The purpose of Chapter 6 is to explain how to use various tools to select the best candidates for the job. The main topics we’ll cover include selection, testing, background and reference checks, ethical and legal questions, types of tests, and work samples and simulations.
By the time we finish this chapter, you will be able to:
Explain what is meant by reliability and validity.
Explain how you would go about validating a test.
Cite and illustrate our testing guidelines.
Give examples of some of the ethical and legal considerations in testing.
In addition, you will be able to:
List eight tests you could use for employee selection, and how you would use them.
Give two examples of work sample/simulation tests.
Give examples of some of the ethical and legal considerations in testing.
Careful selection is important for three main reasons: performance, costs, and legal obligations.
First, your own performance always depends on your subordinates.
Second, it is important because it’s costly to recruit and hire employees. As the opening story in this chapter indicated, Google’s hiring process was streamlined due to the amount of time taken for interviews. Time spent by employees equates to the costs of not being productive in their jobs.
Third, it’s important because mismanaging hiring has legal 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 employee’s knowledge, skills, abilities, and competencies.
Now, we will discuss another form of evidence-based HR management, the definition and use of reliability and validity.
A test is basically a sample of a person’s behavior. Using a test (or any selection tool) assumes the tool is both reliable and valid.
A reliable test is one that yields consistent scores when a person takes two alternate forms of the test or takes the same test on two or more different occasions.
Validity tells you whether the test is measuring what you think it’s supposed to be measuring. Now, let’s discuss three types of validity.
Criterion validity involves demonstrating statistically there is a relationship between scores on a selection procedure and the job performance of a sample of workers. It means showing that workers who do well on the job also do well on the test.
Content validity shows that the content of a selection procedure is representative of important aspects of performance on the job.
Constructs represent an underlying human trait or characteristic such as honesty. Construct validity demonstrates that a selection procedure measures a construct and that the construct is important for successful job performance.
Measuring reliability generally involves comparing two measures that assess the same thing. It is typical to judge a test’s reliability in terms of a correlation coefficient (in this case, a reliability coefficient). Such a coefficient shows the degree to which the two measures (say, a test score one day and a test score the next day) are related.
A selection test must be valid. Without proof of validity, there is no logical or legally permissible reason to continue using it to screen job applicants. Remember that a valid test is one that measures what you intend to measure. A typing test, for example, clearly would be a valid test of keyboarding skills.
In order for a selection test to be useful, you need evidence that scores on the test relate in a predictable way to performance on the job. We will now discuss the steps needed to validate a test.
First, analyze the job and write job descriptions and job specifications. Your goal is to specify the human traits and skills (predictors) you believe are required for job performance.
Next, decide how to test for the predictors and choose the tests. You usually will base this choice on experience, previous research, and “best guesses.” You likely will choose several tests and combine them into a test battery.
One option is to administer the tests to employees currently on the job. You then compare their test scores with their current performance; this is concurrent (at the same time) validation. Its main advantage is that data on performance are readily available. Predictive validation is the second and more dependable way to validate a test. Here you administer the test to applicants before you hire them. Then hire these applicants using only existing selection techniques (such as interviews). You would not use the results of the new tests. After they have been on the job for some time, measure their performance and compare it to their earlier test scores.
Next, determine if there is a significant relationship between test scores (the predictor) and performance (the criterion). The usual way to do this is to use statistical testing.
Finally, before using the test, you may want to check it by “cross-validating”—in other words, by again performing steps 3 and 4 on a new sample of employees.
Remember, validating a test is not complicated, but it does take time and careful planning. Analyze the job and write job descriptions and specifications. Then choose how to test for predictors. Let experience, previous research, and “best guesses” guide you. You likely will choose several tests and combine them into a test battery.
To administer the test properly, consider using it with your best performing employees who currently hold positions you seek to fill. Consider administering the test to applicants before you hire them. Then hire these applicants using your usual selection techniques (such as interviews) but not the results of the new tests. After they have been on the job for some time, measure their performance and compare it to their earlier test scores.
Next, determine if there is a significant relationship between test scores and performance. The usual way to do this is to use statistical analysis.
Finally, before using the test, you may want to check it by “cross-validating”—in other words, repeat steps 3 and 4 on a new sample of employees.
Our testing guidelines will help ensure accurate results and interpretation. Let’s talk about how that works.
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 males
perform better in verbal reasoning tasks than do females, when in fact they both perform equally well, the test is biased. Second, “If the test used in college admissions systematically over predicts the performance of males and under predicts the performance of females, [then] that test functions as a biased predictor.”
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.
Use professionals when needed, be aware of potential biased tests, keep cost-effectiveness in mind and properly generalize validity findings when testing. Such actions will make a significant difference in using tests effectively and efficiently.
While a particular testing action may be legal, it may or may not be ethical. We will now discuss what to watch for when testing.
Test takers have rights to privacy and feedback under the American Psychological Association’s (APA) standards. Test takers (your potential future employees) have the right to expect:
Confidentiality of results
An informed consent opportunity
Only people qualified to interpret the scores will have access to them
The test is fair for all
In terms of privacy, common sense suggests that managers should keep their knowledge of employees’ test results private. However, there are also privacy protections embedded in U.S. and common law.
