Challenge: : A national chain of tutoring centers wanted to improve the productivity and overall performance of its branch managers, who are responsible for hiring staff, training employees, and managing day-to-day operations.
Solution: The company used the Employee Personality Profile (EPP) to see how well the test predicted success for its managers. The EPP is a general personality inventory that measures 12 different personality traits and provides position-specific benchmarks for how well a candidate’s personality matches different roles. In this instance, the company compared the group’s scores on the Manager benchmark to performance ratings that the company assigned to each manager, using a scale of 1 to 5.
Results: The managers' EPP scores were highly correlated with their overall performance ratings (r = 0.45, P < 0.05). This strong, statistically significant correlation is further demonstrated by the fact that managers who passed the EPP* were 30% more productive than those who did not pass.
Those who passed the EPP earned an average performance rating of 3.57 (out of 5), compared to an average of 2.75 earned by those who failed.
The strong predictive validity of the test also meant that hiring success rates were dramatically impacted by considering test results in the selection process. 96% of managers who passed the EPP were ranked as either average or above average employees, whereas the hiring success rate for those who didn’t receive passing scores was only 63%. The results demonstrate that incorporating the EPP into the hiring process would significantly increase the hiring success rate.
*This study defined “passing” the EPP as receiving a 60% match or higher for a managerial role.