2. Why Employee Selection Is
Important
âĸ Performance
âĸ Cost
âĸ Legal obligations
âĸ Person and job/organization fit
âĸ Matching the knowledge, skills, abilities,
and other competencies (KSACs)
âĸ Issue of negligent hiring
3. 3
Avoiding Negligent Hiring Claims
īŽ Carefully scrutinize information supplied by the applicant on his
or her employment application.
īŽ Get the applicantâs written authorization for reference checks,
and carefully check references.
īŽ Save all records and information you obtain about the applicant.
īŽ Reject applicants who make false statements of material facts or
who have conviction records for offenses directly related and
important to the job in question.
īŽ Balance the applicantâs privacy rights with othersâ âneed to
know,â especially when you discover damaging information.
īŽ Take immediate disciplinary action if problems arise.
4. 4
Basic Testing Concepts
īŽ Reliability
īŽ The consistency of scores obtained by the
same person when retested with the identical
or equivalent tests.
īŽ Are the test results stable over time?
īŽ Test validity
īŽ The accuracy with which a test, interview, and
so on measures what it purports to measure or
fulfills the function it was designed to fill.
īŽ Does the test actually measure what we need
for it to measure?
5. 5
Types of Validity
īŽ Criterion validity
īŽ A type of validity based on showing that scores on
the test (predictors) are related to job performance
(criterion).
īŽ Are test scores in this class related to studentsâ
knowledge of human resource management?
īŽ Content validity
īŽ A test that is content valid is one that contains a
fair sample of the tasks and skills actually needed
for the job in question.
īŽ Do the test questions in this course relate to
human resource management topics?
īŽ Is taking an HR course the same as doing HR?
6. īŽ Construct validity
īŽ Construct validity defines how well a test or experiment
measures up to its claims. It refers to whether the
operational definition of a variable actually reflect the
true theoretical meaning of a concept.
6
7. 7
How to Validate a Test
īŽ Step 1: Analyze the job
īŽ Predictors: job specification (KSAOs)
īŽ Criterion: quantitative and qualitative measures of job success
īŽ Step 2: Choose the tests
īŽ Test series or single test?
īŽ Step 3: Administer the test
īŽ Concurrent validation
īŽ Current employeesâ scores with current performance
īŽ Predictive validation
īŽ Later-measured performance with prior score.
īŽ Step 4: Relate Test Scores and Criteria
īŽ Correlation analysis
īŽ Actual scores on the test with actual performance
īŽ Step 5: Cross-Validate and Revalidate
īŽ Repeat Step 3 and Step 4 with a different sample of employees.
9. Copyright Š 2015 Pearson Education, Inc. 6-9
âĸ Who scores the test?
âĸ Bias
âĸ Utility analysis
âĸ Validity generalization
Evidence-Based HR: Test
Validation Issues
10. 10
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.
Table 6â1
11. 11
Equal Employment Opportunity
(EEO) Aspects of Testing
īŽ A organization must be able to prove:
īŽ That its tests are related to success or failure
on the job (validity)
īŽ That its tests donât unfairly discriminate
against minority or nonminority subgroups
(disparate impact).
īŽ EEO guidelines and laws apply to all
selection devices, including interviews,
applications, and references.
12. 12
Equal Employment Opportunity
(EEO) Aspects of Testing (contâd)
īŽ Testing alternatives if a selection device has
disparate impact:
īŽ Institute a different, valid selection procedure
that does not have an adverse impact.
īŽ Show that the test is validâin other words,
that it is a valid predictor of performance on
the job.
īŽ Monitor the selection test to see if it has
disparate impact.
14. 14
Test Takersâ Individual Rights and
Test Security
īŽ Under the American Psychological
Associationâs standard for educational and
psychological tests, test takers have the right:
īŽ To privacy and information.
īŽ To the confidentiality of test results.
īŽ To informed consent regarding use of these
results.
īŽ To expect that only people qualified to
interpret the scores will have access to them.
īŽ To expect the test is fair to all.
15. 15
Using Tests at Work
īŽ Major types of tests used by employers
īŽ Basic skills tests (45%)
īŽ Drug tests (47%)
īŽ Psychological tests (33%)
īŽ Use of testing
īŽ Less overall testing now but more testing is used as specific
job skills and work demands increase.
īŽ Screen out bad or dishonest employees
īŽ Reduce turnover by personality profiling
17. 17
Types of Tests
īŽ Tests of cognitive abilities
īŽ Intelligence Tests
īŽ Tests of general intellectual abilities that measure
a range of abilities, including memory,
vocabulary, verbal fluency, and numerical ability.