Testing is used to screen in good employees and also to screen out ones that will not be successful. A survey conducted by the American Management Association (AMA) indicated that 41% of companies test applicants for basic skills such as reading.
Computerized online testing is rapidly replacing traditional paper-and-pencil tests. In some cases, tests may be accessed via smartphones. That is, some tests adapt to the previous answers provided by the test taker, creating a one-off “custom” test.
Remember that all employees and potential employees expect and have the right to privacy and security. Tests at work are designed to help both the employer and employee when it comes to promotions and job changes. Note the trend today is towards more online and computer-based test taking. Such computerized procedures can help with speed and accuracy.
We can conveniently classify tests according to whether they measure cognitive (mental) abilities, motor and physical abilities, personality and interests, or achievement. We’ll look at each.
Cognitive tests include testing general reasoning ability or intelligence. In addition, they include tests of specific mental abilities such as memory or inductive reasoning.
Intelligence tests are tests of general intellectual abilities. They measure a range of abilities, including memory, vocabulary, verbal fluency, and numerical ability. There are also measures of specific cognitive abilities, such as deductive reasoning, verbal comprehension, memory, and numerical ability.
You also might need to measure motor abilities, such as finger dexterity, manual dexterity, and (if hiring pilots) reaction time.
Personality tests measure basic aspects of an applicant’s personality. You should be a bit cautious about personality tests, however. In some cases, the tests may be somewhat difficult to interpret. Legal challenges also may present difficulties. Finally, some doubt exists as to whether self-reporting on a personality test can predict performance correctly.
Interest inventories compare one’s interests with those of people in various occupations. And, achievement tests measure what someone has learned.
Personality tests measure basic aspects of an applicant’s personality, such as introversion, stability, and motivation. Some of these tests are projective. The psychologist presents an ambiguous stimulus (like an inkblot or clouded picture) to the person. The person then reacts to it. Other personality tests are self-reported: applicants complete them themselves.
Industrial psychologists often focus on the “Big Five” personality dimensions: extraversion, emotional stability/neuroticism, agreeableness, conscientiousness, and openness to experience.
Personality traits can be predictive since they do often correlate with job performance. Other traits correlate with occupational success. For example, extraversion correlates with success in sales and management jobs. However, there are three caveats.
First, projective tests are hard to interpret. An expert must analyze the test taker’s interpretations and make conclusions about his or her personality. Second, personality tests can trigger legal challenges. Third, some dispute that self-reported personality tests predict performance at all.
Be aware of what you expect from a personality test and the caveats associated with it. Nonetheless, personality tests can be a valuable source of information.
Cognitive tests include tests of general reasoning ability and tests of specific mental abilities. Intelligence tests are tests of general intellectual abilities. There are also measures of specific cognitive abilities. You also might need to measure motor abilities such as reaction times for pilots.
Personality tests measure basic aspects of an applicant’s personality. Interest inventories compare one’s interests with those of people in various occupations. And, achievement tests measure what someone has learned.
Industrial psychologists often focus on the “Big Five” personality dimensions: extraversion, emotional stability/neuroticism, agreeableness, conscientiousness, and openness to experience. Personality traits do often correlate with job performance. Other traits correlate with occupational success. However, there are three caveats: proper interpretation, legal issues, and disputes over the value of self-reporting.
With work samples, you present candidates with situations representative of the job for which they’re applying, and evaluate their responses. Let’s discuss.
The basic procedure with work sampling is to select a sample of several tasks crucial to performing the job, and then test applicants on them.
Situational judgment tests are personnel tests “…designed to assess an applicant’s judgment regarding a situation encountered in the workplace.” Situational judgment tests are effective and widely used.
A management assessment center is a 2- to 3-day simulation in which 10 to 12 candidates perform realistic management tasks such as making presentations. The behaviors of the candidates are observed by experts who appraise each candidate’s leadership potential. Most experts view assessment centers as effective for selecting
management candidates. However, they are quite costly in terms of money and time.
Situational tests require examinees to respond to situations found on the job. Work sampling and some assessment center tasks fall into this category. Some of the testing may be video-based.
Employers increasingly use computerized multimedia candidate assessment tools. We discussed some of these tools when we considered computerized tests and management assessment centers.
Like work sampling, miniature job training and evaluation tests applicants with actual samples of the job. Miniature job training assumes that a candidate who demonstrates the ability to perform a sample of job tasks will be able to learn and perform the job itself.
Sometimes, a dose of realism makes the best screening tool. Describing all aspects of the job, the nature of the working environment and even the company culture helps create a self-screening tool. In general, applicants who receive realistic job previews are more likely to turn down job offers if they do not like what they understand the job to be. Applicants who accept are then more likely to stay on the job.
You may find that, even in large companies, when it comes to screening employees, you’re on your own. The human resource department may work with you to design and administer screening tests. However, HR may be able to do little more than the recruiting, prescreening, background checks, and arrange for drug and physical exams. If HR is not given proper resources, you have even more reason to understand and use the information we have been discussing.
