Resource/Why_Test.doc 15-10-09 WHY TESTS ARE A CRUCIAL PART OF P&G'S SELECTION PROCESS Procter & Gamble's approach to employee selection is based on the fact that people are our most important asset, and we are committed to employ the best people we can find. Our selection criteria are particularly demanding because we are committed to build our organization from within, and to hire people who will be effective in a variety of assignments over an entire career. Our goal in selection is to produce a thorough, objective assessment of each candidate's abilities in the factors important for success at P&G. Research shows that a combination of interviews and testing will produce a more accurate, thorough assessment of a person's abilities than interviewing alone. Data to support this point are abundant. The U.S. Federal Government has concluded this in numerous studies since World War I; virtually all major human resource consultants and literature support this point; many U.S. court cases have validated this point. Procter & Gamble has done dozens of studies which show that tests plus several interviews are the optimum system of predicting long-term job success. P&G has used testing in management selection for over 60 years, and we have evidence that this has contributed to a superior workforce, which is a key competitive advantage. Following are the key reasons that testing is particularly effective: 1. Tests objectively focus on factors that count. Tests are designed to measure specific factors which have proved to be essential for job success, using measurement scales which focus on those factors.The questions are asked the same way each time, and each person has the same possible answers from which to select. This gives every applicant a fair, unbiased opportunity to demonstrate their capabilities, and extraneous and irrelevant data about the person cannot influence the assessment. In addition, answers result in test scores which are objectively calibrated relative to the on-job performance of hundreds of employees. 2. Tests measure factors that are less readily observable in an interview. For example, applicants easily demonstrate oral communication skills during interviews, but it is much more difficult to demonstrate problem solving skills. 3. Tests are comprehensive and efficient. The Problem Solving Test uses 50 questions to judge problem solving ability. The Personal Data Form has 39 additional questions relating to leadership, initiative and problem solving. It would take hours of interviewing to collect the data that these tests obtain. In summary, the Current Best Approach for selecting people who have the highest likelihood of a successful career with P&G is a combination of comprehensive interviews (experience shows at least three) and the full use of the P&G tests that have been validated for that type of work. R. P. Braun Manager, Personnel Research (RPB511:kgc 12/1/92 Revised 1/19/94) . Resource /Why_ Test.doc 15-10-09 WHY TESTS ARE A CRUCIAL PART OF P&G'S SELECTION PROCESS Procter & Gamble's approach to employee selection is based. fact that people are our most important asset, and we are committed to employ the best people we can find. Our selection criteria are particularly demanding