3 Things to Consider When Choosing an Executive Assessment
Executive assessments are typically used for hiring, promotion, and succession planning for higher-level leadership roles, such as Director and above. Unlike assessments used for non-managerial positions, most executive assessments involve a live human assessor, who is usually a trained psychologist. Three types of executive assessments are most common: 1-on-1 assessment, in-person simulation, and virtual simulation.
The 1-on-1 assessment usually consists of an in-depth interview with a single consultant who integrates their observations with results from several psychometric tests and writes a report. The in-person simulation is usually a full day of assessment activities, such as role-plays, group discussions, and presentations that multiple assessors rate/score; assessors then meet to integrate their ratings and write a report.
The virtual simulation usually consists of a smaller set of assessment activities like role-plays and presentations conducted online, and algorithms are used to combine ratings from multiple assessors and psychometric tests to generate various analytics.
How do these three types of executive assessment stack up?
1. Predictive Power
The higher the predictive power, the more accurate the assessment, and the better your decision. A recent compilation of multiple research studies found that the predictive power of 1-on-1 assessment varies widely and is moderate at best. In contrast, another comprehensive review of research found that simulation assessments show high levels of predictive power. Based on these research findings, one should opt for simulation assessments whenever the accuracy of the assessment is paramount.
2. Potential for Bias
Unconscious bias is just that – unconscious, and even trained psychologists often struggle to
turn it off. That is why relying on the judgment of a single person (no matter how much expertise they may have) is never a good idea. In-person assessments address this problem by relying on multiple independent assessors to wash out their individual biases. Better yet, research has shown that algorithms used in virtual simulations are far more accurate than humans in predicting success.
3. Cost
The last factor to consider is cost. The labor-intensive nature of in-person simulations— plus travel and accommodation of all candidates— creates a hefty and sometimes prohibitive price tag for companies. For example, for a senior executive assessment, you can expect to pay north of $10,000 and for a C-suite role up to $40,000 per assessment. Virtual simulations are much more streamlined, so their cost is significantly lower, on average around $3,000 per assessment.
| 1-on-1 Assessment | In-person Simulation | Virtual Simulation | |
|---|---|---|---|
| Description | Single consultant interview and psychometric tests. Consultant integrates findings and writes a narrative report. | Multiple assessors rate a full day of in-person activities, such as role-plays, group discussions, and presentations, etc., that multiple assessors rate. Assessors integrate ratings and write a report. | “3 hours-in-the-life” virtual simulation with live role-plays. Algorithms combine observations from multiple assessors and psychometrics to generate sophisticated people analytics. |
| Predictive Power | Medium | High | High |
| Potential for Bias | High | Medium | Low |
| Cost | High | High | Low |
Selecting a proper assessment for your executive hires is essential. The three things you should consider are predictive power, the potential for bias, and cost. Virtual simulations offer the highest value – the highest predictive power at the lowest price based on these criteria. Go here to find out more about virtual simulations for executives offered by Pinsight.
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