Increasing effectiveness of hiring & promotion decisions
Hiring and promotion decisions for managerial positions can hugely affect a company’s business capacity if inadequately made. One of our clients, who understood this business tenet, asked us to map its selection procedure based on an Assessment Center, as it’s the most efficient methodology in terms of predicting future work performance.
The value the project brought was to increase the utility of the selection procedure by 57%. The utility function was computed according to the following equation:
Utility AC = (No of candidates selected) x (Value of better performance on the targeted job) x (AC Validity) x (Z-Score of selected candidates) – (AC costs)
