Hpi research digest 1

HPI Research Digest

July 2014

HPI RESEARCH DIGEST The first of the Hogan Personality Inventory Research Digests is full to bursting with validity case studies. It also includes an introduction to the new Hogan EQ report; the perfect tool for assessing emotional intelligence in the workplace.

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Long term predictive validity of the HPI Results of a two year study are in

HEADLINES

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Predictive Validity Results of a 2 year predictive validity study on Sales Representatives

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EQ in Leadership What aspects of emotional intelligence are most important for leaders?

Two years ago, Hogan Assessment Systems teamed up with a food retailer to conduct a long-term research project assessing the validity of using the HPI as part of their recruitment practice for Sales Representatives. An initial job analysis concluded that applicants who are driven, friendly, stress-tolerant and dependable – as measured by the HPI - are likely to make the best fit with the role. In order to validate this theory, the organisation continued to hire low, average and high fit applicants for the next two years.

After this time lapse, data was collected to assess

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average Return on Investment (ROI) for employees that

Characteristics of Success

Sales Representatives (i.e. those whose HPI profile was a

Three short case studies looking at HPI profiling for selection

average increase of sales revenue of 17% per week.

fell in each group. The results were profound; high fit close match to the target HPI profile), showed an While moderate and low fit Sales Representatives showed an increase of just 10% and 3% respectively. In terms of monetary value, this equates to an additional

Psychological Consultancy Ltd. 8 Mount Ephraim, Tunbridge Wells, Kent, TN4 8AS (T) 01892 559540 (W) www.psychological-consultancy.com

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HPI Research Digest

July 2014

Emotional Intelligence: The Impact on Leadership

1000$

Average weekly change in sales ($)

800$

600$

Introducing the Hogan EQ Report 400$

Emotional intelligence is broadly defined as the ability

200$

0$

to perceive, control and evaluate emotions. Interest in Low Fit

Moderate Fit

High Fit

!200$

the trait has grown rapidly over the last decade, with many now recognising it as a critical element in leadership success. In response, Hogan Assessments Systems (HAS) have released their newest report, the

$38,000 per week that could be gained if

Hogan EQ, which combines aspects of the HPI and

only ‘high fits’ were employed.

HDS to bring together an assessment of six emotional

Following this analysis, Hogan revised the

competencies that are essential for building

Sales Representatives HPI selection profile

relationships with others in the workplace. These

further. Despite the increased revenue

include both interpersonal dimensions, which focus on

brought in by the ‘high fits,’ this group

emotional skills demonstrated during interactions with

were also more likely to leave the

others, and intrapersonal dimensions, which are

organisation (20% increased turnover).

concerned with awareness and control of one’s own

Hogan therefore pinpointed (a) the HPI

emotional states.

scales most predictive of revenue

A recent study by HAS set out to take a closer look at

increase, and (b) those most predictive of

the relationship between emotional intelligence and

turnover, and adjusted the HPI selection

leadership success. The importance of effective

profile accordingly.

leadership is widely supported, with one recent study

Overall, the new profile emphasised the

claiming that CEOs account for 14-29% of the variance

requirement for applicants who are

in an organisation’s financial performance (Mackey,

achievement oriented, outgoing (but not

2008). Nevertheless, leaders are often promoted due

overbearing), organised, dependable and can leverage past experiences to influence decision-making. Further analysis after one year found applicants who closely fitted this new profile increased sales revenue by an impressive 21% (or $890 per week), compared to low fit applicants who actually showed a decrease in sales revenue over this period (see graph).

Furthermore, moderate and high fit applicants showed decreased turnover compared to their low fit counterparts.

Article based on:Hogan Assessment Systems Inc (2014) Hogan Research Division: Predicting Sales Representative Performance

Psychological Consultancy Ltd. 8 Mount Ephraim, Tunbridge Wells, Kent, TN4 8AS (T) 01892 559540 (W) www.psychological-consultancy.com

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HPI Research Digest their technical knowledge and expertise and may lack the people skills to drive and motivate a team.

Using the Hogan measure of Emotional Intelligence, HAS directly compared leaders versus non-leaders to determine how the two differed in terms of their emotional competencies.

“If emotional obliviousness jeopardises your ability to perform, fend off aggressors, or be compassionate in a crisis, no amount of attention to the bottom line will protect your career….[emotional intelligence] is the key to business success”!

July 2014

Identifying the Characteristics of Success Using the HPI in Selection It remains the case that 40% of organisations in the UK rely on interviews as their primary recruitment method, despite the fact that research has consistently shown them to be riddled with bias (e.g. Purkiss et al., 2006).

Psychometric assessments, meanwhile, offer the key benefit of providing an objective measure of personality that, when used in conjunction with other forms of assessment, can ensure recruitment choices are ethically sound and effective.

