business audiences with an up-to-date perspective on practices and trends related to use of individual assessment (i.e.

talent measurement) tools in HR and talent management programs such as hiring, career development, and succession

planning. The ndings presented in this report are intended to be instructive for those seeking to stay current on relevant

trends in this area and for benchmarking and informing decisions about one’s own company’s assessment practices.

As with the previous year’s Global Assessment Trends Report, highlights of the 2010 report include review of key HR

trends related to assessment, commentary on the context and use of assessments in HR programs, and an overview of

how organizations around the world are measuring their internal and prospective talent through the use of assessment

tools. Also, relevant comparisons are drawn to results of the previous years’ Global Assessment Trends Survey1, some of

which are particularly interesting because the 2009 survey was completed just prior to the economic downturn that began

in late 2008.

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2. Introduction

1. Key Findings of the 2009 Global Assessment Trends Survey are located in Appendix A.



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The Case for Talent Measurement

A growing movement in business today known as “Evidence Based Management” suggests the quality of organizationadecisions and practices can be enhanced through deliberate use of relevant scientic evidence and data2. These principles

extend naturally to the measurement and management of talent in organizations. Better decisions about talent can be made

when relevant data about individuals’ competencies, skills, and other characteristics are considered – especially when the

talent measurement tools have been developed and tested based on industry-accepted, scientically-based principles

and practices. Furthermore, business analytics that leverage talent measurement data allow a more direct view of how an

organization’s talent decisions impact business objectives and strategy, which will further underscore the importance of

making effective talent decisions.

We dene talent measurement as the assessment of individual competencies, performance, and other relevant characteristics

to provide quantiable data to assist in decision making. Companies regularly make decisions about their talent, such

as which candidates to hire, which employees to develop and promote into leadership roles, how best to target trainingand career development efforts, and who to place in other roles in the organization. These decisions can be aided by

employing effective talent measurement. Organizations use talent measurement data to make decisions about potentia

and internal talent and/or to assist employees in making decisions related to their professional and career development

Objective and structured talent measurement programs add value to these decisions by providing information that can lead

to improvements in individual performance and ultimately the bottom line of an organization.

Including talent measurement as an integral component of HR programs such as hiring and career development can build

the business case for these programs by linking assessment data to critical business outcomes like quality of hire, sales

revenue, employee retention, and increased productivity. By demonstrating how talent measurement impacts business

outcomes, practitioners are well positioned to show the value of programs to others within their organizations and to make

targeted improvements to those programs. See PreVisor’s 2009 Business Outcomes Study Report for examples of Fortune500 companies who have linked talent measurement to critical business outcomes3.

2. Rousseau, 2006. 3. PreVisor, 2009.

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1. Introduction (cont.)



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3. About the Report: Methodology and Participating Companies

Human Resources professionals from 234 companies who work with PreVisor, ADP, and/or their afliates were surveyed

late October, early November 2009. Approximately 58% of the companies surveyed are headquartered in the United States

while the remaining companies are headquartered in Australia, Canada, the United Kingdom, and other internationa

locations (see Table 1). Organizations in the survey represented a diverse array of company sizes and industries (see

Tables 2 and 3). Most survey respondents report into a Human Resources function within their organizations and represen

a variety of roles including HR generalists, recruiters, and leaders/directors (see Table 4).

Geographic Location Number of Companies Percentage of Sample

Americas 152 65%

Australasia 39 17%

Europe/Africa/Middle East 42 18%

Table 1: Company Headquarters by Geographic Location

Number of Employees Number of Companies Percentage of Sample

0 to 49 52 22%

50 to 99 19 8%

100 to 499 41 18%

500 to 999 21 9%

1,000 to 4,999 35 15%

5,000 to 9,999 21 9%

10,000 to 12,000 11 5%

Over 12,000 34 15%

Table 2: Companies Represented by Company Size



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Industry Number of Companies Percentage of Sample

Administrative and Support Services 1 <1%

Advertising/Marketing 2 1%

Construction 4 2%

Educational Services 11 5%

Financial 14 6%

Healthcare 15 6%

Hospitality 7 3%

Information 22 9%

Insurance 12 5%

Manufacturing 23 10%

Professional Services 28 12%

Public Administration 5 2%

Retail 8 3%

Stafng 22 9%

Telecommunications 6 3%

Transportation and Warehousing 4 2%

Utilities 4 2%

Other 46 20%

Table 3: Companies Represented by Industry

Participant Role Number of Participants Percentage of Sample

Human Resources Leadership(e.g., Director, Vice President)

50 22%

Other Corporate Leadership 43 19%

HR or Stafng Manager 35 15%

Recruiter 22 10%

Hiring Manager/Line Manager 21 9%

Human Resources Generalist 16 7%

Internal Consultant 11 5%

Trainer 10 4%

External Consultant 9 4%

Other 14 6%

Table 4: Participant’s Role in Company

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3. About the Report: Methodology and Participating Companies (cont.)



