Chief Executive Magazine Nov/Dec 2014

Page 49

TALENT DEVELOPMENT

Guy Halfteck, a former commander in the Israeli navy who earned a Ph.D. from Harvard University in game theory, had always been intrigued by what he saw as a core problem facing companies: how do you identify the best people to hire? Resumés are notoriously inaccurate and misleading. Studies show that interviews are not as effective as managers think they are. Plus, getting applicants to fill out questionnaires, whether online or off, produces poor results. It’s even hard to persuade techsavvy people in their 20s and 30s to sit down and fill out a questionnaire by hand. “Hiring is very challenging and difficult,” explains CEO Halfteck. “Job seeking for people is also very challenging and difficult. I was determined to find a better way.” His search led him to game-playing, which may seem trite at first glance but is actually quite profound. He discovered that if job applicants can escape the formality of an interview process, they open an authentic window into how they really behave and think. So Halfteck launched a company called Knack, headquartered in Palo Alto, California, which provides simple online and mobile games similar to Angry Birds that companies can use to screen job applicants. In less than 10 minutes of game playing, during which the player must react to and interpret facial expressions of customers in a restaurant, Knack gathers enough information to make key judgments about her potential. The company applies its own algorithms, written

by data scientists and behavioral neuroscientists, and runs them on Amazon.com’s cloud-computing server farms. “We are able to get very quick insights into personality characteristics, decision-making capabilities and the overall soft skills that a person has,” Halfteck says. “We can measure those attributes and use the data to predict whether that person will be a successful employee.” Big Data has taken on somewhat of an ominous overtone following the disclosures of massive spying by the National Security Agency, but that is not stopping CEOs from continuing to explore new ways to exploit the advantages of massive computing and data crunching know-how. Already in use for mass-marketing endeavors, those tools are now being applied in one of the dark corners of the corporate world—human resources. “It’s kind of astonishing how poor the analytics have been in human resources given how much money goes into it,” says Peter Cappelli, a management professor and director of the Center for Human Resources at the University of Pennsylvania’s Wharton School of Business. “Most companies haven’t bothered to try to figure out who is the best employee or why they quit.” But CEOs are starting to realize that they can get smarter about the entire lifecycle of human resources—recruiting, hiring, onboarding, training, measuring performance, retaining and predicting departures—and they can do all those things in relatively cost-effective ways. Companies

Knack’s job-screening program assesses applicants as potential hires by having them play a video game in which they react to and interpret facial expressions of restaurant customers

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Chief Executive Magazine Nov/Dec 2014 by Chief Executive Group - Issuu