Myths of Psychological Testing for Candidate Selection

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Myths of Psychological Testing for Candidate
Selection

• Mike Poskey
• ZERORISK HR, Inc.
• www.ZERORISKHR.com

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If a person is not performing as expected, it is
probably because they are miscast for the job.

• - W. Edwards Deming

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Definitions Differences in Tests Used for
Candidate Selection

• Psychological Testing Written, visual, or verbal
  evaluations administered to assess the cognitive
  and emotional functioning.
• Psychometric Testing Any standardized procedure
  for measuring sensitivity, memory, intelligence,
  aptitude or personality etc.
• Personality Testing Evaluations measuring
  emotion, thought, and behavior patterns unique to
  an individual.

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Definition of Tests Continued

• Emotional Intelligence Testing Assessments to
  measure a persons ability to accurately identify
  and understand ones own emotional reactions and
  those of others, and to regulate ones emotions
  and use them to make good decisions and act
  effectively.
• Cognitive Reasoning Testing Tests measuring
  ones process of knowing (i.e. Intelligence).
• Drug Testing Testing of Urine, Oral Fluid and/or
  Hair to identify the presence of alcohol,
  prescription drugs, and illegal drugs.

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Definition of Tests Continued

• Hard Skill Testing Tests which measure math and
  spelling/grammar, and technical abilities (i.e.
  Computer Programming skills, etc.).
• Deductive vs. Inductive Types of Tests
• Inductive - a human process whereby one moves
  from specific observations to broader
  generalizations and theories (MMPI, Myers Briggs,
  DISC, Predictive Index).
• Deductive - a human process whereby one moves
  from the general to the specific. In other words,
  the rational person by means of what he already
  knows, is able to go beyond his immediate
  perception and solve very obscure problems. This
  is the nature of the reasoning process to go
  from the known to the unknown (Kinsel Hartman
  Profile).

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Testing for SelectionMyth 1

• We Will Be Sued

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Laws Pertaining to Legal Issues Associated With
Testing

• Summary of Uniform Guidelines in Employee
  Selection Procedures (1978) CFR Title 29, Vol. 4,
  Sec. 1607, ET SEQ
• Title VII
• Invasion of Right to Privacy Claims
• Soroka vs Dayton Hudson Corporation
• Karraker vs Rent-A-Center

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Validity Terms Definitions

• Adverse Impact- A situation in which members of a
  particular race, sex, or ethnic group have a
  substantially lower rate of selection in hiring,
  promotion, or other employment decisions.
• Face Validity- results that have the appearance
  of truth or reality.
• Reliability-The degree to which test scores are
  consistent, dependable, or repeatable.
• Construct Validity- measures whether an
  instrument in both its form and results is
  consistent with the theory behind the instrument
• Concurrent Validity- The test as to whether a
  particular instrument correlates significantly to
  other valid instruments
• Construct Concurrent- Determines both the
  individual and comparative validity of the
  instrument
• Predictive- The degree to which scores on an
  assessment instrument correlate with some
  external criterion, such as job performance.
• Criterion- A measure of performance, such as
  productivity rate, accident rate, or supervisory
  ratings. Test scores are used to predict criteria.

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As EEOC guidelines point out, any test may be
used, provided it does not create an adverse
impact on a protected class. In fact, when
objective assessment/testing tools are properly
used to make hiring or promotional decisions,
statistics indicate that these tools actually
reduced exposure to adverse impact claims

• Don Phin, Esq.
• President, Employer Advisors Network

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Summary

• The selection process is fairer
• Helps companies comply with federal requirements
• You dont hire problem employees

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Testing for SelectionMyth 2

• It Costs Too Much

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Costs Associated with Hiring

• Sourcing Costs
• Employment Advertising cost for vacant position
• Cost of internal recruiters time handling,
  processing and responding to resumes
• Recruiter Fees
• Selection Costs
• Cost of background, credit, assessment and
  reference check
• Cost of interviewers time
• Recruiter Fees

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Costs Associated with Hiring

• Training/Administrative Costs
• Cost of adding new employee to payroll and
  processing paperwork such as benefits, employee
  manual distribution, 401K enrollment and
  identification card assignment
• Cost of departmental time setting computer and
  security passwords, and email accounts
• Cost of business cards, telephone hookups, and
  office supplies for new employee
• Cost of orientation time and supplies
• Cost of departmental training
• Cost of person conducting the training
• Cost of training materials and supplies such as
  product manuals

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Costs Associated with Turnover

