EMPLOYEE TESTING and SELCTION

Ms. Srividya Iyengar

Why Careful Selection is Important

The Importance of
Selecting the Right
Employees

Costs of Legal
Organizational
Recruiting and Obligations and
Performance
Hiring Liability
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.
• Balance the applicant’s privacy rights with others’ “need
to know.”
• Take immediate disciplinary action if problems arise.
Definition
• Selection is the process of differentiating
between applicants in order to identify ( and
hire ) those with a greater likelihood of success
in a job”.
• Selection is the process of gathering
information about applicants for a position and
then using that information to choose the most
appropriate applicant.
• :
• Stone has provided a more formal definition of
selection as follows
 "Selection is the process of differentiating between
applicants in order to identify (and hire) those with a
greater likelihood of success in a job".
• Selection process assumes and rightly so, that
there are more number of candidates available
than the number of candidates actually
selected. These candidates are made available
through recruitment process.
Selection Process / Devices
• Screening of Applications
• Application Blank
 Weighted Application Blank
• Selection Tests
• Interviews
• Checking of References
• Physical Examination
• Approval by Appropriate Authority
• Placement
 Selection Device – Strength and Weakness
Selection Device Strength Weakness
Application Form a.  Relevant biographical data and facts that can be a.    Usually only a couple of items on the form prove to be valid
verified have been shown to be valid performance predictors of job performance and then only for a specific job.
measures for some jobs.
b.    When items on the form have been weighted to b.    Weighted-item applications are difficult and expensive to
reflect job relatedness, this device has proved to be a create and maintain.
valid predictor for diverse groups
Written Tests a.    Tests of intellectual ability, spatial and mechanical a.    Intelligence and other tested characteristics can be
ability, perceptual accuracy, and motor ability are somewhat removed from actual job performance, thus reducing
moderately valid predictors for many semiskilled and their validity.
unskilled lower-level jobs in industrial organizations.

b.    Intelligence tests are reasonably good predictors for

supervisory positions.
Performance-Simulation a.    Based on job analysis data and easily meet the a.    Expensive to create and administer.
Tests requirement of job relatedness
b.    Have proven to be valid predictors of job
performance
Interviews a.    Must be structured and well organized to be a.    Interviewers must be aware of legality of certain questions.
effective predictors.
b.    Interviewers must use common questioning to be b.    Subject to potential biases, especially if interviews are not
effective predictors. well structured and standardized.
Background Investigation a.    Verifications of background data are valuable a.    Reference checks are essentially worthless as a selection
sources of information. tool.
Physical Examination a.    Has some validity for jobs with certain physical a.    Must be sure that physical requirements are job related and
requirements. do not discriminate.
b.    Done primarily for insurance purposes.
Selection Testing
• A test is a standardized, objective measure of a
sample of behaviour. Selection tests are
increasingly used by companies these days
because they measure individual differences in
a scientific way, leaving very little room for
Individual bias.
Selection Tests
• Intelligence test
• Aptitude test
• Personality test
 Projective test
 Interest test
 Preference test
• Achievement test
• Simulation test Selection Test -
Details
• Assessment centre
 The in basket
 The leaderless group discussion
 Business games
 Individual presentations
 Graphology test
 Polygraph test
 Integrity test
Basic Testing Concepts
• Reliability
 Consistency of scores obtained by the same person
when retested with identical or equivalent tests.
 Are test results stable over time?
• Validity
 Indicates whether a test is measuring what it is
supposed to be measuring.
 Does the test actually measure what it is intended to
measure?
Basic Testing Concepts
• Suitability: a test must fit the nature of the group on
which it is applied Usefulness: exclusive reliance on any
single test should be avoided
• Standardisation: norms for finalising test scores should
be established Qualified people: tests demand a high
level of professional skills
Basic Testing Concepts – Contd…
• Suitability: a test must fit the nature of the group
on which it is applied Usefulness: exclusive
reliance on any single test should be avoided
• Standardisation: norms for finalising test scores
should be established Qualified people: tests
demand a high level of professional skills
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.
 Types of Validity

Test
Validity
Predictive
Validity

Criterion Content
Validity Validity

Concurrent
Face
Validity
Validity
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

Relate Your Test Scores and Criteria: scores versus

4
actual performance

5
Cross-Validate and Revalidate: repeat Steps 3 and 4
with a different sample
 FIGURE 6–3 Expectancy Chart

Note: This expectancy chart shows the

relation between scores made on the
Minnesota Paper Form Board and rated
success of junior draftspersons.

Example: Those who score between 37

and 44 have a 55% chance of being
rated above average and those scoring
between 57 and 64 have a 97% chance.
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.
Test Takers’ Individual Rights and Test
Security
• Under the APA’s standard for educational and
psychological tests, test takers have the right:
 To privacy and information.
 To the confidentiality of test results.
 To informed consent regarding use of these results.
 To expect that only people qualified to interpret the
scores will have access to them.
 To expect the test is fair to all.
Legal Privacy Issues
• Defamation
 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.
Sample Test

Source: Courtesy of NYT Permissions.

Using Tests at Work
• Major Types of Tests
 Basic skills tests
 Job skills tests
 Psychological tests

• Why Use Testing?