īŽ Aptitude tests
īŽ Tests that measure specific mental abilities, such
as inductive and deductive reasoning, verbal
comprehension, memory, and numerical ability.
18. 18
Types of Tests (contâd)
īŽ Tests of motor abilities
īŽ Tests that measure motor abilities, such as
finger dexterity, manual dexterity, and reaction
time.
īŽ Tests of physical abilities
īŽ Tests that measure static strength, dynamic
strength, body coordination, and stamina.
19. 19
Problem from the Test of
Mechanical Comprehension
Figure 6â5
Which gear will turn the same way as the driver?
Source: Reproduced by permission. Copyright 1967, 1969 by The Psychological Corporation, New York, NY. All rights
reserved. Authorâs note: 1969 is the latest copyright on this test, which is still the main one used for this purpose.
20. 20
Measuring Personality and
Interests
īŽ Personality tests
īŽ Tests that use projective techniques and trait inventories to
measure basic aspects of an applicantâs personality, such as
introversion, stability, and motivation.
īŽ Disadvantage
īŽ Personality testsâparticularly the projective typeâare
the most difficult tests to evaluate and use.
īŽ Advantage
īŽ Tests have been used successfully to predict
dysfunctional job behaviors and identify successful
candidates for overseas assignments.
28. 28
The âBig Fiveâ
īŽ Extraversion
īŽ The tendency to be sociable, assertive, active, and to experience
positive effects, such as energy and zeal.
īŽ Emotional stability/neuroticism
īŽ The tendency to exhibit poor emotional adjustment and experience
negative effects, such as anxiety, insecurity, and hostility.
īŽ Openness to experience
īŽ The disposition to be imaginative, nonconforming, unconventional,
and autonomous.
īŽ Agreeableness
īŽ The tendency to be trusting, compliant, caring, and gentle.
īŽ Conscientiousness
īŽ Is comprised of two related facets: achievement and dependability.
29. 29
Other Tests
īŽ Interest inventories
īŽ Personal development and selection devices
that compare the personâs current interests
with those of others now in various
occupations so as to determine the preferred
occupation for the individual.
īŽ Achievement tests
īŽ Test that measure what a person has already
learnedââjob knowledgeâ in areas like
accounting, marketing, or personnel.
30. 30
Other Tests (contâd)
īŽ Crowd sourcing: Googleâs hiring decisions
īŽ Web-Based (Online) testing
īŽ Eliminates costly and inefficient paper-and-
pencil testing processes.
īŽ Allows for role-playing by applicants.
īŽ Use of computer-based scoring eliminates
rater bias.
īŽ Provides immediate scoring and feedback of
results to applicants.
īŽ Can be readily customized for specific jobs.
31. 31
Work Samples
īŽ Work samples
īŽ Actual job tasks are used in testing applicantsâ
performance.
īŽ Work sampling technique
īŽ A testing method based on measuring an
applicantâs performance on actual basic job
tasks.
33. Other work sample and simulation
techniques
īŽ Situational judgment tests
īŽ Realistic job preview
33
34. 34
Work Simulations
īŽ Management assessment center
īŽ A simulation in which management candidates are
asked to perform realistic tasks in hypothetical
situations and are scored on their performance.
īŽ Typical simulated exercises include:
īŽ The in-basket
īŽ Leaderless group discussion
īŽ Management games
īŽ Individual presentations
īŽ Objective tests
īŽ The interview
35. 35
Work Simulations (contâd)
īŽ Video-Based situational testing
īŽ A situational test comprised of several video
scenarios, each followed by a multiple choice
question that requires the candidate to choose
from among several courses of action.
īŽ While the evidence is mixed, the results
suggest that video-based situational tests can
be useful for selecting employees.
36. 36
Work Simulations (contâd)
īŽ The miniature job training and evaluation
approach
īŽ Candidates are trained to perform a sample of
the jobâs tasks, and then are evaluated on
their performance.
īŽ The approach assumes that a person who
demonstrates that he or she can learn and
perform the sample of tasks will be able to
learn and perform the job itself.
37. 37
Background Investigations and
Reference Checks
īŽ Extent of investigations and checks
īŽ Reference checks (87%)
īŽ Background employment checks (69%)
īŽ Criminal records (61%)
īŽ Driving records (56%)
īŽ Credit checks (35%)
īŽ Reasons for investigations and checks
īŽ To verify factual information provided by
applicants.
īŽ To uncover damaging information.
