1 Chater 6 Employee Testing and Selection Why

1 Chater 6 Employee Testing and Selection

Why Careful Selection is Important The Importance of Selecting the Right Employees Organizational Performance Costs of Recruiting and Hiring Legal Obligations and Liability 6– 2

Avoiding Negligent Hiring Claims • Carefully scrutinize information on employment applications. • Get written authorization for reference checks, and check references. • Save all records and information about the applicant. • Reject applicants for false statements or conviction records for offenses related to the job. • Take immediate disciplinary action if problems arise. 6– 3

Basic Testing Concepts • Reliability Ø Consistency of scores obtained by the same person when retested with identical or equivalent tests. Ø Are test results stable over time? Ø Ways to estimate reliability v v v Retest Estimate – Same test to same people at different point in time Equivalent form estimate – Administer a test and administer what believes to be an equivalent test. Internal comparison estimate – Administer a test & statistically analyze the degree to which responses of items vary. Apparently repetitive questions on some questionnaire to check internal consistency. • Validity Ø Indicates whether a test is measuring what it is supposed to be measure. Ø Does the test actually measure what it is intended to measure? 6– 4

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 12 F, Cambridge, Mass: Harvard University Press, 1943. 6– 5

Types of Validity Test Validity Criterion Validity Content Validity Face Validity 6– 6

How to Validate a Test Steps in Test Validation 1 Analyze the Job: predictors and criteria 2 Choose the Tests: test battery or single test 3 Administer the Tests: concurrent or predictive validation 4 Relate Your Test Scores and Criteria: scores versus actual performance 5 Cross-Validate and Revalidate: repeat Steps 3 and 4 with a different sample 6– 7

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– 8

Test Takers’ Individual Rights and Security Test • Under the APA’s standard for educational and psychological tests, test takers have the right: Ø To privacy and information. Ø To the confidentiality of test results. Ø To informed consent regarding use of these results. Ø To expect that only people qualified to interpret the scores will have access to them. Ø To expect the test is fair to all. 6– 9

Legal Privacy Issues • Defamation Ø Libeling or slandering of employees or former employees by an employer. • Avoiding Employee Defamation Suits 1. Train supervisors regarding the importance of employee confidentiality. 2. Adopt a “need to know” policy. 3. Disclose procedures impacting confidentially of information to employees. 6– 10

Using Tests at Work • Major Types of Tests Ø Basic skills tests Ø Job skills tests Ø Psychological tests • Why Use Testing? Ø Increased work demands = more testing Ø Screen out bad or dishonest employees Ø Reduce turnover by personality profiling 6– 11

Computerized and Online Testing • Online tests Ø Telephone prescreening Ø Offline computer tests Ø Online problem-solving tests 6– 12

Types of Tests What Tests Measure Cognitive (Mental) Abilities Motor and Physical Abilities Personality and Interests Achievement 6– 13

FIGURE 6– 5 Type of Question Applicant Might Expect on a Test of Mechanical Comprehension(cognitive ability) 6– 14

FIGURE 6– 6 Sample Personality Test Items Source: Elaine Pulakos, Selection Assessment Methods, SHRM Foundation, 2005, p. 9. Reprinted by permission of Society for Human Resource Management via Copyright Clearance Center. 6– 15

The “Big Five” Extraversion Conscientiousness Agreeableness Emotional Stability/ Neuroticism Openness to Experience 6– 16

Work Samples and Simulations Measuring Work Performance Directly Work Samples Management Assessment Centers Video-Based Situational Testing Miniature Job Training and Evaluation 6– 17

FIGURE 6– 7 Example of a Work Sampling Question 6– 18

Management Assessment Centers 2 to 3 days simulations. Typical tasks include: • The in-basket • Leaderless group discussion • Management games • Individual presentations • Objective tests • The interview 6– 19

TABLE 6– 2 Evaluation of Assessment Methods on Four Key Criteria Assessment Method Validity Adverse Impact Costs (Develop/ Administer) Cognitive ability tests High (against minorities) Low/low Somewhat favorable Job knowledge test High (against minorities) Low/low More favorable Personality tests Low to moderate 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 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 (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 Applicant Reactions 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. Source: Elaine Pulakos, Selection Assessment Methods, SHRM Foundation, 2005, p. 17. Reprinted by permission of Society for Human Resource Management via Copyright Clearance Center. 6– 20

Background Investigations and Reference Checks • Investigations and Checks Ø Reference checks Ø Background employment checks Ø Criminal records Ø Driving records Ø Credit checks • Why? Ø To verify factual information provided by applicants. Ø To uncover damaging information. 6– 21

Background Investigations and Reference Checks (cont’d) Former Employers Current Supervisors Sources of Information Commercial Credit Rating Companies Written References Social Networking Sites 6– 22

Limitations on Background Investigations and Reference Checks Legal Issues: Defamation Employer Guidelines Background Investigations and Reference Checks Legal Issues: Privacy Supervisor Reluctance 6– 23

Making Background Checks More Useful(guidelines) 1. Include on the application form a statement for applicants to sign explicitly authorizing a background check. 2. Use telephone references if possible. 3. Be persistent in obtaining information. 4. Use references provided by the candidate as a source for other references. 5. Ask open-ended questions to elicit more information from references. 6– 24

Using Preemployment Information Services Acquisition and Use of Background Information 1 Disclosure to and authorization by applicant/employee 2 Employer certification to reporting agency 3 Providing copies of reports to applicant/employee 4 Notice of adverse action to applicant/employee 6– 25

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– 26

The Polygraph and Honesty Testing • Employee Polygraph Protection Act of 1988 Ø Generally prohibits polygraph examinations by all private employers unless: v The employer has suffered an economic loss or injury. v The employee in question had access to the property. v There is a reasonable prior suspicion. v The employee is told the details of the investigation, as well as questions to be asked on the polygraph test itself. Ø Exceptions: v Private security employees v Nuclear v Hiring power related employees personnel with access to drugs v Employees v National with access to highly classified information defense and security (FBI) 6– 27

Honesty Testing Programs: What Employers Can Do Ø Ask blunt questions. Ø Listen, rather than talk. Ø Check all employment and personal references. Ø Use paper-and-pencil honesty tests and psychological tests. Ø Test for drugs. Ø Establish a search-and-seizure policy and conduct searches. 6– 28

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– 29

Physical Examination • Reasons for preemployment medical examinations: Ø To verify that the applicant meets the physical requirements of the position. Ø To discover any medical limitations to be taken into account in placing the applicant. Ø To establish a record and baseline of the applicant’s health for future insurance or compensation claims. Ø To reduce absenteeism and accidents. Ø To detect communicable diseases that may be unknown to the applicant. 6– 30

Substance Abuse Screening • Types of Screening Ø Before formal hiring Ø After a work accident Ø Presence of obvious behavioral symptoms e. g. chronic lateness Ø Random or periodic basis Ø Transfer or promotion to new position • Types of Tests Ø Urinalysis Ø Hair follicle testing 6– 31

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– 32

Improving Productivity Through HRIS: Comprehensive Automated Applicant Tracking and Screening Systems Benefits of Applicant Tracking Systems “Knock out” applicants who do not meet job requirements Allow employers to extensively test and screen applicants online Can match “hidden talents” of applicants to available openings 6– 33

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. 6– 34