Behavioral Assessment Tests: Best Practices in the Hiring Process

Teens taking personality test

This article is the second in 180one’s two-part series looking at behavioral assessment testing as part of the hiring process.
 
In part one of our series on using behavior assessment testing in the hiring process, we looked at different types of behavioral assessment tests and how organizations are increasingly using them to help evaluate the suitability and predicted performance of high-level job candidates. (You can revisit that article 
here.) Following the publication of that article, we conducted a survey with 180one clients to learn if and how they are currently using behavior assessment testing. Those survey results guide part two of the series, as we look at best practices for using these tests in the hiring process and after.


Question: Does your current or past organization use any sort of personality or behavioral assessment when interviewing candidates?
Survey results: Yes – 100%


This is consistent with the latest Candidate Experience Report from Talent Board, a nonprofit that studies best hiring practices from the prospective employee’s point of view. Their 2018 analysis showed that close to 90% of organizations surveyed use assessment testing in the hiring process, and two types stood out with a significant increase in use: 1) job simulations that help assess how a candidate might perform on the job, and 2) culture fit assessments that identify how well potential new hires will assimilate into the organization.


Question: Which type/style of assessment does your organization use? (such as, Hogan, DISC Wonderlic, Myers-Briggs, etcetera)?
Survey results: All of the above are used by many of our respondents, as well as a variety of specialized and industry-specific tests. Most respondents use a paid platform for testing and results analysis, although a few noted they’ve used free online testing such as Myers-Briggs and DISC basic.


Question: For what level of candidates does your organization use the assessments?
Survey results: All employees – 20%, Managers and above – 60%, Executives – 20%


With the broad scope of test types and high rate of usage across employment levels, it’s important to keep in mind that Equal Employment Opportunity Commission guidelines state it is the responsibility of the employer to ensure that selection tests, including behavioral assessments, are reliable and valid, yielding consistent results that predict success on the job.


The Society for Human Resource Management (SHRM) emphasizes that if a company can’t clearly demonstrate reliability and validity of an assessment test, the company is vulnerable to discrimination claims. Even if you use a testing service that provides documentation supporting the validity of a test, SHRM says the specific employer still has to be able to demonstrate the test is job-related and its results appropriate for the employer’s purpose.


EEOC guidelines on testing include:

  • Employers should administer tests and other selection procedures without regard to race, color, national origin, sex, religion, age (40 or older), or disability.
  • Employers are responsible for ensuring that behavioral assessment tests and other selection procedures are properly validated for the positions and purposes for which they are used.
  • Employers should ensure that tests and selection procedures are not adopted casually by managers who know little about these processes. No test or selection procedure should be implemented before or after hiring without an understanding of its effectiveness and limitations for the organization, its appropriateness for a specific job, and whether it can be appropriately administered and scored.


Question: At what point of the interview process are you using the assessment?
Survey results: After initial phone screen – 20%, After first interview – 40%, After second interview – 20%, Right before offer – 20%


First, it’s important to consider that the most effective hiring processes address your company’s needs, not likes, and the type and timing of assessment should support those needs. “Today you want innovation and growth to be competitive, and that can’t happen in a monolithic culture,” says Stephen Shapiro, the author of four books on workplace innovation. “You need to make sure you hire people with a broad range of styles, so instead of weeding out people that don’t fit, the recognition today is that different roles require different characteristics.”

With that in mind, there’s general consensus among recruiting firms and assessment analysts that in-depth assessment testing occur mid-process – after an initial screening and the first or second interview. And testing at this stage tests can yield valuable information that can reshape a job or even re-think a department.


Assessment and talent acquisition company PSI Select International points out that a company can also create a streamlined and in-depth interview structure that can serve as a supporting behavioral assessment tool in the hiring process. Creating a behavior-driven list of questions asked of all candidates gives the hiring manager a level playing field for assessing them, allowing better determination of the motivational fit of each candidate, and avoiding common interview bias pitfalls. (We’ve got a series on interview bias on our “Water Cooler” blog.)