 Increased work demands = more testing
 Screen out bad or dishonest employees
 Reduce turnover by personality profiling
Computerized and Online Testing
• Online tests
 Telephone prescreening
 Offline computer tests
 Virtual “inbox” tests
 Online problem-solving tests
• Types of Tests
 Specialized work sample tests
 Numerical ability tests
 Reading comprehension tests
 Clerical comparing and checking tests
 Types of Tests

What Tests
Measure

Cognitive Motor and Personality

(Mental) Physical and Achievement
Abilities Abilities Interests
Type of Question Applicant Might Expect on a Test of Mechanical Comprehension
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.
 The “Big Five”

Extraversion

Emotional Stability/
Conscientiousness
Neuroticism

Openness to
Agreeableness
Experience
Example of a Work Sampling Question
 Work Samples and Simulations

Measuring Work
Performance Directly

Miniature
Management Video-Based
Work Job Training
Assessment Situational
Samples and
Centers Testing
Evaluation
Evaluation of Assessment Methods on Four Key Criteria
Costs
(Develop/ Applicant
Assessment Method Validity Adverse Impact Administer) 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 Low Low/low Less favorable
moderate
Biographical data Moderate Low to high for different types High/low Less favorable
inventories
Integrity tests Moderate Low Low/low Less favorable
to high
Structured interviews High Low High/high More favorable
Physical fitness tests Moderate High (against females and High/high More favorable
to high older workers)
Situational judgment tests Moderate Moderate (against minorities) High/low More favorable
Work samples High Low High/high More favorable
Assessment centers Moderate Low to moderate, depending High/high More favorable
to high on exercise
Physical ability tests Moderate High (against females and High/high More favorable
to high older workers)

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.
 Background Investigations and
Reference Checks
• Investigations and Checks
 Reference checks
 Background employment checks
 Criminal records
 Driving records
 Credit checks
• Why?
 To verify factual information provided by applicants.
 To uncover damaging information.
Reference
Checking
Form

Source: Society for Human Resource

Management, © 2004. Reproduced with
permission of Society for Human Resource
Management in the Format Textbook via
Copyright Clearance Center.
Background Investigations and
Reference Checks (cont’d)

Former Employers

Current Supervisors

Sources of Commercial Credit

Rating Companies
Information

Written References

Social Networking Sites

Limitations on Background Investigations
and Reference Checks

Legal
Issues:
Defamation

Background
Legal
Employer Investigations
Issues:
Guidelines and Privacy
Reference Checks

Supervisor
Reluctance
Making Background Checks More Useful
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.
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

 Collecting Background Information

Suggestions for collecting background information include the following:

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 you’re not going to use.
5. Remember that using arrest information will be highly suspect.
6. Avoid blanket policies (such as “we hire no one with a record of workers’ compensation claims”).
7. Use information that is specific and job related.
8. Keep information confidential and up to date.
9. Never authorize an unreasonable investigation.
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 résumé (people tend to be more imaginative on their résumés
than on their application forms, where they must certify the information).
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 (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.
The Polygraph and Honesty Testing
• Employee Polygraph Protection Act of 1988
 Generally prohibits polygraph examinations by all
private employers unless:
 The employer has suffered an economic loss or injury.
 The employee in question had access to the property.
 There is a reasonable prior suspicion.

 The employee is told the details of the investigation, as well

as questions to be asked on the polygraph test itself.
 Exceptions:
 Private security employees
 Employees with access to drugs
 National defense and security (FBI, DOE, and DOJ)
Honesty Testing Programs:
What Employers Can Do
• Antitheft Screening Procedure:
 Ask blunt questions.
 Listen, rather than talk.
 Do a credit check.
 Check all employment and personal references.
 Use paper-and-pencil honesty tests and
psychological tests.
 Test for drugs.
 Establish a search-and-seizure policy and conduct
searches.
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.
Physical Examination
• Reasons for preemployment medical
examinations:
 To verify that the applicant meets the physical
requirements of the position.
 To discover any medical limitations to be taken into
account in placing the applicant.
 To establish a record and baseline of the applicant’s
health for future insurance or compensation claims.
 To reduce absenteeism and accidents.
 To detect communicable diseases that may be
unknown to the applicant.
Substance Abuse Screening
• Types of Screening
 Before formal hiring
 After a work accident
 Presence of obvious behavioral symptoms
 Random or periodic basis
 Transfer or promotion to new position
• Types of Tests
 Urinalysis
 Hair follicle testing
Substance Abuse Screening (cont’d)

Safety:
Impairment vs.
Presence

Americans with Recreational

Disabilities Act Use vs.
Ethical Addiction
and Legal
Drug Free Issues
Intrusiveness of
Workplace Act
Procedures
of 1988

Accuracy of
Tests
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.
Improving Productivity Through HRIS: Comprehensive
Automated Applicant Tracking and Screening Systems

Benefits of Applicant
Tracking Systems

Can match
“Knock out” Allow employers
“hidden talents”
applicants who to extensively test
of applicants to
do not meet job and screen
available
requirements applicants online
openings
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 cross-post jobs to commercial job boards such as www.monster.com.
• 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.
 KEY TERMS

negligent hiring
reliability
test validity
criterion validity
content validity
expectancy chart
interest inventory
work samples
work sampling technique
management assessment center
situational test
video-based simulation
miniature job training and evaluation