A California-based receivables management company with 400 employees wanted to improve the accuracy of its hiring process in order to increase the productivity of its accounts receivable specialists.
The company administered the Sales Achievement Predictor (SalesAP) personality test and the Criteria Basic Skills Test (CBST) to new hires and subsequently compared the test results to on-the-job performance measures, specifically the average monthly revenue generated by each employee.
Test results were correlated with performance data provided by management for approximately 150 employees (for the CBST the sample size was 136, for the SalesAP it was 178) employees. For the SalesAP particularly strong inverse correlations were observed for traits such as diplomacy (-.32) and team player (-.27) Low to middle range scores in these traits were strongly associated with higher revenue generation.
For the CBST the correlation between test performance (raw score) and subsequent revenue generation was even stronger (.37). The connection between CBST score and job performance is demonstrated in the following chart:
Those in the highest score range therefore generated a full 53% more revenue per employee than the group with the lowest test scores.
By implementing the CBST and the SalesAP into its employee selection process, the company was able not only to significantly enhance the productivity of its workforce but also to reduce turnover and to increase the efficiency of its employee training initiatives.