6

Employee Testing
and Selection
Source: ZUMA Press/Newscom.
LEARNING OBJECTIVES Company s
1. Explain what is meant by reliability and validity. Strategic Goals

2. Explain how you would go about validating a test.

3. Cite and illustrate our testing guidelines.
4. Give examples of some of the ethical and legal
considerations in testing.
Employee Competencies
5. List eight tests you could use for employee selection, and Behaviors Required
and how you would use them. for Company to Achieve
6. Give two examples of work sample/simulation tests. These Strategic Goals

7. Explain the key points to remember in conducting

background investigations.

ruitment an
Rec cemen d
Pla t

G
oogle, famous for (among other things) its childcare

ent al
Environm Leg

Tra elopment
De
and other employee benefits recently changed its

inin
v
Strategic and
employee screening process. Candidates used to

g a nd
have a dozen or more grueling interviews. But, with HR Policies and Practices
Google hiring thousands of people annually, this selection Required to Produce
process proved too slow.1 Now Google uses just four to five Employee Competencies
and Behaviors
interviews, but lets all its employees express opinions on each
candidate by e-mail, using a screening technique called crowd no

Co
s
ey itale
ep

m
sourcing. The changes bring the firm s hiring practices in line olp R
e
mE ita sn
with its fast-growth strategy.2 n o

WHERE ARE WE NOW . . .

Chapter 5 focused on the methods managers
use to build an applicant pool. The purpose
of Chapter 6 is to explain how to use various
tools to select the best candidates for the
job. The main topics we ll cover include the
selection process, basic testing techniques,
background and reference checks, ethical
and legal questions in testing, types of tests,
and work samples and simulations.
In Chapter 7, we will turn to the techniques
you can use to improve your skills with what
is probably the most widely used screening
tool, the selection interview.

Access a host of interactive learning aids at

www.mymanagementlab.com to help strengthen
your understanding of the chapter concepts.

MyManagementLab 175
176 PART 2 RECRUITMENT, PLACEMENT, AND TALENT MANAGEMENT

WHY CAREFUL SELECTION IS IMPORTANT

Once you review your applicants résumés, the next step is selecting the best
candidates for the job. This usually means whittling down the applicant pool by
using the screening tools we cover in this chapter: tests, assessment centers, and
background and reference checks. Then the supervisor can interview likely candi-
dates and decide whom to hire. Nothing you do at work is more important than
hiring the right employees. It is important for three main reasons: performance,
costs, and legal obligations.

PERFORMANCE First, your own performance always depends on your subordi-

nates. Employees with the right skills will do a better job for you and the company.
Employees without these skills or who are abrasive or obstructionist won t perform
effectively, and your own performance and the firm s will suffer. The time to screen
out undesirables is before they are in the door, not after.

COST Second, it is important because it s costly to recruit and hire employees.

Hiring and training even a clerk can cost $5,000 or more in fees and supervisory time.
The total cost of hiring a manager could easily be 10 times as high once you add
search fees, interviewing time, reference checking, and travel and moving expenses.

LEGAL OBLIGATIONS Third, it s important because mismanaging hiring has

legal consequences. For one thing (as we saw in Chapter 2), equal employment laws
require nondiscriminatory selection procedures.3 Furthermore, someone can sue an
employer for negligent hiring. Negligent hiring means hiring employees with crimi-
nal records or other problems who then use access to customers homes (or similar
opportunities) to commit crimes.4 In one case, Ponticas v. K.M.S. Investments, an
apartment manager with a passkey entered a woman s apartment and assaulted her.5
The court found the apartment complex s owner negligent for not checking the
manager s background properly.6

Person and Job/Organization Fit

The main aim of employee selection is to achieve person-job fit. Person-job fit refers to
matching (1) the knowledge, skills, abilities (KSAs), and competencies that are central
to performing the job (as determined by job analysis) with (2) the prospective
employee s knowledge, skills, abilities, and competencies. The aim is to achieve a match.
However, a candidate might be right for a job, but wrong for the organization.7
For example, a highly experienced airline pilot might do well at American Airlines but
perhaps not as well at Southwest, where the organizational values require that all
employees help get the plane turned around fast, even if that means helping with bag-
gage handling. Thus, while person-job fit is usually the main consideration in selec-
tion, employers should care about person-organization fit as well. The accompanying
Strategic Context feature illustrates this.

THE STRATEGIC CONTEXT

Crowd Sourcing at Google
Google knows that to maintain its fast-growth strategy, it needs to keep
new Google tools like Gmail and Google Maps coming. To support that strategy,
Google needs its employees engaged and interacting with each other. Having
employees thinking of themselves in isolated silos would inhibit the cross-
pollination Google depends on. In formulating its employee selection practices,
Google therefore found a way to foster the employee engagement and inter-
action its success depends on. Google uses crowd sourcing when it comes to
making hiring decisions.8
 CHAPTER 6 EMPLOYEE TESTING AND SELECTION 177

Here s how it works.9 When a prospective employee applies for a job, his or her
information (such as school and previous employers) goes into Google s applicant-
tracking system (ATS). The ATS then matches the applicant s information with that
of current Google employees. When it finds a match, it asks those Google employ-
ees to comment on the applicant s suitability for the position. This helps give
Google recruiters a valuable insight into how the Google employees actually doing
the work think the applicant will do at Google. And it supports Google s strategy,
by fostering a sense of community and interaction among Google employees,
who see themselves working together to select new Googlers.

1 Explain what is meant

BASIC TESTING CONCEPTS
by reliability and validity. A test is one popular selection tool. A test is basically a sample of a person s behavior.
Using a test (or any selection tool) assumes the tool is both reliable and valid.
Few things illustrate evidence-based HR the deliberate use of the best-available
evidence in making decisions about the human resource management practices you
are focusing on as do checking for reliability and validity.

Reliability
Reliability is a test s first requirement and refers to its consistency: A reliable test is
one that yields consistent scores when a person takes two alternate forms of the test or
when he or she takes the same test on two or more different occasions. 10
Reliability is very important. If a person scores 90 on an intelligence test on a
Monday and 130 when retested on Tuesday, you probably wouldn t have much faith
in the test.
You can measure reliability in several ways. One is to administer a test to a group
of people one day, readminister the same test several days later to the same group, and
then correlate the first set of scores with the second (test-retest reliability estimates.)11
Or you could administer a test and then administer what experts believe to be
an equivalent test later; this would be an equivalent or alternate form estimate.
The Scholastic Assessment Test (SAT) is an example. Or, compare the test taker s
answers to certain questions on the test with his or her answers to a separate set
of questions on the same test aimed at measuring the same thing. For example, a
psychologist includes 10 items on a test believing that they all measure interest in
working outdoors. You administer the test and then statistically analyze the degree
to which responses to these 10 items vary together. This is an internal comparison
estimate. (Internal comparison is one reason that you find apparently repetitive
questions on some test questionnaires.)
Many things cause a test to be unreliable. These include physical conditions
(quiet tests conditions one day, noisy the next), differences in the test-taker (healthy
one day, sick the next), and differences in the person administering the test (courteous
one day, curt the next). Or the questions may do a poor job of sampling the material;
for example, test one focuses more on Chapters 1, 3, and 7, while test two focuses
more on Chapters 2, 4, and 8.
Because measuring reliability generally involves comparing two measures that
assess the same thing, it is typical to judge a test s reliability in terms of a reliability
coefficient. This basically shows the degree to which the two measures (say, test score
one day and test score the next day) are correlated.

negligent hiring reliability

Hiring workers with questionable back- The consistency of scores obtained by the
grounds without proper safeguards. same person when retested with the identical
tests or with alternate forms of the same test.
178 PART 2 RECRUITMENT, PLACEMENT, AND TALENT MANAGEMENT

FIGURE 6-1 Correlation

Examples

Test Score Time 2

Test Score Time 2

Test Score Time 1 Test Score Time 1

Figure 6-1 illustrates correlation. In both the left and the right scatter plots, the
psychologist compared each applicant s time 1 test score (on the x-axis) with his or
her subsequent test score (on the y-axis). On the left, the scatter plot points (each
point showing one applicant s test score and subsequent test performance) are
dispersed. There seems to be no correlation between test scores obtained at time 1
and at time 2. On the right, the psychologist tried a new test. Here the resulting
points fall in a predictable pattern. This suggests that the applicants test scores
correlate closely with their previous scores.

Validity
Reliability, while indispensable, only tells you that the test is measuring something
consistently. It does not prove that you are measuring what you intend to measure.
A mismanufactured 33-inch yardstick will consistently tell you that 33-inch boards
are 33 inches long. Unfortunately, if what you re looking for is a board that is
1 yard long, then your 33-inch yardstick, though reliable, is misleading you by
3 inches.
What you need is a valid yardstick. Validity tells you whether the test (or yardstick)
is measuring what you think it s supposed to be measuring.12
A test, as we said, is a sample of a person s behavior, but some tests are more
clearly representative of the behavior being sampled than others. A typing test, for
example, clearly corresponds to an on-the-job behavior. At the other extreme,
there may be no apparent relationship between the items on the test and
the behavior. This is the case with projective personality tests. Thus, in the
Rorschach Test sample in Figure 6-2, the psychologist asks the person to explain
how he or she interprets an ambiguous picture. The psychologist uses that inter-
pretation to draw conclusions about the person s personality and behavior. In such

FIGURE 6-2 A Slide from the

Rorschach Test

Source: Fotolia LLC.

 CHAPTER 6 EMPLOYEE TESTING AND SELECTION 179

tests, it is more difficult to prove that the tests are measuring what they are said to
measure, in this case, some trait of the person s personality in other words, that
they re valid.

TEST VALIDITY Test validity answers the question Does this test measure what
it s supposed to measure? Put another way, validity refers to the correctness of
the inferences that we can make based on the test. For example, if Jane s scores on
mechanical comprehension tests are higher than Jim s, can we be sure that Jane
possesses more mechanical comprehension than Jim?13 With employee selection
tests, validity often refers to evidence that the test is job related in other words, that
performance on the test accurately predicts subsequent performance on the job.
A selection test must be valid since, without proof of validity, there is no logical or
legally permissible reason to continue using it to screen job applicants. You would not
be too comfortable taking the GRE if you didn t think that your score on the GRE
predicted, in some valid way, your likely performance in graduate school. Equal
employment law (as we explained in Chapter 2) requires valid tests. In employment
testing, there are two main ways to demonstrate a test s validity: criterion validity and
content validity. A third option is construct validity.14

CRITERION VALIDITY Criterion validity involves demonstrating statistically

a relationship between scores on a selection procedure and job performance of a
sample of workers. For example, it means demonstrating that those who do well
on the test also do well on the job, and that those who do poorly on the test do
poorly on the job. The test has validity to the extent that the people with higher
test scores perform better on the job. In psychological measurement, a predictor is
the measurement (in this case, the test score) that you are trying to relate to a
criterion, such as performance on the job. The term criterion validity reflects that
terminology.

CONTENT VALIDITY Content validity is a demonstration that the content of a

selection procedure is representative of important aspects of performance on the
job. For example, employers may demonstrate the content validity of a test by show-
ing that the test constitutes a fair sample of the job s content. The basic procedure
here is to identify job tasks that are critical to performance, and then randomly select
a sample of those tasks to test. In selecting students for dental school, many schools
give applicants chunks of chalk, and ask them to carve something that looks like a
tooth. If the content you choose for the test is a representative sample of what the
person needs to know for the job, then the test is probably content valid. Clumsy
dental students need not apply.

CONSTRUCT VALIDITY Construct validity means demonstrating that (1) a

selection procedure measures a construct (an abstract idea such as morale or honesty)
and (2) that the construct is important for successful job performance.

test validity content validity construct validity

The accuracy with which a test, interview, A test that is content valid is one that A test that is construct valid is one that
and so on measures what it purports contains a fair sample of the tasks and skills demonstrates that a selection procedure
to measure or fulfills the function it was actually needed for the job in question. measures a construct and that construct is
designed to fill. important for successful job performance.

criterion validity
A type of validity based on showing that
scores on the test (predictors) are related
to job performance (criterion).
180 PART 2 RECRUITMENT, PLACEMENT, AND TALENT MANAGEMENT

2 Explain how you would go

Evidence-Based HR: How to Validate a Test
about validating a test. Employers often opt to demonstrate evidence of a test s validity using criterion
validity. In order for a selection test to be useful, you need evidence that scores on the
test relate in a predictable way to performance on the job. Thus, other things being
equal, students who score high on the graduate admissions tests also do better
in graduate school. Applicants who score high on mechanical comprehension tests
perform better as engineers. In other words, you should validate the test before using
it by ensuring that scores on the test are a good predictor of some criterion like job
performance thus demonstrating the test s criterion validity.15
At best, invalid tests are a waste of time. At worst, they may be discriminatory.
Tests you buy off the shelf should include information on their validity. The
Society for Industrial and Organizational Psychology says that Experienced and
knowledgeable test publishers have (and are happy to provide) information on the
validity of their testing products. 16 But ideally, you should revalidate the tests for
the job(s) at hand. In any case, tests rarely predict performance with 100% accuracy
(or anywhere near it), so do not make tests your only selection tool; also use other
tools like interviews and background checks.
An industrial psychologist usually conducts the validation study. The human
resource department coordinates the effort. Strictly speaking, the supervisor s role is
just to make sure that the job s human requirements and performance standards are
clear to the psychologist. But in practice, anyone using tests (or test results) should
know something about validation. Then you can better understand how to use tests
and interpret their results. The validation process consists of five steps:

STEP 1: ANALYZE THE JOB The first step is to analyze the job and write job
descriptions and job specifications. The point is to specify the human traits and
skills you believe are required for job performance. For example, must an applicant
be verbal, a good talker? Must the person assemble small, detailed components? These
requirements become the predictors. These are the human traits and skills you believe
predict success on the job.
In this first step, also define what you mean by success on the job, since it s this
success for which you want predictors. The standards of success are criteria. Here
you could use production-related criteria (quantity, quality, and so on), personnel
data (absenteeism, length of service, and so on), or judgments of worker perform-
ance (by persons like supervisors). For an assembler s job, predictors might include
manual dexterity and patience. Criteria then might include number of rejects
produced per hour.17

STEP 2: CHOOSE THE TESTS Once you know the predictors (such as manual
dexterity) the next step is to decide how to test for them. Employers usually base this
choice on experience, previous research, and best guesses. They usually don t start
with just one test. Instead, they choose several tests and combine them into a test
battery. The test battery aims to measure an array of possible predictors, such as
aggressiveness, extroversion, and numerical ability.
What tests are available and where do you get them? The best advice is probably
to use a professional, such as a licensed industrial psychologist. However, many
firms publish tests. Psychological Assessment Resources, Inc., in Odessa, Florida, is
typical. Some tests are available to virtually any purchaser. Others are available only
to qualified buyers (such as those with degrees in psychology). Wonderlic, Inc.,
publishes a well-known intellectual capacity test and other tests, including aptitude
test batteries and interest inventories. G. Neil Company of Sunrise, Florida, offers
employment testing materials including, for example, a clerical skills test, telemar-
keting ability test, service ability test, management ability test, team skills test,
and sales abilities test.
Again, though, don t let the widespread availability of tests blind you to this fact:
You should use tests in a manner consistent with equal employment laws, and in a
 CHAPTER 6 EMPLOYEE TESTING AND SELECTION 181

FIGURE 6-3 Examples

of Web Sites Offering www.hr-guide.com/data/G371.htm
Information on Tests Provides general information and sources for all types of employment tests.
or Testing Programs http://ericae.net
Provides technical information on all types of employment and nonemployment tests.
www.ets.org/testcoll
Provides information on more than 20,000 tests.
www.kaplan.com
Information from Kaplan test preparation on how various admissions tests work.
www.assessments.biz
One of many firms offering employment tests.

manner that is ethical and protects the test taker s privacy. Figure 6-3 presents several
Web sites that provide information about tests or testing programs.

