Issue link: http://read.dmtmag.com/i/221076
HR Member-contributed content The Predictive Index – More Than A Personality Test How costly is it to have the wrong person in any position in your company? BY JILL BERG How familiar is this situation: You've hired and trained that "perfect fit" for your organization, only to find that this person just can't get the job done? Unfortunately, this scenario is far too common (and costly) in today's business environment. According to Deloitte by Bersin, most companies' largest expense is payroll, at 40 percent or more of total revenue. However, businesses today invest far more time on sales projections and budgets for the next year than they do on managing their most important asset – their people. Just like they would handle any other critical business function, organizations today must have the proper methodology to ensure the right people are in the right jobs doing the right things. Most of us think we know the strengths of our people and how to manage and motivate them; but do we really? As a business leader, there are three important questions you need to ask yourself: 1. How confident are you that your current organization can deliver on your strategic goals with your existing people? 2. What do you stand to lose if you are wrong? 3. What objective data do you have to support your conclusions? With the use of objective data, you could gain a predictive view into the potential of the individual, the team and your organization. Although there is no single magic bullet solution, the Predictive Index System (PI) is one effective tool that utilizes workforce analytics to help managers make decisions based on science and objectivity rather than "gut feel." PI is intended to be used in the workplace by you and your management team. To get the greatest benefit, it requires a modest amount of training. In the PI Management Workshop, consultants show your management team how to interpret the results of the PI assessment and how to apply the insight in a variety of ways to impact organizational performance. This can include using the PI data to make smarter hiring decisions, better manage and coach employees and retain top talent. 56 | www.cedmag.com | Construction Equipment Distribution | December 2013 During the workshop, participants will gain understanding of the PI System, which is composed of two main tools. Performance Requirements Options (PRO) – A job analytics that helps create the job target. Key stakeholders who understand the dynamics of the job complete the PRO assessment, thus creating a road map identifying the critical behaviors for success in the position. This target serves as the foundation from which to hire.