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PreVisor's 2009 Business Outcomes Study Report

August 21, 2009

Millions of dollars generated across jobs and industries: PreVisor’s 2009 Business Outcomes Study Report proves talent measurement impact

For third year in a row, report shows concrete evidence directly connecting employment assessments to specific business outcomes.

PreVisor, the global leader in employment assessments and talent measurement solutions that connect hiring decisions to business results, released its 3rd annual report today summarizing 33 business outcomes studies. Each study measures the impact on workforce performance following the use of employment testing in the talent acquisition process.

The 2009 Business Outcomes Study Report includes findings from studies done with client organizations both in the U.S. and globally. These studies represent a wide range of industries, including finance, hospitality, retail, and telecommunications; and focus on a multitude of job types – hourly, professional, managerial, sales, and customer service.

“PreVisor adheres to rigorous scientific guidelines, ensuring that reliable conclusions about any assessment program may be drawn from the results,” said Caroline Paxman, Chief Product Officer, PreVisor. “We actively seek partnerships with our clients to make certain that the assessment solutions implemented are giving them the business results they require. We are in our client relationships for the long term. Our success is measured solely by their success. And in these difficult economic times, any amount of efficiency improvement, increased sales, or more effective leadership through scientific employment assessment may give a company an edge they need to succeed.”

Overall, the 2009 report found that 82% of the studies conducted had a favorable or very favorable outcome. This means that the assessment solution had a strong and measurable impact on most or all of the firms’ performance metrics. None of the studies resulted in an unfavorable outcome. Some highlights from the findings:

• Over $2 million was saved annually by reducing the number of repeat trouble call rates at a cable telecommunications company.
• In a retail organization in the automotive parts industry, sales associates who earned higher scores on an assessment solution had potential to drive another $137 million annually.
• Retail sales associates who earned high scores at one telecommunications firm averaged $1200 more per year in commission, equating to a $30.3 million increase in annual sales.
• In a remote agent position in a call center outsourcer, employees who had earned higher scores on a call center assessment solution handled calls 11% faster, translating into over eight hundred additional calls taken per year.
• Branch managers with high scores on a front line manager assessment solution at a national financial services organization achieved sales at 140% higher rate while promoting 59% higher employee engagement.

Advance Auto, Alpine Access, EMBARQ, MetLife, Sprint, and Time Warner Cable are among the hundreds of organizations who have participated in the studies to date.

“We deliver value to our clients by providing high quality employees and driving operational efficiencies. The Business Outcomes Study Report showed the dramatic impact of the PreVisor solution and its positive impact on our operations and overall bottom line,” stated Paul Inson, Vice President Human Resources, Alpine Access.

The 2009 report also identified a number of trends emerging in employment testing that are influencing the development and evaluation of assessment solutions:
• Computer adaptive testing (CAT) is on the rise. One major advantage of this type of assessment is that candidates never receive the same set of questions, making it much less vulnerable to cheating.
• Organizations want to see the direct impact of assessment scores on business outcomes and the ROI of using employment assessments.
• There is an increasing emphasis on the use of realistic multi-media assessments, which can be more engaging for job seekers and provide a ‘realistic job preview’.

In conclusion, the report discusses the importance of using “focused whole-person assessments” to achieve the most predictive results. To develop a whole-person approach requires a broad range of assessment content that measures a comprehensive list of cognitive, personality, skill, and behavioral characteristics. This approach also requires a deep set of business outcome data to understand which traits predict which types of outcomes. Linking these elements is what enables comprehensive business impact-focused assessment solutions.

“Showing the financial impact of any organizational initiative is particularly critical in the current economic downturn,” stated Noel Sitzmann, PreVisor CEO. “We work with our clients to meet senior management’s increasing need for quantifiable metrics around workforce performance. As talent measurement becomes more sophisticated, successful organizations will be the ones who understand that all processes put in place must be linked to the top and bottom line.”

For more information about PreVisor and its Business Outcome Study service, visit: http://previsor.com/products/consulting/validation

Request a copy of the 2009 Business Outcomes Study Report

About PreVisor
PreVisor, the leading global provider of on demand pre-employment assessments and talent measurement solutions, helps clients 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

 
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