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Talent measurement is conducted within a broader HR context and strategy. To fully understand global assessment trends

we must also understand the relevant environmental and strategic inuences on talent measurement. To that end, we begin

by examining several HR priorities and general trends that are emerging and directly relevant to talent measurement.

Companies were asked to indicate whether each of several HR areas were top, medium, or low priorities for their organizations

in 2010. Understanding the relative importance of various initiatives provides context for how assessments are used within

talent measurement programs and what will be increasing or decreasing in emphasis in the future. As in 2009, performance

management continues to be a high priority in 2010, with 60% of companies endorsing performance management as a top

priority for their organization (see Table 5). Other top priorities include career development and external recruiting/hiring.

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4. The Climate for Talent Measurement in 2010

KEY FINDING 1

Top Talent Priorities for 2010 – The Emergence of Performance Managementand Career Development

Managing the performance of the current workforce is the highest priority for HR in 2010 with

career development and external recruiting/hiring following as the next highest priorities. External

recruiting/hiring, which was projected as a top priority prior to the economic downturn, had the

largest decrease in priority from 2009-2010 of any HR initiative included in the survey.

Change in Priorities

Compared to 2009, the results demonstrated that external recruiting/hiring had the largest decrease in 2010 – consistent

with the changes in the economy between survey administrations. Also, internal promotion/placement had the second

highest decrease in priority from 2009 to 2010. This is another sign that many jobs may be “stagnant” (or eliminated) in

today’s economy, along with potential inuences such as lack of business growth and voluntary turnover which often create

opportunities for internal promotion and movement within companies.



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HR Focus Area 2009 Top Priority

2009 Rank

(Based on Top

Priority)

2010 Top

Priority

2010 Rank

(Based on Top

Priority)

Change

Performance Management 56% 2 59% 1 3

Career Development 45% 4 35% 2 -10

External Recruiting/Hiring 62% 1 35% 2 -27

Training Needs Analysis/Skills GapAnalysis

35% 6 32% 4 -3

Workforce Planning 31% 7 30% 5 -1

Succession Planning 42% 5 29% 6 -13

Internal Promotion/Placement 50% 3 29% 6 -21

Competency Modeling 21% 9 26% 8 5

Bench Strength Analysis 24% 8 15% 9 -9

Training Certication 21% 9 14% 10 -7

Outplacement/Redeployment 9% 11 10% 11 1

Table 5: Top Priorities for 2009 and 2010 and Change in Priority

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4. The Climate for Talent Measurement in 2010 (cont.)

HR practitioners and leaders are feeling the impact of the economy on their own practices. Companies around the world

indicated they perceive the economy having a bigger impact on recruiting, hiring, and developing employees in 2010 as

compared to 2009 (see Table 6). The changes in priority indicated above (i.e., focusing on performance management and

career development in 2010 versus 2009) are also reected in the strategy for focusing more on developing internal talenthan hiring externally, having a large change in emphasis from 2009 (37%) to 2010 (52%).

Likewise, companies indicated their competency models are being used less effectively in 2010 versus 2009. The economic

conditions were felt throughout many companies, and the emphasis on competency models and consistent practices

across the company may have often taken a back seat to nancially-induced HR activities such as reductions in force or

compensation adjustments.

Survey Statement Percent Agree/ Strongly Agree Change

2009 2010

The economy is having a big impact on how we recruit, hire, anddevelop employees this year.

59% 76% 17

In general, my company is focusing more on developing talentinternally than on hiring externally.

37% 52% 15

Our company’s competency model is being used effectively as partof our overall employee lifecycle (from hiring to development topromotion).

44% 37% -7

Table 6: Trends in Human Resources – Comparisons Between 2009 and 2010



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New Fears About the Talent Landscape

Consistent with economic data, less than 25% of companies indicate they are recruiting for more open positions acrosstheir entire organization as compared to last year. Similarly, 65% of companies indicated they have more applicants for each

open position compared to last year prior to the economic downturn.

Nearly 70% of companies indicated that retaining employees will become a challenge as the economy improves, and ove

half report it will become increasingly challenging to recruit and hire talented individuals in the upcoming year (see Table 7)

Conversely, only 19% of organizations believe that retirement of managers and executives will contribute to the talent gap

in leadership roles in the organization, and 17% believe hiring needs will increase due to retirement of current employees

next year.

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4. The Climate for Talent Measurement in 2010 (cont.)

KEY FINDING 2

Talent Impact of Economic Recovery – Retention, Recruitment, Retirement

Most companies (68%) indicated concern about retaining employees during the economic recovery.

Likewise, 54% believe it will be challenging to recruit talented employees in 2010. However,

less than 19% of companies reported being concerned about the talent gap to be left by retiring

employees and leaders.

