Recruitment Assessments - Aegis Lending

Aegis Lending, Profiles’ Client of the Year, is a diversified mortgage banking company with 101 branches from coast to coast. The company employs about 2,700 people and does over $5 billion in business annually. In 2000, Aegis Lending had a problem. They lost $2.5 million. Then, John D’Angelo became the company’s president and was charged with improving productivity and putting the company back in the black.

D’Angelo analyzed the situation and found their hiring method lacking. He noted that success with another company didn’t necessarily mean success with Aegis. As a result, productivity suffered and Aegis had too many short-term employees. A better method was required – one that found the right people for the job. He called on his V.P. and Director of Employee Relations Karen Breaux to find a screening process that identified job candidates who were like the best Aegis employees. She conducted thorough research of the available management tools and chose those of Profiles International, Inc.

As often happens when new ideas are introduced in a company, some managers resisted the use of assessments. “I’m a good manager, I know how to hire, motivate, and train,” they protested. However, the $2.5 million loss was a sure sign they needed help.

After allowing managers the option of using, or not using Profiles assessments, D’Angelo and Breaux saw a marked difference in results. It was obvious that using assessments led to hiring better people. “At Aegis Lending, it’s really, really important for us to have the right tools for our group and Profiles International’s fit us perfectly,” D’Angelo says. Managers were told to assess every job candidate – no exceptions.

D’Angelo and Breaux observed that people who did not fit their customized Profiles hiring pattern were not able to keep up with the demands of their positions. As employees who fit the pattern were hired in greater numbers, productivity improved spectacularly. Aegis rebounded from a losing situation and posted profits of $9.3 million in 2001, $23 million in 2002, and $42 million in 2003. While John D’Angelo says other factors also contributed to the company’s turnaround, he does credit Profiles assessments for at least 25% of the positive change in direction. That amounts to over $24 million, an astronomical return on investment considering the low cost of Profiles assessments.

In his remarks when accepting the Client of the Year award at the 2004 Profiles Annual Conference, D’Angelo told the more than 400 Profiles representatives in attendance, “You have a great product! It makes a difference. It really, really makes a difference.”