1. December 16, 2011 SHRM Poll: Personality Tests for the Hiring and Promotion of Employees

2. Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011 Key Findings 2 Do organizations use personality testing for hiring or promoting employees? A majority of organizations (82%) do not use a personality test in the hiring or employee promotion process. What are the most common job groups targeted when using personality tests in the hiring or promotion process? Of the few organizations that indicated using personality tests, the majority use them for mid-level managers (56%), followed closely by executives (45%) and entry-level exempt jobs (43%). How do HR professionals view the use of personality testing in the workplace? The majority of HR professionals (71%) indicate that personality tests can be useful in predicting job-related behavior or organizational fit; 14% of respondents disagree.

3. Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011 Does your organization currently use a personality test in hiring or promoting employees (this would include a personality test used as part of an assessment center or individual assessment process)? 3 Note: n = 495.

4. Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011 4 Note: n = 89. Respondents who answered not sure were excluded from this analysis. Only respondents whose organizations currently use a personality test in the hiring or employee promotion process were asked this question. For which of the following job groups is personality testing used in your organization as part of the hiring or promotion process? All job applicants Most job applicants Some job applicants Few/select job applicants Dont use for any job applicants Nonexempt (hourly) positions30%5%8%22%35% Entry-level exempt jobs (professional, supervisor, individual contributor, etc.) 43%4%15%13%25% Mid-level managers (manager, director, etc.) 56%7%9%4%24% Executives (VP, SVP, EVP, chief)45%7%1%7%40%

5. Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011 5 Note: n = 75. Respondents who answered not sure were excluded from this analysis. Only respondents whose organizations currently use a personality test in the hiring or employee promotion process were asked this question. What is the most common method your organization uses to administer the personality test(s) in the hiring or promotion process? Percentage The test is administered in-person, and the administrator oversees the candidate testing process, including checking identification of the test-taker, administering the test either by paper and pencil or by computer, and monitoring the test-taker and the test-taking environment during the entire process. 20% The test is administered in-person, but the administrator does not monitor the test-taker or the test environment throughout the process. 16% The test is administered online, and the test-taker can take it from anywhere he or she has Internet access. 56% Other8%

6. Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011 Have you had any legal challenges (not simply by verbal complaints, but a formal legal filing or notice from a lawyer) related to your organizations use of personality testing in the hiring or promotion process? 6 Note: n = 78. Only respondents whose organizations currently use a personality test in the hiring or employee promotion process were asked this question. Total does not equal 100% due to rounding.

7. Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011 Have job applicants made verbal or written complaints (not including formal legal complaints) about your organizations use of a personality test in the hiring and/or promotion process? 7 Note: n = 76. Only respondents whose organizations currently use a personality test in the hiring or employee promotion process were asked this question.

8. Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011 8 Note: n = 466. HR Professionals Perceptions About Personality Tests Percentage When properly vetted and validated, personality tests can be useful in predicting job-related behavior or organizational fit. 62% Personality tests are generally not useful in predicting job-related behavior or organizational fit.14% Personality test are useful in predicting job-related behavior or organizational fit.9% The use of personality testing may leave applicants with negative views of the organization, and therefore, these tests should be used sparingly or not at all. 8% Other7%

9. Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011 Demographics: Organization Industry 9 Percentage Manufacturing 18% Health care and social assistance 14% Finance and insurance 11% Professional, scientific,and technical services 9% Educational services 7% Accommodation and food services 5% Retail trade 5% Public administration 4% Transportation and warehousing 4% Administrative and support, and waste management and remediation services2% Construction2% n = 423. Total does not equal 100% due to rounding.

10. Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011 Demographics: Organization Industry (continued) 10 n = 423. Total does not equal 100% due to rounding. Percentage Information2% Utilities2% Wholesale trade2% Agriculture, forestry, fishing and hunting1% Religious, grantmaking, civic, professional and similar organizations1% Construction0% Information0% Utilities0% Private households0% Real estate and rental and leasing0% Repair and maintenance0% Other 9%

11. Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011 Demographics: Organization Sector 11 n = 419

12. Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011 Demographics: Organization Staff Size 12 n = 402

13. Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011 Demographics: Other 13 Does your organization have U.S.-based operations (business units) only or does it operate multinationally? U.S.-based operations only74% Multinational operations26% n = 449 Is your organization a single-unit company or a multi- unit company? Single-unit company: A company in which the location and the company are one and the same 36% Multi-unit company: A company that has more than one location 64% n = 448 Are HR policies and practices determined by the multi-unit corporate headquarters, by each work location or both? Multi-unit headquarters determines HR policies and practices 51% Each work location determines HR policies and practices 3% A combination of both the work location and the multi-unit headquarters determine HR policies and practices 46% n = 302 HR department/function for which you responded throughout this survey Corporate (companywide)73% Business unit/division18% Facility/location9% n = 301

14. Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011 Response rate = 18% Sample composed of 495 randomly selected HR professionals from SHRMs membership Margin of error +/- 4% Survey fielded May 16 -27, 2011 14 Methodolog y For more poll findings, visit www.shrm.org/surveyswww.shrm.org/surveys Follow us on Twitter: http://twitter.com/SHRM_Researchhttp://twitter.com/SHRM_Research SHRM Poll: Personality Tests for Potential Job Candidates