Survey StatementPercent Agree/

Strongly Agree

We are currently recruiting for more open positions company-wide as compared to last year. 23%

Compared to last year, we have an increased number of applicants per open position. 65%

We anticipate that retaining employees will become a greater challenge as the economy improves. 68%

We expect it will become increasingly challenging to recruit and hire talented individuals for key positions in

the coming year.54%

Our hiring needs will increase in the coming year due to retirement of current employees. 17%

Retirement of managers/executives in the next year will contribute to a “talent gap” in leadership roles at

our company.19%

Table 7: Trends in Human Resources – Recruiting and Retention



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Tests and assessments, in some form or fashion, have been used by companies to make employment decisions for

thousands of years. As psychological and employment testing has evolved into its own scientic eld within the past

century, the relative effectiveness of such hiring tools has been well-documented: depending on the type of test used, theuse of structured hiring tools, including tests, structured interviews, and the like, can help predict key outcomes such as

performance, turnover, and other metrics of importance to organizations4.

The overwhelming majority (86%) of survey participants use testing as part of the hiring process for jobs within their

organizations (see Figure 1). Of those companies who use tests to hire externally, 83%* of them use online versus paper

and pencil tests (see Figure 2).

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5. Testing the External Talent Landscape

Figure 1:

Tests/Assessments in the Hiring Process

Yes

Unsure

No

Figure 2:

Online Tests/Assessments in the Hiring Process5

Yes

Unsure

No

13%

1%

86%

15%

3%

83%*

4. Schmidt & Hunter, 1998.

5. This question includes those who responded “Yes” to the following question: Does your company use tests/assessments as part of the hiring process for any jobs?

* The percentages do not add to 100% due to rounding.



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Remote Testing

In addition to other advantages, online testing affords organizations the ability to test candidates from anywhere in the worldAdvances in test security, including the use of computer adaptive testing, randomized item presentation, and other features

help ensure that tests can be used in such a manner without being compromised. We dene remote testing as a tes

administration event where the candidate is taking a test without direct supervision from a test administrator or proctor.

In 2009, we asked organizations to respond to the question: We allow candidates for some or all jobs to test remotely

(for example, from their home). The majority of companies (60%) indicated they agreed or strongly agreed that they used

remote testing in 2009 for some or all jobs. In 2010, we asked companies to indicate their response with Yes, Unsure, or No

and 73% indicated they allow external candidates to test remotely (see Figure 3).

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5. Testing the External Talent Landscape (cont.)

Figure 3: Remote Testing in the Hiring Process

Yes

Unsure

No

25%

2%

73%

Of the companies that conduct remote testing (n = 122), most indicated convenience to both candidates and test administrators

as a primary reason they use remote testing (see Table 8), while other factors such as cost, on-site resources, and applican

pool size/diversity were relatively less frequently cited as reasons for offering remote testing. More than a third of companies

indicated they use remote testing as a prescreening measure, before inviting qualied candidates to take an additional tes

on-site (in a supervised testing event).



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Business Outcomes – Connecting Assessments to Results that Matter

The current economic environment puts all business expenditures under the microscope. Approximately 70% of companies

feel pressure to show demonstrable business impact of the assessments they use (see Table 9). However, despite this

pressure, relatively fewer companies surveyed say they collect metrics to show the value of their HR investments in genera

(56%) or their pre-hire tests (57%). Likewise, 44% of companies collect metrics to examine how interviews add value to thehiring process.

The reluctance to collect metrics could be due to the nature of what is required by a particular organization. While there

is general pressure to show business impact of assessments, only 42% of companies are required to collect such data to

justify their testing program(s) to internal stakeholders, and 30% of companies indicated simply having the hiring managers

believe the process is working is enough to justify the program (see Figure 4). Even so, collecting metrics to examine overal

effectiveness and to examine the value of testing to the pre-hire process are both up from the 2009 report, suggesting an

overall increase in the examination of the impact of HR initiatives.

For what reasons do you allow your candidates to test remotely? Percent Endorsing Rank

Remote testing is more convenient for our candidates. 86% 1

Remote testing is more convenient to administer for hiring managers,

recruiters, etc.73% 2

To prescreen candidates prior to inviting them in for an on-site testing

session.51% 3

Remote testing increases the size of the candidate pool. 36% 4

The cost or resources required for on-site or supervised testing is prohibitive. 35% 5

We lack appropriate on-site testing facilities (e.g., not enough computers or a

dedicated testing location).33% 6

Remote testing increases the demographic composition of the candidate

pool. 29% 7

Table 8: Reasons for Pre-Hire Remote Testing

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2009 2010

Our department feels pressure to show return on investment for any assessmentproducts we use.