Question: Are the results of the assessment used as a sole determination of Interview/No Interview, or Hire/No Hire decisions?
Survey results: Yes – 10%, No – 90%


Not using an assessment test as the only determination for making a decision about a candidate is consistent with the recommendations of most behavioral and occupational assessment companies. Carol Buckner, a director with assessment firm Birkman International, has found that companies using behavioral assessments need to give more attention to implementing a policy around the specific use of these tests in the selection process.


Buckner outlines four major points to keep in mind when using behavioral assessments during the hiring process:

  • Use assessment results as one piece of the puzzle, giving it no more or less weight than the interview, past experience, or resumé.
  • Use assessments in a consistent manner. One suggestion is to have all finalists for a position complete the assessment prior to a follow-up interview. Never selectively choose to give an assessment to only one of the three final candidates, as this creates bias.
  • Never specifically reference the assessment results with candidates. Do use the results to develop behavioral questions you can ask in the follow-up interview in order to gain more knowledge about potential hires.
  • Never make a hiring decision based solely on an assessment result.


Question: Why does your organization use assessments?
Survey results: Hiring/prescreening – 20%, Understanding team dynamics – 20%, Both – 60%


To get the greatest return on investment in assessments, Birkman International’s approach to designing and administering behavioral tests is the belief that high-performing employees need 1) passion to feel satisfied and motivated, 2) technical skills to accomplish tasks, and 3) a high degree of self and others awareness to navigate interpersonal dynamics.


A high-performing hire will continue to have these needs, and some behavior assessment testing analysts have determined that there is a greater ROI when using these tests after hiring to determine key motivators, to develop situationally appropriate benchmarks for success, and to build diverse, high-performing work teams.


The Society for Human Resource Management finds that although there’s not a simple measure of performance effectiveness for groups, there is a general understanding of what makes an effective group work: talent, skills, shared purpose and goals, performance ethics, incentives and motivation, effectiveness, leadership, conflict, communication, power and empowerment, and norms and standards. Utilizing an assessment tool will help you identify behavioral traits unique to each person that also support a successful team.


The Future of Behavior Assessments

The upward trend in the use of behavior assessment testing underscores that there’s not one “right profile” that guarantees success in a particular job or within an organization. And the range of test options continues to grow – in addition to the most well-known behavior assessments tests and administrators we looked at in part one of this series, SHRM alone lists almost 80 additional industry- and goals-specific organizations offering assessment tools and consulting.

If your organization is ever interested in gaining more insight into behavioral assessments and if / how they should be included in the hiring process, 180one will be a great resource for you. Whether we advise you directly or get you connected somewhere within our broad network, we are always happy to help you and your organization conquer your goals.

