How to Maximize Benefits of Behavioral Assessment Tests in the Hiring Process

Behavioral Assessment

This article is the first in 180one’s two-part series looking at behavioral assessment testing as part of the hiring process.
 
Hiring managers know there’s no perfect process for selecting the best candidate for a job, so it makes sense to utilize all the tools you can access to improve that process. At 180one, we’re finding that organizations are increasingly using behavioral assessment tests, often also referred to as personality tests, to help evaluate the suitability and predicted performance of high-level job candidates.


These tests can be a valuable resource, but they don’t paint a full or completely accurate picture on their own of a candidate’s ability to succeed in a job. When looking at indicators for success, research shows that in the hiring process, the general interview provides a 15% measure of success, and reference checks are about 7%, while cognitive or behavioral assessments are 25-30% effective.


Data suggests that these assessments have an important role to play as a tool leading to a great hire. There’s a wide range of test styles to choose from, at a range of price points, and taking a behavioral test today is a much more automated process than when they were first used in industrial settings.


Leading Behavioral Assessment Tools

The most popular and high-profile tests being used by hiring managers today include the following:


Hogan – Hogan’s tagline is “The Science of Personality,” and they offer a suite of business-based assessments for hiring and development. Their cornerstone assessment, the Hogan Personality Inventory (HPI), identifies qualities that describe how an employee will relate to others when they are at their best, and gives insight into how people work, how they lead, and how successful they will be. Hogan assessments are used by many Fortune 500 companies, including Intel, McDonald’s, Merck, GM, Microsoft and Cisco.


DISC – DISC’s accessibility and ease of plugging in results to success models makes it one of the most widely used workplace behavioral assessment tools today, and it’s also the one with the earliest origins. It was first developed in the 1920s by William Moulton Marston (also the inventor of the first lie detector and the creator of Wonder Woman). Marston theorized that the behavioral expression of emotions in relationship to environment could be categorized into four primary types: Dominance (D), Inducement or Influence (I), Submission or Steadiness (S), and Compliance (C). DISC assessments are also used by many Fortune 500 companies, particularly within management, including General Electric, Chevron and Walmart.


Wonderlic – The Wonderlic Personnel Test (WPT-R) helps measure general mental ability, which it touts as being widely accepted as one of the single best predictors of job success. The Wonderlic “Wonscore” assesses and ranks potential employees in the areas scientifically proven to predict job performance: Cognitive ability + motivation + personality. The NFL uses Wonderlic to assess their quarterbacks – it’s a timed test and can evaluate a person’s ability to make quick decisions without knowing all the options.


Myers-Briggs – the Myers-Briggs Type Indicator (MBTI) continues to be the most widely used personality test worldwide, although it has a different role than behavioral assessments in predicting success in the workplace. MBTI personality testing includes behavior, traits and character, and is based on psychologist Carl Jung’s model of “Psychological Types.” His belief was that every person has an innate desire to grow, and part of that growth comes from understanding, individually, how we operate in the world.


How Behavioral Assessment Tools Can Miss the Mark

In the early days of behavioral assessments for work, the candidate or employee would take the test, then an industrial psychologist or other trained analyst would scrutinize the test to identify behaviors especially suited or contrary to job benchmarks. (We’ll look at how job benchmarks help interpret test results in part 2 of this series.)


Today, because almost all popular behavioral assessment tests are administered online, and some are free, there’s a likelihood that the person(s) evaluating a candidate’s behavioral test results may not have much training or experience in how to interpret the information and relate it to other factors significant to predicting job performance and success.


The Nielson Group, which specializes in work-based behavioral assessment testing, has found some common mistakes organizations and hiring managers make in using behavioral style assessments when they don’t have training on how to best use the results.

Tests such as DISC, Wonderlic, or Myers-Briggs can be valuable tools, but these tests won’t be a significant indicator if they are the only tool a company uses to assess a person’s talent and fit. The complexity of determining talent and fit includes other important elements that need to be considered for hiring and developing employees.


Mistake #1: Behavioral assessment test results will tell you who will be a superstar performer or a low performer


Probably the most common error made in using a behavior-based assessment model occurs when someone assumes that it explains who will succeed or fail in a job. Most behavioral assessment tests only measure common behavioral tendencies — not skills, not motivators, not the ability to make quick decisions and good judgment.


A single behavioral assessment without companion tools and analysis does not predict job success — a “best” behavioral job profile for a position can be identified but is not appropriate as the only criteria to consider. Organizational research has shown that in general, any type of behavioral style can succeed in any type of profession, including leadership positions. It’s important to remember a behavioral style is only one part of the picture and there are many other elements that affect job performance.


Mistake #2: Behavioral style assessments are complete personality profiles appropriate for selection and development


While behavioral assessment tools such as DISC and Wonderlic explore traits within someone’s personality, the term “personality” encompasses much more than the scope of a behavioral assessment test. A complete talent profile is much more than behavior, and includes facets like values, beliefs, the ability to make good judgments and quick decisions, sense of humor, character, ethics, emotional maturity, thinking preferences, soft skills, and communication style. A behavioral assessment test is not a complete measure of who someone is, but simply one aspect of what makes a person unique: how we prefer to act and communicate in a certain situation.


Mistake #3: The hiring manager uses anecdotal data to determine what type of personality would be successful in a given role.


You can get the “right” result, meaning the result you’re looking for, from a test, but are you getting the right person for the job? For example, the “driver” personality is the most over-sought trait hiring leaders look for across all jobs and functions. However, an office full of Type A personalities can create havoc on any organization. Understanding the true personality required for a given role by considering other factors such as emotional intelligence, business acumen, and underlying core motivators, as well as considering other employees’ test results or industry statistics for the profession is critical.


Key takeaways on behavioral assessment tools

With the variety of assessment tools available, it’s important to identify what specific information you want to glean from a test, then research the types of tests in order to choose one (or more) that most closely aligns with your hiring needs.


For example, one test type may work better for you in identifying strong leadership traits your organization needs now, such as Hogan, and another may serve you better in looking at how someone will integrate into a team and their potential to develop into a leadership role, such as DISC.


Maximizing the efficacy of these tests requires experience in analyzing the results, so you’ll get the most out of a behavioral assessment when you partner with a trained user of the assessment tool. They can interpret test results with specific knowledge of your organization’s needs along with comparative data from other organizations with similar needs.


In part 2 of this series, we’ll look at how behavioral assessment tests and results are used in practice: At what stages hiring managers use them in the recruitment and interview processes, and the benefits and drawbacks of that timing; how to use test results in the interview process; and how to use them for onboarding and creating employee development plans.

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: