Predicting talent success, bias free.

pymetrics: Using Neuroscience and Data

Science to Revolutionize Talent Management
pymetrics technology introduces two science-based improvements to help companies hire
smarter and help job seekers find career paths that capitalize on their strengths. These two
advances are: 1) neuroscience assessment and 2) data science analytics and algorithms.

Technological advances leveraged by pymetrics

1. Neuroscience assessment
pymetrics games are directly adapted from neuroscience research. They use people’s behavior to
assess cognitive, social and personality traits. In research contexts, behavior-based assessments
have largely replaced self-report instruments wherever possible. There is a growing body of
scientific research pointing towards the use of behavior, rather than self-report, as a better
assessment tool. This is because behavior can be objectively measured and this direct measure can
be used to counteract some of the conscious and unconscious bias that is inherent to all human self-
report measures.

2. Data science techniques

Classical analytic methods have been disrupted by data science techniques. These data-driven
approaches are better at dealing with complex data sets, better at capturing nonlinear relationships
and better at predicting future outcomes. As a result, they are better suited to modeling real-life
complex problems.

According to a report by McKinsey and Company, a leading healthcare organization has used data
science techniques to generate more than $100 million in savings, while simultaneously improving
the engagement of its workforce. McKinsey has also reported that banking organizations which have
replaced classic statistical techniques with data science have experienced 10 percent increases in
sales of new products, 20 percent savings in capital expenditures, 20 percent increases in cash
collections, and 20 percent declines in churn.

How pymetrics leverages these technologies

1. Data collection using neuroscience games
pymetrics games are created based on decades of well-established behavioral sciences research.
They assess ninety key cognitive, social and personality traits. Together, these games provide a
snapshot of a person’s unique characteristics.

Many competences can be acquired on the job, but pymetrics focuses heavily on traits that are the
hardest to train — such as flexibility, learning ability, and decisiveness.

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Streamlined. Self-assessment tools, such as Myers Briggs and others, can be long and
cumbersome. pymetrics breaks this pattern by offering engaging online games that are quick to
play and let the test taker forget that they are even being assessed on their personality traits. Our
games are hosted on both web and mobile (iOS and Android) platforms.

Non-directional. pymetrics games are non-directional, meaning that unlike school GPA or
standardized tests, one end of the spectrum isn’t any better than the other. Instead, the games
measure traits where either end of the spectrum can be beneficial based on the demands of a
particular profession.

Multi-assessment. Meta-analysis studies show that multi-measure assessment, meaning an

assessment that measures more than one type of input (e.g. cognitive and personality traits), greatly
outperforms single measure tests (e.g. only measuring personality). pymetrics is a multi-measure
assessment.

2. Analytics using data science

We utilize state-of-the-art data science techniques often used to recommend movies (Netflix),
products (Amazon) and music (Pandora). pymetrics builds custom models for client companies,
specific to each job opening. Based on these proprietary matching algorithms we recommend job
candidates for jobs. Job seekers play pymetrics games and a job fit score for each individual is
calculated by running the individual’s game data through the job model custom-built for the client
company (model building details below).

Custom-built company models

Our company-specific models utilize data collected from current company employees. When
companies look to build a custom model for a job function within their firm, they provide us with
performance data on incumbents with that job function. The selected incumbents then play our
games, and a trait profile is generated for each incumbent. To build the company- and job-specific
model, we compare the aggregate trait profiles of ‘high performing’ incumbents against the
aggregate trait profiles of a set of demographically matched professionals from our database. Total
sample size usually ranges from hundreds to thousands of people. Data collection and performance
ratings are all done anonymously using random IDs.

Bias testing
It is well known that gender and ethnic bias during resume review is real and pervasive. Findings on
this issue have been extensively published (Moss-Racusin et al., 2012; RAND Corporation 2005; What
work: gender equality by design, 2016). We firmly believe that diversity is beneficial to a company,
both economically and socially.

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In the pymetrics methodology the behavioral traits extracted from the games are stripped of
gender and ethnic bias using statistical methods. Our models then are built on this unbiased
foundation. Finally, the built models are rigorously tested to be free of all bias and those that show
bias are re-built. As a result, pymetrics does not supply any models that show gender or ethnic bias.

Improved prediction
The science-based improvements of pymetrics (neuroscience assessment and data science
techniques) greatly enhance pymetrics prediction over typical assessment providers — with up to a
10-fold increase. While traditional assessment technology, restricted to linear modeling, can have as
little predictive power as 5% of the variance, pymetrics predictive power is typically between 40-50%.

Employee retention
pymetrics games can also be integrated directly into a company’s careers marketplace to help
unhappy employees find a more suitable role within the same organization. Incorporating such a
system reduces knowledge and cultural loss by facilitating internal mobility within the jobs
marketplace of companies. It also reduces company costs.

Compliance
Uniform Guidelines
Each step of the pymetrics process has been implemented using methods as defined by the
EEOC Uniform Guidelines on Employee Selection Procedures. This includes:

1. Validation. pymetrics uses several methods of validation:

a. Criterion related validation. This is the gold standard in validating assessment
tools under the Uniform Guidelines. pymetrics satisfies both concurrent and
predictive criterion related components.
i. Concurrent validity is satisfied by the administration of the games to
incumbents and by comparing the scores of the applicants to scores of the
high-performing incumbents.
ii. Predictive validity is satisfied over time for each client based on their
specific data. To date current clients have shown high predictive validity.

b. Construct validation. pymetrics satisfies construct validation by computing model

validation measures, such as recall, accuracy and precision, and by testing the
predictive accuracy of the model using cross-validation analysis.

2. Job analysis. pymetrics has procedures in place for conducting a job analysis to map a client’s
job requirements to the traits extracted through pymetrics assessment.

