As the business climate and the demands on companies from the society and stakeholders are changing, it means that organizations must change and renew themselves accordingly. Many organizations have gone from completely result-driven to more purpose-driven (Rajendra & Wolfe, 2007), including Deloitte.
Deloitte’s desire to make a positive, enduring impact for their organization and its stakeholders every single day, naturally means that also their employees, the core of their organization, must believe in the firm’s purpose. Hence, Deloitte needs to find and employ the right talents which further will be the people making an impact that matters. That leaves us with the main question; how to find and choose the right employees for Deloitte that believe and pursue in the organization’s purpose?
Since there is no suitable tool by which Deloitte can measure an applicant’s desire to “make an impact that matters”, we were asked to develop one. The task for the group was to build a test that measures how purpose driven an applicant is, in addition to the test being reliable and valid. Hence, the true challenge that we faced was to construct a tool that would measure what it is supposed to measure and help Deloitte in attaining their organizational goals, at the same time as the tool should be innovative and differentiate ours from the existing ones.
First of all, since Deloitte’s definition of purpose-driven and “making an impact that matters” is relatively broad definition, we needed to narrow it down and specify how to measure it. According to Punit Renjen, the Global CEO of Deloitte, the whole culture and environment of Deloitte is built upon integrity (Deloitte, 2017). Since integrity is so deeply unified in the business codes of Deloitte and is one of the four shared values, and each employee has a responsibility of conducting business with a high level of integrity (Deloitte, 2017), we decided that by building a tool that measures integrity, we could answer to Deloitte’s needs. Second, we needed the test to be based on earlier research, at the same time as it needed to bring something new to the table. By founding our tool on the integrity test previously developed by Becker (2005) and coming up with innovative ways to further develop it so it can be applied to the settings of Deloitte, we established a situational judgement test (SJT) built for the talent recruitment of Deloitte.
Therefore, the main research question is: to what extent does a situational judgment test in personnel selection measure integrity?
There is a need for new research that matches the more purpose-driven business climate today. Since employees are the most valuable resource that companies have (Ferris et al., 1999), and the organizations and their stakeholders want conscious employees (Clarc & Babson, 2011), research needs to keep up with the change. For a firm like Deloitte, having a tool by which they can distinguish the purpose driven talents from the rest, is central. What makes this study interesting for both us and Deloitte is that it is an extremely valuable asset for a firm to have a reliable tool by which they can select the best people for the firm. This you can see by looking at for example the incredibly high costs of turnover for a company (Hinkin & Tracey, 2000).
Even though research with reference to understanding the underlying constructs of integrity tests continues to grow (Berry, Sackett, & Wieneman, 2007), there is fairly little research done on SJTs measuring integrity (Becker, 2005). Even less research can be found on such applied to a new and evolved business environment (Ployhart, Schmitt, & Tippins, 2017) which naturally means that this is the main input of our research. By comparing the HEXACO personality test and the answers of our survey, we can answer our research question.