STEP 3: ADMINISTER THE TEST Next, administer the selected test(s). One
option is to administer the tests to employees currently on the job. You then compare
their test scores with their current performance; this is concurrent (at the same time)
validation. Its main advantage is that data on performance are readily available. The
disadvantage is that current employees may not be representative of new applicants
(who, of course, are really the ones for whom you are interested in developing a screen-
ing test). Current employees have already had on-the-job training and screening by
your existing selection techniques.
Predictive validation is the second and more dependable way to validate a test.
Here you administer the test to applicants before you hire them. Then hire these
applicants using only existing selection techniques, not the results of the new
tests. After they have been on the job for some time, measure their performance
and compare it to their earlier test scores. You can then determine whether you
could have used their performance on the new test to predict their subsequent job
performance.

STEP 4: RELATE YOUR TEST SCORES AND CRITERIA The next step is to
ascertain if there is a significant relationship between test scores (the predictor) and
performance (the criterion). The usual way to do this is to determine the statistical
relationship between (1) scores on the test and (2) job performance using correlation
analysis, which shows the degree of statistical relationship.
If there is a correlation between test and job performance, you can develop an
expectancy chart. This presents the relationship between test scores and job
performance graphically. To do this, split the employees into, say, five groups accord-
ing to test scores, with those scoring the highest fifth on the test, the second highest
fifth, and so on. Then compute the percentage of high job performers in each
of these five test score groups and present the data in an expectancy chart like
that in Figure 6-4. In this case, someone scoring in the top fifth of the test has a
97% chance of being a high performer, while one scoring in the lowest fifth has only
a 29% chance of being a high performer.18

STEP 5: CROSS-VALIDATE AND REVALIDATE Before using the test, you may
want to check it by cross-validating in other words, by again performing steps 3
and 4 on a new sample of employees. At a minimum, have someone revalidate the test
periodically.

expectancy chart
A graph showing the relationship between
test scores and job performance for a group
of people.
182 PART 2 RECRUITMENT, PLACEMENT, AND TALENT MANAGEMENT

FIGURE 6-4 Expectancy Chart (Highest 20%) 57 64 97

Note: This expectancy chart shows
the relation between scores made
on the Minnesota Paper Form Board
(Next highest 20%) 51 56 84
and rated success of junior
draftspersons.

Test scores
Example: Those who score between
37 and 44 have a 55% chance (Middle 20%) 45 50 71
of being rated above average and
those scoring between 57 and 64
have a 97% chance. (Next lowest 20%) 37 44 55

(Lowest 20%) 11 36 29

0 20 40 60 80 100

Chances in a hundred of being rated a

high performer ; and % of high performers
found in each test score group

WHO SCORES THE TEST? Some tests (such as the 16PF® Personality Profile) are
3 Cite and illustrate our
professionally scored and interpreted. Thus Wonderlic, Inc., lets an employer administer
testing guidelines.
the 16PF. The employer then faxes (or scans) the answer sheet to Wonderlic, which scores
the candidate s profile and faxes (or scans) back the interpretive report. Psychologists
easily score many psychological tests online or using interpretive Windows-based
software. However, managers can easily score many tests, like the Wonderlic Personnel
Test, themselves.

Bias
Most employers know they shouldn t use biased tests in the employee selection
process.19 In practice, two types of bias may arise. First, there may be bias in how the test
measures the trait it purports to measure. For example, an IQ test may turn out to be a
valid measure of cognitive ability for middle-class whites, but when used for minorities,
it simply measures whether they are familiar with middle-class culture.20 Second,
the predictions one makes based on the test may be biased. For example, If the test used
in college admissions systematically over predicts the performance of males and under-
predicts the performance of females, [then] that test functions as a biased predictor. 21
For many years, industrial psychologists believed they were adequately controlling test
bias, but today that issue is under review.22 For now, the bottom line is that employers
should redouble their efforts to ensure that the tests they re using aren t producing
biased decisions.

Utility Analysis
Knowing that a test is reliable and valid may not be of much practical use. For example,
if it is going to cost the employer $1,000 per applicant for the test, and hundreds of
applicants must be tested, the cost of the test may exceed the benefits the employer
derives from hiring a few more capable employees.
Answering the question, Does it pay to use the test? requires utility analysis.
Two selection experts say, Using dollar and cents terms, [utility analysis] shows the
degree to which use of a selection measure improves the quality of individuals selected
over what would have happened if the measure had not been used. 23 The information
required for utility analysis generally includes, for instance, the validity of the selection
measure, a measure of job performance in dollars, applicants average test scores,
cost of testing an applicant, and the number of applicants tested and selected.
The accompanying HR as a Profit Center feature provides an illustrative example.
 CHAPTER 6 EMPLOYEE TESTING AND SELECTION 183

HR AS A PROFIT CENTER
Reducing Turnover at KeyBank
Financial services firm KeyBank knew it needed a better way to screen and select
tellers and call-center employees.24 It calculated its cost about $10,000 to select
and train an employee, but it was losing 13% of new tellers and call-center employ-
ees in the first 90 days. That turnover number dropped to 4% after KeyBank imple-
mented a virtual job tryout candidate assessment screening tool. We calculated a
$1.7 million cost savings in teller turnover in one year, simply by making better
hiring decisions, reducing training costs and increasing quality of hires, said the
firm s human resources director.

Validity Generalization
Many employers, particularly smaller ones, won t find it cost-effective to conduct valid-
ity studies for the selection tools they use. These employers must find tests and other
screening tools that have been shown to be valid in other settings (companies), and then
bring them in-house in the hopes that they ll be valid there, too.25
If the test is valid in one company, to what extent can we generalize those validity
findings to our own company? Validity generalization refers to the degree to which
evidence of a measure s validity obtained in one situation can be generalized to
another situation without further study. 26 Being able to use it without your own
validation study is of course the key. Factors to consider in arriving at a conclusion
include existing validation evidence regarding using the test for various specific
purposes, the similarity of the subjects on whom the test was validated with those in
your organization, and the similarity of the jobs involved.27
Under the Uniform Guidelines, validation of selection procedures is desirable,
but the Uniform Guidelines require users to produce evidence of validity only when
adverse impact is shown to exist. If there is no adverse impact, there is no validation
requirement under the Guidelines. 28 Conversely, validating a test that suffers from
adverse impact may not be enough. Under the Uniform Guidelines, the employer
should also find an equally valid but less adversely impacting alternative.

4 Give examples of some

Test Takers Individual Rights and Test Security
of the ethical and legal Test takers have rights to privacy and feedback under the American Psychological
considerations in testing. Association s (APA) standard for educational and psychological tests; these guide
psychologists but are not legally enforceable. Test takers have the following rights:
* The right to the confidentiality of test results.
* The right to informed consent regarding use of these results.
* The right to expect that only people qualified to interpret the scores will have
access to them, or that sufficient information will accompany the scores to ensure
their appropriate interpretation.
* The right to expect the test is fair to all. For example, no one taking it should have
prior access to the questions or answers.
A complete discussion of the APAs Ethical Principles of Psychologists and Code
of Conduct is beyond the scope of this book. But some of the points it addresses
include competence, integrity, respect for people s dignity, nondiscrimination, and
sexual harassment.29

PRIVACY ISSUES Common sense suggests that managers should keep their
knowledge of employees test results private. However, there are also privacy protec-
tions embedded in U.S. and common law. Certain U.S. Supreme Court decisions do
184 PART 2 RECRUITMENT, PLACEMENT, AND TALENT MANAGEMENT

protect individuals from intrusive governmental action in a variety of contexts.30

Furthermore, the Federal Privacy Act gives federal employees the right to inspect their
personnel files, and limits the disclosure of personnel information without the
employee s consent, among other things.31
Common law provides some protection against disclosing information about
employees to people outside the company. The main application here involves defama-
tion (either libel or slander), but there are privacy issues, too.32 The bottom line is this:
1. Make sure you understand the need to keep employees information confidential.
2. Adopt a need to know policy. For example, if an employee has been rehabilitated
after a period of drug use and that information is not relevant to his or her
functioning in the workplace, then a new supervisor may not need to know.

How Do Employers Use Tests at Work?

About 41% of companies that the American Management Association surveyed tested
applicants for basic skills (defined as the ability to read instructions, write reports, and
do arithmetic).33 About 67% of the respondents required employees to take job skills
tests, and 29% required some form of psychological measurement.34 To see what
such tests are like, try the short test in Figure 6-5. It shows how prone you might be to
on-the-job accidents.
Tests are not just for lower-level workers. In general, as work demands increase
(in terms of skill requirements, training, and pay), employers tend to rely more on
testing in the selection process.35 Employers don t use tests just to find good
employees, but also to screen out bad ones. By one account, about 30% of all
employees say they ve stolen from their employers.36 In retail, employers appre-
hended about one out of every 28 workers for stealing. 37 No wonder prudent
employers test their applicants. We ll look at two examples.

OUTBACK STEAKHOUSE EXAMPLE Outback Steakhouse has used preem-

ployment tests almost from when the company started. The testing seems successful.
While annual turnover rates for hourly employees may reach 200% in the restaurant
industry, Outback s turnover ranges from 40% to 60%. Outback wants employees

FIGURE 6-5 Sample Test

Source: Based on Sample Test CHECK YES OR NO YES NO
Analysis according to John Kamp,
an industrial psychologist. 1. You like a lot of excitement in your life.

2. An employee who takes it easy at work

is cheating on the employer.

3. You are a cautious person.

4. In the past three years you have found yourself

in a shouting match at school or work.

5. You like to drive fast just for fun.

Analysis: According to John Kamp, an industrial psychologist, applicants who answered no, yes, yes, no, no to questions 1, 2, 3, 4,
and 5 are statistically likely to be absent less often, to have fewer on-the-job injuries, and, if the job involves driving, to have
fewer on-the-job driving accidents. Actual scores on the test are based on answers to 130 questions.
 CHAPTER 6 EMPLOYEE TESTING AND SELECTION 185

Many employers administer

online employment tests to job
candidates.

Source: Fotolia LLC.

who are highly social, meticulous, sympathetic, and adaptable. They use a personality
assessment test to screen out applicants who don t fit the Outback culture. This test is
part of a three-step preemployment screening process. Applicants take the test, and
managers then compare the candidates results to the profile for Outback Steakhouse
employees. Those who score low on certain traits (like compassion) don t move to
the next step. Those who score high move on to be interviewed by two managers.
The latter focus on behavioral questions such as What would you do if a customer
asked for a side dish we don t have on the menu? 38

CITY GARAGE EXAMPLE City Garage, a 200-employee chain of 25 auto ser-

vice and repair shops in Dallas Fort Worth, implemented a computerized testing
program to improve its operations. The original hiring process consisted of a
paper-and-pencil application and one interview, immediately followed by a
hire/don t hire decision. The result was high turnover. This inhibited the firm s
growth strategy.
City Garage s solution was to purchase the Personality Profile Analysis online test
from Thomas International USA. After a quick application and background check, likely
candidates take the 10-minute, 24-question PPA. City Garage staff then enter the answers
into the PPA Software system, and test results are available in less than 2 minutes.
These show whether the applicant is high or low in four personality characteristics; it
also produces follow-up questions about areas that might cause problems. For example,
applicants might be asked how they handled possible weaknesses such as lack of patience
in the past. If candidates answer those questions satisfactorily, they re asked back for
extensive, all-day interviews, after which hiring decisions are made.

Computerized and Online Testing

As you can see, computerized and/or online testing is increasingly replacing
conventional paper-and-pencil tests. Such tests are also becoming more sophisticated.
For example, PreVisor (www.previsor.com/) offers online adaptive personality tests.
As a candidate answers each question, these tests adapt the next question to the test
taker s answers to the previous question. This improves test validity and may reduce
cheating. For example, it makes it more unlikely that candidates can share test ques-
tions (since each candidate gets what amounts to a custom-made test).39 Service
firms like Unicru process and score online preemployment tests from employers
applicants. The applicant tracking systems we discussed in Chapter 5 often include an
online prescreening test.40 Most of the tests we describe on the following pages are
available in computerized form.Vendors are making tests available for applicants
to take via their iPhones. For example, www.iphonetypingtest.com offers an online
typing test you can take on an iPhone.41
186 PART 2 RECRUITMENT, PLACEMENT, AND TALENT MANAGEMENT

The Web site iphonetypingtest.

com offers an online typing test
you can take on an iPhone.

Source: www.iphonetypingtest.com, accessed March 23, 2009. Used with permission of All Holdings, LTD.

