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1 The Fastest Way to Improve Your Hiring Decisions Hiring the right candidate is important. Every new hire can make a department better or worse. And while most hiring managers can spot a good candidate, sometimes a bad hire slips through the cracks, hurting sales, productivity and team morale. Additionally, bad hires are expensive. Almost one third of U.S. employers reported that one bad hire cost their organization more than $50,000. This average was consistent in China, the U.K., India, Germany, Japan and Russia. To avoid a bad hire, leading companies use pre-employment tests. Inserting pre-employment tests into your hiring process is the fastest way to avoid hiring the wrong person for the job. Pre-employment tests give hiring managers the information they need to avoid bad hires and spend more time with people who will make their department better. There are several types of pre-employment tests available today. Pre-employment tests have been used by strategic organizations for over 70 years. Different types of tests are available today, each providing their own unique benefits to employers. To determine which test is right for your organization, it’s important to understand the types of tests available. Cognitive Ability Tests Cognitive ability tests measure a job applicant’s ability to analyze information, solve problems, understand details, and communicate ideas. 27 percent of U.S. employers reported a bad hire costs their company more than $50,000. -Career Builder Survey Pre-employment tests give hiring managers the information they need to avoid bad hires and spend more time with people who will make their department better.

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Page 1: The Fastest Way to Improve Your Hiring Decisions - Amazon S3 · 1 The Fastest Way to Improve Your Hiring Decisions Hiring the right candidate is important. Every new hire can make

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The Fastest Way to Improve Your Hiring Decisions

Hiring the right candidate is important. Every new hire can make a department better or worse. And while most hiring managers can spot a good candidate, sometimes a bad hire slips through the cracks, hurting sales, productivity and team morale. Additionally, bad hires are expensive. Almost one third of U.S. employers reported that one bad hire cost their organization more than $50,000. This average was consistent in China, the U.K., India, Germany, Japan and Russia. To avoid a bad hire, leading companies use pre-employment tests. Inserting pre-employment tests into your hiring process is the fastest way to avoid hiring the wrong person for the job. Pre-employment tests give hiring managers the information they need to avoid bad hires and spend more time with people who will make their department better.

There are several types of pre-employment tests available today. Pre-employment tests have been used by strategic organizations for over 70 years. Different types of tests are available today, each providing their own unique benefits to employers. To determine which test is right for your organization, it’s important to understand the types of tests available.

Cognitive Ability Tests Cognitive ability tests measure a job applicant’s ability to analyze information, solve problems, understand details, and communicate ideas.

27 percent of U.S. employers reported a bad hire costs their company more than $50,000. -Career Builder Survey

Pre-employment tests give hiring

managers the information they

need to avoid bad hires and

spend more time with people

who will make their department

better.

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The Benefits

High scores on cognitive ability tests are the best predictors of a successful hire. Cognitive ability predicts success across fields, including mechanical, clerical, electronic, and general positions. The tests are an even higher predictor of success in complex roles, such as analysts or managers.

Candidates who score well on cognitive ability tests generally learn faster and are better at solving problems. High scoring candidates typically complete their training successfully and are reported to have better job performance from managers.

Personality Tests Personality tests measure a job applicant’s competitiveness, corporate citizenship, work attitude and other interests and motivations.

The Benefits

While not as predictive as cognitive ability tests, personality tests have demonstrated that they can help identify individuals who can be successful in the job role. By understanding what personality traits correlate with success on the job, companies save money hiring candidates that are strong in those areas.

Biographical Data Tests Biographical items measure a candidate’s past work performance, including tenure, employer feedback, education and other factors used to predict success on the job.

The Benefits Past behavior is one of the best predictors of future behavior. Collecting information on how candidates have performed in the past has been shown to help employers decrease turnover and hire better performers.

Job Knowledge Tests Job knowledge tests use multiple choice, hot-spot, fill-in-the-blank, or essay items to evaluate a candidate’s working knowledge of topics relevant to the job role. For example, a test for a Java developer would have items that require a test-taker identify problems with a set of code.

The Benefits Candidates who score high on job knowledge pre-employment tests

Figure 1. Cognitive Testing validity across industries.

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Cognitive Ability is a Better Predictor of Job Performance

Cognitive Test Validity

Traditional Job Interview

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typically require less training time. Because they have already demonstrated understanding of tasks in the job role, they can begin working effectively sooner than candidates who require time to learn the material.

Work Samples and Simulations Tests Work Samples and Simulations require the candidate to perform activities that are similar to activities that would be completed on the job. For example, a test-taker might have to respond to a customer complaint, analyze customer feedback emails, or measure an object. Benefits

Work samples are engaging and provide insight into an applicant’s ability to complete a job. Candidates feel comfortable with these tests, because the test content relationship to the job role is immediately obvious. So, the simulations are face valid. Additionally, they provide the candidate an opportunity to determine whether they would like the job, and test administrators can evaluate whether a candidate can perform the work.

How to Choose the Right Test. There are different types of tests on the market and an abundance of test providers, so choosing the right test for selecting job candidates can be challenging. Ultimately, the more information you have about a person, the better your decision should be. For example, if you administer a cognitive test to your applicant, and your applicant performs well, you can predict with confidence that the applicant will be a smart employee. If, in addition to the cognitive test, you administer a personality test, and your applicant performs well, you can predict with even more confidence that the applicant will be a good employee. So, it’s important to choose a test that will provide enough information about a candidate to help make an informed decision. In addition to being comprehensive, the test needs to be valid, reliable, and fair in order to maintain a positive company and minimize potential employment-law liability.

1%

13%

86%

Simulation Engagement Compared to Other Tests

LessEngaging

SimilarlyEngaging

MoreEngaging

Figure 2. Test takers report HR Avatar animated assessments are more engaging than other tests. Source: HR Avatar Test Taker Survey Results

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Valid Valid means that the test measures what it says it is going to measure. For example, if you are testing a candidate for a bank teller position, you might think it is appropriate to administer a math test. However, if people who score well on the math test perform poorly in the role, the test is not a valid predictor of a successful candidate. Alternatively, if you administer a test that measures Attention to Detail and find that bank tellers who perform well on the test also perform well in the role, and bank tellers who score low on the test demonstrate lower proficiency, the test is valid. It’s important to note that being a valid test in general does not mean it is a valid test for employment selection. For example, the Myers Briggs Personality assessment is a very popular test that people use to determine their personality. Studies demonstrate the tool does evaluate a person’s personality. However, the test has not been validated to measure how well the results predict success in a job role. Dr. David Pittenger writes that there is, “no evidence to show a positive relation between MBTI type and success within an occupation.” So, much like in the math analogy, the test must be valid for the job role. Reliable Reliable means that the test performs consistently. Much like a ruler is reliable because it measures size with the same scale every time, a test should be reliable in how it measures candidates. If a candidate takes the test on Monday and then takes the test again on Friday, the candidate should receive a similar score.

Fair

Fair means that the test does not discriminate against a particular group. For example, if minorities consistently score poorly on a test, and the test does not relate to successful job performance, that test is not fair. Additionally, test-takers should be able to complete the test, comfortably. Test instructions should not be designed to confound a test-taker. Rather, tests instructions and test items should be clear. Clarity in the testing process is also good for the company. The hiring process does affect an organization’s image, so when selecting a test, it’s important to choose a test that reflects well on the company’s brand.

Figure 3. By testing more traits, hiring managers can get closer to a whole-person evaluation.

Cognitive

Personality

Behavior

Knowledge

Every test provides more information.

While most executives feel that up

to 30% of their workforce

performs below an acceptable

level, the majority of hiring

managers still rely more on their

“gut” rather than data when

making hiring decisions.

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HR Avatar Makes Choosing the Right Test Easy. HR Avatar tests are valid, reliable and fair because each test specifically measures traits that have been proven to demonstrate success in the job. The animated assessments use state of the art science and technology for one purpose: to help improve hiring decisions. HR Avatar tests allow hiring managers to use testing best practices - including cognitive tests and simulations - that were previously too expensive and time consuming for most companies to develop and administer. Each HR Avatar assessment is designed for a specific job, such as Retail Sales Representative or Manufacturer's Sales Representative. There are currently tests for over 200 popular job titles, making it easy to select the right one. The content of the tests is based on decades of research embodied in the U.S. government's O*Net data set, which outlines which traits are most important for success on the job. Each HR Avatar test aligns with an O*Net occupational code and measures a candidate’s cognitive ability, personality, past behavior, and applicable job knowledge to predict how well the candidate would perform in a job role. So, test administrators simply have to pick the test for the job position. For example, if they are hiring a Sales Representative for Services work, a company would select the Sales Representative – Services test.

HR Avatar Financial Analyst Simulation – Determine client needs

To select the right HR Avatar assessment, managers simply have to type in the name of the job to find the test specifically designed for that job.

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How the Tests Work. Test takers begin each assessment with a simulation. The simulation immediately engages candidates, because they realize this is not going to be another abstract text-based test. Rather, candidates see the applicability of the test to the job role - right away. After the simulation, candidates complete questionnaires about their personality and history. Candidates also complete job knowledge tests that are relevant to the position. HR Avatar tests are committed to a positive candidate experience. This commitment means that the content is engaging, and the interface is easy-to-use for candidates and test administrators. In addition to using simulations and designs that are visually engaging, the tests work on any device with an internet connection. Most test providers who offer simulations are limited to Flash, which does not work on mobile devices. Because HR Avatar assessments are HTML5 and Flash ready, they can be taken on desktops, laptops, tablets and mobile devices with an internet connection. Candidates complete the test using the device they prefer. Detailed Report

After 40 minutes of testing, the test is complete. The HR Avatar system emails a detailed job report that reflects a candidate’s ability to perform the job to the test administrator. Candidates feel like they have taken a fair, fun assessment that is related to the job. And managers have the information they need about a candidate to make a well-informed decision for the next step. While legacy assessments provide information about only one or two candidate traits, HR Avatar reports provide a comprehensive review of the candidate. The test report provides information on all of these areas, and based on evidence f or what scores correlate with a good performance in the job, makes a recommendation to bring the candidate in for an interview. The report even includes a helpful interview guide with smart probing questions to help hiring managers investigate specific competencies more objectively.

HR Avatar Retail Salesperson: Simulation - Resolve a Customer Concern

HR Avatar assessments use job-

simulations and modern assessment

science to make it easier for managers

make more objective hiring decisions.

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Test Results

HR Avatar Employment Tests make it easy for hiring managers to make more objective hiring decisions using modernized employment assessments to evaluate job applicants.

Make Data-Driven Hiring Decisions

Statistically, candidates who score well tend to perform better in the job. The one-page report (right) provides an overall score and the details for the competencies that matter most for the specific job you need to fill.

What it includes: An overall job fit score

Competency scores

Description of each important trait

Competency match for the job

Percentile comparison to other test-takers

Interview questions to understand questionable scores

Interview question anchors to identify the good responses.

Writing samples that were collected during the test

Note space for follow-up questions and interview notes.

Download a sample report: www.hravatar.com/report

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Sources: Cautious Hiring to Continue in the New Year, According to CareerBuilder's Annual Job Forecast - CareerBuilder. (2013, May 8). Retrieved October 12, 2014, from http://www.careerbuilder.com/share/aboutus/pressreleasesdetail.aspx?sd=5/8/2013&siteid=cbpr&sc_cmp1=cb_pr757_&id=pr757&ed=12/31/2013 Hunter, J. (1986). Cognitive Ability, Cognitive Aptitudes, Job Knowledge, And Job Performance. Journal of Vocational Behavior, 340-362. McDaniel, M., Whetzel, D., Schmidt, F., & Maurer, S. (n.d.). The Validity Of Employment Interviews: A Comprehensive Review And Meta-analysis. Journal of Applied Psychology, 599-616. Types of Employment Tests. (n.d.). Retrieved October 15, 2014, from http://www.siop.org/workplace/employment testing/testtypes.aspx Pittenger, D. (1993). Measuring the MBTI... And Coming Up Short. Journal of Career Planning & Placement, Fall 1993. Stromberg, J. (2014, July 15). Why the Myers-Briggs test is totally meaningless. Retrieved October 15, 2014, from http://www.vox.com/2014/7/15/5881947/myers-briggs-personality-test-meaningless Understanding Test Quality-Concepts of Reliability and Validity. (1999, January 1). Retrieved October 10, 2014, from http://www.hr-guide.com/data/G362.htm

About HR Avatar: HR Avatar provides affordable, online job-simulation assessments for over 200 jobs that help hiring managers make more objective hiring decisions. Learn more :

https://www.hravatar.com [email protected] +1 (703) 349-3070

Free trial: www.hravatar.com/trial