Personality is an important factor on which employees are evaluated at the time of recruitment. However, organizations rarely use personality assessment to predict whether an employee will stay back in the organization.

Organizations are globally witnessing the phenomenon of large-scale employee turnover. This is not only creating disruption in business and productivity, but also increasing overall costs in a permanent manner due to ongoing demand for capable employees. Some known reasons for employee turnover are more job opportunities, and an increased need for location flexibility. However, due to some inherent constraints, organizations have not been able to take effective measures to stem the turnover.
Some ideal ways to retain employees are to invest in employee engagement, sustainable employee relationship and employer branding. However, these are long term activities requiring considerable planning and a well-defined execution. Along with these activities, organization can do something to deal with the turnover challenge in the short term: predict which employees are likely to stay back, and under what conditions. Having this knowledge can help them take proactive measures to retain valuable employees.

One of the most useful tools for predictions related to employee behaviour is personality assessment.
Personality comprises fundamental individual characteristics that are reflected in actions and behaviour. These characteristics remain stable over time, and affect the individual’s relationship with, and influence over the environment.
Personality is an important factor on which employees are evaluated at the time of recruitment. Several organizations conduct personality assessment to identify the fitment of the candidates to the job and the organization. They use it to help gauge whether a person would be able to perform a job well, and adapt to the culture of the organization. They also use it to understand the training, coaching or mentoring required for leadership development.
However, organizations rarely use personality assessment to predict whether an employee will stay back in the organization. Considering the conceptual understanding about personality and evidence from scientific research, such an evaluation may be possible.

Conceptual understanding of personality

Personality is defined in several forms, the most popular being the Big Five. Also called the OCEAN model, it consists of the following five traits: openness to experience, conscientiousness, extraversion, agreeableness and neuroticism. These traits have been derived over decades of academic research by several eminent psychologists. As per this model, any individual’s personality can be described in terms of these five traits. The description of the traits and their implications for employee retention are given below:

• Openness to experience is associated with originality, imaginativeness, broad interests, curiosity and non-conformity. Employees with high openness to experience are likely to remain engaged in an organization if it provides them varied avenues to grow, experiment and learn. They are also more likely to quit if it does not provide them with such opportunities.
• Conscientiousness is associated with organization, determination, carefulness, ethics, dependability, productivity and purposefulness. Employees with high conscientiousness are more likely to be committed to an organization, even when it faces challenging times, especially if the management has been considerate and supportive towards them in their personal lives.
• Extraversion is associated with sociability, talkativeness, friendliness and love for fun and group activities. Employees with high extraversion are likely to be involved in an organization that has a psychologically safe environment, opportunities for teamwork and a culture that promotes social interactions. They are also more likely to quit in the absence of such conditions.
• Agreeableness is associated with an easy-going nature, trust, sympathy, cooperativeness, politeness, warmth and dependence. Employees with high agreeableness are more likely to be loyal to an organization, especially if it treats them well, employs fair processes and practices, emphasises on clear responsibility and accountability, and encourages open communication.
• Neuroticism is associated with anxiety, insecurity, and proneness to guilt, self-consciousness, moodiness, anger and depression. Employees with low neuroticism are more likely to continue in an organization, even when their work is posing difficulties, or the job market is attractive, if they are overall satisfied with their job, organization and professional life.

Scientific evidence on Big Five

Apart from the independent impact of the personality traits, there is evidence of collective impact of one or more traits, on the behaviour of employees. Across several studies involving hundreds of participants, research on the Big Five personality traits has revealed some interesting findings in the areas of transformational leadership, organizational citizenship and coping. The following provides a summary:
• Transformational leadership influences followers through ideals and vision, inspiration, intellectual stimulation and individual consideration. This form of leadership is most effective in intrinsically motivating employees to perform well. It also helps in keeping them committed and engaged. Transformational leaders at different hierarchical levels can be instrumental in retaining employees when environmental factors push/pull them towards quitting. Studies have found that people high on agreeableness and extraversion are better transformational leaders.
• Organizational citizenship means going out of one’s way to provide help. Employees who demonstrate organizational citizenship are dedicated and sincere towards the organization, and therefore are willing to extend support to colleagues and organization, even if they are not required to do so as part of their job. Such employees are likely to not only remain in the organization themselves, but also help others stay. Studies have found that people high on openness to experience, extraversion and conscientiousness show strong organizational citizenship behaviour.
• Coping can be interpreted as the ability to deal with challenges and stressful situations. Employees who can cope well are oriented towards problem solving, controlling their thought process and fulfilling their assigned responsibilities. They are resilient, and confront difficult situations rather than run away from them or become despondent. They do not quit the organization when the going gets tough professionally or personally. Studies have found that people, high on extraversion and conscientiousness and low on neuroticism, display better coping behaviour.

