Infinet Rev. plan

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The Impact and Implementation Of Pre-hire
Assessments Practical Profitable Tactics For
Everyone
Dr. John Schinnerer President InfiNet Assessment
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• Why use pre-employment testing?

Pre-employment assessments are the most accurate
predictors of on-the-job performance.1
Pre-employment testing has repeatedly been
proven to save substantial money via increased
productivity and reduced training, recruitment
and interview costs. 1 Source John Hunter, The
Validity and Utility of Alternative Predictors of
Job Performance, Michigan State University,
Department of Psychology.
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• Problem with the old way?

• Applications, resumes, and reference checks are
  often vague, misleading and unreliable.
• ADP reports that 30 of applicants falsify their
  resumes.
• Must have reliable information on which to base
  hiring decisions.

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The Physiological Roots of Job Performance

• The brain is the most complex system known to
  humankind.
• Over one hundred billion neurons, each with
  hundreds or thousands of synaptic connections.
• The brain is involved in everything you do - how
  you think, how you feel, how you get along with
  others, how effective you are at work, and how
  you perceive reality.

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The Optimized Normal Brain
Normally functioning brain. Side view.
Normally functioning brain. Front view.
Normally functioning brain. Top view.
The best predictor of job performance is
intelligence, which is directly linked to the
physiology of the brain. The better ones brain
functions, the more clearly and rapidly one
thinks and solves problems.
All brain images Ó Amen Clinic 2002
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Attention Deficit Hyperactivity Disorder (ADHD)
ADHD Brain at rest. Some holes.
ADHD Brain on Adderall while concentrating.
ADHD while concentrating.
ADHD is linked to distractibility,
inattentiveness, tardiness, conflict-seeking
behavior and impulsivity, among other things.
All brain images Ó Amen Clinic 2002
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The Depressed Brain
Normal brain. View from bottom.
Depressed brain.
Depression causes apathy, low energy,
irritability, negativity and social isolation,
among other things.
All brain images Ó Amen Clinic 2002
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Brain Scans of Substance Users
Marijuana Use 28 year old with 10 years of
mostly weekend use.Underside surface view.
Decreased pfc and temporal lobe activity.
Cocaine Use 24 year old with 2 year history of
frequent cocaine use.Top down surface
view.Multiple holes across cortical surface
Alcohol Use 48 year old with 22 years of daily
use. Underside surface view. Marked scalloping.
Overall decreased activity.
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A battery of tests

• Given the complexity of the human brain, an
  assessment, or battery of tests is a must to look
  at the whole applicant.
• As many avenues as possible to make informed
  choices (e.g., structured interview, assessment,
  background check, and reference check).

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• Increasing organizational performance

• Staffing assessments serve to increase
  organizational effectiveness in 4 ways
• 1. Hiring more effective employees
• 2. Reducing turnover
• 3. Avoiding catastrophic hires
• 4. Increasing staffing efficiency

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Predictable competencies

• Some of the competencies that assessments can
  accurately predict include
• Performance Drivers customer service, technical
  skills, problem solving, ability to learn, sales,
  leadership, and teamwork.
• Job Requirements turnover, attendance,
  reliability, intelligence, literacy skills,
  safety, drug use, and theft.

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Correct Use of Assessments

• Four steps to correct use
• Define job competencies.
• Choose appropriate assessment tools.
• Create a standardized process for gaining
  information from applicants.
• Effectively use assessment information in
  employee selection process.

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1. Define job competencies

• Clearly define and describe behaviors and
  characteristics that drive success on the job.
• Use the job analysis or competency modeling
  process.
• Interview incumbents and supervisors.
• Ensure an accurate picture of the job.

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2. Choose the right assessment tool

• Choose your tools based on their relevance to the
  competency model for that position.
• A battery of tests is nearly always more
  effective than a single test.
• Always look at the whole applicant.

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3. Create a standardized process

• All employees should be treated in the same
  manner.
• Administer assessment to all applicants for a
  given position.
• Administration of a given assessment may be done
  at any point in the application process as long
  as you are consistent.

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4. Effectively use assessment reports

• Interpret information provided by test results
  in a consistent manner.
• Ensure reports are written for layperson.
  Minimal psychobabble.
• Ensure hiring managers understand how to
  interpret and evaluate the information provided
  by test results.

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Do assessments really work?

• Research has shown that pre-hire assessments are
  valid for virtually all jobs and that failure to
  employ them in selection can lead to substantial
  economic losses (Schmidt and Hunter, 1998,
  Personnel Psychology).
• Data gathered from millions of employees at
  thousands of different companies from across a
  range of positions clearly show that properly
  designed and deployed staffing assessments can
  significantly increase employee performance and
  retention (Handler, 2003).

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Real world examples

• UPS found it could reduce turnover 33 in the
  package handler position, thereby saving 400,000
  annually per hub (200 hubs nationwide).
• Sherwin-Williams reports that use of tests
  reduced the number of interviews conducted each
  year by over 5,000.
• LensCrafters reports a 50 percent decrease in
  turnover among hourly associates after
  implementing assessments and drug screens.

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• Goals of testing
• Ensure greater accuracy in personnel selection.
• Reduce turnover rate.
• Improve employee productivity.
• Improve customer service.
• Reduce shrinkage (employee theft).
• Improve safety.
• Match applicants to a changing corporate culture.
• Improve the ethical climate.

