| | What the media has to say...
| Met Life Saved Money by Weeding Out Pessimists
In the
mid-80s, Metropolitan Life Insurance Co. was losing a small fortune on
hiring costs. Each year, the company hired 5,000 insurance agents from a
pool of 60,000 applicants. The hiring cost for just one applicant totaled more than $30,000, which was typical of the industry.
Unfortunately, the
company wasn’t getting much for its money. Half of its new hires would
quit within the first year; most of those who remained became less
productive. Within four years, 80% of the newly hired agents would leave
the company. Every year Met Life was losing more than $75 million in
hiring costs alone.
To stop the company
from losing money, John Creedon, head of Met Life, worked with Dr. Martin
Seligman, a leading researcher on motivation, to find a way to select more
successful sales agents.
Seligman looked at
the existing screening process, which relied heavily on the Career Profile
test, an industry-standard created by the Life Insurance Management
Research Association. The test was rigorous, only about 30% of applicants
passed. It did not, however, measure optimism, and Seligman hypothesized that it is optimism that allows sales people to overcome constant
rejection.
Seligman improved
the screening process by using the SASQ test, a test that measures
aptitude, motivation and optimism. Seligman found that only the most
optimistic need apply for a job selling insurance.
Met Life then changed
its hiring Practices to include screening candidates for optimism. In less
than two years, the company had more success hiring agents, expanded its
sales force to more than 12,000, and increased its market share of the
personal insurance market by 50%. - H R Magazine,
November 1997
|
|
"The pessimistic
salespeople were twice as likely to quit as were the optimists." -
New York Times, February 3, 1997
|
|
"How people
respond to setbacks - optimistically or pessimistically - is a fairly
accurate indicator of how well they will succeed in school, in sports and
in certain kinds of work. People with an optimistic view of life tend to
treat obstacles and setbacks as temporary and therefore surmountable.
Pessimists take them personally; what others see as fleeting, localized
impediments, they view as pervasive and permanent." -
Time, October 2, 1985
|
|
"Seligman's
research shows the power of self-fulfilling prophecies. Those who believe
they are masters of their fate are more likely to succeed than those who
attribute events to forces beyond their control." - Success - September 1997
|
|
"Applicants
who were optimists, but failed to meet MET LIFE's other standard test
criteria, were hired anyway. This group outsold its pessimistic
counterparts by 21% its first year and by 57% the next." -
Fortune, January 15, 1996
|
|
"Seligman has
shown that a person's optimistic or pessimistic way of explaining events
foretells what may happen to him in the future." -
Newsweek, October 17, 1988
|
|
"This test
could save insurance companies millions of dollars in training costs
alone." - Psychology Today, February 1987
|
|
"Analyzing
campaign speeches for the prevalence of optimism, Seligman predicted the
winners of the 1988 Presidential and Senate elections more accurately than
veteran political forecasters." - From an Omni
Interview with Dr. Martin Seligman, October 17, 1988
|
|
"A
psychological analysis of Mozart's correspondence shows that he was almost
pathologically optimistic, with an exuberant self-confidence. Optimistic
people who suffer set backs tend to attribute them to external causes that
are temporary and can be changed. Writing in The Psychologist, Professor
Andrew Steptoe of St George's Hospital Medical School says that towards
the end of Mozart's short life when he suffered the deaths of four children,
serious illness and repeated professional and financial disasters, his
optimism actually rose." - By Jeremy Laurance in The Times
|
|