5 List eight tests you could

TYPES OF TESTS
use for employee selection, We can conveniently classify tests according to whether they measure cognitive (mental)
and how you would use abilities, motor and physical abilities, personality and interests, or achievement.42 We ll
them. look at each.

Tests of Cognitive Abilities

Cognitive tests include tests of general reasoning ability (intelligence) and tests of
specific mental abilities like memory and inductive reasoning.

INTELLIGENCE TESTS Intelligence (IQ) tests are tests of general intellectual abil-
ities. They measure not a single trait but rather a range of abilities, including memory,
vocabulary, verbal fluency, and numerical ability. An adult s IQ score is a derived
score. It reflects the extent to which the person is above or below the average adult s
intelligence score.
 CHAPTER 6 EMPLOYEE TESTING AND SELECTION 187

FIGURE 6-6
Type of Question Applicant
Might Expect on a Test of
Mechanical Comprehension Which gear will turn the
same way as the driver?

DRIVER

A B

Intelligence is often measured with individually administered tests like the

Stanford-Binet Test or the Wechsler Test. Employers can administer other IQ tests
such as the Wonderlic to groups of people. Other intelligence tests include the
Kaufman Adolescent and Adult Intelligence Test, the Slosson Intelligence Test, and the
Comprehensive Test of Nonverbal Intelligence. In a study of firefighter trainees
performance over 23 years, the researchers found that testing consisting of a measure
of general intellectual ability and a physical ability assessment was highly predictive
of firefighter trainee performance.43

SPECIFIC COGNITIVE ABILITIES There are also measures of specific mental

abilities, such as deductive reasoning, verbal comprehension, memory, and numerical
ability.
Psychologists often call such tests aptitude tests, since they purport to measure
aptitude for the job in question. Consider the Test of Mechanical Comprehension in
Figure 6-6, which tests applicants understanding of basic mechanical principles.
This may reflect a person s aptitude for jobs like that of machinist or engineer
that require mechanical comprehension. Other tests of mechanical aptitude include
the Mechanical Reasoning Test and the SRA Test of Mechanical Aptitude. The
revised Minnesota Paper Form Board Test consists of 64 two-dimensional diagrams
cut into separate pieces. It provides insights into an applicant s mechanical spatial
ability; you d use it for screening applicants for jobs such as designers, draftspeople,
or engineers.

Tests of Motor and Physical Abilities

You might also want to measure motor abilities, such as finger dexterity, manual dexter-
ity, and (if hiring pilots) reaction time. The Crawford Small Parts Dexterity Test is an
example. It measures the speed and accuracy of simple judgment as well as the speed of
finger, hand, and arm movements. Other tests include the Stromberg Dexterity Test, the
Minnesota Rate of Manipulation Test, and the Purdue Peg Board.
Tests of physical abilities may also be required. These include static strength (such
as lifting weights), dynamic strength (like pull-ups), body coordination (as in jumping
rope), and stamina.44 Thus applicants for the U.S. Marines must pass its Initial
Strength Test (2 pull ups, 35 sit-ups, and a 1.5 mile run).

Measuring Personality and Interests

A person s cognitive and physical abilities alone seldom explain his or her job perform-
ance. Other factors, like motivation and interpersonal skills, are very important. As one
consultant put it, most people are hired based on qualifications, but most are fired for
nonperformance. And nonperformance is usually the result of personal characteristics,
such as attitude, motivation, and especially, temperament. 45 Even some online dating
services, like eHarmony.com, have prospective members take online personality tests
and reject those who its software judges as unmatchable.46

WHAT DO PERSONALITY TESTS MEASURE? Personality tests measure basic

aspects of an applicant s personality, such as introversion, stability, and motivation.
188 PART 2 RECRUITMENT, PLACEMENT, AND TALENT MANAGEMENT

Some of these tests are projective. The psychologist presents an ambiguous

stimulus (like an inkblot or clouded picture) to the person. The person then reacts
to it. Since the pictures are ambiguous, the person supposedly projects into the
picture his or her attitudes. A security-oriented person might describe the ink blot
in Figure 6-2 (page 178) as A giant insect coming to get me. Other projective tech-
niques include Make a Picture Story (MAPS), and the Forer Structured Sentence
Completion Test.
Other personality tests are self-reported: applicants fill them out themselves.
Figure 6-7 is an example. Thus, the Guilford-Zimmerman survey measures personality
traits like emotional stability versus moodiness, and friendliness versus criticalness.
The Minnesota Multiphasic Personality Inventory (MMPI) taps traits like hypochon-
dria and paranoia. Available online, the Myers-Briggs test provides a personality type
classification useful for decisions such as career selection and planning.47

FIGURE 6-7 Sample Online

Personality Test Questions

Source: Elaine Pulakos, Selection

Assessment Methods, SHRM
Foundation, 2005, p. 9.
 CHAPTER 6 EMPLOYEE TESTING AND SELECTION 189

THE BIG FIVE What traits to measure? Industrial psychologists often focus on
the big five personality dimensions: extraversion, emotional stability/neuroticism,
agreeableness, conscientiousness, and openness to experience.48
Neuroticism represents a tendency to exhibit poor emotional adjustment and
experience negative effects, such as anxiety, insecurity, and hostility. Extraversion
represents a tendency to be sociable, assertive, active, and to experience positive
effects, such as energy and zeal. Openness to experience is the disposition to
be imaginative, nonconforming, unconventional, and autonomous. Agreeableness
is the tendency to be trusting, compliant, caring, and gentle. Conscientiousness is
comprised of two related facets: achievement and dependability.49

DO PERSONALITY TESTS PREDICT PERFORMANCE? It seems to make

sense that personality tests would predict performance. After all, wouldn t an extro-
verted person do better in sales?
In fact, personality traits do often correlate with job performance. In one study,
extraversion, conscientiousness, and openness to experience were strong predictors
of leadership.50 In another study, neuroticism was negatively related to motivation,
while conscientiousness was positively related to it.51 And, in personality research,
conscientiousness has been the most consistent and universal predictor of job
performance. 52 So to paraphrase Woody Allen, it does seem that 90% of success is
just showing up.
Other traits correlate with occupational success. For example, extraversion
correlates with success in sales and management jobs.53 The responsibility, socializa-
tion, and self-control scales of the California Psychological Inventory predicted
dysfunctional job behaviors among law enforcement officers.54 Emotional stability,
extroversion, and agreeableness predicted whether expatriates would leave their
overseas assignments early.55

CAVEATS However, there are three caveats. First, projective tests are hard to inter-
pret. An expert must analyze the test taker s interpretations and infer from them his
or her personality. The test s usefulness then assumes there s a measurable relation-
ship between a personality trait (like introversion) and success on the job.
Second, personality tests can trigger legal challenges. For example, one court held
that the MMPI is a medical test (because it can screen out applicants with psychological
impairments), and so might violate the ADA.56
Third, some dispute that self-report personality tests predict performance at all.
The journal Personnel Psychology convened a panel of distinguished industrial
psychologists that said using self-report personality tests in selection should be recon-
sidered [due to low validity]. 57 Other experts call such concerns unfounded. 58 At a
minimum, make sure that any personality tests you use predict performance.

INTEREST INVENTORIES Interest inventories compare one s interests with those

of people in various occupations. Thus, a person who takes the Strong-Campbell Inter-
ests Inventory would receive a report comparing his or her interests to those of people
already in occupations like accounting, engineering, or management. Someone taking
the self-administered Self-Directed Search (SDS) (www.self-directed-search.com)
receives an interests code to use in identifying likely high-potential occupations.
Interest inventories have many uses.59 They re irreplaceable in career planning,
since a person will likely do better in jobs that involve activities in which he or she is
interested. They re also useful in selection. If you can select people whose interests are

interest inventory
A personal development and selection
device that compares the person s current
interests with those of others now in various
occupations so as to determine the preferred
occupation for the individual.
190 PART 2 RECRUITMENT, PLACEMENT, AND TALENT MANAGEMENT

roughly the same as those of successful incumbents in the jobs for which you re
recruiting, it s more likely that those applicants will be successful.

Achievement Tests
Achievement tests measure what someone has learned. Most of the tests you take
in school are achievement tests. They measure your job knowledge in areas like
economics, marketing, or human resources. Achievement tests are also popular at work.
For example, the Purdue Test for Machinists and Machine Operators tests the job
knowledge of experienced machinists with questions like What is meant by tolerance ?
Some achievement tests measure the applicant s abilities; a typing test is one example.

WORK SAMPLES AND SIMULATIONS

With work samples, you present examinees with situations representative of the job
for which they re applying, and evaluate their responses.60 Experts consider these
(and simulations, like the assessment centers we also discuss in this section) to be
tests. However, they differ from most tests, because they measure job performance
directly. For example, work samples for a cashier may include operating a cash register
and counting money.61

6 Give two examples of work

Using Work Sampling for Employee Selection
sample/simulation tests. The work sampling technique tries to predict job performance by requiring job candi-
dates to perform one or more samples of the job s tasks.
Work sampling has several advantages. It measures actual job tasks, so it s harder
to fake answers. The work sample s content the actual tasks the person must per-
form is not as likely to be unfair to minorities (as might a personnel test that possi-
bly emphasizes middle-class concepts and values).62 Work sampling doesn t delve
into the applicant s personality, so there s almost no chance of applicants viewing it as
an invasion of privacy. Designed properly, work samples also exhibit better validity
than do other tests designed to predict performance.

BASIC PROCEDURE The basic procedure is to select a sample of several tasks

crucial to performing the job, and then to test applicants on them.63 An observer
monitors performance on each task, and indicates on a checklist how well the appli-
cant performs. Here is an example. In creating a work sampling test for maintenance
mechanics, experts first listed all possible job tasks (like install pulleys and belts and
install and align a motor ). Four crucial tasks were installing pulleys and belts, dis-
assembling and installing a gearbox, installing and aligning a motor, and pressing a
bushing into a sprocket.
They then broke down these four tasks into the steps required to complete each
step. Mechanics could perform each step in a slightly different way, of course. Since
some approaches were better than others, the experts gave a different weight to differ-
ent approaches.
Figure 6-8 shows one of the steps required for installing pulleys and belts
checks key before installing. As the figure shows, possible approaches here include
checking the key against (1) the shaft, (2) the pulley, or (3) neither. The right of the
figure lists the weights (scores) reflecting the worth of each method. The applicant
performs the task, and the observer checks off the approach used.

FIGURE 6-8 Example of a

Work Sampling Question Checks key before installing against:
shaft score 3
pulley score 2
neither score 1
Note: This is one step in installing pulleys and belts.
 CHAPTER 6 EMPLOYEE TESTING AND SELECTION 191

Situational Judgment Tests

Situational judgment tests are personnel tests designed to assess an applicant s judg-
ment regarding a situation encountered in the workplace. As an example, You are
facing a project deadline and are concerned that you may not complete the project
by the time it is due. It is very important to your supervisor that you complete a
project by the deadline. It is not possible to get anyone to help you with the work.
You would:64
a. Ask for an extension of the deadline
b. Let the supervisor know that you may not meet the deadline
c. Work as many hours it as it takes to get the job done by the deadline
d. Explore different ways to do the work so it can be completed by the deadline
e. On the date it is due, hand in what you have done so far
f. Do the most critical parts of the project by the deadline and complete the
remaining parts after the deadline
g. Tell your supervisor that the deadline is unreasonable
h. Give your supervisor an update and express your concern about your ability to
complete the project by the deadline
i. Quit your job
Situational judgment tests are effective and widely used.65

Management Assessment Centers

A management assessment center is a 2- to 3-day simulation in which 10 to 12
candidates perform realistic management tasks (like making presentations) under
the observation of experts who appraise each candidate s leadership potential. The
center itself may be a simple conference room, but more likely a special room with
a one-way mirror to facilitate observation. Many firms use assessment centers. For
example, The Cheesecake Factory created its Professional Assessment and Develop-
ment Center to help select promotable managers. Candidates spend 2 days of
exercises, simulations, and classroom learning to see if they have the skills for key
management positions.66
Typical simulated tasks include:
* The in-basket. This exercise confronts the candidate with an accumulation of
reports, memos, notes of incoming phone calls, letters, and other materials
collected in the actual or computerized in-basket of the simulated job he or she is
about to start. The candidate must take appropriate action on each item. Trained
evaluators then review the candidate s efforts.
* Leaderless group discussion. Trainers give a leaderless group a discussion question
and tell members to arrive at a group decision. They then evaluate each group
member s interpersonal skills, acceptance by the group, leadership ability, and
individual influence.
* Management games. Participants solve realistic problems as members of simulated
companies competing in a marketplace.
* Individual presentations. Here trainers evaluate each participant s communication
skills and persuasiveness by having each make an assigned oral presentation.

work samples work sampling technique management assessment center

Actual job tasks used in testing applicants A testing method based on measuring A simulation in which management
performance. performance on actual basic job tasks. candidates are asked to perform realistic
tasks in hypothetical situations and are
scored on their performance. It usually
also involves testing and the use
of management games.
192 PART 2 RECRUITMENT, PLACEMENT, AND TALENT MANAGEMENT

* Objective tests. An assessment center typically includes tests of personality, mental

ability, interests, and achievements.
* The interview. Most also require an interview between at least one trainer and
each participant, to assess the latter s interests, past performance, and motivation.
Supervisor recommendations usually play a big role in choosing center partici-
pants. Line managers usually act as assessors and typically arrive at their ratings
through consensus.67

EFFECTIVENESS Most experts view assessment centers as effective for selecting

management candidates, but are they worth their cost? They are expensive to develop,
take much longer than conventional tests, require managers acting as assessors, and
often require psychologists. However, studies suggest they are worth it.68 One study of
40 police candidates found that: Assessment center performance shows a unique and
substantial contribution to the prediction of future police work success, justifying
the usage of such method. In this study, peers evaluations of candidates during the
center proved especially useful.69

Situational Testing and Video-Based Situational Testing

Situational tests require examinees to respond to situations representative of the job.
Work sampling (discussed earlier) and some assessment center tasks (such as in-
baskets) fall in this category. So do video-based tests and miniature job training
(described next), and the situational interviews we address in Chapter 7.70
The video-based simulation presents the candidate with several online or
PC-based video situations, each followed by one or more multiple-choice questions.
For example, the scenario might depict an employee handling a situation on the job.
At a critical moment, the scenario ends and the video asks the candidate to choose
from several courses of action. For example:
(A manager is upset about the condition of the department and takes it out on one
of the department s employees.)
Manager: Well, I m glad you re here.
Associate: Oh? Why is that?
Manager: Look at this place, that s why! I take a day off and come back to find
the department in a mess. You should know better.
Associate: But I didn t work late last night.
Manager: Maybe not. But there have been plenty of times before when you ve
left this department in a mess.
(The scenario stops here.)
If you were this associate, what would you do?
a. Let the other associates responsible for the mess know that you had to take the
heat.
b. Straighten up the department, and try to reason with the manager later.
c. Suggest to the manager that he talk to the other associates who made the mess.
d. Take it up with the manager s boss.71

Computerized Multimedia Candidate Assessment Tools

Employers increasingly use computerized multimedia candidate assessment tools.
Development Dimensions International developed a multimedia skill test that Ford
Motor Company uses for hiring assembly workers. The company can test everything
from how people tighten the ball, to whether they followed a certain procedure
correctly, to using a weight-sensitive mat on the floor that, when stepped on at the
wrong time, will mark a candidate down in a safety category. 72
 CHAPTER 6 EMPLOYEE TESTING AND SELECTION 193

The Miniature Job Training and Evaluation Approach

Miniature job training and evaluation means training candidates to perform several
of the job s tasks, and then evaluating the candidates performance prior to hire. The
approach assumes that a person who demonstrates that he or she can learn and perform
the sample of tasks will be able to learn and perform the job itself. Like work sampling,
miniature job training and evaluation tests applicants with actual samples of the job, so
it s inherently content relevant and valid. The big problem is the expense involved in the
instruction and training.