By Christine Kennedy March 12, 2025
Corporate Development Manager About the Company Impel is a family of companies that offer comprehensive flow management solutions in partnership with each other and the best manufacturers in the world. Each of Impels branches represent individual brand cultures and span the West Coast. Impel serves customers in water, wastewater, agriculture, industrial, manufacturing, energy and mining. Impel was founded in 2021 with a vision to build a “one-stop shop” to serve municipal and industrial fluid management needs by acquiring complementary capabilities in contiguous geographies. The platform launched with the first acquisition of PumpTech , a premier distributor of high-quality pumping products and systems serving the Pacific Northwest. Subsequent acquisitions have grown Impel to over ten fluid management companies throughout the US. Impel is backed by Pike Street Capital , a private equity firm based in Seattle, WA. Recently, Pike Street successfully raised capital to fund additional acquisitions. Impel is actively pursuing growth opportunities and remains focused on acquiring and partnering with family-owned and operated companies in the sector. About the Role This is a key position managing the acquisition process within Impel. You will participate in all aspects of the investment process including industry/market research, deal origination, strategy and execution, and relationship building with acquisition target owners, executives, investment bankers and other intermediaries. This is a great role if you’re looking to own the deal process and progress your skillset as a deal professional. This role will give you deep insight into the entire acquisition process while closing multiple deals a year. We are a fairly lean team and believe in cross functional work so come with a growth mindset and you will develop a skillset across each business function; Our team believes in developing our team members. Primary Responsibilities Perform company analysis, including initial screenings, financial modeling and valuation, due diligence, consultation with external advisors, and preparation of materials for internal investment meetings. Responsible for M&A project management processes to include, but not limited to, valuations, letters of intent, due diligence analysis, financial planning, and business case development. Analysis of risks and opportunities of M&A activities, translate this into fact-based and well-reasoned insights on the valuation and structural impact of various acquisitions. Drive market research and strategic fit analysis. Conduct research on prospective sector opportunities and market trends and develop and present data-based opinions to inform decision-making and price transactions. Participate on deal teams to help structure and execute transactions, including coordinating the deal process and legal and transactional documentation. Special projects working directly with C suite, functional leads, and regional vice presidents. Qualifications 2-6 years experience in private equity, consulting, financial DD/QoE, investment banking, accounting, or corporate M&A Exposure to other diligence areas including commercial, operational, market sizing, risk analysis, customer and supplier, agreement review, etc. Excel and PowerPoint expertise Value oriented Strong communication skills Commitment to high professional standards Credentials: CPA preferred Interested in Learning More? 180one is a retained search firm and has been engaged by Impel to manage this search. If interested in learning more about the opportunity, please contact Tom Haley /503.334.1350/ tom@180one.com
By Greg Togni March 10, 2025
Long Term Incentive Plans (LTIPs) and Why to Implement Executive compensation is a nuanced and multifaceted subject that involves a delicate balance between rewarding top talent and aligning their interests with the long-term success of the organization. Typically, executive pay packages consist of three primary components: base salary, annual bonuses, and long-term incentive plans (LTIPs). While base salary and annual bonuses have historically been the most visible and commonly discussed elements of executive compensation, LTIPs are increasingly being recognized as the third and arguably most important leg of the stool. LTIPs serve as a tool for aligning the goals of executives with those of the company over the long term, offering rewards that are tied to the sustained growth and profitability of the organization. As businesses evolve and face growing challenges, LTIPs have become a central component in shaping how executives are compensated, ensuring they remain focused on creating long-term shareholder value. Over the past 75 years, LTIPs have been a common feature in public companies, where stock options, performance shares, and other equity-based incentives align executives with shareholder interests. It hasn’t been until the past couple of decades that private companies have implemented LTIPs to align executives' interests with the long-term success of the company, but also almost out of necessity to compete for the same talent who might already possess an LTIP as part of their compensation. What Are Long-Term Incentive Plans (LTIPs)? Long-Term Incentive Plans (LTIPs) are compensation structures designed to reward executives for achieving long-term business goals. Unlike annual bonuses, which are typically tied to short-term financial metrics, LTIPs are structured to reward performance over a longer time horizon—usually three to five years or more. The primary purpose of LTIPs is to ensure that executives are motivated to focus on sustainable growth, value creation, and the long-term health of the company. The Factors Driving the Adoption of LTIPs in Private Companies According to a survey by WorldatWork, approximately 63% of private companies are using LTIPs as a means of rewarding executives and aligning their interests with the company’s long-term success. Several factors have contributed to the rise in popularity of LTIPs in private companies, ranging from the quest for competitive advantage to changes in organizational dynamics and evolving employee expectations. But the following reasons might shed additional insight: Companies with LTIPs Have 30% Higher Revenue Growth: Research by the National Center for Employee Ownership (NCEO) found that companies that implement equity-based LTIPs experience 30% higher revenue growth compared to those that do not. The statistic underscores the positive impact of LTIPs on a company’s overall performance, as they drive executive focus on achieving goals that lead to sustained revenue growth, innovation, and market expansion. 