- 70% -

We collect metrics to show the value of our HR investments. 49% 56% 7

Testing candidates is a valuable part of the hiring process. 94% 93% -1

We collect metrics to determine how tests add value to the hiring process6. 51% 57% 6

We collect metrics to determine how interviews add value to the hiring process. - 44% -

Table 9: Trends in Human Resources – Collecting Metrics and Valuing Assessments

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6. In 2009, this statement said “how our assessments” instead of “how tests.”

Figure 4:

Internal Requirements for Measuring Business

Impact of Pre-Hire Tests/Assessments

Stakeholders require data.

If HR Managers believe in it, then itis supported.

Nothing - they assume it's working.

Unsure.

30%

18%42%

11%

What type of information do your business stakeholders require to continue supporting testing?



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KEY FINDING 3

Focus on Quality of Hire – Whether It Is Measured or Not

Most companies (70%) are feeling pressure to demonstrate return on investment for assessment

products. Quality of Hire is the most common business outcome that companies (84%) are trying

to improve with pre-hire assessments. However, only 56% of companies reported that they collect

metrics to show the value of HR investments, and only 42% are required by internal stakeholders

to demonstrate a link between assessments and business outcomes.

Why do organizations use tests during the hiring process? What business outcomes are they trying to achieve? Out of the

companies who responded to this section, most companies (84%) indicated they are focused on impacting Quality of Hire

with pre-hire assessments, trying to improve the quality of the employees that are hired using their process (see Table 10)

Over 50% of companies also indicated trying to impact retention or turnover of employees using pre-hire assessments

during the hiring process. Productivity (47%) and Process Efciency (44%) rounded out the top four metrics when using

tests/assessments. Only 10% of companies indicated they do not target any metrics with their tests/assessments.

Which of the following business outcomes or metrics does your

company seek to impact when using pre-hire tests?Percent Endorsing Rank

Quality of Hire 84% 1

Retention (or Turnover) 52% 2

Productivity 47% 3

Process Efciency (e.g., cost per hire, time to hire) 44% 4

Performance Ratings 38% 5

Training Effectiveness/Cost 24% 6

Legal Compliance 19% 7

Financial Metrics (e.g., sales revenue, shrink/loss) 16% 8

We do not target any specic metrics or business outcomes

with our pre-hire tests.9% 9

Table 10: Business Outcomes Targeted by Using Pre-Hire Tests/Assessments



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The Hiring Process: What Talent Measurement Tools Do Organizations Really Use?

What does the hiring process typically look like around the world? In addition to tests and interviews, there are many otherhiring tools used during the overall decision making process. Most organizations continue to use traditional hiring tools

in their hiring processes, including résumé screens, reference checks, prescreening questions, and background checks

More than 70% of companies indicated they use or plan to use tests that measure some knowledge, skill or ability

including skills/knowledge tests, cognitive ability/general problem solving tests, and specic ability tests. Personality and

situational judgment tests round out the top ve types of assessments used by companies during the hiring process

Any tool used to make a hiring decision about a candidate should be carefully considered. Does the tool add value

to your process? Is the tool related directly to the job in question? Does it appear to be relevant to the job? Does it

meet professional and legal guidelines? Each of the tools listed in Tables 11 and 12 vary in terms of how they meet

each of the issues raised above, and should be evaluated carefully before implementation and on an ongoing basis.

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FREQUENTLY USED HIRING TOOLS – TOP 5 LISTS

KEY FINDING 4

“Wait and See” Perspective on Plans to Use New Tools, Processes

Compared to the previous year’s survey, the proportion of respondents who plan to use processes

(which they are not currently using) within the next year has decreased, indicating a more cautious

approach toward purchasing and using new tools, technologies, and processes. A few exceptions

to this nding include the use of informal social media searches, formal social media searches, and

situational judgment tests as hiring tools.

General Hiring Tools

• Résumé review/screen

• Reference checks

• Prescreening questions

• Background check7

• Application forms

Assessments

• Skills/knowledge tests

• Cognitive ability/general

problem solving tests

• Specic ability tests

• Personality tests

• Situational judgment tests

7. For more information about the use of automated processes for background checks, credit checks and the like, please see ADP’s 2009 Hiring Index Whitepaper (Automatic Data Processing, 2009a).