38. 38
Reference Checking Form
Figure 6â7
(Verify that the applicant has provided permission before conducting
reference checks)
Candidate Name:
Reference Name: Company Name:
Dates of Employment: (From: and To:)
Position(s) Held: Salary History:
Reason for Leaving:
Explain the reason for your call and verify the above information with the supervisor (including the
reason for leaving)
1. Please describe the type of work for which the candidate was responsible.
2. How would you describe the applicantâs relationships with coworkers, subordinates (if
applicable), and with superiors?
3. Did the candidate have a positive or negative work attitude? Please elaborate
4. How would you describe the quantity and quality of output generated by the former employee?
5. What were his/her strengths on the job?
6. What were his/her weaknesses on the job?
7. What is your overall assessment of the candidate?
8. Would you recommend him/her for this position? Why or why not?
9. Would this individual be eligible for rehire? Why or why not?
Other comments?
Source: Society for Human Resource Management, Š 2004.
39. 39
Background Investigations and
Reference Checks (contâd)
īŽ Sources of information for background
checks:
īŽ Former employers
īŽ Current supervisors
īŽ Commercial credit rating companies
īŽ Written references
40. 40
Background Investigations and
Reference Checks (contâd)
īŽ Legal limitations on background checks
īŽ Privacy Act of 1974
īŽ Fair Credit Reporting Act of 1970
īŽ Family Education Rights and Privacy Act of
1974 (and Buckley Amendment of 1974)
īŽ Freedom of Information Act of 1966
īŽ Americans with Disabilities Act (ADA)
41. 41
Background Investigations and
Reference Checks (contâd)
īŽ Reference providersâ concerns
īŽ Fear of legal reprisal for defamation
īŽ Not wanting to damage the applicantâs
chances
īŽ Helping to get rid an incompetent employees
42. 42
Making Background Checks More
Useful
īŽ Include on the application form a statement
for applicants to sign explicitly authorizing a
background check.
īŽ Use telephone references if possible.
īŽ Be persistent in obtaining information.
īŽ Ask open-ended questions to elicit more
information from references.
īŽ Use references provided by the candidate as
a source for other references.
43. 43
Using Preemployment Information
Services
īŽ Concerns about checking applicant histories
īŽ Various equal employment laws discourage or
prohibit the use of such information in
employee screening.
īŽ Courts view making employment decisions
based on someoneâs arrest record as unfairly
discriminatory.
īŽ The EEOC says a poor credit history should
not by itself preclude someone from getting a
job.
44. 44
Checking Background Information
īŽ Step 1âDisclosure and authorization.
īŽ Inform the employee/applicant that a report
will be requested and obtain written
authorization.
īŽ Step 2âCertification.
īŽ The employer must certify to the reporting
agency that the employer will comply with the
federal and state legal requirements.
īŽ Step 3âProviding copies of reports.
īŽ The employer must provide copies of the
report to the applicant or employee if adverse
action is contemplated.
45. 45
Checking Background Information
(contâd)
īŽ Step 4âNotice after adverse action.
īŽ After the employer provides the employee or
applicant with copies of the investigative
reports and a âreasonable periodâ has
elapsed, the employer may take an adverse
action.
46. 46
Collecting Background Information
1. Check all applicable state laws.
2. Review the impact of federal equal employment laws.
3. Remember the Federal Fair Credit Reporting Act.
4. Do not obtain information that youâre not going to use.
5. Remember that using arrest information will be highly suspect.
6. Avoid blanket policies (such as âwe hire no one with a record
of workersâ compensation claimsâ).
7. Use information that is specific and job related.
8. Keep information confidential and up to date.
9. Never authorize an unreasonable investigation.
Figure 6â8
Source: Adapted from Jeffrey M. Hahn, âPre-Employment Services: Employers Beware?â
Employee Relations Law Journal 17, no. 1 (Summer 1991), pp. 45â69; and Shari Caudron,
âWho are you really hiring?â, Workforce, November 2002, pp. 28â32.
47. 47
Collecting Background Information
(contâd)
10. Make sure you always get at least two forms of identification
from the applicant.
11. Always require applicants to fill out a job application.
12. Compare the application to the rÊsumÊ
13. 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.
14. Separate the tasks of (1) hiring and (2) doing the background
check.
Figure 6â8 (contâd)
Source: Adapted from Jeffrey M. Hahn, âPre-Employment Services: Employers Beware?â
Employee Relations Law Journal 17, no. 1 (Summer 1991), pp. 45â69; and Shari Caudron,
âWho are you really hiring?â, Workforce, November 2002, pp. 28â32.
48. 48
The Polygraph and Honesty
Testing
īŽ The polygraph (or lie detector)
īŽ A device that measures physiological changes,
īŽ The assumption is that such changes reflect
changes in emotional state that accompany lying.