HONDA EXAMPLE When Honda built a new plant in Alabama, it had to hire
thousands of new employees. Honda s recruiting ad sought applicants for a free train-
ing program Honda was offering as a precondition for applying for jobs at the new
plant. Applicants needed at least a high school diploma or GED, employment for the
past 2 years with no unexplainable gaps, and Alabama residency. Eighteen thousand
people applied.
First Honda and the Alabama state employment agency screened the applicants
by eliminating those who lacked the education or experience. They then gave prefer-
ence to applicants near the plant. About 340 applicants per 6-week session received
special training at a new facility, two evenings a week. This included classroom
instruction, videos of Honda employees in action, and actually practicing particular
jobs. (Thus, miniature job training and evaluation. ) Some candidates who watched
the videos dropped out after seeing the work s pace.
During training, Alabama state agency assessors scrutinized and
rated the trainees. They then invited those who graduated to apply for
plant jobs. Honda employees (from HR and departmental representa-
tives) then interviewed the candidates, reviewed their training records,
and decided who to hire. New employees take a one-time drug test, but
no other paper-and-pencil tests or credentials are required. New hires
receive a 3-day orientation. Then, assistant managers in each depart-
ment coordinate their day-to-day training.73

Realistic Job Previews

Sometimes, a dose of realism makes the best screening tool. For exam-
ple, Walmart found that many new associates quit within the first 90
days. When Walmart began explicitly explaining and asking about
Source: Issei Kato/Reuters Pictures Americas.

work schedules and work preferences, turnover improved.74 In gen-

eral, applicants who receive realistic job previews are more likely to
turn down job offers, but firms are more likely to have lower
turnover.75

HR in Practice: Testing Techniques for Managers

You may find that, even in large companies, when it comes to screening
employees, you re on your own. The human resource department may
work with you to design and administer screening tests. But more often
Employers such as Honda first train and then HR may do little more than the recruiting and some prescreening (such as
have applicants perform several of the job tasks,
typing tests for clerical applicants), and run background checks and drug
and then evaluate the candidates before hiring
them.
and physical exams.
Suppose you are, say, the marketing manager, and you want to
screen your job applicants more formally. You could buy your own

situational test video-based simulation miniature job training and evaluation

A test that requires examinees to respond A situational test in which examinees Training candidates to perform several of the
to situations representative of the job. respond to video simulations of realistic job job s tasks, and then evaluating the candi-
situations. dates performance prior to hire.
194 PART 2 RECRUITMENT, PLACEMENT, AND TALENT MANAGEMENT

TABLE 6-1 Evaluation of Selected Assessment Methods

Costs (Develop/
Assessment Method Validity
* Adverse Impact Administer)

Cognitive ability tests High High (against minorities) Low/low

Job knowledge test High High (against minorities) Low/low
Personality tests Low to moderate Low Low/low
Integrity tests Moderate to high Low Low/low
Structured interviews High Low High/high
Situational judgment tests Moderate Moderate (against minorities) High/low
Work samples High Low High/high
Assessment centers Moderate to high Low to moderate, depending on exercise High/high
Physical ability tests Moderate to high High (against females and older workers) High/high

Source: Elaine Pulakos, Selection Assessment Methods, SHRM Foundation, 2005, p. 17. Reprinted by permission of Society for Human Resource Management
via Copyright Clearance Center.

test battery. However, using packaged intelligence tests may violate company pol-
icy, raise validity questions, and even expose your employer to EEO liability.
A preferred approach is to devise and use screening tools, the validity of which
is obvious ( face validity. ) For example, create a work sampling test. Thus, it is
reasonable for the marketing manager to ask an advertising applicant to spend an
hour designing an ad, or to ask a marketing research applicant to spend a half hour
outlining a marketing research program for a hypothetical product.

Summary
The employer needs to consider several things before deciding to use a particular selection
tool. These include the tool s reliability and validity, its return on investment (in terms of
utility analysis), applicant reactions, usability (in terms of your managers and employees
willingness and ability to use it), adverse impact, and the tool s selection ratio
(does it screen out, as it should, a high percentage of applicants or admit virtually all?).76
Table 6-1 summarizes the validity, potential adverse impact, and cost of several popular
assessment methods.

7 Explain the key points

BACKGROUND INVESTIGATIONS AND OTHER
to remember in conducting SELECTION METHODS
background investigations.
Testing is only part of an employer s selection process. Other tools may include back-
ground investigations and reference checks, preemployment information services, hon-
esty testing, graphology, and substance abuse screening.

Why Perform Background Investigations

and Reference Checks?
One of the easiest ways to avoid hiring mistakes is to check the candidate s background
thoroughly. Doing so is cheap and (if done right) useful. There s usually no reason why
even supervisors in large companies can t check the references of someone they re about
to hire, as long as they know the rules.
Most employers therefore check and verify the job applicant s background
information and references. In one survey of about 700 human resource managers,
 CHAPTER 6 EMPLOYEE TESTING AND SELECTION 195

87% said they conduct reference checks, 69% conduct background employment
checks, 61% check employee criminal records, 56% check employees driving
records, and 35% sometimes or always check credit.77 Commonly verified data
include legal eligibility for employment (in compliance with immigration laws),
dates of prior employment, military service (including discharge status), educa-
tion, identification (including date of birth and address to confirm identity),
county criminal records (current residence, last residence), motor vehicle
record, credit, licensing verification, Social Security number, and reference
checks.78 Some employers are checking executive candidates civil litigation
records, with the candidate s prior approval. 79 As of 2010, Massachusetts and
Hawaii prohibit private employers from asking about criminal records on initial
written applications.80

WHY CHECK? There are two main reasons to check backgrounds to verify the
applicant s information (name and so forth) and to uncover damaging information.81
Lying on one s application isn t unusual. A survey found that 23% of 7,000 executive
résumés contained exaggerated or false information.82
Even relatively sophisticated companies fall prey to criminal employees, in part
because they haven t conducted proper background checks. In Chicago, a pharma-
ceutical firm discovered it had hired gang members in mail delivery and computer
repair. The crooks were stealing close to a million dollars a year in computer parts,
and then using the mail department to ship them to a nearby computer store they
owned.83
How deeply you search depends on the position you seek to fill. For example, a
credit and education check is more important for hiring an accountant than
a groundskeeper. In any case, also periodically check the credit ratings of employees
(like cashiers) who have easy access to company assets, and the driving records
of employees who routinely use company cars.

EFFECTIVENESS Most managers don t view references as very useful. This makes
sense, given that few employers will talk freely about former employees. For example,
in one 2010 poll, the Society for Human Resource Management (SHRM) found that
98% of 433 responding members said their organizations would verify dates of
employment for current or former employees. However, 68% said they wouldn t
discuss work performance; 82% said they wouldn t discuss character or personality;
and 87% said they wouldn t disclose a disciplinary action.84
It s obvious why background checks have bad reputations. Many supervisors
don t want to damage a former employee s chances for a job; others might prefer
giving an incompetent employee good reviews if it will get rid of him or her.
The other reason is legal. Employers providing references generally can t be
successfully sued for defamation unless the employee can show malice that is, ill
will, culpable recklessness, or disregard of the employee s rights.85 But the managers
and companies providing the references understandably still don t want the grief.
Let s look at why.

The Legal Dangers and How to Avoid Them

In practice (as most people instinctively know), giving someone a bad reference can
drag you into a legal mess. For example, if the courts believe you gave the bad reference
to retaliate for the employee previously filing an EEOC claim, they might let him or her
sue you.86

DEFAMATION That is just the tip of the iceberg. Being sued for defamation is the
real danger. First-line supervisors and managers, not just employers, are potentially at
risk. Various federal laws87 give individuals and students the right to know the nature
and substance of information in their credit files and files with government agencies,
and to review records pertaining to them from any private business that contracts
196 PART 2 RECRUITMENT, PLACEMENT, AND TALENT MANAGEMENT

with a federal agency. So, it s quite possible the person you re describing will see your
comments and decide you defamed him or her. Common law (in particular, the tort
of defamation) applies to any information you supply. A communication is
defamatory if it is false and tends to harm the reputation of another by lowering
the person in the estimation of the community or by deterring other persons from
associating or dealing with him or her.
The person alleging defamation has various legal remedies, including suing the
source of the reference for defamation.88 In one case, a court awarded a man
$56,000 after a company turned him down for a job because, among other things,
the former employer called him a character. As if that s not enough, there are
companies that, for a small fee, will call former employers on behalf of employees
who believe they re getting bad references. One supervisor thought his previous
employer might bad-mouth him. He hired BadReferences.com to investigate.
BadReferences.com (which uses trained court reporters for its investigations) found
that a supervisor at the company suggested that the employee was a little too
obsessive . . . and not comfortable with taking risks, or making big decisions.
The former employee sued his previous employer, demanding an end to defamation
and $45,000 in compensation.89

PRIVACY Furthermore, truth is not always a defense. Thus in some states, employees
can sue employers for disclosing to a large number of people true but embarrassing
private facts about the employee. Here truth is no defense.
One case involved a supervisor in a shouting match with an employee. The
supervisor yelled out that the employee s wife had been having sexual relations with
certain people. The employee and his wife sued the employer for invasion of
privacy. The jury found the employer liable for invasion of the couple s privacy. It
awarded damages to both of them, as well as damages for the couple s additional
claim that the supervisor s conduct amounted to an intentional infliction of
emotional distress.90
The net result is that most employers and managers are very restrictive about who
can give references, and what they can say. As a rule, only authorized managers should
provide information. Other suggestions include Don t volunteer information,
Avoid vague statements, and Do not answer trap questions such as, Would you
rehire this person? In practice, many firms have a policy of not providing any
information about former employees except for their dates of employment, last
salary, and position titles.91
However, not disclosing relevant information can be dangerous, too. In one
Florida case, a company fired an employee for allegedly bringing a handgun to work.
After his next employer fired him (for absenteeism), he returned to that company and
shot several employees before taking his own life. The injured parties and the relatives
of the murdered employees sued the previous employer, who had provided the
employee with a clean letter of recommendation allegedly because that first employer
didn t want to anger the employee over his firing.

How to Check a Candidate s Background

Which brings us back to this point: In practice, the references you receive may not be
useful. There are several things that managers and employers can do to get better
information.
Most employers at least try to verify an applicant s current (or former) position
and salary with his or her current (or former) employer by phone (assuming you
cleared doing so with the candidate). Others call the applicant s current and previ-
ous supervisors to try to discover more about the person s motivation, technical
competence, and ability to work with others (although again, many employers have
policies against providing such information). Figure 6-9 shows one form you can
use for phone references. Some employers get background reports from commercial
credit rating companies for information about credit standing, indebtedness,
 CHAPTER 6 EMPLOYEE TESTING AND SELECTION 197

FIGURE 6-9 Reference

Checking Form (Verify that the applicant has provided permission before conducting reference checks.)

Source: Society for Human Resource Candidate

Management, © 2004. Reproduced Name
with permission of Society for
Human Resource Management. Reference
Name

Company
Name

Dates of Employment
From: To:

Position(s)
Held

Salary
History

Reason for
Leaving

Explain the reason for your call and verify the above information with the supervisor (including the reason
for leaving)

1. Please describe the type of work for which the candidate was responsible.

2. How would you describe the applicant s relationships with coworkers, subordinates (if applicable), and
with superiors?