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2009 2010

Hiring Tool CurrentlyUsing

Planningto Use

Total Rank CurrentlyUsing

Planningto Use

Total Rank

Résumé review/screen 91% 4% 95% 2 92% 4% 96% 1

Reference checks - - - - 89% 4% 93% 2

Prescreening questions (minimumqualications questions)

82% 11% 93% 3 78% 14% 92% 3

Background checks8 94% 4% 98% 1 86% 6% 92% 4

Application forms - - - - 84% 5% 89% 5

Phone screens (person to personor IVR)

84% 4% 88% 4 79% 7% 86% 6

Structured interview guides 72% 13% 85% 5 72% 12% 84% 7

Social media searches – Informal - - - - 44% 25% 69% 8

Work samples/Assessment centers 38% 21% 59% 6 47% 20% 67% 9

Drug screens - - - - 54% 8% 62% 10

Unstructured interviews 37% 7% 44% 7 55% 6% 61% 11

Social media searches – Formal - - - - 30% 24% 54% 12

Credit checks - - - - 41% 12% 53% 13

Table 11: General Hiring Tool Usage and Plans for Use

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2009 2010

Assessment TypesCurrently

Using

Planning

to UseTotal Rank

Currently

Using

Planning

to UseTotal Rank

Skills/knowledge tests 76% 9% 85% 2 69% 15% 84% 1

Cognitive ability/general problemsolving tests

62% 23% 85% 1 56% 18% 74% 2

Specic ability tests 69% 15% 84% 3 56% 17% 73% 3

Personality tests 53% 14% 66% 8 50% 18% 68% 4

Situational judgment 49% 19% 68% 7 43% 24% 67% 5Job t tests 56% 20% 76% 5 43% 19% 62% 6

Job-specic solutions 63% 19% 82% 4 41% 21% 62% 7

Job simulations 39% 31% 70% 6 36% 20% 56% 8

Culture t tests 30% 29% 59% 9 32% 20% 52% 9

Interest assessments 28% 22% 50% 10 25% 17% 42% 10

Biodata (life history information) 33% 10% 43% 11 30% 6% 36% 11

Table 12: Pre-Hire Assessment Usage and Plans for Use

8. Note: In 2009, this was combined to read “Background checks, drug screens.”



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Social Media: An Evolving Tool for Recruiting and Hiring

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KEY FINDING 5

Social Media As a Hiring Tool: The Jury Is Still Out

Nearly 70% of organizations use or plan to use informal Web 2.0 searches as a hiring tool. However,

only 20% of the organizations surveyed indicated that social media sites are effective tools for

determining candidate t, while nearly 50% are uncertain. Accordingly, only 24% of companies are

currently in agreement that social media websites such as Twitter and Facebook are having a large

impact on how talent is recruited, measured, and managed.

When companies take information they nd about candidates during searches and use it to inuence hiring decisions, the

social media search becomes a hiring tool, and as such, is subject to the legal, ethical, and scientic scrutiny of any hiring

tool like an interview or test. We examined social media as a recruiting and hiring tool in the 2010 Global Assessment

Trends Survey. The popularity of social media sites as information gathering tools is not without controversy, and we

felt it was important to understand how organizations use social media searches as part of their hiring processes. In

other words, do companies use information provided by candidates on social media sites such as Facebook, MySpace

Twitter, LinkedIn, and others to make employment decisions? Likewise, what is the perceived effectiveness of such tools?

We asked companies to indicate whether they were using or plan to use both informal searches and formal searches that

include rating scales and specic criteria to consider. We felt this distinction is important given the legal environment for

selection decisions contrasted with the increasing popularity of such sites from both an employer and applicant perspective

The results demonstrate that nearly 70% of companies either currently use or plan to use informal social media searches

as part of their hiring process (see Figure 5). Over 54% of companies use or plan to use formal social media searches

as part of their hiring process (see Figure 6). In fact, out of all of the hiring tools and assessments included in the survey

informal social media searches was the top “plan to use” hiring tool for 2010 (see Tables 11 and 12 in the previous section)



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Figure 5:

Informal Social Media Searches As a Hiring Tool

Currently use

Plan to use

Do not use/No plans to use

44%*32%

25%

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Figure 6:

Formal Social Media Searches As a Hiring Tool

30%

24%

47%*

Currently use

Plan to use

Do not use/No plans to use

Many companies (40%) use social media to recruit candidates, posting job openings on their Facebook pages or advertising

them via LinkedIn or Twitter, and believe they are effective at reaching quality candidates (41%; see Table 13). Despite this

emphasis on social media as a hiring tool, companies appear undecided about the effectiveness of such tools. While less than

20% of companies were in agreement that social media is an effective tool for determining candidate t with an organization

perhaps the most telling ndings were the large proportion of neutral responses related to effectiveness of using social media

for hiring. Specically, 42% of companies reported they neither agreed nor disagreed that social media sites are effective

tools for recruiting and reaching quality candidates. Likewise, nearly 50% of companies indicated a “neutral” response to

the statement: “Social media sites are effectiveness tools for determining candidate t with an organization.” These ndings

illustrate the uncertainty that exists around this particular technology as a useful source for candidate data in the hiring process

* The percentages do not add to 100% due to rounding.



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As discussed previously, hiring tools should be used only when they are known to add value to the hiring decisions andto the organization as a whole. Legal guidelines and professional best practices clearly support the use of job-relevant,

valid hiring tools - that is, tools that are shown to be related to the job in question via job analysis and validation evidence.

