1

Employee Testing and Selection Employee Testing and Selection

Chater 6Chater 6

6–2

Why Careful Selection is ImportantWhy Careful Selection is Important

Organizational Performance

Legal Obligations and

Liability

The Importance of Selecting the Right

Employees

Costs of Recruiting and

Hiring

6–3

Avoiding Negligent Hiring ClaimsAvoiding Negligent Hiring Claims

• Carefully scrutinize information on employment Carefully scrutinize information on employment applications.applications.

• Get written authorization for reference checks, and Get written authorization for reference checks, and check references.check references.

• Save all records and information about the applicant.Save all records and information about the applicant.

• Reject applicants for false statements or conviction Reject applicants for false statements or conviction records for offenses related to the job.records for offenses related to the job.

• Take immediate disciplinary action if problems arise.Take immediate disciplinary action if problems arise.

6–4

Basic Testing ConceptsBasic Testing Concepts• ReliabilityReliability

Consistency of scores obtained by the same person when Consistency of scores obtained by the same person when retested with identical or equivalent tests.retested with identical or equivalent tests.

Are test results stable over time?Are test results stable over time? Ways to estimate reliabilityWays to estimate reliability

Retest EstimateRetest Estimate– Same test to same people at different point in timeSame test to same people at different point in time

Equivalent form estimateEquivalent form estimate– Administer a test and administer what believes to be an equivalent Administer a test and administer what believes to be an equivalent

test.test. Internal comparison estimateInternal comparison estimate

– Administer a test & statistically analyze the degree to which responses Administer a test & statistically analyze the degree to which responses of items vary.of items vary. Apparently repetitive questions on some questionnaire Apparently repetitive questions on some questionnaire to check internal consistency.to check internal consistency.

• ValidityValidity Indicates whether a test is measuring what it is supposed to be Indicates whether a test is measuring what it is supposed to be

measure.measure. Does the test actually measure what it is intended to measure?Does the test actually measure what it is intended to measure?

6–5

FIGURE 6–1 Sample Picture Card from Thematic Apperception Test

Source: Reprinted by permission of the publishers from Henry A. Murray, THEMATIC APPERCEPTION TEST, Plate 12F, Cambridge, Mass: Harvard University Press, 1943.

6–6

Types of ValidityTypes of Validity

Criterion Validity

Content Validity

Test Validity

Face Validity

6–7

How to Validate a TestHow to Validate a Test

1

Relate Your Test Scores and Criteria: scores versus actual performance

Choose the Tests: test battery or single test

Steps in Test Validation

Analyze the Job: predictors and criteria

Administer the Tests: concurrent or predictive validation

2

3

4

Cross-Validate and Revalidate: repeat Steps 3 and 4 with a different sample

5

6–8

TABLE 6–1 Testing Program Guidelines

1. Use tests as supplements.

2. Validate the tests.

3. Monitor your testing/selection program.

4. Keep accurate records.

5. Use a certified psychologist.

6. Manage test conditions.

7. Revalidate periodically.

6–9

Test Takers’ Individual Rights and Test Takers’ Individual Rights and Test SecurityTest Security

• Under the APA’s standard for educational and Under the APA’s standard for educational and psychological tests, test takers have the right:psychological tests, test takers have the right: To privacy and information.To privacy and information.

To the confidentiality of test results.To the confidentiality of test results.

To informed consent regarding use of these results.To informed consent regarding use of these results.

To expect that only people qualified to interpret the To expect that only people qualified to interpret the scores will have access to them.scores will have access to them.

To expect the test is fair to all.To expect the test is fair to all.

6–10

Legal Privacy IssuesLegal Privacy Issues

• DefamationDefamation Libeling or slandering of employees or former Libeling or slandering of employees or former

employees by an employer.employees by an employer.

• Avoiding Employee Defamation SuitsAvoiding Employee Defamation Suits

1.1. Train supervisors regarding the importance of Train supervisors regarding the importance of employee confidentiality.employee confidentiality.

2.2. Adopt a “need to know” policy.Adopt a “need to know” policy.

3.3. Disclose procedures impacting confidentially of Disclose procedures impacting confidentially of information to employees.information to employees.

6–11

Using Tests at WorkUsing Tests at Work

• Major Types of TestsMajor Types of Tests

Basic skills testsBasic skills tests

Job skills testsJob skills tests

Psychological testsPsychological tests

• Why Use Testing?Why Use Testing?

Increased work demands = more testingIncreased work demands = more testing

Screen out bad or dishonest employeesScreen out bad or dishonest employees

Reduce turnover by personality profilingReduce turnover by personality profiling

6–12

Computerized and Online TestingComputerized and Online Testing

• Online testsOnline tests Telephone prescreeningTelephone prescreening Offline computer testsOffline computer tests Online problem-solving testsOnline problem-solving tests

6–13

Types of TestsTypes of Tests

Cognitive (Mental) Abilities

AchievementMotor and Physical Abilities

Personality and

Interests

What Tests Measure

6–14

FIGURE 6–5 Type of Question Applicant Might Expect on a Test of Mechanical Comprehension(cognitive ability)

6–15

FIGURE 6–6 Sample Personality Test Items

Source: Elaine Pulakos, Selection Assessment Methods, SHRM Foundation, 2005, p. 9.

