Creating a Data-Driven Hiring Process with TalentWyze

The most effective selection methods for predicting job performance. Leveraging Schmidt and Hunter’s Research 85 years of research.

STRATEGY

TalentWyze Staff

6/26/20243 min read

a group of people working on a project
a group of people working on a project
At TalentWyze, we understand that the foundation of a successful organization lies in its ability to attract and retain top talent. To achieve this, we utilize a data-based approach grounded in the seminal research of Frank Schmidt and John Hunter, whose extensive studies have provided invaluable insights into the predictive validity of various selection methods. Here’s how TalentWyze integrates these findings to optimize hiring processes for our clients.

Understanding Schmidt and Hunter’s Research

Schmidt and Hunter’s meta-analyses, spanning over 85 years of research, have identified the most effective selection methods for predicting job performance. Their key findings include:

Cognitive Ability Tests (GMA): These tests measure general mental abilities such as reasoning, problem-solving, and learning capacity. With a validity coefficient of approximately 0.51, GMA tests are among the best predictors of job performance​​.

Structured Interviews: These involve standardized questions and scoring criteria, reducing bias and improving consistency in evaluating candidates. Structured interviews have a validity coefficient of about 0.51​.

Work Sample Tests: These tests require candidates to perform tasks representative of the job, directly assessing job-related skills. They have a high validity coefficient of around 0.54​.

How TalentWyze Implements a Data-Based Process

Job Analysis and Competency Mapping

Identify Key Competencies: We start by conducting a thorough job analysis to identify the critical skills, knowledge, and abilities required for each role. This involves collaborating with our clients to understand their specific needs and organizational context.

Competency Mapping: We map these competencies to specific selection methods that best measure them, ensuring that our assessment process is aligned with job requirements.

Selecting High-Validity Methods

GMA Tests: We incorporate cognitive ability tests to measure candidates’ problem-solving and learning abilities. These tests are quick to administer and provide a reliable indicator of potential job performance.

Structured Interviews: Our structured interview process includes both situational and behavioral questions, allowing us to assess past performance and predict future behavior. This standardized approach ensures consistency and fairness in candidate evaluation.

Work Sample Tests: For roles requiring specific technical skills, we use work sample tests to directly evaluate candidates’ ability to perform job-related tasks. This hands-on assessment provides a realistic preview of job performance.

Combining Methods for Maximum Predictive Power

Holistic Assessment: By combining GMA tests, structured interviews, and work sample tests, we achieve a comprehensive evaluation of candidates. This multi-method approach leverages the strengths of each method, providing a fuller picture of a candidate’s abilities.

Incremental Validity: The combination of different methods ensures that we capture various aspects of a candidate’s potential, leading to higher overall predictive validity. For example, combining GMA tests with structured interviews can result in a combined validity coefficient of approximately 0.63​​.

Continuous Validation and Improvement

Data Collection and Analysis: We continuously collect data on the performance of new hires and compare it against their assessment scores. This allows us to validate the effectiveness of our selection methods and make data-driven adjustments as needed.

Feedback Loop: Regular feedback from clients and candidates helps us refine our processes, ensuring they remain relevant and effective in an evolving job market.

Customizing for Client Needs

By grounding our hiring processes in the robust findings of Schmidt and Hunter’s research, TalentWyze ensures that our clients benefit from scientifically validated selection methods. We understand that each client is unique. Our data-based process is flexible and can be customized to address specific challenges and objectives. Whether it’s enhancing the candidate experience or improving diversity and inclusion, we tailor our approach to meet client goals. Our data-driven approach not only enhances the accuracy of hiring decisions but also significantly improves ROI by reducing turnover and increasing employee performance and satisfaction. With TalentWyze, clients can be confident that they are building a workforce that is capable, committed, and poised for success.

For more information on our services and how we can help your organization achieve its hiring goals, contact us at TalentWyze.

Sources:

Schmidt, F. L., & Hunter, J. E. (1998). "The validity and utility of selection methods in personnel psychology: Practical and theoretical implications of 85 years of research findings." Journal of Applied Psychology

U.S. Office of Personnel Management (OPM) - Assessment & Selection: Validity of Assessment Methods

Criteria Corp - Criteria Cognitive Aptitude Test (CCAT) Overview