Further research and evaluation will certainly lend more insight into the effectiveness, legality, and ultimately the continued

viability of Social Media as a hiring tool. Until then, we would urge employers to proceed with caution and consult their legal

counsel prior to using these tools in the hiring process.

Are We Treating Our Candidates As Customers?

Recent popular press has highlighted the importance of treating candidates as customers of an organization9, and research

supports this notion: recruiting and hiring processes that appear fair and job-relevant will garner better reactions from

candidates. Companies inherently seem to know this: nearly 84% of companies indicated that applicant reactions areimportant in their recruiting efforts; and nearly 9 out of 10 companies view their hiring processes as an extension of

recruiting efforts (see Table 14).

Having a realistic process - including previews of what the job will entail and including face valid talent measurement tools

- will also help to ensure a positive candidate experience. Over 62% of companies use realistic job previews (RJPs) - or

real-world views of what a job will be like - to help applicants understand what they can expect from a particular job as part

of their hiring process. RJPs give candidates a true picture of what the job will entail, thus providing additional information

for the candidate to consider as he or she continues through the process. As for the preferences for realistic hiring tools,

there was a notable decrease in emphasis in 2010 (63%) versus 2009 (83%). As mentioned previously, this may be due in

large part to an overall reluctance to examining new types of hiring tools, particularly assessments, in 2010.

Despite the expressed importance of promoting a positive candidate experience, fewer companies actually measure

applicant reactions to their hiring and recruiting processes. Approximately 41% indicated they monitor applicant reactions

with surveys or other tools. For the companies who do monitor reactions, this feedback can help pinpoint recruiting and

hiring practices that are viewed favorably by top candidates and also identify areas that need to be improved.

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Survey Statement Percent NeutralPercent Agree/

Strongly Agree

Social media websites (e.g., Facebook, Twitter) are having a large impact on how

we recruit, manage, and measure talent.33% 24%

We use social media (e.g., Facebook, Twitter, LinkedIn) to advertise job openings. 19% 40%

Social media sites are effective tools for recruiting and reaching quality candidates. 42% 41%

Social media sites are effective tools for determining candidate t with

an organization.49% 20%

Table 13: Use and Effectiveness of Social Media for Recruiting and Hiring

9. Picoult, 2009.



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KEY FINDING 6

Treating Candidates As Customers Is Emphasized but Not Evaluated

Most organizations (84%) agreed that applicant reactions to the recruitment and hiring process are

important. For example, convenience to applicants was the most frequently cited reason (86%)

that companies use remote testing. However, only 41% of companies obtain feedback from their

candidates, who are likely to be their customers and/or future employees.

Survey StatementPercent Agree/

Strongly AgreeChange

2009 2010

Applicant reactions to the hiring process are important to our recruiting efforts. 81% 84% 3

Our company views the hiring process (including testing, interviewing) as an

extension of the recruitment process.93% 87% -6

We use a realistic job preview as part of our hiring process. 59% 62% 3

I’d prefer to use assessments that appear realistic to the candidate (e.g.,

simulations). 83% 63% -20

The recruiting and hiring tools we use should accurately reect our company’s

image and brand.- 87% -

We monitor applicant reactions to our recruiting and hiring processes with surveys

or other tools.- 41% -

Table 14: Trends in Human Resources – Attitudes and Actions Toward Candidates



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While most companies use assessments during the hiring process, fewer indicated using them with their current workforce

(50%; see Figure 7). While the effectiveness of assessment for hiring is widely acknowledged, talent measurement is also

valuable to understanding the landscape of employee competencies for the purposes of promotion, training needs analysis,

leadership development, and other internal talent management programs.

The results of our study related to the internal talent focus of companies - that is, on their current workforce - is clear: more

companies are attending to their employees and associated developmental programs than they are on hiring externally this

year compared to 2009 (see Table 6). There are many internal talent management initiatives that could benet from a well-

designed assessment program. Most organizations (approximately 62%) use career development initiatives as a retention

strategy, but fewer than 30% of companies have a formal career development program in place (see Table 15). Likewise,

fewer than 30% of companies have a formal process for promoting leaders within their organization.

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6. Measuring the Internal Talent Landscape

KEY FINDING 7

Opportunity Exists to Formalize Talent Programs

• While career development is a top priority and more than 60% of companies use it as a retention

strategy, only 29% have established a formal career development process for their employees.

• Only 28% of companies have a structured promotion process for leaders. This is a consistent

nding from the previous year’s survey.

• Only 50% of organizations indicated they use assessments/ talent measurement tools with their

current workforce. Of those who do, most use or plan to use such tools for career development,training needs analysis, and promotion programs within their companies.