- Harvard Business Review, 2003

The following discussion reports three case studies that

I n t e re s t i n g l y, i t w a s f o u n d t h at

illustrate how the HPI has been used to identify the

interpersonal EQ competencies were

personality profiles of ‘successful employees’ for use in

more important than intrapersonal

selection and development.

dimensions in differentiating leaders and non-leaders. All three interpersonal competencies - Detection, Influence and

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Case Study One: Orthopaedic Residents

Empathy - were found to be critical for leadership success. Each can be seen to r e fl e c t a p r o g r e s s i v e s t a g e o f interpersonal interaction; from emotional perception, to emotional control and, fi n a l l y, e m o t i o n a l s h a r i n g . T h e s e competencies are thought to enable leaders to establish and maintain solid relationships with others and utilise these relationships to meet organisational goals (Winsborough & Chamarro-Premuzic, 2013).

These results demonstrate the utility of the Hogan EQ in both leadership selection and development. In particular, they emphasise the critical importance of interpersonal competencies. This may prove useful to emerging leaders who wish to maximise their potential.

The first case study looks at orthopaedic residents, employed to provide round-the-clock healthcare assistance to orthopaedic patients. Analysis of the HPI profiles and objective performance data of 300 orthopaedic residents revealed that high performers were better able to (a) remain calm and steady under pressure (higher adjustment), (b) be rule compliant and d r i v e n b y p ro c e d u re ( h i g h e r p r u d e n c e ) , ( c ) communicate tactfully and sensitively with others (higher interpersonal sensitivity) and (d) stay on top of current medical trends and be willing to learn new skills (higher inquisitive). Those that matched this HPI profile, along with key traits picked out from the MVPI and

Article based on: Yang, R. & Simonet, D. (2014) Emotional HDS, were twice as likely to be rated as a strong Intelligence Competencies and Leadership Status in real world Organisations, SIOP Conference Poster Additional References: Mackey, A. (2008). The effect of CEOs performer and received more favourable ratings from on firm performance. Strategic Management Journal, 29(12), Winsborough, D., & Chamorro-Premuzic, T. (2013). Consulting peers regarding their interpersonal style. psychology in the digital era: Current trends and future directions. CPJ: Practice and Research 3 Psychological Consultancy Ltd. 8 Mount Ephraim, Tunbridge Wells, Kent, TN4 8AS (T) 01892 559540 (W) www.psychological-consultancy.com

HPI Research Digest

July 2014

“Interpretation of HPI results is job specific. Scores that are more successful in one job may be detrimental in another… there is no such thing as a ‘good’ personality”!

- Hogan, 2007

Case Study Two: Rail Traffic controllers

Case Study Three: General Managers

A s e c o n d c a s e s t u d y f ro m H o g a n

The final case study documents HAS’ collaboration with

Assessment Systems (HAS) looked at

a global hospitality company. The aim here was to

improving the selection process of Rail

identify the characteristics associated with success in

Tr a f fi c C o n t r o l l e r s i n a l a r g e U S

the role of General Managers. Again, the HPI profile of

organisation. An initial focus group

effective Managers was mapped. Key traits for the role

revealed employees should thrive under a

were found to include passion, confidence and tactful

high stress and pressure environment, yet

communication. HAS then went on to compare

value established guidelines and

employees who were a ‘low fit’ to the target profile

procedures. They should also value

against those that were a ‘high fit’. High fit Managers

learning from others in order to remain

were found to exceed expected room revenues by

current with job knowledge. HAS set about

19.5% and captured nearly 14% more of their expected

completing a full job analysis, looking at

average daily rate index (see graph below). By directly

the jobs and responsibilities that form the

linking HPI fit with the bottom line, it is clearly apparent

everyday life of individuals employed to

the financial advantages to be gained from

manage the safe and efficient running of

incorporating the HPI into recruitment practice.

railways. Combined with data from the

Together, these case studies illustrate how the HPI can

Hogan Development Survey (HDS) and the Motives Values Preferences Inventory (MVPI), it was concluded that top performers were those that could maintain

be successfully incorporated in to the selection practice of organisations - from healthcare, to transport and hospitality.

125#

adjustment), were organised and followed

120#

procedures (higher prudence), and were open to new information and feedback (higher learning approach). By adopting this profile as a template to select Rail Traffic Controllers in the future, the organisation will be able to pinpoint who is most likely to be successful in the role.

Revenue&per&Room&(%&increase)&

composure under stress (higher

115# 110# 105# 100# 95# 90# Low#Fit##

Moderate#Fit#

High#Fit#

Article based on: Hogan Assessment Systems Inc (2014), Industry Case Studies: Health care industry, Orthopaedic Residents.

Hogan Assessment Systems Inc (2014), Industry Case Studies: Transportation industry, Rail Traffic Controllers.

Hogan Assessment Systems Inc (2013), Industry Case Studies: Predicting General Manager Potential.

Additional References: Purkiss, S. L., Perrewé, P. L., Gillespie, T. L., Mayes, B. T., & Ferris, G. R. (2006). Implicit sources of bias in employment interview judgments and decisions. Organizational Behavior and Human Decision Processes Psychological Consultancy Ltd. 8 Mount Ephraim, Tunbridge Wells, Kent, TN4 8AS (T) 01892 559540 (W) www.psychological-consultancy.com

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