īŽ Employee Polygraph Protection Act of 1988.
īŽ Prohibits employers (in most all cases) from
conducting polygraph examinations of all job
applicants and most employees.
īŽ Also prohibited are other mechanical or electrical
devices including psychological stress evaluators
and voice stress analyzers.
49. 49
Permitted Users of the Polygraph
īŽ Employers with contracts involving:
īŽ National defense or security
īŽ Nuclear-power (Department of Energy)
īŽ Access to highly classified information
īŽ Counterintelligence (the FBI or Department of
Justice)
īŽ Other exceptions
īŽ Hiring of private security personnel
īŽ Hiring persons with access to drugs
īŽ Conducting ongoing investigations involving
economic loss or injury to an employerâs
50. 50
Paper-and-Pencil Honesty Tests
īŽ Paper-and-pencil honesty tests
īŽ Psychological tests designed to predict job
applicantsâ proneness to dishonesty and other
forms of counterproductivity.
īŽ Measure attitudes regarding things like
tolerance of others who steal, acceptance of
rationalizations for theft, and admission of
theft-related activities.
51. 51
Antitheft Screening Procedure
īŽ Ask blunt questions.
īŽ Listen, rather than talk.
īŽ Do a credit check.
īŽ Check all employment and personal
references.
īŽ Use paper-and-pencil honesty tests and
psychological tests.
īŽ Test for drugs.
īŽ Establish a search-and-seizure policy and
conduct searches.
52. 52
Graphology
īŽ Graphology (handwriting analysis)
īŽ Assumes that handwriting reflects basic
personality traits.
īŽ Graphologyâs validity is highly suspect.
Source: Reproduced with permission from Kathryn Sackhein, Handwriting Analysis
and the Employee Selection Process (New York: Quorum Books, 1990), p. 45.
Figure 6â8
Handwriting Exhibit Used by Graphologist
53. 53
Physical Examination
īŽ Reasons for preemployment medical
examinations:
īŽ To verify that the applicant meets the physical
requirements of the position
īŽ To discover any medical limitations you should
take into account in placing the applicant.
īŽ To establish a record and baseline of the
applicantâs health for future insurance or
compensation claims.
īŽ To reduce absenteeism and accidents
īŽ To detect communicable diseases that may be
unknown to the applicant.
54. 54
Substance Abuse Screening
īŽ Types of screening:
īŽ Before formal hiring
īŽ After a work accident
īŽ Presence of obvious behavioral symptoms
īŽ Random or periodic basis
īŽ Transfer or promotion to new position
īŽ Types of tests
īŽ Urinalysis
īŽ Hair follicle testing
55. 55
Substance Abuse in the Workplace
īŽ Issues
īŽ Impairment versus presence
īŽ Recreational use versus habituation
īŽ Intrusiveness of procedures
īŽ Accuracy of tests
īŽ Drug Free Workplace Act of 1988
īŽ Americans with Disabilities Act
Editor's Notes
First, employees with the right skills will perform better for you and the company.
Second, it is important because itâs costly to recruit and hire employees. Financial services firm KeyBank knew it needed a better way to screen and select tellers and call-center employees. The company calculated it cost about $10,000 to select and train an employee, but it was losing 13% of new tellers and call-center employees within the first 90 days. That turnover number dropped to 4% after KeyBank implemented a virtual job tryout candidate assessment screening tool. âWe calculated a $1.7 million cost savings in teller turnover in one year, simply by making better hiring decisions, reducing training costs and increasing quality of hires,â said the firmâs human resources director.
Third, itâs important because mismanaging hiring haslegal consequences.
Person-job fit refers to identifying the knowledge, skills, abilities (KSAs), and competencies that are central
to performing the job. Then we must match the KSAs to the prospective employeeâs knowledge, skills, abilities, and competencies.
In many cases, certain tests are scored and interpreted by outside professionals. The results are then provided to the manager for consideration of whom to hire or promote.
There may be bias in how the test measures the trait it purports to measure. If test scores indicate that malesperform better in verbal reasoning tasks than do females, when in fact they both perform equally well, the test is biased. Second, âIf the test used in college admissions systematically over predicts the performance of males and underpredicts the performance of females, [then] that test functions as a biased predictor.â
Utility analysis simply answers the question, Does it pay to use a given test in a particular situation? In other words, if you use a specific test, will the quality of individuals selected be better than if you had not used the test?
Validity generalization helps determine if a test is valid in one situation, will it be so in others. Or, will the test need to be re-validated?Especially for smaller employers, properly generalizing the validity of a test can be a business lifesaver.