2009 2010

We use career development as a retention strategy. 69% 62% -7

My company has a formal career development program for all

employees.30% 29% -1

My company uses a structured promotion process for all leader roles

across the company.31% 28% -3

Table 15: Trends in Human Resources – Current Workforce Strategies



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Employee Initiatives and Talent Measurement

Of the 50% of companies that indicated using assessments within their workforce, relatively more of them use or plan to usetalent measurement assessments as part of their career development, training needs analysis, and promotion initiatives as

compared to other internal talent management areas (see Table 16). These ndings are mostly consistent with the results

found in the 2009 survey related to post-hire use of assessments.

Assessments can be a critical component of effective career development programs. Specically, they can be useful as

tools to a) determine which employees would benet from such a program, b) to provide employees key insights about their

own potential and development needs, and c) highlight potential career opportunities within the organizations given their

current skills and competencies.

Likewise, tests can be excellent tools to help pinpoint where to spend training dollars. By including tests in an overall

training needs analysis/skills gap analysis, companies can ensure the training programs they implement will focus on keydevelopmental areas.

Finally, just as with pre-hire assessments, talent measurement tools can be used as another key piece of information

in the promotion process within an organization. While most companies use performance and experience data to guide

promotion decisions, having assessment data about a candidate’s leadership potential, management judgment, or other

competencies that may not be revealed by reviewing an individual contributor’s performance data, can complement the

process for making promotion decisions.

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6. Measuring the Internal Talent Landscape (cont.)

Post-Hire Program Currently Using Planning to Use Total Rank

Career Development 61% 25% 86% 1

Training Needs Analysis/Skills Gap Analysis 52% 28% 80% 2

Promotion 57% 20% 77% 3

Succession Planning 46% 29% 75% 4

Performance Management 45% 23% 68% 5

Bench Strength Analysis 29% 30% 59% 6

Training Certication 42% 17% 59% 6

Workforce Planning 28% 29% 57% 8

Outplacement/Redeployment 26% 16% 42% 9

Table 16: Use of Assessments with Current Workforce by Workforce Initiative



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How will organizations measure their talent in 2010 and beyond? The lessons learned during the economic downturn

of 2008 and 2009 have highlighted the value of understanding the entire talent landscape of an organization, as well as

how talent management needs can change sharply over time. In the future, we anticipate organizations will continue to

value objective and “whole-person” talent measurement practices to aid in decision making. Likewise, we continue to see

technology play a critical role in the implementation, integration, and tracking of talent measures and data. Companies will

continue to desire to use realistic job previews and simulated assessments in their overall measurement strategy. However,

the use of simulations or other talent measurement tools must continue to be coupled with good science: evidence of

a relationship between performance on the assessment and relevant outcomes such as performance in the target job,

employee retention, or other key business metrics.

In addition to relatively new methods of talent measurement such as social media searches, several companies indicated

they are measuring talent in other unique ways: from scanning email responses to online assessment centers. Also, certain

companies are using webcams to verify their test takers, mock press conference simulations in assessment centers, and

examining attitudes during the test taking processes. It will be of interest to see whether new tools and approaches likethese become more frequent as technology and business needs continue to evolve. Similar to previous commentary, we

would implore companies to properly evaluate the validity and legality of any new or untested tools before using them for

hiring or other talent decisions.

Likewise, we observed a continuing trend of strong intentions to use best practices while not actually measuring the

effectiveness of such practices. For example, while a majority of companies recognize the importance of applicant reactions,

only 40% measure those reactions. While measuring the effectiveness of HR initiatives may involve cost in and of itself, the

advantages of such measurement (e.g., enhancing processes to be more effective, providing data on the effectiveness of

initiatives to stakeholders) can outweigh the cost long term.

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7. Looking Ahead: Talent Measurement in 2010 and Beyond



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7. Looking Ahead: Talent Measurement in 2010 and Beyond (cont.)

Finally, the enthusiasm seen in the 2009 report (in which survey data were collected prior to the economic downturn in

late 2008) related to adoption of new and different types of talent management initiatives and tools appears to be relatively

tempered across several areas for 2010 (see the Appendix for a summary of ndings from the 2009 survey). Organizations

generally appear to be more cautious – conveying a “wait and see” approach – toward planning to use new tools and

technologies (with the exception of social media, discussed in Section 5), although we expect this trend to reverse as the

economy recovers.

Taken together, the results demonstrate the current importance organizations place on initiatives such as performance

management and career development – two areas where objective assessments can assist greatly in decision making for

the organization. Few areas showed an increase in priority from 2009 to 2010, which is indicative of a cautious and focused

approach to HR programs. Areas decreasing in priority for 2010 include external recruiting/hiring and internal promotion and

placement, which are clearly inuenced by current economic conditions and the likely continuance of trailing employment

behind any economic recovery10. The results above suggest that companies are looking inward – focusing their effort on

the performance and development of their current workforce. The decrease in focus on hiring externally coupled with theconcern regarding retention in the upcoming year(s) also supports this nding. Companies that focus efforts on their current

workforce, providing development opportunities and consistent and focused feedback about their performance, will have a

greater chance of meeting retention challenges as the economy improves.

