Work detail

Personality tests and their linkage to employee productivity

Author: Bc. Kristina Tsypushkina
Year: 2019 - summer
Leaders: Petr Pleticha
Work type: Bachelors
Language: Czech
Pages: 74
Awards and prizes:
Abstract: The purpose of this thesis is to evaluate the predictive power of personality traits, depicted by a
commercial assessment Predictive Index, on sales employee performance. We utilize non-publicly
available company level data from one of the leading firms operating in the consumer finance
industry in China. The data set contains over 31 thousands observations on one particular
position. Employee performance is measured by their ranking within the top or bottom 20%
or 30% based on the sold volume during first month of employment. Using visual analysis
and logistic regression, we were able to identify positive correlation between extraversion and
sales performance and negative correlation between patience and employee performance. These
findings are in line with previous literature. We have also identified that having a colleague at
a given sales location has a positive impact on employee performance. Our findings also suggest
that it is easier to predict bottom performers when compared to the top ones. Nevertheless, the
explanatory variables are able to explain merely 4.7% of variation in employee performance. The
added value of personality traits is thus limited in our setting. Such a low predictive power is likely
caused by improper administration of the assessment and the fact that the results are attenuated
due to the missingness of certain explanatory variables such as education and cognitive ability.




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