Assessment

Proof Point

Measuring up

C-level executives selected using Decision Styles were promoted eight times more often

by Dana Landis, PhD

The concept: Decision Styles is one of Korn/Ferry’s proprietary assessment tools that, among other things, measures the Thinking Style and Leadership Style of job candidates.

Used to: Compare candidates to best-inclass benchmarks to determine who most closely “fits” the demands of the job.

Important because: Research shows that when Decision Styles assessment was part of the recruitment process, the selected executives were eight times more likely to be promoted within three years than those placed without any assessment.

Korn/Ferry’s findings have been independently reviewed and verified by Hanover Research.

Korn/Ferry International recently reviewed the longterm outcomes of methods we use to recruit and select C-level executives. The study revealed that applying Decision Styles assessments as a pre-hiring tool improved executive retention—and also dramatically increased the chance that a company chose a candidate they would promote within three years.

To determine this, we selected 286 C-level executives placed in North America by Korn/Ferry during 2006 in a wide range of industries. More than half of those placements (175) incorporated Decision Styles, Korn/Ferry’s proprietary assessment tool, in addition to traditional candidate screening methods; the

remainder (111) were placed using only traditional screening methods.

We then looked to see which of the 286 executives were still with the same employer three years later, and of these, how many had moved to positions of higher or lower responsibility (see Figure 1).

Figure 1

Rate of promotion of C-level executives placed by Korn/Ferry Within three years of starting with their new employers, 16 percent of C-level executives who had been assessed using Decisioni Styles by Korn/Ferry had been promoted into a role with greater reach or responsibility, eight times the rate of those placed traditionally.

18% 16% 14% 12% 10% 8% 6% 4% 2% 0%

Candidates placed using Decisioni Styles Candidates placed without assessment

Our results showed that companies that used our assessment findings to inform their choice were about eight times more likely to hire an executive that would they would not just keep, but promote within three years.

Promotion at the C-level meant that the executive had been given greater reach or responsibility, such as a move from regional CEO to global CEO, or a shift from COO to CEO. We then set out to understand how the use of assessments impacted “job stickiness,” that is, longevity with the employer.

From our sample set of executives, we drew out those who had been assessed prior to hiring in 2006, and divided this segment into two groups: those who were still with their employers in 2009 (Stayers)

and those who were not (Leavers).

When we compared the Stayers and Leavers for whom we had job status information in 2009 (175 out of the original sample of 187 assessed executives), we found a solid connection between the degree of fit indicated by Decision Styles, and job retention.

Executives who scored closer to our best-in-class benchmark profiles on the assessment were more likely to have remained in their jobs over the three-year period than those who did not fit the profile as closely (see Figure 2). Considering the unprecedented hardships businesses faced between 2006 and 2009, this higher retention rate is even more noteworthy.

Pre-hiring assessment that utilizes validated benchmark profiles appears to offer a distinct advantage for organizations that

About The Korn/Ferry Institute

Impact on retention of fit with C-level benchmark profile This illustrates how closely Stayers and Leavers fit their respective benchmark profile.

The difference among groups may appear relatively narrow, but analyses of variances reveal that in each instance, the difference is solidly statistically significant. This indicates that conformity to the benchmark profile is one predictor of job stickiness.

100% Degree of fit

About The Author Dana Landis, PhD, is Vice President, Global Search Assessment for Korn/Ferry International.

Figure 2

The Korn/Ferry Institute generates forwardthinking research and viewpoints that illuminate how talent advances business strategy. Since its founding in 2008, the institute has published scores of articles, studies and books that explore global best practices in organizational leadership and human capital development.

About Korn/Ferry International

90% 80% 70% 60% 50%

need to identify, recruit, and retain high-caliber executives. Identifying and comparing a candidate’s thinking style, in particular, seems to be an excellent indicator of both immediate job fit and potential for higher responsibility. With the volatility of today’s business climate, companies that utilize such sophisticated pre-hiring screening methods will be rewarded with executives who are effective leaders for the present and the future.

Leadership fit

Thinking fit Stayers

Overall fit Leavers

Korn/Ferry International (NYSE:KFY), with a presence throughout the Americas, Asia Pacific, Europe, the Middle East and Africa, is a premier global provider of talent management solutions. Based in Los Angeles, the firm delivers an array of solutions that help clients to attract, engage, develop, and retain their talent.

Visit www.kornferry.com for more information on the Korn/Ferry International family of companies, and www.kornferryinstitute.com for thought leadership, intellectual property and research.