ABSTRACT
The importance of selection to modern organizations cannot be overstated. By now, it is safe to consider that most private organization use some form of structured selection tool, method, or process to make decisions about people-who to hire, promote, and/or accelerate toward future leadership roles. Organizations have paid the price for unstructured selection procedures at leadership levels. Lack of consistency in selection of leaders can lead to poor motivational and skills fi t between the individual and the job, as well as ineffective leader to follower relationships resulting in low performance, unmet expectations, and high turnover. This ultimately leads to low organizational productivity, inconsistent customer service, and low employee engagement. As modern organizations must frequently respond to new market demands, competitors, and technologies, unstructured selection methods that rely on “gut feel” of hiring managers pose a greater risk to organizational growth and survival. Rapid advancements in technology, increasing sophistication among consumers, and competition in global markets make the ability to adapt and change organizational strategies and tactics critical to sustained success. The requirements for leaders and the selection methods used to identify those who are the most likely to excel in these demanding roles must keep up with the rapid change in business. Today, organizations benefi t from decades of science and practice that provide guidance for how to maximize the likelihood that an informed decision can be made about whom to hire/promote for a particular job or role. When you consider the direct costs (e.g. hiring and training costs, compensation, and benefi ts) of employing an individual across their potential tenure in an organization, each hire/promotion over time is an investment in the millions of dollars. The fi nancial investment for organizations in their leaders is signifi cant. The utilization of accurate information for making hiring decisions signifi cantly increases the likelihood of positive return on investment in those leaders. When looked at from an aggregate level, the cumulative effect of effective selection decisions can lead to extraordinary performance and becomes a true competitive advantage.