Reprinted bypermission of Societyfor Human ResourceManagement via CopyrightClearance Center.

6–16

The “Big Five”The “Big Five”

Extraversion

Emotional Stability/Neuroticism

AgreeablenessOpenness to Experience

Conscientiousness

6–17

Work Samples and SimulationsWork Samples and Simulations

Work Samples

Miniature Job Training

and Evaluation

Management Assessment

Centers

Video-Based Situational

Testing

Measuring Work Performance Directly

6–18

FIGURE 6–7 Example of a Work Sampling Question

Management Assessment CentersManagement Assessment Centers

2 to 3 days simulations. Typical tasks include:2 to 3 days simulations. Typical tasks include:• The in-basketThe in-basket• Leaderless group discussionLeaderless group discussion• Management gamesManagement games• Individual presentationsIndividual presentations• Objective testsObjective tests• The interviewThe interview

6–19

6–20

TABLE 6–2 Evaluation of Assessment Methods on Four Key Criteria

Source: Elaine Pulakos, Selection Assessment Methods, SHRM Foundation, 2005, p. 17. Reprinted by permission of Society for Human Resource Management via Copyright Clearance Center.

Assessment Method Validity Adverse Impact

Costs (Develop/Administer)

Applicant Reactions

Cognitive ability tests High High (against minorities) Low/low Somewhat favorable

Job knowledge test High High (against minorities) Low/low More favorable

Personality tests Low to moderate

Low Low/low Less favorable

Biographical data inventories

Moderate Low to high for different types High/low Less favorable

Integrity tests Moderate to high

Low Low/low Less favorable

Structured interviews High Low High/high More favorable

Physical fitness tests Moderate to high

High (against females and older workers)

High/high More favorable

Situational judgment tests Moderate Moderate (against minorities) High/low More favorable

Work samples High Low High/high More favorable

Assessment centers Moderate to high

Low to moderate, depending on exercise

High/high More favorable

Physical ability tests Moderate to high

High (against females and older workers)

High/high More favorable

Note: There was limited research evidence available on applicant reactions to situational judgment tests and physical ability tests. However, because these tests tend to appear very relevant to the job, it is likely that applicant reactions to them would be favorable.

6–21

Background Investigations and Background Investigations and Reference ChecksReference Checks

• Investigations and ChecksInvestigations and Checks Reference checksReference checks Background employment checksBackground employment checks Criminal recordsCriminal records Driving recordsDriving records Credit checksCredit checks

• Why?Why? To verify factual information provided by applicants.To verify factual information provided by applicants. To uncover damaging information.To uncover damaging information.

6–22

Background Investigations and Background Investigations and Reference Checks (cont’d)Reference Checks (cont’d)

Former Employers

Current Supervisors

Written References

Social Networking Sites

Commercial Credit Rating Companies

Sources of Information

6–23

Limitations on Background Investigations Limitations on Background Investigations and Reference Checksand Reference Checks

Background Investigations

and Reference Checks

Supervisor Reluctance

Employer Guidelines

Legal Issues: Privacy

Legal Issues:

Defamation

6–24

Making Background Checks More Making Background Checks More Useful(guidelines)Useful(guidelines)1.1. Include on the application form a statement for Include on the application form a statement for

applicants to sign explicitly authorizing a applicants to sign explicitly authorizing a background check.background check.

2.2. Use telephone references if possible.Use telephone references if possible.

3.3. Be persistent in obtaining information.Be persistent in obtaining information.

4.4. Use references provided by the candidate as Use references provided by the candidate as a source for other references.a source for other references.

5.5. Ask open-ended questions to elicit more Ask open-ended questions to elicit more information from references.information from references.

6–25

Using Preemployment Information ServicesUsing Preemployment Information Services

1

Notice of adverse action to applicant/employee

Employer certification to reporting agency

Acquisition and Use of Background Information

Disclosure to and authorization by applicant/employee

Providing copies of reports to applicant/employee

2

3

4

6–26

TABLE 6–3 Collecting Background Information

Suggestions for collecting background information include the following:

1. Check all applicable state laws.

2. Review the impact of equal employment laws.

3. Do not obtain information that you’re not going to use.

4. Remember that using arrest information will be highly suspect.

5. Use information that is specific and job related.

6. Keep information confidential and up to date.

7. Never authorize an unreasonable investigation.

8. Always require applicants to fill out a job application.

9. Compare the application to the résumé (people tend to be more imaginative on their résumés than on their application forms, where they must certify the information).

10. Particularly for executive candidates, include background checks of such things as involvement in lawsuits, and of articles about the candidate in local or national newspapers.

11. Separate the tasks of (1) hiring and (2) doing the background check (a recruiter or supervisor anxious to hire someone may cut corners when investigating the candidate’s background).