3. Did the candidate have a positive or negative work attitude? Please elaborate.

4. How would you describe the quantity and quality of output generated by the former employee?

5. What were his/her strengths on the job?

6. What were his/her weaknesses on the job?

7. What is your overall assessment of the candidate?

8. Would you recommend him/her for this position? Why or why not?

9. Would this individual be eligible for rehire? Why or why not?

Other comments?

reputation, character, and lifestyle. (Others check social network sites, as we will
see in a moment.)
More employers are automating their reference checking process. Instead of the
employer calling the references, the recruiter sends an e-mail link to each candidate.
198 PART 2 RECRUITMENT, PLACEMENT, AND TALENT MANAGEMENT

The candidate then uses this link to contact five or more of his or her references,
asking them to fill out a tailored online questionnaire. Special vendors then compile
this information and create analytical reports for the employer.92

The Social Network: Checking Applicants Social Postings

More employers are Googling applicants or checking social networking sites. After
such online searches, recruiters found that 31% of applicants had lied about their
qualifications and 19% had posted information about their drinking or drug use.93
On Facebook.com, one employer found that a candidate had described his interests
as smoking pot and shooting people. The student may have been kidding, but
didn t get the job.94 An article called References You Can t Control notes that you
can use social networking sites to identify an applicant s former colleagues, and
thus contact them.95
Googling is probably safe enough, but checking social networking sites raises
legal issues. For example, while the Fair Credit Reporting Act refers more to
getting official reports, it s probably best to get the candidate s prior approval for
social networking searches.96 And, of course, do not use a pretext or fabricate an
identity.97

HR IN PRACTICE: MAKING THE BACKGROUND CHECK MORE VALUABLE

Is there any way to obtain better information? Yes.
* First, include on the application form a statement for applicants to sign explicitly
authorizing a background check, such as:
I hereby certify that the facts set forth in the above employment application
are true and complete to the best of my knowledge. I understand that falsified
statements or misrepresentation of information on this application or omis-
sion of any information sought may be cause for dismissal, if employed,
or may lead to refusal to make an offer and/or to withdrawal of an offer. I also
authorize investigation of credit, employment record, driving record, and,
once a job offer is made or during employment, workers compensation
background if required.
* Second (since telephone references apparently produce assessments that are more
candid), it s probably best to rely on telephone references. Use a form, such as the
one in Figure 6-9. Remember that you can get relatively accurate information
regarding dates of employment, eligibility for rehire, and job qualifications. It s
more difficult to get other background information (such as reasons for leaving a
previous job).98
* Third, persistence and attentiveness to potential red flags improves results. For
example, if the former employer hesitates or seems to qualify his or her answer
when you ask, Would you rehire? don t just go on to the next question. Try to
unearth what the applicant did to make the former employer pause. If he says,
Joe requires some special care, say, Special care?
* Fourth, compare the application to the résumé; people tend to be more imagina-
tive on their résumés than on their application forms, where they must certify the
information.
* Fifth, try to ask open-ended questions (such as, How much structure does the
applicant need in his/her work? ) in order to get the references to talk more about
the candidate.99 But in asking for information:
Only ask for and obtain information that you re going to use.
Remember that using arrest information is highly suspect.
Use information that is specific and job related.
Keep information confidential.
 CHAPTER 6 EMPLOYEE TESTING AND SELECTION 199

* Sixth, use the references offered by the applicant as a source for other references.
You might ask each of the applicant s references, Could you give me the name of
another person who might be familiar with the applicant s performance? In that
way, you begin getting information from references that may be more objective,
because they did not come directly from the applicant.

Using Preemployment Information Services

It is easy to have employment screening services check out applicants. Major employ-
ment screening providers include ADP (www.ADP.com), Employment Background
Investigations (www.ebinc.com), First Advantage (www.FADV.com/employer),
Hireright (www.hireright.com), and Talentwise (www.talentwise.com).100 They use
databases to access information about matters such as workers compensation and
credit histories, and conviction and driving records. For example, a South Florida
firm advertises that for less than $50 it will do a criminal history report, motor
vehicle/driver s record report, and (after the person is hired) a workers compensation
claims report history, plus confirm identity, name, and Social Security number. There
are thousands of databases and sources for finding background information, includ-
ing sex offender registries, and criminal and educational histories.

USE CAUTION There are two reasons to use caution when delving into an appli-
cant s criminal, credit, and workers compensation histories.101 First (as discussed in
Chapter 2), it can be tricky complying with EEO laws. For example, the ADA
prohibits employers from making preemployment inquiries into the existence,
nature, or severity of a disability. Therefore, asking about a candidate s previous
workers compensation claims before offering the person a job is usually unlawful.
Similarly, asking about arrest records may be discriminatory. Never authorize an
unreasonable investigation.
Second, various federal and state laws govern how employers acquire and use
applicants and employees background information. At the federal level, the Fair
Credit Reporting Act is the main directive. In addition, at least 21 states impose their
own requirements. Compliance with these laws essentially involves four steps, as
follows:
STEP 1: DISCLOSURE AND AUTHORIZATION. Before requesting reports, the
employer must disclose to the applicant or employee that a report will be requested
and that the employee/applicant may receive a copy. (Do this on the application.)
STEP 2: CERTIFICATION. The employer must certify to the reporting agency that
the employer will comply with the federal and state legal requirements for example,
that the employer obtained written consent from the employee or applicant.
STEP 3: PROVIDING COPIES OF REPORTS. Under federal law, the employer must
provide copies of the report to the applicant or employee if adverse action (such as
withdrawing an offer of employment) is contemplated.102
STEP 4: NOTICE AFTER ADVERSE ACTION. After the employer provides the
employee or applicant with copies of the consumer and investigative reports and a
reasonable period has elapsed, the employer may take an adverse action (such as
withdrawing an offer). If the employer anticipates taking an adverse action, the
employee or applicant must receive an adverse action notice. This notice contains
information such as the name of the consumer reporting agency. The employee/
applicant then has various remedies under the applicable laws.103

The Polygraph and Honesty Testing

Some firms still use the polygraph (or lie detector) for honesty testing, although the
law severely restricts its use. The polygraph is a device that measures physiological
200 PART 2 RECRUITMENT, PLACEMENT, AND TALENT MANAGEMENT

changes like increased perspiration. The assumption is that such changes reflect
changes in emotional state that accompany lying.
Complaints about offensiveness plus grave doubts about the polygraph s accuracy
culminated in the Employee Polygraph Protection Act of 1988.104 With a few excep-
tions, the law prohibits employers from conducting polygraph examinations of all job
applicants and most employees. (Also prohibited are other mechanical or electrical
devices that attempt to measure honesty or dishonesty, including psychological stress
evaluators and voice stress analyzers.) Federal laws don t prohibit paper-and-pencil
tests and chemical testing, as for drugs.

WHO CAN USE THE POLYGRAPH? Local, state, and federal government
employers (including the FBI) can use polygraphs, but state laws restrict many local
and state governments. Private employers can use polygraph testing, but only under
strictly limited circumstances. The latter include those with
* National defense or security contracts
* Nuclear power-related contracts with the Department of Energy
* Access to highly classified information
* Counterintelligence-related contracts with the FBI or Department of Justice
* Private businesses (1) hiring private security personnel, (2) hiring persons with
access to drugs, or (3) doing ongoing investigations involving economic loss or
injury to an employer s business, such as a theft
However, even if used for ongoing investigations of theft, the law restricts employers
rights. To administer a polygraph test for an ongoing investigation, an employer must
meet four standards:
1. First, the employer must show that it suffered an economic loss or injury.
2. Second, it must show that the employee in question had access to the property.
3. Third, it must have a reasonable suspicion before asking the employee to take the
polygraph.
4. Fourth, the employee must receive the details of the investigation before the test,
as well as the questions to be asked on the polygraph test.

PAPER-AND-PENCIL HONESTY TESTS The Polygraph Protection Act trig-

gered a burgeoning market for paper-and-pencil (or online) honesty tests. These are
psychological tests designed to predict job applicants proneness to dishonesty and
other forms of counterproductivity.105 Most measure attitudes regarding things like
tolerance of others who steal, acceptance of rationalizations for theft, and admission
of theft-related activities. Tests include the Phase II profile. London House, Inc., and
Stanton Corporation publish similar tests.106
Psychologists initially raised concerns about paper-and-pencil honesty tests, but
studies support these tests validity. One early study illustrates their potential useful-
ness. The study involved 111 employees hired by a convenience store chain to work at
store or gas station counters.107 The firm estimated that shrinkage equaled 3% of
sales, and believed that internal theft accounted for much of this. Scores on an
honesty test successfully predicted theft here, as measured by termination for theft.
One large review of such tests concluded that the pattern of findings regarding the
usefulness of such tests continues to be consistently positive. 108
CHECKING FOR HONESTY: WHAT YOU CAN DO With or without testing,
there s a lot a manager or employer can do to screen out dishonest applicants or
employees. Specifically:
* Ask blunt questions.109 Says one expert, there is nothing wrong with asking the
applicant direct questions, such as, Have you ever stolen anything from an
employer? Have you recently held jobs other than those listed on your applica-
tion? and, Is any information on your application misrepresented or falsified?
 CHAPTER 6 EMPLOYEE TESTING AND SELECTION 201

* Listen, rather than talk. Allow the applicant to do the talking so you can learn as
much about the person as possible.
* Do a credit check. Include a clause in your application giving you the right to
conduct background checks, including credit checks and motor vehicle reports.
* Check all employment and personal references.
* Use paper-and-pencil honesty tests and psychological tests.
* Test for drugs. Devise a drug-testing program and give each applicant a copy of
the policy.
* Establish a search-and-seizure policy and conduct searches. Give each applicant
a copy of the policy and require each to return a signed copy. The policy should
state, All lockers, desks, and similar property remain the property of the company
and may be inspected routinely.
Honesty testing still requires some caution. Having just taken and failed what is
fairly obviously an honesty test, the candidate may leave the premises feeling his or
her treatment was less than proper. Some honesty questions also pose invasion-
of-privacy issues. And there are state laws to consider. For instance, Massachusetts
and Rhode Island limit paper-and-pencil honesty testing.

Graphology
Graphology is the use of handwriting analysis to determine the writer s basic personality
traits. Graphology thus has some resemblance to projective personality tests, although
graphology s validity is highly suspect.
In graphology, the handwriting analyst studies an applicant s handwriting and
signature to discover the person s needs, desires, and psychological makeup. According
to the graphologist, the writing in Figure 6-10 exemplifies traits such as independence
and isolation.
Graphology s place in screening sometimes seems schizophrenic. Studies
suggest it is not valid, or that when graphologists do accurately size up candidates,
it s because they are also privy to other background information. Yet some firms
continue to swear by it. It tends to be popular in Europe, where countries like
France or Germany have one central graphology institute, which serves as the
certifying body. 110 Fike Corporation in Blue Springs, Missouri, a 325-employee
firm, uses profiles based on handwriting samples to design follow-up interviews.
Exchange Bank in Santa Rosa, California, uses it as one element for screening
officer candidates.111 Most experts shun it.

Human Lie Detectors

While perhaps no more valid than graphology, some employers are using so-called
human lie detectors. 112 These are experts who may (or may not) be able to identify
lying just by watching candidates. One Wall Street firm uses a psychologist and
former FBI agent. He sits in on interviews and watches for signs of candidate decep-
tiveness. Signs include pupils changing size (which often corresponds to emotions,
such as fear), irregular breathing (may flag nervousness), micro-expressions (quick
transitory facial expressions that may portray emotions such as fear), crossing legs
( liars typically try to distance themselves from an untruth ), and quick verbal
responses (possibly reflecting scripted statements).

Physical Exams
Once the employer extends the person a job offer, a medical exam is often the next step
in the selection (although it may also occur after the new employee starts work).
There are several reasons for preemployment medical exams: to verify that the appli-
cant meets the position s physical requirements, to discover any medical limitations you
202 PART 2 RECRUITMENT, PLACEMENT, AND TALENT MANAGEMENT

FIGURE 6-10 The Uptight

Personality

Source: www.graphicinsight.co.za/
writingsamples.htm#The%20Uptight%
20Personality%2, accessed March 28,
2009. Used with permission of www.
graphicinsight.co.za.

should consider in placing him or her, and to establish a baseline for future insurance or
workers compensation claims. By identifying health problems, the examination can also
reduce absenteeism and accidents and, of course, detect communicable diseases.
Under the Americans with Disabilities Act, an employer cannot reject someone
with a disability if he or she is otherwise qualified and can perform the essential job
functions with reasonable accommodation. Recall that the ADA permits a medical
exam during the period between the job offer and commencement of work if such
exams are standard practice for all applicants for that job category.113

Substance Abuse Screening

Many employers conduct drug screenings. The most common practice is to test
candidates just before they re formally hired. Many also test current employees
when there is reason to believe the person has been using drugs after a work
accident, or in the presence of obvious behavioral symptoms such as chronic
lateness. Some firms routinely administer drug tests on a random or periodic basis,
while others require drug tests when they transfer or promote employees to new
positions.114 Employers may use urine testing to test for illicit drugs, breath alcohol
tests to determine amount of alcohol in the blood, blood tests to measure alcohol
or drug in the blood at the time of the test, hair analyses to reveal drug history,
saliva tests for substances such as marijuana and cocaine, and skin patches to
determine drug use.115

SOME PRACTICAL CONSIDERATIONS Drug testing, while ubiquitous, is

neither as simple nor effective as it might first appear. First, no drug test is foolproof.
Some urine sample tests can t distinguish between legal and illegal substances; for
example, Advil can produce positive results for marijuana. Furthermore, there is a
swarm of products that promise to help employees (both male and female) beat drug
 CHAPTER 6 EMPLOYEE TESTING AND SELECTION 203

tests. 116 (Employers should view the presence of adulterants in a sample as a positive
test.) The alternative, hair follicle testing, requires a small sample of hair, which the
lab analyzes.117 But here, too, classified ads advertise chemicals to rub on the scalp
to fool the test.
There s also the question of what is the point.118 Unlike roadside breathalyzers
for DUI drivers, tests for drugs only show whether drug residues are present, not
impairment (or, for that matter, habituation or addiction).119 Some therefore argue
that testing is not justifiable on the grounds of boosting workplace safety.120 Many
feel the testing procedures themselves are degrading and intrusive. Many employers
reasonably counter that they don t want drug-prone employees on their premises.
Employers should choose the lab they engage to do the testing carefully.

