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. Psychological Consultancy Ltd.! (T) 01892 559540 ! (W) www.psychological-consultancy.com
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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