91% of Executives in Private Companies Cite LTIPs as Key to Retention: A survey by Korn Ferry found that 91% of executives in privately held companies consider LTIPs an essential factor in their decision to stay with the company. The statistics demonstrate the significant role LTIPs play in retaining key talent, ensuring that executives are motivated to stay with the company over the long term. By offering equity-based compensation, companies can reduce turnover and keep their leadership team focused on long-term objectives. Companies With LTIPs Are 50% More Likely to Meet Exit Targets: According to a report by Bain & Company, private companies that implement LTIPs are 50% more likely to meet or exceed their exit targets during mergers, acquisitions, or initial public offerings (IPOs). By aligning executives' interests with long-term value creation, LTIPs motivate leadership to work toward achieving the performance metrics that will maximize the company’s value at the time of sale or public offering. Transitioning Ownership and Succession Planning: For family-owned businesses or privately held companies with a significant ownership stake held by a small group, succession planning is another critical factor in the decision to adopt LTIPs. As the company grows and the leadership team evolves, there may be a need to transition ownership to new management. LTIPs can help retain key executives during this period of change, providing financial incentives that keep the team focused on the company’s long-term growth even during periods of uncertainty. As businesses strive to remain competitive and evolve in an increasingly dynamic marketplace, the adoption of LTIPs has evolved as a key driver for optimizing performance. No longer limited to public companies; private companies have increasingly recognized the benefit and need for these compensation structures. Perhaps adding these 4 simple letters (L-T-I-P) to a company’s compensation program could be the difference maker that they’ve been looking for.
By Greg Togni March 3, 2025
Assistant General Counsel With roots going back to the 1960’s, Forest City Trading Group (FCTG), may have started as a small lumber yard run by two immigrant brothers, but has since grown into North America’s largest wholesale lumber product distributor. FCTG facilitates the distribution of products across 6 continents through our network of 12 operating companies and over 800 employees. The company’s impact is far-reaching, especially when considering that one in every ten houses today is built using products sourced and sold by our operating companies. As proponents of forest sustainability, FCTG actively supports suppliers who use sustainable forest management practices that promote forest sustainability and result in long-term environmental, social, and economic benefits. Due to significant growth over the last decade, and expecting strong growth in years to come, FCTG is adding an Assistant General Counsel to their legal team to support growth and help scale the business. Position Overview Forest City Trading Group is seeking a highly motivated and skilled Assistant General Counsel to report directly to, and support, the General Counsel and assist in managing the company's legal operations. The ideal candidate will have strong legal expertise, excellent communication skills, and the ability to collaborate effectively across different business units. This position offers an exciting opportunity to be a part of a dynamic team while contributing to the growth and success of the company. Key Responsibilities Provide legal support to the General Counsel on a variety of corporate, commercial, regulatory, and operational matters. Assist in the company's legal department operations, including document management, contract review and negotiation, legal strategy, and corporate governance. Draft, review, and negotiate contracts, agreements, and other legal documents to ensure compliance with applicable laws and regulations. Assist with the management of corporate compliance and risk management programs, including conducting legal risk assessments and providing recommendations for mitigation. Collaborate with cross-functional teams (e.g., finance, IT, human resources, marketing, trading operations) to provide legal guidance on operational and business issues. Advise on employment law matters, including policies, employee relations, and compliance with federal and state employment laws. Handle legal research and due diligence for mergers, acquisitions, and other corporate transactions as needed. Manage outside counsel and vendors, ensuring legal matters are handled efficiently and cost-effectively. Assist with litigation and dispute resolution matters, including managing internal investigations, handling settlement negotiations, and overseeing litigation strategy. Stay updated on legal developments and regulatory changes that may impact the company’s operations and provide proactive legal solutions. Qualifications and Skills Juris Doctor (JD) degree from an accredited law school. Licensed to practice law in Oregon. Minimum of 5 years of legal experience, with preference for some experience within a corporate or in-house legal environment. Experience in corporate governance, commercial contracts, employment law, and regulatory compliance. Strong analytical skills with the ability to identify and solve complex legal problems. Excellent written and verbal communication skills. Ability to work independently, manage multiple priorities, and maintain a high level of professionalism under pressure. Strong interpersonal skills and the ability to build effective relationships with internal stakeholders at all levels of the organization. Ability to handle confidential and sensitive information with discretion. Preferred Experiences Experience supporting operational functions, such as HR, marketing, and compliance, in a corporate setting. Previous experience managing outside counsel and coordinating legal projects. Experience with construction and material supply contracts. Interested in Learning More? 180one is a retained search firm and has been engaged by Forest City Trading Group to manage this search. If interested in learning more about the opportunity, please contact Lisa Heffernan/ 971.256.3076/ lisa@180one.com
More Posts
Share by: