Chapter 6: Employee Testing and Selection

Introduction

This chapter explains how organizations select the best candidates for jobs using different
selection tools. After recruitment, employers must carefully screen applicants to choose the
most suitable employee. Proper selection improves performance, reduces costs, and avoids
legal problems.

Importance of Careful Employee Selection

Selecting the right employees is very important for three main reasons:

1. Organizational Performance

• Right employees perform better

• They contribute positively to productivity and quality of work

2. Cost of Hiring

• Hiring the wrong employee increases costs of training, supervision, and replacement

• High turnover is expensive

3. Legal Obligations

• Employers can be legally responsible for employee actions

• Poor hiring decisions can lead to lawsuits (negligent hiring)

Avoiding Negligent Hiring Claims

Negligent hiring occurs when an employer fails to check an employee’s background properly.

Steps to Avoid Negligent Hiring:

• Carefully review job applications

• Get written permission to check references

• Verify references and background information

• Keep accurate records of applicants

• Reject candidates who provide false information

• Take quick action if employee problems arise

Basic Testing Concepts

Reliability

• Reliability means consistency of test results

• A reliable test gives similar results if taken again

• Question answered: Are test results stable over time?

Validity

• Validity means the test measures what it is supposed to measure

• Question answered: Does the test actually measure job-related skills?

A test must be both reliable and valid to be useful.

Evidence-Based HR

• Tests are samples of a person’s behavior

• Employers should rely on scientific evidence

• Reliability and validity are core principles of evidence-based HR

Types of Test Validity

1. Criterion Validity

• Shows relationship between test scores and job performance

• High scorers perform well on the job

• Test score = Predictor

• Job performance = Criterion

2. Content Validity

• Test represents actual job tasks

• Tests critical job duties directly

Steps in Test Validation

1. Analyze the job (identify predictors and criteria)

2. Choose appropriate tests

3. Administer tests (predictive or concurrent)

4. Relate test scores to job performance

5. Cross-validate and revalidate with new samples

Expectancy Chart

• Shows relationship between test scores and job success

• Higher test scores usually mean higher job performance

• Helps employers predict success rate of applicants

Testing Program Guidelines

• Use tests as supplements, not replacements

• Validate all tests

• Monitor testing programs regularly

• Keep accurate records

• Use certified professionals

• Ensure proper testing conditions

• Revalidate tests periodically

Test Takers’ Rights (APA Standards)

Applicants have the right to:

• Informed consent

• Qualified interpretation of scores

• Fair testing conditions

Legal and Privacy Issues

Defamation

• False statements that damage a person’s reputation

How to Avoid Defamation:

• Train supervisors on confidentiality

• Follow a “need-to-know” policy

• Inform employees about information use

Why Employers Use Tests

Reasons:

• Increased job complexity

• Screening dishonest or unsuitable candidates

• Reduce employee turnover

Major Types of Tests:

• Basic skills tests

• Job skills tests

• Psychological tests

Computerized and Online Testing

Types:

• Online tests
 • Telephone screening

• Offline computer tests

• Virtual inbox tests

• Online problem-solving tests

Benefits:

• Faster screening

• Cost-effective

• Easy administration

What Different Tests Measure

Cognitive Ability Tests

• Measure intelligence and reasoning

• Memory, logic, problem-solving

Motor and Physical Ability Tests

• Finger dexterity

• Reaction time

• Physical strength

Personality and Interest Tests

• Measure traits like motivation and stability

• Identify job-personality fit

Achievement Tests

• Measure learned knowledge

• Example: school exams

The Big Five Personality Traits

1. Extraversion
 2. Emotional Stability (Neuroticism)

3. Agreeableness

4. Openness to Experience

5. Conscientiousness

Work Samples and Simulations

Work Samples

• Candidates perform job-related tasks

• Measure actual job performance

Simulations Include:

• Group discussions

• In-basket exercises

• Case studies

• Presentations

• Panel interviews

Video-Based Situational Tests

• Candidates watch job-related scenarios

• Choose best response to situations

Assessment Centers

• Use multiple evaluation techniques

• Highly job-related

• Expensive but effective

Background Investigations

Purpose:
 • Verify applicant information

• Identify potential risks

Types of Checks:

• Employment history

• Criminal records

• Credit checks

• Driving records

• Reference checks

• Social media screening

Limitations of Background Checks

• Legal restrictions

• Privacy concerns

• Risk of defamation

• Supervisor reluctance to give references

Making Background Checks Effective

• Get written authorization

• Use phone references

• Be persistent

• Compare résumé and application

• Ask open-ended questions

• Seek additional references

Fair Credit Reporting Act (FCRA)

Employers must:
 1. Disclose background check use

2. Get applicant authorization

3. Provide report copies

4. Give notice of adverse action

Polygraph and Honesty Testing

Employee Polygraph Protection Act (1988)

• Polygraph tests are mostly prohibited

• Allowed only in special situations

Exceptions:

• Security employees

• Drug handlers

• Economic loss investigations

Honesty Testing Methods

• Ask direct questions

• Check credit history

• Verify references

• Use paper-and-pencil honesty tests

• Conduct drug testing

• Establish search policies

Graphology (Handwriting Analysis)

• Used to analyze personality traits

• Scientific validity is weak

• Not widely accepted

Purpose:

• Confirm physical ability

• Identify medical limitations

• Create health baseline

• Reduce accidents and absenteeism

Allowed after job offer under ADA rules

Substance Abuse Screening

When Conducted:

• Before hiring

• After accidents

• Random testing

• Promotions or transfers

Types of Tests:

• Urinalysis

• Hair follicle testing

Applicant Tracking Systems (ATS)

Benefits:

• Automatically screens applicants

• Eliminates unqualified candidates

• Matches skills with jobs

• Tracks hiring metrics

Features of a Good ATS:

• Integrates with HRIS

• Tracks EEO data

• Provides hiring reports

• Schedules interviews

• Screens and ranks applicants

Key Terms

• Reliability

• Test validity

• Criterion validity

• Content validity

• Expectancy chart

• Work samples

• Assessment center

• Situational test

• Video-based simulation

• Miniature job training and evaluation

Conclusion

Employee testing and selection is a critical HR function. Proper use of reliable, valid, and fair
selection tools helps organizations hire the right people, improve performance, reduce costs,
and stay legally compliant.