Situational judgment tests are used to assess the ability of a job candidate to react appropriately given a specific situation he or she will encounter on the job.
Management assessment centers are used to determine the abilities of individuals to perform complex tasks. Typically, such centers are used for management and executive positions. While cost, time, and the use of professionally trained assessors are potential issues to consider, most experts agree they are worthwhile.
Situational testing and video-based testing will involve situations that are presented to a job candidate. Such situations are realistic and typically derive from on-the-job situations.
Computerized and web-based assessment allows speed and flexibility in the testing process.
Miniature job training assumes a candidate can learn the job components and perform them quickly.
Realistic job previews present the candidate with detailed and highly realistic information about the job and the environment.
Realize, that as a manager, you may or may not have help from the HR department in selecting and assessing job candidates. Learning as much as possible about testing procedures will help in hiring the best candidates. Ultimately, the best candidates are usually the most productive, thus contributing to your department’s performance.
When hiring candidates, you will want the best ones to come to work for you. Checking backgrounds will help you make the right decisions. We will examine some of the ethical and legal implications to consider when hiring.
One of the easiest ways to avoid hiring mistakes is to check the candidate’s background thoroughly. Doing so is cheap and (if done right) useful. There are two main reasons to check backgrounds—to verify the applicant’s information and to uncover damaging information.
In terms of effectiveness, however, most managers don’t view references as very useful. This makes sense, given that few employers will talk freely about former employees for legal or ethical reasons. That is just the tip of the iceberg, however. Being sued for defamation is the real danger. First-line supervisors and managers, not just employers, are potentially at risk. As a rule, only authorized managers should provide information.
Most employers at least try to verify an applicant’s position and salary with his or her current or former employer by phone. Others call the applicant’s current and previous supervisors for information.
More employers are Googling applicants or checking social networking sites. Googling is probably safe enough, but checking social networking sites raises legal issues. Your best strategy to protect your company (and yourself) is to advise a job candidate that your policies require performing such checks. The applicant, of course, may refuse. In that case, you may not wish to pursue a particular candidate further.
Information services use databases to access information about matters such as workers’ compensation and credit histories. Before requesting reports, the employer must disclose to the applicant or employee that a report will be requested. The employer must certify to the reporting agency that the employer will comply with the federal and state legal requirements. Under federal law, the employer also must provide copies of the report to the applicant or employee if requested.
Some firms still use the polygraph (or lie detector) for honesty testing, although the law severely restricts its use. Federal agencies (such as the FBI) may use such devices for hiring decisions. Paper-and-pencil tests also can be used to check for honesty.
Graphology is the use of handwriting analysis to determine the writer’s basic personality traits. Graphology thus has some resemblance to projective personality tests, although graphology’s validity is highly suspect
While perhaps no more valid than graphology, some employers are using so-called “human lie detectors.” These are experts who claim to be able to identify lying just by watching candidates.
Once the employer extends the person a job offer, a medical exam is often the next step in the selection process. In addition, many employers conduct drug screenings. The most common practice is to test candidates just before they’re formally hired. Some companies advise the candidate that a job offer is contingent upon successful completion of a drug screening test. Drug testing, while ubiquitous, is neither as simple nor effective as it might first appear since no drug test is foolproof. Also, tests for drugs only show whether drug residues are present, not if they will impact the individual in the workplace. Drug testing raises legal issues, too. Several federal (and many state) laws affect workplace drug testing.
Employees hired in the United States must prove they are eligible to work in the United States. Employers should ask a person they’re about to hire whether he or she is a U.S. citizen or an alien lawfully authorized to work in the United States.
Most employers also use their applicant tracking systems (ATS) or Human Resource Information Systems (HRIS) to improve productivity. In some cases, an ATS is used to “knock out” applicants who don’t meet minimum, nonnegotiable job requirements. Employers also use ATS to test and screen applicants online. This includes skills testing (in accounting, for instance), cognitive skills testing and even psychological testing.
There are two main reasons to check backgrounds—to verify the applicant’s information and to uncover damaging information. You, as a manager must be concerned with potential defamation and privacy issues. Remember, checking social networking sites raises legal issues.
Information services use databases to access information.
Some firms still use the polygraph (or lie detector) for honesty testing. Graphology is the use of handwriting analysis to determine the writer’s basic personality traits but presents reliability and validity issues. Some employers are using so-called “human lie detectors.”
Two other considerations are the uses of medical exams and drug screenings. Final job offers may be made contingent upon successful completion of these two tests.
Employees hired in the United States must prove they are eligible to work in the United States.
Finally, Human Resource Information Systems (HRIS) may be used in tracking candidates as well as maintaining employee records. An Applicant Tracking System (ATS) is usually a component of an effective HRIS. Such a system may be used to exclude candidates who don’t meet the minimum job requirements. An HRIS also will be used to maintain records for internal employee tracking and external reports such as those for EEOC reporting.
