A global telecommunications company.
Presenting Issue/Business Need
The company needed to staff a new global accounts division with directors who could successfully manage the complexities of large global accounts. Time was of the essence.
Management Psychology Group worked with HR and the sales leaders to determine the foundation competencies necessary for a candidate to perform effectively on the critical success dimensions defined by a functional job analysis. We conducted psychological assessments to determine conceptual ability, high level social skills and drive/intensity, which enabled us to generate an overall rating of suitability for the new position. This was a crash program to get the best internal and external people into position to begin to increase revenue. Over 350 people were assessed over a period of 90 days.
The first year’s revenue figures revealed that there was a clear relationship between the psychologist’s overall rating and performance on the job. The average performance of people who had been rated “Marginal” from the pre-hire assessment was a little under $30 million, while the average performance of those in the “Acceptable” category was about $40 million.
As the chart below illustrates, if the client had chosen just one more person who performed at the average level of “Acceptable” candidates rather than one who performed at the average level of the “Marginal” candidates, the net revenue increase for the year would have been $10 million. If the client had hired just six people in the “Acceptable” category rather than the six people in the “Not Recommended” category, the total revenue increase would have been over $70 million. THAT’S ROI.