Localiza: Fast and Assertive Talent Selection

About Localiza

 

Localiza is the largest car rental network in South America. After a successful trajectory of more than four decades, Localiza is undoubtedly one of the most notable companies in the sector.

 

With a fleet of more than 325 thousand cars, Localiza is present wit 608 branches in the main cities and airports of Brazil, Argentina, Chile, Colombia, Ecuador, Paraguay and Uruguay.

 

Success Case

 

For some time now, Localiza was looking for an intelligent solution capable of making its selection processes more efficient and also better understand which characteristics and skills really drive excellent performance in certain positions.

 

It can be said that within the context of Recruitment and selection, the car rental company had two main objectives::

 

  • Make selection processes faster, leaving aside slow and inefficient methods, such as curriculum / resume screening.
  • Increase the assertiveness of the selection process, through a selection based on criteria that have been proven to properly explain performance.

 

It was with this in mind that Localiza implemented Mindmatch - a recruitment and selection solution software based on psychometric tests and artificial intelligence algorithms.

 

The MindMatch Implementation

 

The first step was the construction of a personalized cultural fit. To build the fit, we analyzed a group of employees  considered “Localiza employee examples” in terms of the company culture, and we understood the main values and beliefs of the company.

 

With this tool, the company is able to perform an online screening based on culture, eliminating manual steps and advancing only people culturally aligned with the company process.

 

The second step was the implementation of other assessments in the selection process, such as the test of fluid rationality, personality, situational and motivational testing.

 

These tests show recruiters the candidates' raw potential , their main skills, personality traits and even the match with the job position.

 

The results

 

After a few months of using this solution, recruiters began to notice a major change in their work system and in the assertiveness of the selection.

 

They noticed that many of the candidates selected for the interview stage, in fact, were approved at the end of the conversation, which demonstrated that the tool was helping to find - among thousands of candidates - the right people..

 

Funcionários Localiza

 

Localiza Employees

 

To test the effectiveness of the assessments, a test was carried out on a job vacancy that required good analysis and cognitive skills. Therefore, the fluid Fluid Rationality Test, which measures the individual's mental capacity and potential, was determined as a cutoff criterion.

 

This methodology does not assess the ability to make calculations, but rather the speed of learning and the ability to process information..

 

This job role received no less than 200 applications - which is very common nowadays with online selection processes. To make the selection, recruiters set a strict 60% cut-off score for the fluid rationality test.

 

Of all the candidates, 98% did not advance in the selection process, and only 4 people met the established criteria and were invited for an interview. Of the 4 candidates interviewed, all were hired, which means that the screening was 100% assertive.

 

In addition, the process has become much more agile. Localiza found at the end of the selection process a reduction of 1/3 of the recruiter's dedication time.

 

Explaining Performance

 

We know that not everything can be explained by the cognitive ability of reasoning, as was the case in the previous example. For each type of job there are skills and characteristics that are more important.

 

In order to understand which criteria best explain future high performance for one of Localizas most important positions – the critical cases department - we conducted a study with the team.

 

We asked all employees in this area to carry out Mindsight's battery of tests, and in parallel a survey was made of the performance history of these people.

 

After completion, we crossed-checked the test scores with the performance evaluations and found that there are pattern traits among those that most deliver results.

 

Funcionários em escritório

 

Let's get to the numbers. The people who perform best in emergency care situations have:

 

  • High personality trait for risk taking, which represent a great capacity to effectively act even with high degrees of uncertainty, without being shaken.
  • High assistance capacities to effectively solve conflicts and understand social situations, responding in a collaborative and harmonious way.
  • High motivation, which represents the strongest characteristics to strive to accomplish and execute tasks, while also presenting more tendencies to risk and a higher tolerance for failure.
  • Low trace of conceptual thinking, which shows a lesser preference for activities of conceptual abstraction and deep thinking.
  • Less ambition, which represents a reduced need to seek high levels of personal and career growth.

 

Conclusion

 

After implementing Mindsight's Recruitment and Selection solution, Localiza made its selection processes more agile and assertive..

 

The implementation of cultural fit and the full battery of assessments has proved to be very useful to support decision making during talent selection and also reduce the work time for each recruiter.

 

In the presented analysis, the selection process was reduction of 1/3 of the time and still showed 100% de assertividade; When 200 candidates registered, the 4 who were chosen for the interview with the help of the tests, were hired.

 

In addition, the tests provide data that generate insight over time, as was the case with the critical case study cell. After analyzing the correlation between the tests and the employees' performance, it was possible to understand which personality traits and skills really explain high performance.

 

Based on these insights, the company is able to better direct its efforts during the selection processes, and choose among so many registered talents, those with greater cultural alignment and higher potential for the position . In addition to all the gains in assertiveness, at the end of the process, MindSight still manages to save time.

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