Goldman to use 'personality test' as part of the hiring process
reuters.com
reuters.com
Lloyd Blankfein, CEO of Goldman, has talked a lot over the years about how important he thinks it is for young people to try to become really well rounded with a broad range of interests and experiences. He's talked about how it makes them more interesting and dynamic individuals which leads to higher success in business and with all interpersonal relationships, generally.
Wells Fargo (circa late in the housing boom 2005-07, etc) used to use a personality test developed by Gallup. I heard from more than one higher-level manager that it basically selected for the exact kind of traits that would eventually lead to a sales culture where thousands and thousands of employees were committing fraud.
Goldman needs to be careful what they select for.
What frequently happens is companies buy this and then Gallup consults with the company to design a behavior profile which the company thinks reflects successful traits in their environment.
†Full disclosure: I am one.
[0]. https://www.wsj.com/articles/are-workplace-personality-tests... http://www.abajournal.com/news/article/do_job_personality_te...
This is a horrible misuse of the word personality. Anyone of any race, wealth, age, sex, etc. can have any personality. Equating personality with race is unfortunately common these days.
[0] I like how you begin your footnotes count starting at 0. I am stealing this.
And it doesn't have to be intentional. Goldman MD with yacht and golf club membership signs off on test that selects for people like him. "Hey, I like me, and I succeeded here, right?"
If you have a bunch of quiet, homebody people and then introduce a new brash and loud team member - irrespective of talents, you could see a massive drop in worker happiness and productivity.
In many cases, they'll be looking for people who are easily instructed what to do (perhaps high agreeableness?) and likely to finish what they start (perhaps high conscientiousness?).
That is, agreeableness and conscientiousness would be highly valuable to a company that wants subservient drones.
Also, I have no idea what Goldman is planning to use, so there's that.
However, all of the arguments you're making about bias, etc. could be leveled against everything that goes into a hiring decision--absolutely everything. Education, interviewing style, skills with regard to social norms in a certain setting, everything. Notice, for example, in the article that Goldman has started to consider people from non-ivies, as if it should be some revelation that there are competent individuals from non-ivy schools. It's hypocritical to be argue about personality test bias when the bias due to those other procedures dwarfs that.
The advantage of personality tests is that they're standardized, so you can quantify the bias. This is routine. You can argue about how to quantify it, but there are solid methods for doing so, and it's better than just going with your gut.
As for people mentioning previous use of personality tests: the Myers-Briggs does suck. It's why no one studying individual differences scientifically has paid attention to it for decades. If Goldman comes out using the Myers-Briggs, then complain about that. But complaining about personality tests "because Myers-Briggs" is like saying the internet shouldn't be trusted because "ActiveX on Windows 95."
About reliability: yes, there's issues about reliability, but the reliability of interviews is even worse. There are some people who make solid arguments that you shouldn't even do an interview because they have such little validity in predicting anything above and beyond what's discernable from resumes, history, and test scores.
The one argument you might make about these tests that has some weight is their "fakability." This is their Achilles heel admittedly, although the issue is more complex than it seems because people aren't as good at faking as they think they are, and it's unclear the faking is any easier than on an interview.
One reason why you're seeing increased interest in personality tests now is because of methods that have been developed for counteracting faking. There's been a lot of movement in this area over the last 10-15 years or so, and there's more ways of handling it than there used to. So, for example, in addition to quantifying a faking "style", which you could do before but was of unclear utility, now you can administer items that are controlled for social desirability but measure other dimensions (for example, have people choose between three scenarios that have been shown to be of equal apparent desirability but differ in their level of some other trait).
To be honest, expect a lot more of this. Big IO and testing corporations have been putting a crapton of money into this area and a lot of companies are showing a lot of interest in it, as they're complaining that intellectual ability and "job skills" (e.g., knowledge of algorithms) isn't really the main issues they have with employee performance--the problem is this other stuff, like emotional stability, social skills, etc.