LEGAL ISSUES Drug testing raises legal issues, too.121 Several federal (and many
state) laws affect workplace drug testing. As an example, under the ADA, a court would
probably consider a former drug user (who no longer uses illegal drugs and has success-
fully completed or is participating in a rehabilitation program) a qualified applicant
with a disability.122 Under the Drug Free Workplace Act of 1988, federal contractors
must maintain a workplace free from illegal drugs. Under the U.S. Department
of Transportation workplace regulations, firms with more than 50 eligible employees
in transportation industries (mass transit workers, school bus drivers, and so on) must
conduct alcohol testing on workers with sensitive or safety-related jobs.123

WHAT TO DO IF AN EMPLOYEE TESTS POSITIVE What should one do

when a job candidate tests positive? Most companies will not hire such candidates,
and a few will immediately fire current employees who test positive. Current employ-
ees have more legal recourse. Employers must tell them the reason for dismissal if the
reason is a positive drug test.124
Where sensitive jobs are concerned, courts tend to side with employers. In one
case, the U.S. Court of Appeals for the First Circuit ruled that Exxon acted properly in
firing a truck driver who failed a drug test. Exxon s drug-free workplace program
included random testing of employees in safety-sensitive jobs. The employee drove a
tractor-trailer carrying 12,000 gallons of flammable motor fuel and tested positive
for cocaine. The union representing the employee challenged the firing, and an
arbitrator reduced the penalty to a 2-month suspension. The appeals court reversed
the arbitrator s decision. It ruled that the employer acted properly in firing the truck
driver, given the circumstances.125

Complying with Immigration Law

Employees hired in the United States must prove they are eligible to work in the
United States. A person does not have to be a U.S. citizen to be employable. However,
employers should ask a person they re about to hire whether he or she is a U.S. citizen or
an alien lawfully authorized to work in the United States. To comply with this law,
employers should follow procedures outlined in the so-called I-9 Employment Eligibility
Verification form.126 More employers are using the federal government s voluntary elec-
tronic employment verification program, E-Verify.127 Federal contractors must use it.128

PROOF OF ELIGIBILITY Applicants can prove their eligibility for employment

in two ways. One is to show a document (such as a U.S. passport or alien registration
card with photograph) that proves both the person s identity and employment eligi-
bility. The other is to show a document that proves the person s identity, along with
a second document showing the person s employment eligibility, such as a work
permit.129 In any case, it s always advisable to get two forms of proof of identity from
everyone.
Some documents may be fakes. For example, a few years ago Immigration and
Naturalization Service (INS) agents seized more than 2 million counterfeit docu-
ments ranging from green cards and Social Security cards to driver s licenses, from
204 PART 2 RECRUITMENT, PLACEMENT, AND TALENT MANAGEMENT

nine different states. The federal government is tightening restrictions on hiring

undocumented workers. Realizing that many documents (such as Social Security
cards) are fakes, the government is putting the onus on employers to make sure whom
they re hiring. The Department of Homeland Security presses criminal charges
against suspected employer violators.130
Employers can protect themselves in several ways. First, they can use E-Verify. Then,
systematic background checks are important. Preemployment testing should include
employment verification, criminal record checks, drug screens, and reference checks. You
can verify Social Security numbers by calling the Social Security Administration.
Employers can avoid accusations of discrimination by verifying the documents of all
applicants, not just those they may think suspicious.131

AVOIDING DISCRIMINATION In any case, employers should not use the I-9
form to discriminate based on race or country of national origin. The requirement to
verify eligibility does not provide any basis to reject an applicant just because he or
she is a foreigner, not a U.S. citizen, or an alien residing in the United States, as long as
that person can prove his or her identity and employment eligibility. The latest I-9
forms contain a prominent antidiscrimination notice. 132

Improving Productivity Through HRIS

Using Automated Applicant Tracking and Screening Systems
The applicant tracking systems we introduced in Chapter 5 do more than compile
incoming Web-based résumés and track applicants during the hiring process. They
should also help with the testing and screening.
Thus, most employers also use their applicant tracking systems (ATS) to knock
out applicants who don t meet minimum, nonnegotiable job requirements, like
submitting to drug tests or holding driver s licenses.
Employers also use ATS to test and screen applicants online. This includes
skills testing (in accounting, for instance), cognitive skills testing (such as for mechan-
ical comprehension), and even psychological testing. For example, Recreation
Equipment, Inc., wanted to identify applicants who were team-oriented. Its applicant
tracking system helps it do that.133
Finally, the newer systems don t just screen out candidates, but discover hidden
talents. Thanks to the Internet, applicants often send their résumés out hoping a
shotgun approach will help them hit a match. For most employers, this is a screening
nuisance. But a good ATS can identify required talents in the applicant that even the
applicant didn t know existed when he or she applied.134

REVIEW
MyManagementLab Now that you have finished this chapter, go back to www.mymanagementlab.com to
continue practicing and applying the concepts you ve learned.

CHAPTER SECTION SUMMARIES

1. Careful employee selection is important for several 2. Whether you are administering tests or making decisions
reasons. Your own performance always depends on your based on test results, managers need to understand sev-
subordinates; it is costly to recruit and hire employees; eral basic testing concepts. Reliability refers to a test s
and mismanaging the hiring process has various legal consistency, while validity tells you whether the test is
implications including equal employment, negligent measuring what you think it s supposed to be measuring.
hiring, and defamation. Criterion validity means demonstrating that those who
 CHAPTER 6 EMPLOYEE TESTING AND SELECTION 205

do well on the test also do well on the job while content 5. Testing is only part of an employer s selection process;
validity means showing that the test constitutes a fair you also want to conduct background investigations
sample of the job s content. Validating a test involves ana- and other selection procedures.
lyzing the job, choosing the tests, administering the test, The main point of doing a background check is
relating your test scores and criteria, and cross-validating to verify the applicant s information and to uncover
and revalidating. Test takers have rights to privacy and potentially damaging information. However, care
feedback as well as to confidentiality. must be taken, particularly when giving a reference,
3. Whether administered via paper and pencil, by that the employee not be defamed and that his or
computer, or online, we discussed several main types of her privacy rights are maintained.
tests. Tests of cognitive abilities measure things like
reasoning ability and include intelligence tests and tests Given former employers reluctance to provide a
of specific cognitive abilities such as mechanical comprehensive report, those checking references
comprehension. There are also tests of motor and physi- need to do several things. Make sure the applicant
cal abilities, and measures of personality and interests. explicitly authorizes a background check, use a
With respect to personality, psychologists often focus on checklist or form for obtaining telephone references,
the big five personality dimensions: extroversion, and be persistent and attentive to potential red flags.
emotional stability/neuroticism, agreeableness, consci- Given the growing popularity of computerized
entiousness, and openness to experience. Achievement employment background databases, many or most
tests measure what someone has learned. employers use preemployment information services
4. With work samples and simulations, you present exam- to obtain background information.
inees with situations representative of the jobs for which For many types of jobs, honesty testing is essential
they are applying. One example is the management and paper-and-pencil tests have proven useful.
assessment center, a 2- to 3-day simulation in which Most employers also require that new hires, before
10 to 12 candidates perform realistic management tasks actually coming on board, take physical exams and
under the observation of experts who appraise each substance abuse screening. It s essential to comply
candidate s leadership potential. Video-based situational with immigration law, in particular by having the
testing and the miniature job training and evaluation candidate complete an I-9 Employment Eligibility
approach are two other examples. Verification Form and submit proof of eligibility.

DISCUSSION QUESTIONS
1. What is the difference between reliability and validity? believe might predict success in various occupations,
In what respects are they similar? including college professor, accountant, and computer
2. Explain how you would go about validating a test. How programmer.
can this information be useful to a manager? 5. Why is it important to conduct preemployment back-
3. Explain why you think a certified psychologist who is ground investigations? Outline how you would go about
specifically trained in test construction should (or doing so.
should not) be used by a small business that needs a test 6. Explain how you would get around the problem of
battery. former employers being unwilling to give bad references
4. Give some examples of how to use interest inventories on their former employees.
to improve employee selection. In doing so, suggest 7. How can employers protect themselves against negligent
several examples of occupational interests that you hiring claims?

INDIVIDUAL AND GROUP ACTIVITIES

1. Write a short essay discussing some of the ethical and 4. The HRCI Test Specifications appendix at the end of this
legal considerations in testing. book (pages 633 640) lists the knowledge someone study-
2. Working individually or in groups, develop a list of spe- ing for the HRCI certification exam needs to have in each
cific selection techniques that you would suggest your area of human resource management (such as in Strategic
dean use to hire the next HR professor at your school. Management, Workforce Planning, and Human Resource
Explain why you chose each selection technique. Development). In groups of four to five students, do four
3. Working individually or in groups, contact the publisher things: (1) review that appendix now; (2) identify the
of a standardized test such as the Scholastic Assessment material in this chapter that relates to the required knowl-
Test and obtain from it written information regarding edge the appendix lists; (3) write four multiple-choice
the test s validity and reliability. Present a short report in exam questions on this material that you believe would be
class discussing what the test is supposed to measure suitable for inclusion in the HRCI exam; and (4) if time
and the degree to which you think the test does what it permits, have someone from your team post your team s
is supposed to do, based on the reported validity and questions in front of the class, so the students in other
reliability scores. teams can take each others exam questions.
206 PART 2 RECRUITMENT, PLACEMENT, AND TALENT MANAGEMENT

EXPERIENTIAL EXERCISE
A Test for a Reservation Clerk
Purpose: The purpose of this exercise is to give you more alternative routes between the customer s starting
practice in developing a test to measure one specific ability point and destination.
for the job of airline reservation clerk for a major airline. If You may assume that we will hire about one-third of the
time permits, you ll be able to combine your tests into a test applicants as airline reservation clerks. Therefore, your
battery. objective is to create a test that is useful in selecting a third of
Required Understanding: Your airline has decided to out- those available.
source its reservation jobs to Asia. You should be fully
acquainted with the procedure for developing a personnel How to Set Up the Exercise/Instructions: Divide the class
test and should read the following description of an airline into teams of five or six students. The ideal candidate will
reservation clerk s duties: need to have a number of skills and abilities to perform this
job well. Your job is to select a single ability and to develop a
Customers contact our airline reservation clerks to test to measure that ability. Use only the materials available in
obtain flight schedules, prices, and itineraries. The reser- the room, please. The test should permit quantitative scoring
vation clerks look up the requested information on our and may be an individual or a group test.
airline s online flight schedule systems, which are updated
continuously. The reservation clerk must speak clearly, Please go to your assigned groups. As per our discussion
deal courteously and expeditiously with the customer, and of test development in this chapter, each group should make
be able to find quickly alternative flight arrangements in a list of the abilities relevant to success in the airline reserva-
order to provide the customer with the itinerary that fits tion clerk s job. Each group should then rate the importance
his or her needs. Alternative flights and prices must be of these abilities on a 5-point scale. Then, develop a test to
found quickly, so that the customer is not kept waiting, measure what you believe to be the top-ranked ability. If
and so that our reservations operations group maintains time permits, the groups should combine the various tests
its efficiency standards. It is often necessary to look from each group into a test battery. If possible, leave time for
under various routings, since there may be a dozen or a group of students to take the test battery.

APPLICATION CASE
THE INSIDER
In 2011, a federal jury convicted a stock trader who worked At lunch at the Four Seasons restaurant off Park
for a well-known investment firm, along with two alleged Avenue in Manhattan, the heads of several investment
accomplices, of insider trading. According to the indict- firms were discussing the conviction, and what they could
ment, the trader got inside information about pending do to make sure something like that didn t occur in their
mergers from lawyers. The lawyers allegedly browsed firms. It s not just compliance, said one, we ve got to
around their law firm picking up information about corpo- keep the bad apples from ever getting in the door. They ask
rate deals others in the firm were working on. The lawyers you for your advice.
would then allegedly pass their information on to a friend,
who in turn passed it on to the trader. Such inside infor-
mation reportedly helped the trader (and his investment Questions
firm) earn millions of dollars. The trader would then 1. We want you to design an employee selection program
allegedly thank the lawyers, for instance, with envelopes for hiring stock traders. We already know what to look
filled with cash. for as far as technical skills are concerned accounting
Of course, things like that are not supposed to happen. courses, economics, and so on. What we want is a pro-
Federal and state laws prohibit it. And investment firms gram for screening out potential bad apples. To that end,
have their own compliance procedures to identify and head please let us know the following: What screening test(s)
off, for instance, shady trades. The problem is that control- would you suggest, and why? What questions should we
ling such behavior once the firm has someone working for it add to our application form? Specifically, how should
who may be prone to engage in inside trading isn t easy. we check candidates backgrounds, and what questions
Better to avoid hiring such people in the first place, said should we ask previous employers and references?
one pundit. 2. What else (if anything) would you suggest?
 CHAPTER 6 EMPLOYEE TESTING AND SELECTION 207

CONTINUING CASE
HONESTY TESTING AT CARTER CLEANING COMPANY
Jennifer Carter, of the Carter Cleaning Centers, and her father According to Jack Carter, You would not believe the creativ-
have what the latter describes as an easy but hard job when it ity employees use to get around the management controls we
comes to screening job applicants. It is easy because for two set up to cut down on employee theft. As one extreme
important jobs the people who actually do the pressing and example of this felonious creativity, Jack tells the following
those who do the cleaning/spotting the applicants are easily story: To cut down on the amount of money my employees
screened with about 20 minutes of on-the-job testing. As with were stealing, I had a small sign painted and placed in front
typists, Jennifer points out, Applicants either know how to of all our cash registers. The sign said: YOUR ENTIRE
press clothes fast enough or how to use cleaning chemicals and ORDER FREE IF WE DON T GIVE YOU A CASH REGIS-
machines, or they don t, and we find out very quickly by just TER RECEIPT WHEN YOU PAY. CALL 552 0235. It was my
trying them out on the job. On the other hand, applicant intention with this sign to force all our cash-handling
screening for the stores can also be frustratingly hard because employees to give receipts so the cash register would record
of the nature of some of the other qualities that Jennifer would them for my accountants. After all, if all the cash that comes
like to screen for. Two of the most critical problems facing her in is recorded in the cash register, then we should have a
company are employee turnover and employee honesty. much better handle on stealing in our stores. Well, one
Jennifer and her father sorely need to implement practices that of our managers found a diabolical way around this. I came
will reduce the rate of employee turnover. If there is a way to do into the store one night and noticed that the cash register
this through employee testing and screening techniques, this particular manager was using just didn t look right,
Jennifer would like to know about it because of the manage- although the sign was placed in front of it. It turned out that
ment time and money that are now being wasted by the every afternoon at about 5:00 P.M. when the other employees
never-ending need to recruit and hire new employees. Of even left, this character would pull his own cash register out of a
greater concern to Jennifer and her father is the need to insti- box that he hid underneath our supplies. Customers coming
tute new practices to screen out those employees who may be in would notice the sign and, of course, the fact that he was
predisposed to steal from the company. meticulous in ringing up every sale. But unknown to them
Employee theft is an enormous problem for the Carter and us, for about 5 months the sales that came in for about
Cleaning Centers, and one that is not limited to employees an hour every day went into his cash register, not mine.
who handle the cash. For example, the cleaner/spotter and/or It took us that long to figure out where our cash for that
the presser often open the store themselves, without a manager store was going.
present, to get the day s work started, and it is not unusual to Here is what Jennifer would like you to answer:
have one or more of these people steal supplies or run a
route. Running a route means that an employee canvasses his
or her neighborhood to pick up people s clothes for cleaning Questions
and then secretly cleans and presses them in the Carter store, 1. What would be the advantages and disadvantages to
using the company s supplies, gas, and power. It would also not Jennifer s company of routinely administering honesty
be unusual for an unsupervised person (or his or her super- tests to all its employees?
visor, for that matter) to accept a 1-hour rush order for cleaning 2. Specifically, what other screening techniques could the
or laundering, quickly clean and press the item, and return it to company use to screen out theft-prone and turnover-
the customer for payment without making out a proper ticket prone employees, and how exactly could these be used?
for the item posting the sale. The money, of course, goes into 3. How should her company terminate employees caught
the worker s pocket instead of into the cash register. stealing, and what kind of procedure should be set up
The more serious problem concerns the store manager for handling reference calls about these employees when
and the counter workers who actually handle the cash. they go to other companies looking for jobs?

TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE

THE HOTEL PARIS CASE
Testing As she considered what she had to do next, Lisa Cruz,
The Hotel Paris s competitive strategy is To use superior the Hotel Paris s HR director, knew that employee selection
guest service to differentiate the Hotel Paris properties, and had to play a central role in her plans. The Hotel Paris
to thereby increase the length of stay and return rate of currently had an informal screening process in which local
guests, and thus boost revenues and profitability. HR man- hotel managers obtained application forms, interviewed
ager Lisa Cruz must now formulate functional policies and applicants, and checked their references. However, a pilot
activities that support this competitive strategy by eliciting project using an employment test for service people at the
the required employee behaviors and competencies. Chicago hotel had produced startling results. Lisa found
208 PART 2 RECRUITMENT, PLACEMENT, AND TALENT MANAGEMENT

consistent, significant relationships between test perform- looking for. It should include, at a minimum, a work sample
ance and a range of employee competencies and behaviors test for front-desk clerk candidates and a personality test aimed
such as speed of check-in/out, employee turnover, and per- at weeding out applicants who lack emotional stability.
centage of calls answered with the required greeting. Clearly,
she was onto something. She knew that employee capabili-
ties and behaviors like these translated into just the sorts of Questions
improved guest services the Hotel Paris needed to execute its 1. Provide a detailed example of the front-desk work
strategy. She therefore had to decide what selection proce- sample test.
dures would be best. 2. Provide a detailed example of two possible personality
Lisa s team, working with an industrial psychologist, wants test questions.
to design a test battery that they believe will produce the sorts 3. What other tests would you suggest to Lisa, and why
of high-morale, patient, people-oriented employees they are would you suggest them?

KEY TERMS
negligent hiring, 176 construct validity, 179 management assessment center, 191
reliability, 177 expectancy chart, 181 situational test, 192
test validity, 179 interest inventory, 189 video-based simulation, 192
criterion validity, 179 work samples, 190 miniature job training
content validity, 179 work sampling technique, 190 and evaluation, 193

ENDNOTES
1. Kevin Delaney, Google Adjusts Hiring 6. Negligent hiring highlights the need to A construct is an abstract trait such
Process as Needs Grow, The Wall Street think through what the job s human as happiness or intelligence. Construct
Journal, October 23, 2006, pp. B1, B8; requirements really are. For example, validity generally addresses the question
http://googleblog.blogspot.com/2009/ non-rapist isn t likely to appear as a of validity of measurement, in other
01/changes-to-recruiting.html, accessed required knowledge, skill, or ability in a words, of whether the test is really
March 25, 2009. job analysis of an apartment manager, measuring, say, intelligence. To prove
2. Aliah D. Wright, At Google, It Takes A but in situations like this screening for construct validity, an employer has
Village to Hire an Employee, HR Mag- such tendencies is obviously required. to prove that the test measures the
azine 56, no. 7 (2009 HR Trendbook To avoid negligent hiring claims, make construct. Federal agency guidelines make
supplement). a systematic effort to gain relevant it difficult to prove construct validity,
3. Even if they use a third party to prepare information about the applicant, verify however, and as a result few employers
an employment test, contractors are documentation, follow up on missing use this approach as part of their process
ultimately responsible for ensuring records or gaps in employment, and keep for satisfying the federal guidelines.
the tests job relatedness and EEO a detailed log of all attempts to obtain See James Ledvinka, Federal Regulation
compliance. DOL Officials Discuss information, including the names and of Personnel and Human Resource Man-
Contractors Duties on Validating Tests, dates for phone calls or other requests. agement (Boston: Kent, 1982), p. 113; and
BNA Bulletin to Management, September 4, Fay Hansen, Taking Reasonable Action Murphy and Davidshofer, Psychological
2007, p. 287. Furthermore, enforcement to Avoid Negligent Hiring Claims, Testing, pp. 154 165.
units are increasing their scrutiny of Workforce Management, September 11, 15. The procedure you would use to demon-
employers who rely on tests and screen- 2006, p. 31. strate content validity differs from that used
ing. See Litigation Increasing with 7. See for example, Jean Phillips and Stanley to demonstrate criterion validity (as des-
Employer Reliance on Tests, Screening, Gully, Strategic Staffing (Upper Saddle cribed in steps 1 through 5). Content validity
BNA Bulletin to Management, April 8, River, NJ: Pearson Education, 2012), tends to emphasize judgment. Here, you
2008, p. 119. However, see also C. Tuna pp. 234 235. first do a careful job analysis to identify the
et al., Job-Test Ruling Cheers Employers, 8. Wright, At Google, It Takes a Village work behaviors required. Then combine
The Wall Street Journal, July 1, 2009, to Hire an Employee. several samples of those behaviors into a
p. B1 2. 9. Ibid. test. A typing and computer skills test for a
4. See, for example, Ann Marie Ryan and 10. Kevin Murphy and Charles Davidshofer, clerk would be an example. The fact that the
Marja Lasek, Negligent Hiring and Psychological Testing: Principles and test is a comprehensive sample of actual,
Defamation: Areas of Liability Related Applications (Upper Saddle River, NJ: observable, on-the-job behaviors is what
to Pre-Employment Inquiries, Personnel Prentice Hall, 2001), p. 73. lends the test its content validity.
Psychology 44, no. 2 (Summer 1991), 11. Ibid., pp. 116 119. 16. www.siop.org/workplace/employment%
pp. 293 319. See also Jay Stuller, Fatal 12. W. Bruce Walsh and Nancy Betz, Tests 20testing/information_to_consider_when_
Attraction, Across the Board 42, no. 6 and Assessment (Upper Saddle River, NJ: cre.aspx, accessed March 22, 2009.
(November December 2005), pp. 18 23. Prentice Hall, 2001). 17. Murphy and Davidshofer, Psychological
5. Also see, for example, Ryan Zimmerman, 13. Murphy and Davidshofer, Psychological Testing, p. 73. See also Chad Van Iddekinge
Wal-Mart to Toughen Job Screening, Testing, p. 74. and Robert Ployhart, Developments
The Wall Street Journal, July 12, 2004, 14. A third, less-used way to demonstrate in the Criterion-Related Validation of
pp. B1 B8. a test s validity is construct validity. Selection Procedures: A Critical Review
 CHAPTER 6 EMPLOYEE TESTING AND SELECTION 209

and Recommendations for Practice, 34. Ibid. See also Alison Wolf and Andrew 45. William Wagner, All Skill, No Finesse,
Personnel Psychology 60, no. 1 (2008), Jenkins, Explaining Greater Test Use for Workforce, June 2000, pp. 108 116. See
pp. 871 925. Selection: The Role of HR Professionals also, for example, James Diefendorff and
18. Experts sometimes have to develop sepa- in a World of Expanding Regulation, Kajal Mehta, The Relations of Motiva-
rate expectancy charts and cutting points Human Resource Management Journal 16, tional Traits with Workplace Deviance,
for minorities and nonminorities if the no. 2 (2006), pp. 193 213. Journal of Applied Psychology 92, no. 4
validation studies indicate that high 35. Steffanie Wilk and Peter Capelli, Under- (2007), pp. 967 977.
performers from either group (minority standing the Determinants of Employer 46. James Spencer, Sorry, You re Nobody s
or nonminority) score lower (or higher) Use of Selection Methods, Personnel Type, The Wall Street Journal, July 30,
on the test. Psychology 56 (2003), p. 117. 2003, p. D1.
19. In employment testing, bias has a precise 36. Kevin Hart, Not Wanted: Thieves, HR 47. www.myersbriggsreports.com/?gclid=
meaning. Specifically, bias is said to exist Magazine, April 2008, p. 119. CK71m6rEh6ACFVZS2godDEjgkw,
when a test makes systematic errors in 37. Sarah Needleman, Businesses Say Theft accessed February 22, 2010.
measurement or prediction. Murphy by Their Workers Is Up, The Wall Street 48. See, for example, Joyce Hogan et al.,
and Davidshofer, Psychological Testing, Journal, December 11, 2008, p. B8. Personality Measurement, Faking, and
p. 303. 38. Sarah Gale, Three Companies Cut Employee Selection, Journal of Applied
20. Ibid., p. 305. Turnover with Tests, Workforce, Spring Psychology 92, no. 5 (2007), pp. 1270 1285;
21. Ibid., p. 308. 2002, pp. 66 69. and Colin Gill and Gerard Hodgkin-
22. Herman Aguinis, Steven Culpepper, and 39. Ed Frauenheim, Personality Tests Adapt son, Development and Validation of
Charles Pierce, Revival of Test Bias to the Times, Workforce Management, the Five Factor Model Questionnaire
Research in Preemployment Testing, February 2010, p. 4. (FFMQ): An Adjectival-Based Personal-
Journal of Applied Psychology 95, no. 4 40. Requiring job seekers to complete pre- ity Inventory for Use in Occupational
(2010), p. 648. screening questionnaires and screening Settings, Personnel Psychology 60 (2007),
23. Robert Gatewood and Hubert Feild, selected applicants out on this basis pp. 731 766.
Human Resource Selection (Mason, OH: carries legal and business consequences. 49. Timothy Judge et al., Personality and
South-Western, Cengage Learning, 2008, See, for example, Lisa Harpe, Designing Leadership: A Qualitative and Quantita-
p. 243. an Effective Employment Prescreening tive Review, Journal of Applied Psychology
24. This is based on Dave Zielinski, Effective Program, Employment Relations Today 87, no. 4 (2002), p. 765.
Assessments, HR Magazine, January 32, no. 3 (Fall 2005), pp. 41 43. 50. Ibid.
2011, pp. 61 64 41. www.iphonetypingtest.com, accessed 51. Timothy Judge and Remus Ilies, Rela-
25. The Uniform Guidelines say, Employers March 23, 2009. tionship of Personality to Performance
should ensure that tests and selection 42. Except as noted, this is based on Laurence Motivation: A Meta Analytic Review,
procedures are not adopted casually by Siegel and Irving Lane, Personnel and Orga- Journal of Applied Psychology 87, no. 4
managers who know little about these nizational Psychology (Burr Ridge, IL: (2002), pp. 797 807.
processes . . . . no test or selection proce- McGraw-Hill, 1982), pp. 170 185. See also 52. L. A. Witt et al., The Interactive Effects of
dure should be implemented without an Cabot Jaffee, Measurement of Human Conscientiousness and Agreeableness on
understanding of its effectiveness and Potential, Employment Relations Today 17, Job Performance, Journal of Applied
limitations for the organization, its no. 2 (Summer 2000), pp. 15 27; Maureen Psychology 87, no. 1 (2002), pp. 164 169.
appropriateness for a specific job, and Patterson, Overcoming the Hiring 53. Murray Barrick et al., Personality and
whether it can be appropriately adminis- Crunch; Tests Deliver Informed Choices, Job Performance: Test of the Immediate
tered and scored. Employment Relations Today 27, no. 3 Effects of Motivation Among Sales
26. Phillips and Gully, Strategic Staffing, p. 220. (Fall 2000), pp. 77 88; Kathryn Tyler, Representatives, Journal of Applied
27. Ibid., p. 220. Put Applicants Skills to the Test, Psychology 87, no. 1 (2002), p. 43.
28. www.uniformguidelines.com/qandaprint. HR Magazine, January 2000, p. 74; Murphy 54. Charles Sarchione et al., Prediction of
html, accessed August 20, 2011. and Davidshofer, Psychological Testing, Dysfunctional Job Behaviors Among Law-
29. From Ethical Principles of Psychologists pp. 215 403; Elizabeth Schoenfelt and Enforcement Officers, Journal of Applied
and Code of Conduct, American Psychol- Leslie Pedigo, A Review of Court Decisions Psychology 83, no. 6 (1998), pp. 904 912.
ogist 47 (1992), pp. 1597 1611; and http:// on Cognitive Ability Testing, 1992 2004, See also W. A. Scroggins et al., Psycholog-
www.apa.org/ethics/code/index.aspx, Review of Public Personnel Administration ical Testing in Personnel Selection, Part III:
accessed September 9, 2011. 25, no. 3 (2005), pp. 271 287. The Resurgence of Personality Testing,
30. Susan Mendelsohn and Kathryn Morrison, 43. Norman Henderson, Predicting Long- Public Personnel Management 38, no. 1
The Right to Privacy at the Work Place, Term Firefighter Performance from (Spring 2009), pp. 67 77.
Part I: Employee Searches, Personnel, July Cognitive and Physical Ability Measures, 55. Paula Caligiuri, The Big Five Personality
1988, p. 20. See also Talya Bauer et al., Personnel Psychology 60, no. 3 (2010), Characteristics as Predictors of Expatri-
Applicant Reactions to Selection: Devel- pp. 999 1039. ate Desire to Terminate the Assignment
opment of the Selection Procedural Justice 44. As an example, results of meta-analyses and Supervisor Rated Performance,
Scale, Personnel Psychology 54 (2001), in one study indicated that isometric Personnel Psychology 53 (2000), pp. 67 68.
pp. 387 419. strength tests were valid predictors of For some other examples, see Ryan
31. Mendelsohn and Morrison, The Right both supervisory ratings of physical Zimmerman, Understanding the Impact
to Privacy in the Work Place, p. 22. performance and performance on work of Personality Traits on Individuals
32. Kenneth Sovereign, Personnel Law simulations. See Barry R. Blakley, Miguel Turnover Decisions: A Meta-Analytic
(Upper Saddle River, NJ: Prentice Hall, Quinones, Marnie Swerdlin Crawford, Path Model, Personnel Psychology 60,
1999), pp. 204 206. and I. Ann Jago, The Validity of Isomet- no. 1 (2008), pp. 309 348.
33. One-Third of Job Applicants Flunked ric Strength Tests, Personnel Psychology 56. Diane Cadrain, Reassess Personality
Basic Literacy and Math Tests Last 47 (1994), pp. 247 274; and http://www. Tests After Court Case, HR Magazine 50,
Year, American Management Association military.com/military-fitness/marine- no. 9 (September 2005), p. 30.
Survey Finds, American Management Asso- corps-fitness-requirements/marine- 57. Frederick Morgeson et al., Reconsider-
ciation, www.amanet.org/press/amanews/ corps-fitness-test, accessed October 4, ing the Use of Personality Tests in
bjp2001.htm, accessed January 11, 2008. 2011. Personnel Selection Contexts, Personnel
210 PART 2 RECRUITMENT, PLACEMENT, AND TALENT MANAGEMENT

