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INTRODUCTION
This report outlines the results of my investigation into pre-employment testing as a tool in the selection of new employees for Carnes Antiques.
Can pre-employment testing help managers find the right people for the right job? Employers have become more concerned about the quality of employers and are putting more emphasis on the selection process.For some employers, testing can provide important information and cut the cost of hiring and training personnel.(Randall)
Nearly 0 percent of job applicants lie about their education and 5 percent lie about the duration of their previous employment, according to a 1 publication by the Society for Human Resource Management. (Stuart)
Turnover is expensive, in both hard and soft dollars.According to an annual survey done by the Employment Management Association, hiring one hourly or production worker costs more than $880.Hiring a nonexempt office or clerical worker can cost $1668.(Paajamen) Linda Winlock, President of Personnel Profiling, Inc., says, "Even at the low end, if an employer hires an $8-per-hour worker, the cost of a bad hire will be $4,000 if that employee only stays 0 days before termination occurs." (Hendricks)
"Administered correctly, pre-employment tests can speed up the natural selection process by helping employers identify an individual with the skills and abilities that match a position's requirements," says Fred Rafilson, an official at E. F. Wonderlic Personnel Test Inc., located in Northfield, IL.(Randall)
TYPES OF TESTS
Popular pre-employment tests include
§Skills testing (usually written,) which can include job-related testing and/or job analysis
§Behavioral identification and personality assessments, which measure "traits" such as honesty or introversion and extroversion
§Aptitude testing to determine job ability and evaluate physical dexterity, mechanical or clerical comprehension
§Achievement (paper-and-pencil tests) to measure degree of knowledge in specific fields (some also detect learning difficulties)
§Polygraph tests to measure honesty
§Drug/alcohol usage tests
§Intelligence tests to measure learning ability
§Handwriting-analysis tests
Traditionally, tests were used to screen out.But, "with unemployment at an all-time low, people have started to use the tests a little differently," says Rob Altmann, research psychologist for NCS, a test publisher for workforce development and clinical products in Minnetonka, MN.Now they're being used to screen in.(Tyler)
Personality assessments, skills, aptitude, and achievement tests are considered to be qualifying or "screen-in tests."
Disqualifying or "screen-out" tests include drug/alcohol, polygraph, honesty/integrity, genetic, intelligence, handwriting analysis, and medical exams.(Nicholson)
DETERMINING THE RIGHT TEST
A four-step process to determine the right test is recommended.
1.Ascertaining the information you want from a test
.Determining administrative aspects, such as whether to use a written or computerized test, testing location, time and costs, and who will administer the test
.Finding out which tests are available
4.Legal ramifications of a particular test
LEGAL ISSUES
Pre-employment testing generally carries with it legal liabilities on two fronts.The first is lawsuits from rejected applicants who claim a test wasn't job-related or that it unfairly discriminated against a protected minority group, violating federal civil rights laws.The second is negligence-in-hiring lawsuits filed by victims of employee misbehavior or incompetence.(Nicholson)
The Departments of Justice and Labor and the Equal Employment Opportunity Commission adhere to the Joint Guidelines on Employee Selection Process that govern employee testing.Here are the guidelines in sum Employers may give potential employee any test they want, provided the test does not adversely affect any group or invade someone's privacy.When a test unfairly affects a particular group (based on
considerations of age, sex, race, or religion,) the employer must prove the questions are job related.(Quittel)
If an employer is going to utilize an "off-the-shelf" test, management should confirm with the author that the test has been validated.Employers developing their own pre-employment tests should make them as job specific as possible.(Rabaut)
COSTS
Costs depend on the length and number of components in the test, but most test average $5 to $40 each for entry-level positions and $100 to $00 each for specialized professional or managerial positions.(Tyler)
However "when you balance that against the expense associated with making a bad hiring decision, then it's quite a meager investment," says Michael McClenic, Vice President of the workforce development division at ACT. (Tyler)
BENEFITS
The real benefit to test users is the increase in quality of the people they hire.Tests are a much more efficient way of identifying attitudes and skills related to the job that they cannot identify in an interview, therefore ensuring the hiring of the right person.
Charlie Wonderlic, President of Wonderlic, Inc., believes that, "when designed and utilized properly, employment tests possess the unique ability to fairly, objectively and efficiently compare and contrast job candidates' qualifications." (Tyler)
It has been proven theft, waste and absenteeism has been reduced by the use of pre-employment tests. (Tyler)
It is estimated that testing is two times faster than any other screening method.Thus, tests are not only time-efficient but also cost-efficient.(Tyler)
Another benefit of testing is its standardization of a sometimes subjective process.Altmann says, "People like the consistency of screening procedures.It gives you an objective piece to look at.If people do interviews without anything else and then in three months are asked what the applicant said in the interview, they have trouble remembering.When you have the results of the test, you can put it in a file to refer to later."(Tyler)
POINTS OF INTEREST
SURVEY OF LOCAL INDUSTRIES
PERSONALITY & INTEGRITY TESTSDRUG/ALCOHOL TESTS
Bowater LumberNoYes
K-MartYesYes
LowesYesYes
MuellerNoYes
Progress RailNoYes
ToccoYesYes
Wal MartYesYes
RECOMMENDATION
1.Develop a testing program that includes drug/alcohol usage, skills and aptitude testing to determine job ability
.Decide what information we want to obtain
.Determine if we will administer tests in-house
4.Consult outside sources in designing a test to meet our needs
5.Obtain legal council to determine if we pass EEOC standards
SUMMARY
Selecting good employees for hire can be a test; a pre-employment test that is.Because hiring and retaining good employees can burn through a lot of money, management time and energy, Carnes Antiques should develop a pre-employment testing program.
It should be left to the experts to design a test that Carnes Antiques can use as a tool in the selection of new employees.
Pre-employment tests need to be as job specific as possible and legal council should be retained to assure that EEOC standards are being satisfied.
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