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• Types of tests
• Ability, or IQ, tests
• Personality tests
• Integrity tests
• Knowledge tests
• Note Pre-employment tests should never be the
  sole factor used when making a hiring decision.

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• IQ testing

• IQ tests examine the test-takers ability to
  learn and to solve problems.
• When properly applied, ability tests are among
  the most inexpensive, useful and valid tools to
  make effective employment-related decisions.
• IQ is the single best predictor of future job
  performance (Schmidt Hunter, 1998).

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• Pros and cons of IQ testing

• Pros
• IQ tests can truly get at the applicants ability
  to learn and perform particular job tasks.
• IQ is fundamental to success in most jobs,
  especially in those requiring cognitive
  activities such as reading, computing, analyzing
  or communicating.
• Cons
• IQ tests may result in adverse impact where
  protected groups are discriminated against (use
  only as part of a broader assessment battery).

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• Personality testing

• In addition to Knowledge, Skills and Abilities
  (KSAOs), job success also depends on personal
  characteristics (personality traits).
• Personality tests look at the ways people
  habitually act (e.g., team-oriented, extroverted,
  organized, attitude towards learning, etc.).

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• Pros cons of personality testing

• Pros
• Personality tests have been shown to be
  effective in identifying applicants who will fit
  well into a company culture leading to longer
  tenure and greater employee satisfaction.
• No adverse impact.
• Cons
• These tests are open to the possibility of
  faking or providing socially desirable answers.
• Some concern about invasive questions (use only
  as part of a broader assessment battery).
• Not a great predictor of on-the-job performance.

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Ethics and integrity testing

• Integrity and ethics tests look at how well
  someone follows societal rules.
• This includes attitudes towards drug use and
  theft, how well they follow company rules, their
  attitude towards punctuality, honesty, fighting,
  sabotage and other areas).

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Ethics and integrity testing

• There are 2 types of integrity test items Direct
  and Indirect questions
• 1) Direct items ask the applicant directly for
  their participation in employee theft, drug use,
  and other unlawful activities.
• 2) Indirect items ask for opinions about others
  doing unlawful activities. This relies on a
  psychological concept known as projection to get
  at the applicants ethical behaviors in an
  inoffensive manner.

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• Pros cons of integrity testing

• Pros
• No adverse impact typically.
• Shown to be valid.
• Will help to improve current ethical climate if
  combined with ethics training. Must administer
  anonymously.
• Cons
• Concerns about invasion of privacy, especially
  for direct integrity tests (Suggestion Use as
  part of a broader assessment).
• Possibility of faking responses.
• Need to show business necessity of hiring honest
  people.

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• Achievement or knowledge testing

• Achievement tests generally fall into two
  categories Knowledge and Performance Tests.
• Knowledge tests involve items to determine
• how much factual information one knows
• (e.g., licensing exams for CPAs).
• 2) Performance tests ask one to actually
  demonstrate the job task (e.g., a typing test for
  the position of Administrative Assistant).

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• Pros cons of knowledge testing

• Pros
• High degree of validity.
• Rarely results in adverse impact.
• Knowledge tests are easy and
• inexpensive to administer.

• Cons
• Written job knowledge tests may result in
  adverse impact.
• Performance tests can be expensive to develop
  and administer.

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Validity

• Validation Tests must be valid and reliable to
  comply with the EEOCs Uniform Guidelines On
  Employee Selection Procedures.
• Validity is when the test measures what it says
  it measures. Construct validityvalidity in
  general.
• Hiring tests should be reporting predictive
  validity (or criterion-related validity).
• Training tests should be concerned with content
  validity.

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Predictive Validity

• Predictive validity is the process in which a
  statistical link is established between
  candidates' scores on an assessment measure and
  the job performance of those hired using that
  measure.
• It is the only type of validity that provides an
  actual statistic that summarizes the strength of
  the relationship between an assessment and job
  performance.

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Validity guidelines
Validity coefficients range from 0 to 1.0 with
zero indicating no relationship and 1 indicating
a perfect predictor. General guidelines for
interpreting validity coefficients .35 and up
Very beneficial .21-.35 Likely to be
useful .11-.20 Depends on circumstances Below
.11 Useless (equal to flipping a coin)
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Average Validity By Predictor
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Reliability Guidelines
Reliability A test is reliable when it gets
similar results from the same test-taker over a
period of time. Reliability ranges from 0 to
1.0. General guidelines for interpreting
reliability coefficients .90 and up
excellent .80-.89 good .70-.79
adequate below .70 limited applicability
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Adverse impact Title VII Under Title VII of the
Civil Rights Act of 1964, it is unlawful to use a
test to intentionally discriminate against
protected groups. The 4/5 rule Every test must
select protected group members at a rate of 80
(or more) of the selection rate of Caucasian
males.
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Take home message

• The economic value of gains from improved hiring
  methods are usually quite large.
• These gains are proportional to the size of
  increase in validity when moving from old to the
  new selection methods.
• No other characteristic of an assessment is as
  important as predictive validity (for hiring
  purposes).

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Thank for your time! Questions?
For more information, Email Dr. John
Schinnerer at John_at_InfinetAssessment.com
Psychological Bulletin, September 1998 Vol. 124,
No. 2, 262-274, The Validity and Utility of
Selection Methods in Personnel Psychology
Practical and Theoretical Implications of 85
Years of Research Findings, Frank L. Schmidt,
Department of Management and Organization
University of Iowa, John E. Hunter Department of
Psychology Michigan State University