By Ray Birch
MILFORD, Conn.—Getting the right employees into the right spots goes a long way toward making the team productive and–not surprisingly–the credit union more effective, says one CEO who is using a tool to do just that.
In fact, the same CEO said that tool has also markedly reduced the annual employee turnover rate.
The $457-million Nutmeg State Financial CU uses the Predictive Index Assessment online tool (www.predictiveindex.com) that leverages predictive analytics to help employers identify a person’s personality traits and behaviors to match those traits and behaviors with what’s needed for a certain position.
Every Little Bit Helps
Moreover, it not only provides an assessment for each potential new hire, but also arms interviewers with key follow-up questions, says CEO John Holt.
“This is really working well and has helped us tremendously,” said Holt, who noted that the assessment is just one part of the entire hiring process. “Every little but helps, because having the right people in the right places is the magic to being a relevant and progressive organization–especially as we evolve into the world of high tech and very, very heavy competition.”
Holt reminded that no matter how skilled a manager(s) at a credit union might be at conducting job interviews, the quality of that new hire really can’t be known until they are in the real-world workplace.
“This assessment helps you understand what your potential new hire is like. It’s not foolproof, as there are a number of variables to be considered, but this gives you a much better chance of getting the right fit,” said Holt.
What Gets Measured
Holt said evaluating candidates based on demands of the job, degree of interaction with others, follow-up, communication, knowledge and skills all contribute toward ensuring lower turnover and more stability for the credit union.
“Additionally, each position within the organization has an ideal personality type,” said Holt, whose CU boast 14.7% capital and annual average net income of about $2.2 million over the last five years. “The assessment looks at key competencies, motivators, and behavior. The thinking is that when people are put in a position that is suited to their inherent skills, behavioral style and values, they will achieve success for themselves and the organization. This has led to an engaged workforce— at least 94% participation in employee events—and lot less turnover.”
Holt said that at its highest point, voluntary turnover at Nutmeg State was 30% annually and 15% involuntary.
“Now those percentages are down to 12% voluntary annually and 3% involuntary,” said Holt.
The credit union has been using the subscription-based assessment for less than two years.
The Process
With each new hire the CU first screens potential candidates over the phone, and from that brief conversation and the individual’s resume the credit union decides if the person moves forward.
“Then we send them the link to the assessment tool. It takes about 20 to 30 questions,” said Holt. “Then the tool gives us assessments of the individual in several different categories, such as behavioral, personal, working style etc. and lets us know how well the person is a fit for the job.”
The assessment also provides a series of follow-up questions to ask the potential new hire in the job interview, or series of interviews that eventually follow.
“These follow-up questions can help address any red flags from the assessment and allow you to dig deeper to find out if a red flag is truly a concern, or not, for this person as a job match,” Holt said.
Not Just For New Hires
While the assessment has given Nutmeg State stronger insights about potential new hires, Holt said the tool has also helped with existing staff.
“The assessment is helping managers better understand their team members,” said Holt, who added that some internal staff have been given new or different responsibilities as a result of the test. “You learn more about what motivates them, what their strengths are, what type of person they are…Ultimately this helps you coach them better.”
Holt said the cost for the service is an annual license fee that is “not that expensive. Especially for getting the right people in the right places.”
The Intended Culture
Holt said the tool also helps ensure the internal culture of the credit union is what it needs to be.
“We have created a culture that is peaceful, collaborative, high energy with great communication,” he said. “This tool allows us to hire the people that mesh well with our culture, and at times identifies those who are not the right fit.”