Resources
The Client
American First Credit Union is a full service, not-for-profit financial cooperative owned entirely by its members. It was chartered in 1952 by employees of a Los Angeles supermarket chain called Raisin Markets, to serve their financial needs as only a member-owned organization could. When Raisin Markets was acquired by Alpha Beta in 1958, it became Alpha Beta Employees Federal Credit Union. In 1985, it was acquired by American Stores, and the name was changed to American First Federal Credit Union. Today it is one of the largest and most financially stable credit unions in California. With 200 employees, it serves more than 83,000 members, with assets of more than $542 million, and has an 11.24 percent capital ratio.
The Products
Wonderlic Personnel Test (WPT): American First Credit Union uses the WPT as the initial test in its interview process for all job applicants. The 50-question WPT, which has been used by thousands of organizations since 1937, is a 12-minute timed test that measures a candidate’s ability to learn a specific job, solve problems, understand instructions and apply knowledge to new situations. This test provides hiring managers with objective information about candidates, and based on minimum test scores, eliminates a portion of the applicant pool enabling recruiters to focus their time on those candidates most likely to succeed.
Comprehensive Personality Profile® (CPP®): American First uses the Comprehensive Personality Profile (CPP) to measure key traits as they relate to job performance. The 88-question personality profiling system describes a candidate’s character in terms of job-related strengths and weaknesses including emotional intensity, intuition, sensitivity, assertiveness and motivation. The CPP test data helps recruiters match candidates’ personalities to a custom profile of their highest performers, optimizing the person-to-job fit.
Employee Reliability Inventory (ERI): In the banking industry, honesty and reliability are critical traits for any employee. The ERI is a risk management tool that helps American First recruiters determine which individuals are most likely to become valued employees rather than organizational liabilities. This risk management tool evaluates freedom from disruptive alcohol and illegal drug use, as well as courtesy, emotional maturity, conscientiousness, trustworthiness, long-term job commitment, and safe job performance.
16PF® Personality Profile: American First uses the 16PF to judge the management potential of executive candidates for high-profile positions and to evaluate new candidates and existing employees to ensure their personality is compatible with those of the management team and the corporate goals. The 16PF generates personality profiles for comparisons across various occupational titles. Wonderlic provides American First with a detailed Interpretive Report to assist them in developing in-depth interview questions based on the candidate’s profile as well as a concise Human Resource Development Report for assessing management potential.
Turnover Drops 22 Percent Thanks to Employment Testing
The corporate culture and level of employee satisfaction at American First Credit Union in La Habra, California are enviable. The company offers a rich benefits package, lucrative incentive programs, regular feedback and ample opportunities for professional development and promotions, according to Karen Timmins, Assistant Vice President of Human Resources.
Together the Wonderlic tests are a really good indicator of success. That’s why we use all four of them.
— Karen Timmins, Assistant Vice President, HR
Their philosophy is that the employee-employer relationship should be mutually beneficial. “We take care of our people but we expect them to give 110 percent to the job.” Which is why Timmins relies on Wonderlic.
“One hiring mistake impacts so many people,” she says. “If a person’s character conflicts with the company’s core values it’s amazing how disruptive they can be.” To ensure that the best people are added to the team and the thriving workplace environment is preserved, the Credit Union uses four Wonderlic tests in its recruiting process.
Applicants first complete the Wonderlic Personnel Test(WPT), which measures their ability to learn a specific job, solve problems, understand instructions and apply knowledge to new situations. Each position at the Credit Union has an established benchmark test score and applicants who don’t meet that benchmark are eliminated from the hiring process. “It happens often,” says Lupe Cuevas, HR Generalist, who estimates that one-third of candidates don’t make it to the next phase.
If they do pass the first test, applicants also complete the Comprehensive Personality Profile, which evaluates character, and the Employee Reliability Inventory to measure their honesty and trustworthiness. Along with those three tests, candidates for upper-level positions complete the 16PF which rates management potential.
The test data helps recruiters evaluate each applicant’s potential for success and to match individuals with the right positions, Timmins says. The combined data gives recruiters very specific information about an applicant’s character and work
styles. For example, the data determine whether candidates are focused and flexible; if they can multitask, and whether they can think outside the box.
“Together the Wonderlic tests are a really good indicator of success. That’s why we use all four of them,” she says.
Of course, the tests alone don’t determine whether someone is hired, but they do allow recruiters to critically judge how candidates are likely to perform, Timmins says. “Something magical happens when you change the way recruiters approach their decisions. When they use the Wonderlic tests, they are less likely to make emotional decisions.”
“Something magical happens when you change the way recruiters approach their decisions.When they use the Wonderlic tests, they are less likely to make emotional decisions.”
— Karen Timmins
The tests also enable them to judge candidates on more than just work experience because they evaluate cognitive ability, Timmins adds, which means she can hire qualified people from any industry. “I’m not limited to choosing people with bank experience. If I identify someone who’s bright and emotionally intelligent I know they have greater potential for success and job satisfaction, regardless of their background.”
The evidence of the impact of Wonderlic testing is seen in the reduction of turnover and the continued growth of satisfaction among employees. Turnover dropped from nearly 30 percent in 2001, to 7.5 percent as of May 2003, in spite of the fact that the Credit Union has grown significantly. “That’s radically low given the high turnover rate for financial institutions,” Cuevas says. “We are pretty proud of it.”
But more than quantifiable evidence, Wonderlic has helped improve the quality of the work environment. “When we make better hiring decisions, we spend our time rewarding good performance not dealing with problems,” Timmins says, adding: “I will be a proponent of testing forever.”
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