• Lost Productivity Costs
• Lost opportunity costs (salesperson)
• Cost of new employee mistakes
• Cost of lost department productivity
• Cost on the completion or delivery of a critical
  project
• Cost of reduced productivity of a manager
• Cost of decreased morale

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Costs Associated with Turnover

• Other Turnover Costs
• Stopping payroll
• Benefit deductions Benefit enrollments
• COBRA Notification administration
• Work hours for processing forms for resigning
  employee
• Cost of time of the person in charge of exit
  interviews
• Cost of person filling position while vacant
  including overtime
• Cost of unemployment claims

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"For every dollar an employer invests in
personnel screening, the savings range from 5 to
16 in reduced absenteeism, improved
productivity, lower turnover, safer working
environments, reduced insurance premiums, and
decreased employer liability."

• Small Business Administration

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Testing for SelectionMyth 3

• It Doesnt Work

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Case Studies and Success Stories

• One Fortune 500 company increased retention by 67
  and added 32 Million to their bottom line
• Texas Community Bank reduced staff by 28 and is
  now producing more with less people
• Over 40 of Fortune 100 companies use
  psychological testing

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Predictor Validity

• Ability Composite (Test) .53
• Job Tryout .44
• Biographical Inventory .37
• Reference Check .26
• Experience .18
• Interview .14
• Training Experience Ratings .13
• Academic Achievement .11
• Education .10
• Interest .10
• Age .01
• Validity refers to the ability of each
  predictor to correctly forecast subsequent
  success on the job. The higher the validity
  number, the better the predictor is at
  forecasting future success.
• The HR Chally Group

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Testimonials

• "Since we began testing for candidate selection
  our retention has jumped from 10 to 77. And not
  only do the employees stay longer, but they are
  more productive, catch on more quickly, and
  require less training time." HR Director, Texas
  Based Fortune 500 Company
• Our hiring assessment has proven to be a highly
  reliable, valuable tool in our recruiting
  process. I personally believe that using a hiring
  assessment has not only reduced our turnover, but
  has helped us zero in on the candidates that best
  fit our corporate culture."
  HR Director, National Real
  Estate Corporation

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Testimonials

• Hiring assessments are a bottom-line success
  within our company. They expedite our
  interviewing process tremendously by assisting us
  in cutting to the chase in determining a
  candidate's strengths and weaknesses.
  President, Fort Worth Financial Institution
• Our pre-employment test is rapidly becoming a
  strategic component of hiring, assigning, and
  directing the human side of our enterprise. Its
  a highly reliable, and deeply insightful tool for
  making our most important organizational
  decisions. For us, the program is indispensable."
  
  
• Vice President Human Resources, International
  Investment Management Firm

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Testing for SelectionMyth 4

• It Takes Too Much Time

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Time Friendly Testing Benefits

• Internet Age
• Expedites the Interview and Selection Process
• Quickly Identifies Strengths and Weaknesses of
  Candidates
• Produces Behavioral Interview Guides
• Decrease in time needed to prepare and conduct a
  legally compliant candidate interview

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Examples of Provided Behavioral Based Interview
Questions

• What has been a particularly demanding goal for
  you to achieve?
• Can you think of a situation in which an
  innovative course of action was needed? What did
  you do in this situation?

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Interview Questions - Continued

• What are the typical customer interactions you
  have in your present position? Can you think of
  a recent example of one of these?
• Have you ever been in a situation where you have
  had to take on new tasks or roles? Describe this
  situation and what you did.
• In your present position, what standards have you
  set for doing a good job? How did you determine
  them?

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Top 10 Checklist for Selecting a Vendor
Implementing Candidate Testing
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Top Ten Checklist for Using Psychological
Assessments

• Obtain a copy of the reliability validity from
  the test vendor
• Confirm Assessment is Designed for Selection
• Assessment should avoid asking about sex,
  religion, politics and social beliefs
• Outsource to a third-party testing firm
• Conduct Job Analysis Audits

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Top Ten Continued

• Focus on major aspects of the job (BFOQ)
• Obtain permission from the applicant
• Be consistent in using the assessment
• Dont use as a gatekeeper
• Maintain confidentiality of results

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If workers are carefully selected, problems of
employee discipline will be negligible.

• Johnson Johnson Co. Employee Relations
  Manual 1932

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Thank you!

• Mike Poskey, Vice President
• ZERORISK HR.com
• Mike.P_at_ZERORISKHR.com
• 1-800-827-5991 x 347