I'm also a bit concerned that hiring people with similar personality traits of "top-performers" will cut down on diversity of thought and different perspectives. Maybe it doesn't matter as much when dealing with the analytical/data driven side of finance - but I would assume having a group of high performing employees with different personalities would be more well rounded than a lot of one type of employee.
That's not a bad idea. Wall Street attracts plenty of me-me-me people, who can be very high achievers -- at a price. They grate on clients; they grate on colleagues, and they seldom contribute to making the overall firm work more harmoniously.
If Goldman thinks it's got a new way of finding more collegial people, that's interesting. Personality tests, like coding tests, run the gamut from ridiculous to somewhat useful. It would be interesting to know whether Goldman is building its own or using one of the off-the-shelf options.
Ultimately, the point of hiring people is to make the firm work more profitably. Banks are not well known for their commitment to a harmonious workplace.
I think it's more precise to say that they are selecting for productivity. Maybe more than one personality type is productive? It's not necessarily one single type.
What if Uber had made this announcement? New employees need to have a "culture fit" with the current staff.
Nobody knows how to hire. It's more luck and guessing than we want to admit. Temporary trials are the way forward. The problems are that employees and employers need to be secure enough to risk a trial, and compensation would need to change.
The early days of Meyers-Briggs saw it used at offices nationwide - getting the right result was a strict requirement for employment. But the test/retest reliability is terrible, most people exist near the boundaries of the categories, and the four sections are largely arbitrary. It appears to have created single-personality workspaces without achieving anything meaningful at all in corporate terms.
Guessing you'd be able to nail what they wanted for office jobs by just picking the organized/responsible/social/intellectual options every time you could, in roughly that order of priority.
I was offered the job, but declined - they put too much stock in this type of meaningless hocus-pocus, and barely asked me about my technical and organisational qualifications.
Something about "leadership principles" and "STAR" comes to mind.
It would be better if they could do some analysis over their Facebook profile, for example.
More likely social media is uncorrelated and more easily gamed.
That's interesting. Please go on.
The Army relaxed the "no tatoo" requirement because everyone has one now.
More companies allow a casual dressing code, because candidates keep on demanding it.
Future employers will relax their attitude towards social media un-professional behaviours everybody will have such a thing on their profile.
Even Obama admitted having smoked a joint. If he got a pass, a lot of other people will too.
1. I think presidents tend to get a lot of passes other people don't. It comes with the level of influence they have.
2. Presidents are selected by the typical American voter. Smoking a joint is cool these days with plenty of people (esp. younger), but employers are typically older and more traditional. He didn't get a pass with these people, they just weren't going to vote for him already for other reasons.
Not to say I disagree with your overall point - America is generally becoming more progressive.
I firm believe that everything I've said on Orkut many years ago was sincere and honest and matches well with my personality. If some algorithm is looking for someone with my character and abilities it will certainly find one in my Orkut activity.
The same way, if you don't have a social media profile, then certainly you're a good match for some job that is looking for someone with these characteristics.
My guess is liking cat videos and arguing on news posts does not have any representative value of the professonnal personnality. /shrug
But apparently you are.
Awful idea.
> Awful idea.
No, no, it's a wonderful way to ensure a monoculture and the absence of innovation!
I also wonder what MBTI types people here have. I'm guessing a lot of INTPs and INTJs.
I keep switching between INTJ and INTP every time I do the test.
Could anyone knowledgeable comment on this?
You'd think that being economists they would look at their counterparts in Silicon Valley and the Nordic Countries, especially their outstanding economic performance, and think "hmmm, maybe we don't have to reinvent the wheel after all, maybe we should try out these benefit thingies that are proven to work?". This test looks more like the answer to "can we find other people to validate our opinion that everything's fine?".
In practice, this is nothing more than an IQ test. If you can't figure out what answers are beneficial to your application, you're not smart enough to work there. It likely says little about the actual traits of these job seekers.
Sounds like an interesting topic. I'd love to read some articles/literature on it.
Well, that, and you have to be able to recognize indirect questions. But it's really not adversarial proof.