Goldman Sachs to introduce personality tests in recruitment

 

It’s been reported that Goldman Sachs is planning to introduce ‘personality tests’ from summer 2018 as part of the recruitment process into its banking, trading and finance, and risk divisions.

Wall Street has been struggling to compete for high calibre employees with Silicon Valley, hedge and private equity funds, which often offer better hours and perks. The pressure to lure and retain top talent is forcing banks like Goldman Sachs to turn to innovative ways of evaluating new hires.   

According to the investment banking giant’s Global Head of Recruiting, Matt Jahansouz, the bank is set to introduce the tests into the recruitment process with 2018 summer Intern candidates, as one of several factors in the recruitment decision.

Giving the test to candidates ahead of a second round of interviews, answers will be compared with those given by current, high-performing employees in areas such as teamwork, analytical thinking and judgement.

The introduction of personality tests is the recommendation of a Recruiting and Retention Taskforce. Set up in 2015 to look at the hiring of junior talent and comprising senior leaders, the Taskforce suggested use of pre-hire assessment testing.

The idea is to provide both interviewers and recruiters with additional data to guide decision-making. Personality testing is a standardised, objective and reliable way to evaluate workplace-relevant candidate characteristics and provide insight often not apparent from an in-person interview. It’s a way to see beyond any nervousness, for example, to assess teamwork or judgment skills.

Goldman Sachs plan to pilot a survey in summer 2017 and have contracted external vendor OPQ to institute it in 4 divisions: IBD, Securities, Finance and Risk for summer intern hiring in the Americas. Those invited to a Super Day process will be asked to take the test before they attend and, at the end of a Super Day, the results will be made available to decision makers to discuss when evaluating a candidate.

Last year, to help identify strong candidates who may not attend Ivy League schools, Goldman also introduced a video platform to replace first round interviews on college campuses.

Matt Jahansouz said “We're shifting from a world where you just used to look at a GPA (grade point average) and resume (CV) and walk out with a feeling about an individual who you might want to hire. We can now capture characteristics and data that might not be as obvious, to make smarter hiring decisions."

 

 

Thursday, 17 August 2017

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Goldman Sachs to introduce personality tests in recruitment