Future administrations of the Global Assessment Trends Survey will be conducted annually with a broader global sample

of companies. Survey results will supplement observed talent measurement trends by evaluating continuity and change in

assessment use, and will also help HR and talent management professionals identify future talent measurement options

and opportunities.

10. Automatic Data Processing, 2009b.



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8. Additional Information

About PreVisor

PreVisor, the leading global provider of on-demand employment assessments and talent measurement solutions, helpsclients connect employment decisions to business results. Following the rigorous standards of industrial-organizational

psychology, PreVisor's assessment content accurately predicts on-the-job performance and supports fair hiring practices.

PreVisor's solutions help streamline hiring, reduce recruiting and training costs, and improve corporate performance for

clients worldwide, including more than 100 of the Fortune 500. www.previsor.com

About ADP

Automatic Data Processing, Inc. (Nasdaq: ADP), with nearly $9 billion in revenues and about 570,000 clients, is one

of the world’s largest providers of business outsourcing solutions. Leveraging 60 years of experience, ADP offers the

widest range of HR, payroll, tax, and benets administration solutions from a single source. ADP’s easy-to-use solutions

for employers provide superior value to organizations of all types and sizes. ADP is also a leading provider of integrated

computing solutions to auto, truck, motorcycle, marine, and recreational vehicle dealers throughout the world. For more

information about ADP, or to contact a local ADP sales ofce, reach us at 1- 800-225-5237, or visit the company’s website

at www.adp.com.

ADP is a registered trademark of ADP, Inc.

http://www.previsor.com/

http://www.adp.com/

http://www.adp.com/

http://www.previsor.com/



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9. References

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Automatic Data Processing (2009). 2009 ADP Annual Screening Index. Retrieved December 14, 2009 from http://www.adp.com/tools-andresources/calculators-and-tools/adp-annual-screening-index.aspx .

Automatic Data Processing (2009). The ADP National Employment Report: November 2009. Retrieved December 14, 2009 from http://wwwadpemploymentreport.com/pdf/FINAL_Report_November_09.pdf .

Cappelli, P. (2008). Talent Management for the Twenty-First Century. Harvard Business Review, 86 (3), p. 74-81.

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Beaty, J. C., Nye, C.D, Borneman, M.J., Drasgow, F., & Kantrowitz, T. M. (under review). Proctored vs. unproctored internet tests: Are unproctoredtests as predictive of job performance? Under review at International Journal of Selection and Assessment.

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http://www.shrm.org/trends/ScenariosProjectExecSumm.pdf









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Appendix A - Executive Summary of 2009 Global Assessment Trends Survey

One hundred seventy companies from around the world responded to PreVisor’s Global Assessment Trends Survey to

provide their perspectives on talent measurement practices and trends. Key ndings from the report are listed below:

• Key Finding 1: Top Talent Management Priorities for 2009External Recruiting/Hiring and Performance Management are top priorities for companies around the world in 2009

Internal Promotion/Placement is third in priority for U.S. companies, and Career Development is third in priority fo

Non-U.S. companies.

• Key Finding 2: Top Talent Management Increases in Priorities from 2008 to 2009Areas with the highest projected increase in priority for U.S. companies include Competency Modeling, Career

Development, and Bench Strength Analysis; whereas outside the U.S., Succession Planning and External Recruiting

Hiring showed the greatest increase in priority.

• Key Finding 3: Condence in the Value of AssessmentsMore than 90% of all companies believe testing is a valuable part of their hiring process. Approximately 50% o

clients reported that they collect metrics to show the value of HR investments.

• Key Finding 4: Preference for Simulated, Real-world AssessmentsMost organizations indicated their preference to use realistic assessments. While many are not using job simulations

yet today, more clients plan to expand usage of simulations in the next year as compared to other assessment types

• Key Finding 5: Plans to Expand Use of “Fit” AssessmentsIn addition to simulations, organizations plan to expand the use of “t” measures (culture t, job t, and interest

assessments) in their hiring processes in the near future.

• Key Finding 6: Talent Measurement Post-HirePromotion, career development, and training needs analysis/skills gap analysis were the most frequently cited areas

where assessments are used to measure talent of a current workforce.

• Key Finding 7: Leader Selection – Important, but Not StructuredNearly half of all companies agreed that assessments are a critical part of their succession planning programs, bu

only one out of three clients agreed that their company uses a structured promotion process for all leader roles within

their organizations.

rp_global assessment trends report 2010_previsor_28pg

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