2. Employee Testing and Selection

3. Employee Testing and Selection Employee testing and selection is the use of various tools and techniques to select the best candidates for the job. These tools cover the selection process, basic testing techniques, background and reference checks, ethical and legal questions in testing, types of tests, and work samples and simulations.

4. Why Careful Selection Is Important  A manager’s performance depends on the performance of subordinates  The cost to recruit and hire is high  Legal implications of incompetent hiring are costly and can result in negligent hiring litigation

5. Testing Concepts  Test validity checks whether or not a test measures what it is supposed to measure  Test reliability = a test’s consistency or accuracy  Validity and reliability aid in effective applicant selection

6. Test Validity  A typing test corresponds to an on-the- job behavior  Thematic apperception test asks a person to interpret a picture (like that shown below)

7. Test Reliability  Does the same test given to the same person result in the same test outcome?  Internal consistency or comparison estimate

8. Causes of Test Unreliability  Questions may do poor job of sampling the material  Changes in testing condition may cause errors

9. How to Validate a Test Analyze job & write description 1 Choose the tests 2 Administer tests 3 Relate scores & criteria 4 Cross-validate & revalidate 5

10. 1. Analyze Job & Write Job Description  Determine and specify predictors or requirements necessary for successful performance  Define what you mean by success on the job  Write the job description and job specification

11. 2. Choose the Tests Choose tests that measure attributes needed for success and combine into a test battery that measures an array of possible predictors such as aggressiveness, extroversion and numerical ability

12. Choose the tests Psychological Intellectual Technical Aptitude Interest inventories Reliability inventories Clerical skills test Telemarketing ability tests Service ability tests Management aptitude test Team skills test Sales ability test Available tests include :

13. 3. Give the Tests Concurrent validation  Give tests to employees  Compare scores with current performance Predictive validation  Test applicant before hiring  Use alternate selection technique to hire  Compare real performance with test results – determines suitability of test Two formats

14. 4. Relate Test Scores and Criteria  Does a statistical relationship exist between the test scores and job performance?

15. 5. Cross-validate and Revalidate  To cross-validate, perform Steps 3 and 4 on a new sample of employees  An expert should revalidate the test periodically  To demonstrate content validity: Do a careful job analysis that identifies the work behavior required Combine samples of these behaviors into a test

16. EEO Aspect of Testing  Validity tests must meet Equal Employment Opportunity Laws in two key ways Your tests are related to success or failure on the job (validity) Your tests don’t unfairly discriminate against minority or non-minority subgroups

17. Guidelines for a Testing Program  Use tests as supplements  Validate tests with your own organization  Analyze all your current hiring and promotion standards  Keep accurate records  Use a certified psychologist  Manage test conditions

18. Test Takers Individual Rights  Confidentiality  Informed consent  Expect that only qualified people will interpret and have access to test results  Expect the test is fair to all – no one has answers in advance

19.  Train your supervisors regarding the importance of employee confidentiality  Adopt a “need to know” policy Guidelines for Privacy  If you know your firm can’t keep information confidential, you may limit your liability by disclosing that fact before testing

20. Types of Tests  Cognitive Intelligence quotient Specific cognitive abilities or aptitude  Motor and physical ability agility

21. Types of Tests  Personality and interests Interest inventories 5 Dimensions  Achievement

22. Types of Tests  Personal characteristics inventory measures general mental ability  Work-related personality traits, drives, and behaviors

23. Work Sampling for Employee Selection  Work samples measure actual on-the-job tasks  Work sampling technique measure how one performs some of the job’s basic tasks  Benefits include fairness to minorities, accuracy, no invasion of privacy and better predictor of performance

24. Management Assessment Centers A management assessment center is a two to three-day simulation in which 10 to 12 candidates perform realistic management tasks (like making presentations) under the observation of experts who appraise each candidate’s leadership potential

25. Typical MAC Exercises  The In-basket  Leaderless group discussion  Management games  Objective tests  The interview  Individual presentations

26. Other Selection Techniques  Background investigations are effective because they verify factual information and may uncover criminal records  Reference checking is harder as several federal laws give rejected applicant rights to know the information which might result in litigation

27. Giving and Getting References  Common law  Defamation  Making background checks more useful  Giving references: know the law

28. Pre-employment Information Services  to delve into candidate criminal, driving, work, and credit histories  Various EEO laws discourage or prohibit their use in candidate screening  Non-EEO laws restrict their use

29. Honesty Testing  The polygraph can no longer be used routinely  Paper and pencil honesty tests are widely used to find personality flaws  Research shows that honesty testing can spot problems

30. What’s an Employer to Do?  Ask blunt questions  Be good listeners  Do a credit check  Check all personal and employment references  Use paper & pencil honesty as well as psych tests  Test for drugs  Establish a search and seizure policy

31. Hand Writing Tests Graphology may not be used as a screening test as it is not reliable

32. Physical Exams  Once hired, a physical examination is the next step in the selection process  Used to verify applicant meets physical demands of the job  Establish a baseline for future insurance claims  Reduce absenteeism and accidents  Must be careful not to violate ADA laws

33. Substance Abuse Screening  Many employers use drug testing although it is not always reliable and can be ‘fooled’  May raise ethical issues  May not be legal in some cases as it violates right to privacy  A positive test leads to termination or a refusal to hire

34. High Performance Insight Franciscan Health System operates skilled nursing care facilities in Ohio. It faced several problems, including high turnover of 146% a year. The problem: High turnover Their solution: Cut turnover to 71% a year They devised a nursing assistant test battery consisting of three tests: An employment inventory A personality survey A job preferences inventory

35.  Rapidly growing city garage needed a better process than an application form and short interview  Employee selection was haphazard with some managers being better at hiring than others  Selected Thomson International’s Personality Profile Analysis program as a third step in their hiring process City Garage - Strategic HR