Source: Adapted from Jeffrey M. Hahn, “Pre-Employment Services: Employers Beware?” Employee Relations Law Journal 17, no. 1 (Summer 1991), pp. 45–69; and Shari Caudron, “Who Are You Really Hiring?”, Workforce, 81, no. 12 (November 2002), pp. 28–32.

6–27

The Polygraph and Honesty TestingThe Polygraph and Honesty Testing• Employee Polygraph Protection Act of 1988Employee Polygraph Protection Act of 1988

Generally prohibits polygraph examinations by all Generally prohibits polygraph examinations by all private employers unless:private employers unless: The employer has suffered an economic loss or injury.The employer has suffered an economic loss or injury. The employee in question had access to the property.The employee in question had access to the property. There is a reasonable prior suspicion.There is a reasonable prior suspicion. The employee is told the details of the investigation, as well as The employee is told the details of the investigation, as well as

questions to be asked on the polygraph test itself.questions to be asked on the polygraph test itself.

Exceptions:Exceptions: Private security employeesPrivate security employees Nuclear power related employeesNuclear power related employees Hiring personnel with access to drugsHiring personnel with access to drugs Employees with access to highly classified informationEmployees with access to highly classified information National defense and security (FBI)National defense and security (FBI)

6–28

Honesty Testing Programs: Honesty Testing Programs: What Employers Can DoWhat Employers Can Do

Ask blunt questions.Ask blunt questions. Listen, rather than talk.Listen, rather than talk. Check all employment and personal references.Check all employment and personal references. Use paper-and-pencil honesty tests and Use paper-and-pencil honesty tests and

psychological tests.psychological tests. Test for drugs.Test for drugs. Establish a search-and-seizure policy and conduct Establish a search-and-seizure policy and conduct

searches.searches.

6–29

FIGURE 6–9 Handwriting Exhibit Used by Graphologist

Source: Kathryn Sackhein, Handwriting Analysis and the Employee Selection Process (New York: Quorum Books, 1990), p. 45. Reproduced with permission of Greenwood Publishing Group, Inc.

6–30

Physical ExaminationPhysical Examination

• Reasons for preemployment medical Reasons for preemployment medical examinations:examinations: To verify that the applicant meets the physical To verify that the applicant meets the physical

requirements of the position.requirements of the position.

To discover any medical limitations to be taken into To discover any medical limitations to be taken into account in placing the applicant.account in placing the applicant.

To establish a record and baseline of the applicant’s To establish a record and baseline of the applicant’s health for future insurance or compensation claims.health for future insurance or compensation claims.

To reduce absenteeism and accidents.To reduce absenteeism and accidents.

To detect communicable diseases that may be To detect communicable diseases that may be unknown to the applicant.unknown to the applicant.

6–31

Substance Abuse ScreeningSubstance Abuse Screening

• Types of ScreeningTypes of Screening Before formal hiringBefore formal hiring After a work accidentAfter a work accident Presence of obvious behavioral symptoms e.g. Presence of obvious behavioral symptoms e.g.

chronic latenesschronic lateness Random or periodic basisRandom or periodic basis Transfer or promotion to new positionTransfer or promotion to new position

• Types of TestsTypes of Tests UrinalysisUrinalysis Hair follicle testingHair follicle testing

6–32

FIGURE 6–10 Procedure in Complying with Immigration Law

1. Hire only citizens and aliens lawfully authorized to work in the United States.

2. Advise all new job applicants of your policy.

3. Require all new employees to complete and sign the verification form (the “I-9 form”) designated by the Immigration and Naturalization Service (INS) to certify that they are eligible for employment.

4. Examine documentation presented by new employees, record information about the documents on the verification form, and sign the form.

5. Retain the form for three years or for one year past the employment of the individual, whichever is longer.

6. If requested, present the form for inspection by INS or Department of Labor officers. No reporting is required.

6–33

Improving Productivity Through HRIS: Comprehensive Improving Productivity Through HRIS: Comprehensive Automated Applicant Tracking and Screening SystemsAutomated Applicant Tracking and Screening Systems

“Knock out” applicants who do not meet job requirements

Can match “hidden talents” of applicants to

available openings

Benefits of Applicant Tracking Systems

Allow employers to extensively test

and screen applicants online

6–34

FIGURE 6–11 Checklist: What to Look for in an Applicant Tracking System (ATS)

The employer thinking of adopting an ATS should seek one that meets several minimum functionality requirements. Among other things, the ATS should be:

• Easy to use.

• Capable of being integrated into the company’s existing HRIS platform, so that, for instance, data on a newly hired candidate can flow seamlessly into the HRIS payroll system.

• Able to capture, track, and report applicant EEO data.

• Able to provide employee selection performance metrics reports, including “time to fill,” “cost to hire,” and “applicant source statistics.”

• Able to facilitate scheduling and tracking of candidate interviews, email communications, and completed forms, including job offers.

• Able to provide automated screening and ranking of candidates based upon job skill profiles.

• Able to provide an internal job posting service that supports applications from current employees and employee referral programs.

• Able to integrate the ATS job board with your company’s own Web site, for instance, by linking it to your site’s “careers” section.

• Able to provide for requisition creation and signoff approvals.