To conclude, personality assessment can be a useful initiative to retain valuable employees. Organizations can use it to a) evaluate personality traits, b) predict which employees are likely to continue or help colleagues and subordinates continue, and c) take measures that would facilitate retention of those employees.

If conducted systematically and utilised in conjunction with other information like employment history, demographics, peer feedback and demonstrated performance, personality assessment can help tide over the peril of large-scale resignations, at least in the short term.

The author, Smita Chaudhry, is Associate Professor, Department of Human Resources at FLAME University. Views shared in the article are personal.• Openness to experience is associated with originality, imaginativeness, broad interests, curiosity and non-conformity. Employees with high openness to experience are likely to remain engaged in an organization if it provides them varied avenues to grow, experiment and learn. They are also more likely to quit if it does not provide them such opportunities.

• Conscientiousness is associated with organization, determination, carefulness, ethics, dependability, productivity and purposefulness. Employees with high conscientiousness are more likely to be committed to an organization, even when it faces challenging times, especially if the management has been considerate and supportive towards them in their personal lives.
• Extraversion is associated with sociability, talkativeness, friendliness and love for fun and group activities. Employees with high extraversion are likely to be involved in an organization that has a psychologically safe environment, opportunities for team work and a culture that promotes social interactions. They are also more likely to quit in the absence of such conditions.
• Agreeableness is associated with an easy-going nature, trust, sympathy, cooperativeness, politeness, warmth and dependence. Employees with high agreeableness are more likely to be loyal to an organization, especially if it treats them well, employs fair processes and practices, emphasises on clear responsibility and accountability, and encourages open communication.
• Neuroticism is associated with anxiety, insecurity, and proneness to guilt, self-consciousness, moodiness, anger and depression. Employees with low neuroticism are more likely to continue in an organization, even when their work is posing difficulties, or the job market is attractive, if they are overall satisfied with their job, organization and professional life.

Scientific evidence on Big Five

Apart from the independent impact of the personality traits, there is evidence of collective impact of one or more traits, on the behaviour of employees. Across several studies involving hundreds of participants, research on the Big Five personality traits has revealed some interesting findings in the areas of transformational leadership, organizational citizenship and coping. The following provides a summary:

• Transformational leadership influences followers through ideals and vision, inspiration, intellectual stimulation and individual consideration. This form of leadership is most effective in intrinsically motivating employees to perform well. It also helps in keeping them committed and engaged. Transformational leaders at different hierarchical levels can be instrumental in retaining employees when environmental factors push/pull them towards quitting. Studies have found that people high on agreeableness and extraversion are better transformational leaders.
• Organizational citizenship means going out of one’s way to provide help. Employees who demonstrate organizational citizenship are dedicated and sincere towards the organization, and therefore are willing to extend support to colleagues and organization, even if they are not required to do so as part of their job. Such employees are likely to not only remain in the organization themselves, but also help others stay. Studies have found that people high on openness to experience, extraversion and conscientiousness show strong organizational citizenship behaviour.
• Coping can be interpreted as the ability to deal with challenges and stressful situations. Employees who can cope well are oriented towards problem-solving, controlling their thought process and fulfilling their assigned responsibilities. They are resilient, and confront difficult situations rather than run away from them or become despondent. They do not quit the organization when the going gets tough professionally or personally. Studies have found that people, high on extraversion and conscientiousness and low on neuroticism, display better-coping behaviour.

To conclude, personality assessment can be a useful initiative to retain valuable employees. Organizations can use it to a) evaluate personality traits, b) predict which employees are likely to continue or help colleagues and subordinates continue, and c) take measures that would facilitate retention of those employees.

If conducted systematically and utilised in conjunction with other information like employment history, demographics, peer feedback and demonstrated performance, personality assessment can help tide over the peril of large-scale resignations, at least in the short term.

The author, Smita Chaudhry, is Associate Professor, Department of Human Resources at FLAME University. Views shared in the article are personal.

(Source: https://hr.economictimes.indiatimes.com/news/workplace-4-0/talent-management/retaining-people-in-the-times-of-the-great-resignation-using-personality-assessment/89603870)