3. Reliability. pymetrics has conducted reliability studies to ensure the games are dependable,
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repeatable, and yield consistent information. We use the most stringent reliability study, the
test-retest reliability study, as well calculate internal consistency reliability measures.

4. Fairness. pymetrics assessment is bias free. The bias-testing is described above.

American with Disabilities Act

Accommodations. pymetrics currently offers accommodations for color-blindness, learning
disabilities and attention deficit hyperactivity disorder (ADHD). pymetrics is also actively working
on widening the range of accommodated disabilities.

Data protection
pymetrics is ISO27001 and PCI-DSS compliant. Data are stored in physically secured, geographically
distributed data centers. End-to-end encryption protects data in transit, while data is encrypted at
rest using Federal Information Processing Standards (FIPS) 140-2 approved cryptographic
algorithms and is consistent with National Institute of Standards and Technology (NIST) 800-57
recommendations.

pymetrics offerings
Sourcing: pymetrics has a job marketplace, powered by pymetrics technology, to match
candidates with companies. pymetrics markets directly to job-seeking individuals, who go through
the pymetrics assessment voluntarily and not as part of a company recruiting process. These
individuals are then matched with company recruiters if they are a high fit for a pre-developed job
algorithm that a company is hiring for. Only top-fit candidates are surfaced to companies and
companies are not allowed to search our database. Efficiency of using pre-qualified candidates is
5-10x. Also, companies are ensured gender and ethnic balance in their candidate flow, which for
many jobs in finance, technology and other sections is still not the norm.

Screening: Companies run their new applicants through our technology, and we return fit scores for
the applicants based on the custom job model. These scores are used as a data point in the hiring
process. We highly recommend building specific job profiles (using the above-outlined
methodology) and giving candidates fit scores for all of the job profiles. In this way, we are not saying
some candidates are globally “good” versus “bad”, we are instead quantifying their fit for different
roles that often have very different profiles within an organization.

Internal Mobility: Employees of a company are put through our technology. They are then
sorted into various positions within the company, according to their fit scores for different job
algorithms.

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Client dashboard: The pymetrics technology platform includes a client dashboard presenting: the
trait ‘fingerprint’ of the job in question, top-fit candidates for that job, the custom model accuracy and
cross-validation results, and proof of model lack of bias. Our platform offers a myriad of advantages;
including allowing companies to discover quality, diverse candidates on an easy to use interface.

Evidence of our Validity and Effectiveness: Case Studies

We have empirical evidence of validity which falls into the following three categories:

1. Predictive validity.
2. Construct Validity.
3. Fairness.

1. Case Study for Predictive Validity

We used pymetrics methodology to select a group of candidates for a global consulting firm. The
performance of these incumbents was then evaluated by the global consulting firm during an
intensive 2.5-month training period. At the end of this training and evaluation period, high-performing
incumbents were given permanent offers. The training survival rate after pymetrics was introduced
jumped from the typical 75% to an astounding 91% survival rate, constituting a 60% increase in
training-based selection. (percentage increase / total possible increase)

2. Case Study for Construct Validity

2.1. Case Study for Increased Efficiency
a. In assessing applicants for a leading global consulting firm, we found the following:

We compared candidate yield (ratio of offers : applicants) based on the standard resume review
process to candidate yield when adding pymetrics to the process. Using pymetrics in combination
with the firm’s standard resume-based assessment process, yield increased 3x, from 8.5% to 25%.

Interview decided by Selected to interview Offers Yield

Resume review only 94 8 8.5%

pymetrics + resume review 20 4 25%

*All interviews were conducted blind as to whether a candidate was a resume pass-on or a pymetrics pass-on.

Then we examined whether pymetrics methodology could replace the resume review altogether.
Using only pymetrics, and no resume, resulted in 2x yield: from 8.5% with resume-review
only, to 16.7% with pymetrics only.

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Interview decided by Selected to interview Offers Yield

Resume review only 94 8 8.5%

pymetrics only 30 5 16.7%

*All interviews were conducted blind as to whether a candidate was a resume pass-on or a pymetrics pass-on.

2.2. Case Study for Reducing Loss of Talent

A global management consulting firm asked us to recommend 10 applicants for interview from a group
of
141 candidates who were rejected through the standard resume-review assessment. Of the 10
we recommended based on pymetrics methodology, 1 received an offer (10% yield). This
matched the company’s yield of offer : successfully-interviewed rate.

3. Case Study for Fairness — Increased Diversity

3.1. Multinational Financial Services Corporation
pymetrics sourced candidates for a multinational financial services corporation. The pymetrics
recommendation pool consisted of 43% women as opposed to their traditional turnout of 31%
women. The use of pymetrics increased the number of females in first round interviews by 19%. In
the overall candidate pool, the use of pymetrics increased the number of females matches by 30%.

3.2. Global Professional Services Company

A global professional services company used pymetrics to source applicants. pymetrics’
methodology recommended approximately 48% women and 52% men. Our recommendations
led to a gender balanced hiring outcome — of the total extended offers, 44% were women and
56% were men.

3.3. Global Financial Institution

pymetrics helped a global financial institution achieve a 50/50 gender balance for two straight
years, in a role that was traditionally 80% male and 20% female.

Summary
We have provided evidence that our tool can be utilized for three distinct purposes. First and
foremost, we guarantee that our models will help build a more diverse workforce by carefully
detecting and removing bias from our selection process. Nonetheless, we will raise efficiency by
increasing the yield, reducing missed talent and expanding the reach of your recruiting team.
Furthermore, we help companies fight attrition and retain employees by modeling different roles
within the company and matching current employees who are ready to leave with a new position

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