[IPAC-List] Calculating costs/savings for testing research

Blair, Michael D[EQ] Michael.D.Blair at Embarq.com
Fri Jan 23 18:15:56 EST 2009

Jamie -

Excellent question and one that more assessment (and HR) professionals should be focused on. I have focused on ROI in the hiring process in the private sector for several years and been able to show remarkable success. However, I have the advantage of having access to post-hire metrics such as sales, handle time, turnover, training costs, etc., as well as pre-hire candidate data. Sounds like you're not that lucky and are asking about other facets. Ted Darany gave an excellent address on ROI at the 2005 IPMAAC conference in Orlando. His slides are on the website (http://www.ipacweb.org/conf/05/). If you're interested in some of the stuff I've presented, let me know.

Michael D. Blair
Manager, Recruitment, Selection & Assessment
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Email: Michael.D.Blair at embarq.com

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-----Original Message-----
From: ipac-list-bounces at ipacweb.org [mailto:ipac-list-bounces at ipacweb.org] On Behalf Of Madigan, Jamie J
Sent: Friday, January 23, 2009 3:16 PM
To: IPAC-List at ipacweb.org
Subject: [IPAC-List] Calculating costs/savings for testing research

Hi all,

I've got what may be kind of an odd question, but I'm looking for some advice. I've been planning my 2009 projects with my manager, and one of the things she's asked to see for each potential item is an analysis of its cost and savings. These are projects in the vein of test validation updates, setting cut scores, test implementation, validity transportation research, audits of testing programs, maintenance of test databases, etc.

On the one hand, I think it's great that she thinks in this way. A lot of HR managers don't, and as a result they're unable to communicate with business line leaders who think in terms of costs, revenue, and savings.
But on the other hand, I'm a bit flummoxed as to how to translate the inputs and outcomes of these kinds of testing projects into dollars and other resources. It's admittedly a weak spot in my own skill set, but one I'd like to redress.

Anyone got some advice to share here? Any books, articles, websites, or other resources?

Jamie Madigan

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