Psychology 60 (2007), p. 683, and Freder- 69. Kobi Dayan et al., Entry-Level Police 87. Laws that affect references include the
ick Morgeson et al., Are We Getting Candidate Assessment Center: An Privacy Act of 1974 (which applies only
Fooled Again? Coming to Terms with Efficient Tool or a Hammer to Kill a to federal workers), the Fair Credit
Limitations in the Use of Personality Fly? Personnel Psychology 55 (2002), Reporting Act of 1970, the Family Educa-
Tests for Personnel Selection, Personnel pp. 827 848. tion Rights and Privacy Act of 1974 (and
Psychology 60 (2007), p. 1046. 70. Weekley and Jones, Video-Based Situa- Buckley Amendment of 1974), and the
58. Robert Tett and Neil Christiansen, tional Testing, p. 26. Freedom of Information Act of 1966.
Personality Tests at the Crossroads: A 71. Ibid., p. 30. 88. For additional information, see Lawrence
Response to Morgeson, Campion, 72. Except as noted, this is based on Dave E. Dube Jr., Employment References
Dipboye, Hollenbeck, Murphy, and Zielinski, Effective Assessments, HR and the Law, Personnel Journal 65, no. 2
Schmitt, Personnel Psychology 60 (2007), Magazine, January 2011, pp. 61 64. (February 1986), pp. 87 91. See also
p. 967. See also Deniz Ones et al., 73. Robert Grossman, Made from Scratch, Mickey Veich, Uncover the Resume Ruse,
In Support of Personality Assessment HR Magazine, April 2002, pp. 44 53. Security Management, October 1994,
in Organizational Settings, Personnel 74. Coleman Peterson, Employee Retention, pp. 75 76.
Psychology 60 (2007), pp. 995 1027. The Secrets Behind Wal-Mart s Success- 89. Eileen Zimmerman, A Subtle Reference
59. See, for example, Chad Van Iddekinge, ful Hiring Policies, Human Resource Trap for Unwary Employers, Workforce,
Dan Putka, and John Campbell, Recon- Management 44, no. 1 (Spring 2005), April 2003, p. 22.
sidering Vocational Interest for Personnel pp. 85 88. See also Murray Barrick and 90. Kehr v. Consolidated Freightways of Delaware,
Selection: The Validity of an Interest- Ryan Zimmerman, Reducing Voluntary, Docket No. 86 2126, July 15, 1987, U.S.
Based Selection Testing Relation to Avoidable Turnover Through Selection, Seventh Circuit Court of Appeals. Discussed
Job Knowledge, Job Performance, Journal of Applied Psychology 90, no. 1 in Commerce Clearing House, Ideas and
and Continuance Intentions, Journal of (2005), pp. 159 166. Trends, October 16, 1987, p. 165.
Applied Psychology 96, no. 1 (2011) 75. James Breaugh, Employee Recruitment: 91. James Bell, James Castagnera, and Jane
pp. 13 33. Current Knowledge and Important Patterson Young, Employment Refer-
60. Jeff Weekley and Casey Jones, Video- Areas for Future Research, Human ences: Do You Know the Law? Person-
Based Situational Testing, Personnel Resource Management Review 18 (2008), nel Journal 63, no. 2 (February 1984),
Psychology 50 (1997), p. 25. pp. 106 107. pp. 32 36. In order to demonstrate
61. Elaine Pulakos, Selection Assessment 76. Phillips and Gully, Strategic Staffing, defamation, several elements must be pres-
Methods, SHRM Foundation, 2005, p. 14. p. 223. ent: (a) the defamatory statement must
62. However, studies suggest that blacks may 77. Internet, E-Mail Monitoring Common have been communicated to another
be somewhat less likely to do well on at Most Workplaces, BNA Bulletin to party; (b) the statement must be a false
work sample tests than are whites. See, Management, February 1, 2001, p. 34. See statement of fact; (c) injury to reputation
for example, Philip Roth, Philip Bobko, also Are Your Background Checks must have occurred; and (d) the employer
and Lynn McFarland, A Meta-Analysis Balanced? Experts Identify Concerns over must not be protected under qualified or
of Work Sample Test Validity: Updating Verifications, BNA Bulletin to Manage- absolute privilege. For a discussion, see
and Integrating Some Classic Literature, ment, May 13, 2004, p. 153. Ryan and Lasek, Negligent Hiring and
Personnel Psychology 58, no. 4 (Winter 78. Merry Mayer, Background Checks in Defamation, p. 307. See also James Burns
2005), pp. 1009 1037; and Philip Roth Focus, HR Magazine, January 2002, Jr., Employment References: Is There a
et al., Work Sample Tests in Personnel pp. 59 62; and Carroll Lachnit, Protecting Better Way? Employee Relations Law
Selection: A Meta-Analysis of Black People and Profits with Background Journal 23, no. 2 (Fall 1997), pp. 157 168.
White Differences in Overall and Exercise Checks, Workforce, February 2002, p. 52. 92. Adrienne Fox, Automated Reference
Scores, Personnel Psychology 60, no. 1 79. Matthew Heller, Special Report: Back- Checking Puts Onus on Candidates, HR
(2008), pp. 637 662. ground Checking, Workforce Manage- Magazine 66, no. 9 (2009, HR Trendbook
63. Siegel and Lane, Personnel and Organiza- ment, March 3, 2008, pp. 35 54. supplement).
tional Psychology, pp. 182 183. 80. Bill Roberts, Close-up on Screening, 93. Vetting via Internet Is Free, Generally
64. Quoted from Deborah Whetzel and HR Magazine, February 2011, pp. 23 29. Legal, but Not Necessarily Smart Hiring
Michael McDaniel, Situational Judg- 81. Seymour Adler, Verifying a Job Candi- Strategy, BNA Bulletin to Management,
ment Tests: An Overview of Current date s Background: The State of Practice February 20, 2007, pp. 57 58.
Research, Human Resource Management in a Vital Human Resources Activity, 94. Alan Finder, When a Risqué Online
Review 19 (2009), pp. 188 202. Review of Business 15, no. 2 (Winter Persona Undermines a Chance for a Job,
65. Ibid. 1993), p. 6. The New York Times, June 11, 2006, p. 1.
66. Help Wanted and Found, Fortune, 82. Heller, Special Report: Background 95. Anjali Athavaley, Job References You
October 2, 2006, p. 40. Checking, p. 35. Can t Control, The Wall Street Journal,
67. Annette Spychalski, Miguel Quinones, 83. This is based on Samuel Greengard, Have September 27, 2007, p. B1.
Barbara Gaugler, and Katja Pohley, Gangs Invaded Your Workplace? Personnel 96. Rita Zeidner, How Deep Can You
A Survey of Assessment Center Practices Journal, February 1996, pp. 47 48. Probe? HR Magazine, October 1, 2007,
in Organizations in the United States, 84. Dori Meinert, Seeing Behind the Mask, pp. 57 62.
Personnel Psychology 50, no. 1 (Spring HR Magazine 56, no. 2 (February 2011), 97. Web Searches on Applicants Are Poten-
1997), pp. 71 90. See also Winfred http://www.shrm.org/Publications/ tially Perilous for Employers, BNA
Arthur Jr. et al., A Meta Analysis of the hrmagazine/EditorialContent/2011/ Bulletin to Management, October 14,
Criterion Related Validity of Assessment 0211/Pages/0211meinert.aspx, accessed 2008, p. 335.
Center Data Dimensions, Personnel August 20, 2011. 98. See Paul Taylor et al., Dimensionality and
Psychology 56 (2003), pp. 124 154. 85. Ibid., p. 55. the Validity of a Structured Telephone
68. See, for example, John Meriac et al., 86. For example, one U.S. Court of Appeals Reference Check Procedure, Personnel
Further Evidence for the Validity of found that bad references might be grounds Psychology 57 (2004), pp. 745 772, for a
Assessment Center Dimensions: A Meta- for a suit when they are retaliations for the discussion of checking other work habits
Analysis of the Incremental Criterion- employee having previously filed an EEOC and traits.
Related Validity of Dimension Ratings, claim. Negative Reference Leads to Charge 99. Getting Applicant Information Difficult
Journal of Applied Psychology 93, no. 5 of Retaliation, BNA Bulletin to Manage- but Still Necessary, BNA Bulletin
(2008), pp. 1042 1052. ment, October 21, 2004, p. 344. to Management, February 5, 1999, p. 63.
 CHAPTER 6 EMPLOYEE TESTING AND SELECTION 211

See also Robert Howie and Laurence review concludes these tests pose little Employee Relations Today, Winter 1991
Shapiro, Pre-Employment Criminal such legal risk to employers. Christopher 1992, pp. 411 415.
Background Checks: Why Employers Berry et al., A Review of Recent Devel- 122. Ibid., p. 413.
Should Look Before They Leap, Employee opments in Integrity Test Research, 123. Richard Lisko, A Manager s Guide to
Relations Law Journal, Summer 2002, Personnel Psychology 60, no. 2 (Summer Drug Testing, Security Management 38,
pp. 63 77. 2007), pp. 271 301. no. 8 (August 1994), p. 92. See also Ran-
100. Employment Related Screening Provi- 109. These are based on Divining Integrity dall Kesselring and Jeffrey Pittman,
ders, Workforce Management, February Through Interviews, BNA Bulletin to Drug Testing Laws and Employment
16, 2009, p. 14, and Background and Management, June 4, 1987, p. 184; and Injuries, Journal of Labor Research,
Screening Providers, Workforce Man- Commerce Clearing House, Ideas and Spring 2002, pp. 293 301.
agement, February 2011, at http://www. Trends, December 29, 1998, pp. 222 223. 124. Michael A. McDaniel, Does Pre-Employ-
workforce.com/section/recruiting- See also Bridget A. Styers and Kenneth S. ment Drug Use Predict On-the-Job Suit-
staffing/feature/2011-background- Shultz, Perceived Reasonableness of ability? Personnel Psychology 41, no. 4
screening-providers, accessed August 20, Employment Testing Accommodations for (Winter 1988), pp. 717 729.
2011. Persons with Disabilities, Public Personnel 125. Exxon Corp. v. Esso Workers Union, Inc.,
101. Jeffrey M. Hahn, Pre-Employment Infor- Management 38, no. 3 (Fall 2009), pp. 71 91. CA1#96 2241, 7/8/97; discussed in BNA
mation Services: Employers Beware? 110. Bill Leonard, Reading Employees, HR Bulletin to Management, August 7, 1997,
Employee Relations Law Journal 17, no. 1 Magazine, April 1999, pp. 67 73. p. 249.
(Summer 1991), pp. 45 69. See also Pre- 111. Ibid. 126. For the form, see http://www.uscis.gov/
Employment Background Screenings Have 112. This is based on Kyle Stock, Wary files/form/i-9.pdf, accessed October 4,
Evolved, But So Have Liability Risks, BNA Investors Turn to Lie Pros, The Wall 2011.
Bulletin to Management, November 1, Street Journal, December 29, 2010, p. C3. 127. Conflicting State E-Verify Laws Troub-
2005, p. 345. 113. Mick Haus, Pre-Employment Physicals ling for Employers, BNA Bulletin to Man-
102. Under California law, applicants or and the ADA, Safety and Health, Feb- agement, November 4, 2008, p. 359.
employees must have the option of request- ruary 1992, pp. 64 65. See also Bridget A. 128. President Bush Signs Executive Order:
ing a copy of the report regardless of action. Styers and Kenneth S. Shultz, Perceived Federal Contractors Must Use E-Verify,
103. Teresa Butler Stivarius, Background Reasonableness of Employment Testing BNA Bulletin to Management, June 17,
Checks: Steps to Basic Compliance in a Accommodations for Persons with Dis- 2008, p. 193.
Multistate Environment, Society for abilities, Public Personnel Management 129. Note that the acceptable documents on
Human Resource Management Legal 38, no. 3 (Fall 2009), pp. 71 91. page 3 of the current (as of 2009, but
Report, March April 2003, pp. 1 8. 114. Scott MacDonald, Samantha Wells, and extended until 2012) I-9 form do not
104. Polygraphs are still widely used in law Richard Fry, The Limitations of Drug reflect the current list of acceptable docu-
enforcement and reportedly are quite Screening in the Workplace, Inter- ments. For this, refer to the Web site of
useful. See, for example, Laurie Cohen, national Labor Review 132, no. 1 (1993), the U.S. Department of Homeland Secu-
The Polygraph Paradox, The Wall Street p. 98. Not all agree that drug testing is rity. Margaret Fiester et al., Affirmative
Journal, March 22, 2008, p. A1. worthwhile. See for example, Veronica Action, Stock Options, I-9 Documents,
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